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Power Metal Resources #POW – Director Dealings

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company was notified that today Paul Johnson, Chief Executive Officer of the Company, purchased on market  1,000,000 ordinary shares of 0.1 pence each in the Company at a price of 1.78p per Ordinary Share through his Self-Invested Personal Pension (“SIPP”) (£17,800 invested). 

Following the above purchase Mr Johnson has a beneficial interest in a total of 61,500,000 Ordinary Shares, representing approximately 7.12% of the issued share capital of the Company.

PDMR Disclosure

The notifications below, made in accordance with the requirements of the EU Market Abuse Regulation, provide further detail on the director’s share dealing.

View TR1 here

Power Metal Resources plc was also notified today of the following Director Dealings.

Paul Johnson, Chief Executive Officer of the Company, today transferred 6,250,000 ordinary shares of 0.1 pence each in the Company to his wife Michelle Louise Johnson, at nil consideration.

Following the above inter-spousal transfer Mr Johnson’s beneficial interest in the Company is unchanged at a total of 61,500,000 Ordinary Shares, representing approximately 7.12% of the issued share capital of the Company.

Andrew Bell, Chairman of the Company, today transferred 4,210,526 ordinary shares of 0.1 pence each in the Company to his wife Margaret Stephanie Bell, at nil consideration.

Following the above inter-spousal transfer Mr Bell’s beneficial interest in the Company is unchanged at a total of 22,282,403 Ordinary Shares, representing approximately 2.58% of the issued share capital of the Company.

View TR1’s here

**Ends**

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement. 

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including precious metals exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

Blencowe Resources #BRES – Block Listing Application & Issue of Equity

The Company provides notification that an application has been made to the FCA and the London Stock Exchange for a block listing totalling 7,500,000  ordinary shares of 0.5 pence each to be admitted to the Official List and to trading on the London Stock Exchange.

Up to 7,500,000 ordinary shares will be issued from time to time to satisfy the exercise of a portion of the outstanding equity warrants in the Company.  When issued, these ordinary shares  shall rank pari passu in all respects with the existing issued ordinary shares of the Company.

It is expected that admission of the Block Listing Shares will become effective on 1 December 2020. Following the admission, the exercise of equity warrants will be covered by a block listing. The Company will provide updates regarding the total number of shares in issue and the number of warrants outstanding at the end of each six month period and at such other times as required by the Listing Rules.

Also, the Company announces that a project contractor has elected to be paid in shares, rather than cash, in lieu of fees payable. Accordingly, the Company will issue a total of 1,540,984 new ordinary shares in the Company at a price of 6.1p per share (being the closing price as at 24 November 2020). An application has been made for the Contractor Shares to be admitted to trading on the London Stock Exchange with effect from 8.00 a.m. on 2 December 2020.

In accordance with the FCA’s Disclosure Guidance and Transparency Rules, the Company confirms that following the issue of the Contractor Shares, the Company’s enlarged issued ordinary share capital will comprise 104,964,116 Ordinary Shares. The Company does not hold any Ordinary Shares in Treasury. Therefore, following Admission, the above figure may be used by shareholders in the Company as the denominator for the calculations to determine if they are required to notify their interest in, or a change to their interest in the Company, under the FCA’s Disclosure Guidance and Transparency Rules.

 

For further information please contact:

Blencowe Resources Plc

Sam Quinn (London Director)

www.blencoweresourcesplc.com

Tel: +44 (0)1624 681 250

info@blencoweresourcesplc.com

Brandon Hill Capital Limited

Jonathan Evans (Corporate Finance)

Tel: +44 (0)20 3463 5000

jonathan.evans@brandonhillcapital.com

Background

Orom-Cross is a potential world class graphite project both by size and end-product quality, with a high component of larger flakes identified from previous work performed. A 21-year Mining Licence was issued by the Ugandan Government in 2019 following extensive historical work on the deposit.

Orom-Cross presents as a large, shallow open pitable deposit, with an estimated resource in excess of 3 billion tonnes of graphite. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.

The Sun – COVID-19: UK scientists to infect volunteers with coronavirus in world first vaccine trial

Would you lock yourself in a room for two weeks after being infected with COVID-19? Chris Holdsworth did, and he hopes that come January that’s exactly what he’ll be doing. Chris has volunteered to be a guinea pig for a world-first study that could take place in the UK in January. It’s called a Human Challenge Trial, and it involves shutting healthy volunteers in an isolation unit like this one and deliberately infecting them with coronavirus. The Sun went inside a Human Challenge Trial isolation unit to find out more. Thanks to https://www.1daysooner.org/ 

Money Guide interview ECR Minerals #ECR CEO Craig Brown

ECR Minerals #ECR CEO Craig Brown is interviewed by Money Guide. In the interview Craig discusses:

  • ECR now owns its own diamond drilling rig that can drill as deep as 1300 metres.
  • Tambo Gold Project, easy access, low costs. Principal geologist and Bruthen local boy Dr Rod Boucher is currently out conducting fieldwork
  • There are currently two parties interested in the Creswick project. One party is undertaking due diligence, although as Craig explains the progress has been hampered by the Victoria lockdown quarantine measures.
  • Drilling will shortly commence at the Bailieston project. This is located close to the Fosterville Gold mine, which has v low operating costs, producing 500,000oz a year and is ‘printing money’. Craig says that some ‘big players’ have moved into the region recently, and one is interested in Bailieston (HR3, Blue Moon, Cherry Tree).
  • ECR is very undervalued vs. peers – Craig looks at Fosterville South (TSX-FSX), which acquired ECR’s Avoca, Timor & Moormbool licenses earlier this year. The company currently has a value some 12 times that of ECR, and while the Golden Mountain project is progressing, Craig argues that ECR has ‘better projects’.

Power Metal Resources #POW – Silver Peak Exploration Update

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to  announce an exploration update from the Silver Peak silver project in British Columbia, Canada.

 

CHIEF EXECUTIVE OFFICER’S STATEMENT

Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:

“In what continues to be a highly active period at Power Metal Resources, I am pleased to announce the safe completion of a revised drill and sampling programme at the Silver Peak Project notwithstanding very challenging operating conditions as described below.

Our summer due diligence review at Silver Peak clearly highlighted the Project’s potential, as validated by bonanza grade silver (including channel samples yielding up to 14,937 g/t Ag) and significant copper and lead we identified from our summer due diligence channel sampling programme.

We wanted to follow up expeditiously with further work before the weather window closed, gathering additional information to aid preparation for the Project’s next stage of development. To do this we have worked closely with our partners to adapt very rapidly to changeable weather forecasts.

I would like to thank the exploration team for persevering despite the stormy conditions, followed up by snowfall, the heaviness of the latter bringing the work programme to an early conclusion. 

The additional work undertaken by the team has added to our geological understanding of the silver mineralisation and we have secured samples which have now been delivered to the laboratory for assay testing.

Given the highly positive project data, reinforced by exploration to date, we are working closely with our partners to determine next steps for Silver Peak, from both exploration and corporate perspectives. There is palpable demand for high grade silver projects in the market at present.”

SUMMARY OF REVISED DRILL AND SAMPLING PROGRAMME

  • The team undertook a rock chip sampling programme at the Project and despite challenging weather conditions completed six diamond drill holes utilising man-portable drilling equipment to an average depth of 12 feet per hole.
  • Forecast heavy snowfall, resulted in an early cessation of the programme and the team safely left the site, with all equipment and samples collected, before the snows fell.
  • In total 10 diamond core samples   were prepared for testing from the 6 holes drilled and 11 rock chip samples have been prepared from the field work and all samples have been delivered to ALS laboratory in North Vancouver, British Columbia for assay testing.
  • During the programme vital information was collated on the nature of the bifurcating vein system across different levels of the system.  This information will be utilised to develop future project exploration programmes.

EVENTS LEADING INTO THE REVISED PROGRAMME

  • On 22 October 2020 Power Metal announced the signing of the drilling contract for an initial 500m confirmatory diamond core drill programme to test the Victoria Vein at the Silver Peak Project. The Project includes the Eureka-Victoria Silver Mine, the first Crown-granted mineral property in British Columbia.
  • On 30 October 2020 Power Metal announced that the drilling contractor had mobilised the drilling rig, bulldozer and ancillary equipment from northern British Columbia to the local town of Hope where the Silver Peak Project is based and then the planned movement of the drilling rig and support equipment from Hope up the valley, on the upgraded access, to the project and the first drilling pad.
  • The mobilisation was attempted but the area had experienced significant poor weather which caused a degradation in conditions at the project and limited access to the property.  Some of the impacts were dealt with, including the removal of fallen trees, however given the size of the rig and supporting equipment and the conditions encountered it was not considered safe to proceed with the original plan of moving the larger rig up onto the drilling pad.
  • As announced on 10 November 2020 rather than not proceeding and delaying the drill programme entirely Power Metal’s local partners secured smaller man-portable drill equipment and this, together with associated support equipment was installed at the Project and the team commenced drilling.
  • The local team were aiming to drill test at least twenty vein intersections, with hole depths of circa 6m/20 feet (120m of drilling overall) in a 6 to 8-day programme dependent particularly on weather conditions in the Project area.
  • Given the depreciation in local weather, conditions for drilling worsened, and 6 holes were completed to around 60% of planned depth.  Working time on-site was reallocated to the collection of rock chip samples from accessible veins and assessment of the property to gather additional geological information.
  • The team safely left the site due to a forecast of heavy snowfall, with all equipment and rock samples.  The site was subsequently covered in significant snow.

PROJECT BACKGROUND AND EARLIER DUE DILIGENCE PROGRAMME FINDINGS

Background

On 14 September 2020 the Company announced the exercise of an option agreement announced 17 August 2020 (the “Option Agreement”) in respect of the Silver Peak Project, gaining the right to earn-in to a 30% interest in the Project.

Prior to option exercise the Company undertook a due diligence exploration programme including sampling at the Project to gather further information and to assist the Company in its assessment of project prospectivity and potential.

The assay results from the due diligence channel sampling were reported on the 22 September 2020 and are set out in Table 1 below:

Table 1: Summary of assay results for samples taken during Power Metal Due Diligence sampling on Victoria Vein, Silver Peak Project

ALS Global Analytical Method

Ag-GRA22

Ag-CON01

Cu-OG46

Pb-OG46

Sample ID

Channel Sample Length

(m)

Ag

(ppm)

Ag

(ppm)#

Cu

(%)*

Pb

(%)*

SP20-001

0.50

>10,000

10,718

2.14

2.99

SP20-002

0.50

6,010

1.71

2.87

SP20-003

0.50

7,530

1.57

2.07

SP20-004

0.60

5,540

1.38

SP20-005

0.70

7,880

1.94

3.16

SP20-006

0.50

>10,000

14,937

3.05

11.95

SP20-007

0.80

5,330

1.26

SP20-008

0.55

1,595

1.78

SP20-009

0.45

4,110

SP20-010

0.65

1,755

1.71

SP20-011

N/A Grab sample

660

* Cu and Pb results rounded to two decimal places. 

# Two over limit silver samples were analysed >10,000 ppm Ag by method Ag-GRA22 were reanalysed using method Ag-CON01.

Project Overview

The Silver Peak Project consists of a portfolio of mineral claims (the “claims”) over a system of high grade, intrusion related, polymetallic Ag-Pb-Zn-Cu veins, part of the historical Eureka-Victoria Silver Mine, at Silver Peak in southern British Columbia, Canada.

Earlier Due Diligence Exploration Programme

The due diligence work programme previously conducted by Power Metal included various elements including channel sampling at close intervals perpendicular to the existing known high-grade veins and grab samples from a main target area between the lower elevations and the Victoria Adit.

The work also included enhancement of road accessibility to the exploration area, and the collation of detailed photographic and video evidence of the project area for cross referencing to existing project technical information.

A portable X-ray fluorescence analyser (“pXRF”) was utilised to provide in-field, geochemical analyses, in conjunction with confirmatory laboratory assay testing where appropriate.

The due diligence work programme cost totalled C$25,000 (£14,512) and the amount expended will be deducted from Power Metal’s 12 month Project exploration spend commitment of C$250,000.

 

 

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.

 

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including precious metal exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

Open Orphan #ORPH – Directors Change

Open Orphan plc (ORPH), a rapidly growing specialist CRO pharmaceutical services company which is the world leader in the testing of vaccines and antivirals using human challenge clinical trials is pleased to announce the appointment of Elaine Sullivan as a Non-Executive Director to the Board of Open Orphan.

Elaine is a business leader and senior scientist with international experience in the pharmaceutical industry and Biotech and is the CEO of Curadh Pharmaceuticals. Elaine has an in-depth background and knowledge of virology having received a PhD from the University of Edinburgh in Molecular Virology. She has been a member of the most senior R&D management teams in Lilly and AstraZeneca. Elaine also has extensive start-up experience having been a founder of Carrick Therapeutics and helped to raise over €100m of investor funds as CEO of Carrick in recent years. Elaine is a Non-Executive Director at IP Group plc and Active Biotech AB and is a member of the Supervisory Board at Evotec which is listed on the Frankfurt Stock Exchange.

The Company also announces that Mark Warne, Non-Executive Director, will be stepping down from the Board of Open Orphan on the 31st of December. Mark had been on the Board of hVIVO plc prior to its acquisition by Open Orphan and assisted with the integration of hVIVO with the Open Orphan group.

Cathal Friel, Executive Chairman, Open Orphan, said:

“We are delighted to announce the appointment of Elaine to the Open Orphan board. Her level of expertise in virology alongside her exceptional career in the industry will be an excellent addition to the Company. We look forward to working closely with Elaine who brings with her a wealth of knowledge and experience and will be invaluable addition to the Company as we now grow Open Orphan substantially in its next phase of rapid development.”  

“We would like to thank Mark Warne for his service to the Company and for remaining on the Board to allow for a smooth integration of the companies during the transition period following the acquisition of hVIVO.”

Elaine Sullivan, Incoming Non-Executive Director, Open Orphan, said:

“I am delighted to join the board of Open Orphan. I have been impressed by the outstanding

 progress that Cathal Friel, the Board and the team have made in such a short time. I look forward to working with them in the next stage of the evolution of Open Orphan.”

For further information please contact

Open Orphan plc

+353 (0)1 644 0007

Cathal Friel, Executive Chairman

Arden Partners plc (Nominated Adviser and Joint Broker)

+44 (0)20 7614 5900

John Llewellyn-Lloyd / Benjamin Cryer / Dan Gee-Summons

finnCap plc (Joint Broker)

+44 (0) 20 7220 500

Geoff Nash / James Thompson/ Richard Chambers

Davy (Euronext Growth Adviser and Joint Broker)

+353 (0)1 679 6363

Anthony Farrell

Camarco (Financial PR)

+44 (0)20 3757 4980

Tom Huddart / Hugo Liddy

 

Full Name: Elaine Sullivan (née McGlynn)

Age: 59

Current directorships / partnerships

Directorships / partnerships within the last five years

Active Biotech AB

Carrick Therapeutics UK Limited

Curadh Pharmaceuticals Limited

Evotec AG

IP Group plc

Dargle Therapeutics Limited

 

Elaine Sullivan does not hold any shares or options over shares in the Company.

There is no further information to be disclosed in relation to Elaine Sullivan’s appointment pursuant to AIM Rule 17, paragraph (g) of Schedule Two of the AIM Rules for Companies or Rule 5.22 (b), Schedule 2 paragraph (g) of Chapter 5: Additional Rules for the Euronext Growth Market operated by Euronext Dublin.

Notes to Editors – Open Orphan:

Open Orphan is a rapidly growing niche CRO pharmaceutical services company which is the world leader in the testing of vaccines and antivirals through the use of human challenge clinical trials. Conducted from Europe’s only 24-bedroom quarantine clinic with onsite virology providing individually isolated rooms and connected to our specialist laboratory facility. hVIVO’s challenge studies require healthy volunteers to take part, volunteers are recruited through FluCamp, learn more at www.FluCamp.com . The hVIVO facility offers highly specialised virology and immunology laboratory services to support pre-clinical and clinical respiratory drug, antiviral, and vaccine discovery and development.  Reliable laboratory analysis underpinned by scientific expertise is essential when processing and analysing clinical samples. Robust quality processes support our team of scientists in the delivery of submission ready data.

The Company has a leading portfolio of 8 viral challenge study models which are: 2 FLU, 2 RSV, 1 HRV, 1 Asthma, 1 cough and 1 COPD viral challenge models. As announced in early March, Open Orphan is rapidly advancing a number of Coronavirus challenge study models and expects to be helping many COVID-19 vaccine development companies to test their vaccines. No other company in the world has such a portfolio, with only two competitors globally having 1 challenge study model each. hVIVO also works with companies in the UK and Ireland to provide COVID-19 testing to staff to protect staff and customers from a workplace COVID-19 outbreak through its COVID Clear offering.  

Open Orphan comprises of two commercial specialist CRO services businesses, hVIVO     and   Venn Life Sciences and is also building out a valuable data platform business. hVIVO has built up one of the world’s largest databases of infectious disease progression data and we are populating our Open Orphan Health Data platform with this historical hVIVO data. In our clinical trials going forward, we are also planning to collect data on volunteer’s via wearables during clinical trials. Therefore, Open Orphan’s data, which may yield valuable digital biomarkers, could be one of the more sought-after datasets by many of the large wearables /smart watch wearables providers around the world. In June 2019, Open Orphan acquired AIM-listed Venn Life Sciences Holdings plc in a reverse take-over and in January 2020 it completed the merger with hVIVO plc in January 2020. Venn is an integrated drug development consultancy firm which offers CMC (chemistry, manufacturing and controls), preclinical, Phase I & II clinical trials design and execution. The merger with hVIVO created a European full pharma services company broadening the Company’s customer base and with complementary specialist CRO services, widened the range of the Company’s service offerings.

Power Metal Resources #POW Raises £26,250 Following Exercise of Warrants

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce it has received a notice to exercise warrants over 3,750,000 new ordinary shares of 0.1 pence each in the Company.

The Warrant Shares are being issued pursuant to the exercise of 3,750,000 warrants at an exercise price of 0.7 pence per ordinary share of 0.1 pence each in the Company.

Subscription monies of £26,250 have been received by Power Metal in respect of this exercise.

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 3,750,000 Warrant Shares to be admitted to trading on AIM which is expected to occur on or around 30 November 2020 (“Admission”). The Warrant Shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.

Following Admission, the Company’s issued share capital will comprise 867,859,942 ordinary shares of 0.1p each. This number will represent the total voting rights in the Company, and may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules.

For further information please visit    https://www.powermetalresources.com/     or contact:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

 

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

 

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

 

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including precious metal exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

Alan Green talks Synairgen #SNG, OnTheMarket #OTMP, ECR Minerals #ECR & Blencowe Resources #BRES on the Vox Markets podcast

Alan Green discusses Synairgen #SNG, OnTheMarket #OTMP, ECR Minerals #ECR & Blencowe Resources #BRES with Justin Waite on the Vox Markets podcast. Interview is 14 minutes in.

USD28tn COVID bill keeps the Gold bull case intact for ECR Minerals #ECR and the new Victoria Gold rush.

In October 2020 IMF economic counselor *Gita Gopinath described coronavirus as the worst crisis since the Great Depression, adding that the pandemic would leave deep and enduring scars from job losses, weaker investment and children being deprived of education.

In its flagship world economic outlook, the IMF said stronger than expected Q2 and Q3 performances would see global output fall by 4.4% in 2020 compared with the 5.2% drop forecast during the summer.

The groundbreaking news of a vaccine with high efficacy rates from both Pfizer and Moderna triggered strong rallies in global stock markets, and while this led to a downward correction in the gold price, most market analysts remained bullish on gold over the longer term.

US Investment Group Energy & Capital are of the view that gold remains in a bull market super cycle. Energy & Capital editor, Gold bug, and investment analyst Luke Burgess said “The historic gold run of 2011 actually began in 2001, when gold was trading around $300 per ounce.”

“The same exact gold super-cycle happened in 1971–1980, when gold ran from $50 per ounce to almost $700,” Burgess added. “The value of the U.S. dollar is being weakened every day and there is nothing that the Federal Reserve or politicians can do to stop it. This will continue to have a tremendous effect on gold prices and the gold market in general.”

Energy & Capital are ultra bullish in outlook, with a $6500oz target price for the yellow metal within 2 years. While other commentators are more circumspect, the view on the longer-term trend is clear.**

“It is worth recalling that the driver of investment flows into precious metals has ultimately been sourced from a powerful impulse lower in real rates,” TD Securities said in a note.

“The U.S. Federal Reserve’s continued attempt to spark higher inflation expectations should suppress real rates deeper into negative territory. This will continue to drive investment appetite for precious metals, as capital seeks to shelter itself from increasingly negative real rates.”

Junior Gold Miners Flourish

It has been an extraordinary year for junior gold miners. Despite the recent gold correction to $1860oz, global gold producers are under more pressure than ever to replace their depleting reserves. The major gold producing conglomerates face declines in production, shrinking reserves and a potential increase in production costs, which means it is cheaper (and faster) for these companies to buy developed or developing gold projects.

As a result, there has been a rush to develop and fast track quality assets, which for some junior miners has meant revisiting dormant mining projects. The latest tools, survey techniques and desktop assets available to mining engineers have proved invaluable in the search for precious metals within existing dormant assets and mines around the world.

As gold prospecting continues apace in far flung and remote areas, this year has seen the goldfields in Victoria, South Australia thrust into the limelight once again.

A major mining centre since the 19th century gold rush, modern technology has today has paved the way for another gold rush in the region.

Indeed the Geological Survey of Victoria estimates that some 75 million ounces of high-grade gold is currently awaiting discovery, and with grants available to mining companies operating in the region, it is no exaggeration to say that companies are literally queuing up for licenses.


As an incumbent operator owning some of the most fertile territory in Victoria, London listed ECR Minerals (LSE: ECR) is already at the front of the queue, with its 100% owned Bailieston and Creswick Victoria gold projects, plus the recently acquired Tambo Gold project.

ECR also has financial interests in the Avoca, Moormbool and Timor projects following the sale of those licenses to Fosterville South Exploration Ltd (TSX.V:FSX), raising $500,000 plus $1 for every ounce of gold discovered. ECR also has interests in projects in the Philippines and Argentina.

Creswick

Creswick is situated within the Dimocks Main Shale, a geological feature considered to be highly prospective for gold, and which extends to the Ballarat gold mine centre and further south. ECR’s exploration licenses cover approximately 7km of this region, and along with several other mining companies with licenses in the region, has applied for a further license covering a further 140 sq km between Creswick and Ballarat.

A recent study by pre-eminent consulting geochemist Dr Dennis Arne, whose experience includes extensive consultancy at the Fosterville mine, (now the largest gold producer in Victoria), underlined the significant gold exploration potential at Creswick, and ‘nuggety gold mineralisation’. Joint venture / earn-in talks are continuing at Creswick.

Bailieston

Bailieston is also at the centre of the current gold exploration boom in Victoria, sited as it is a few km east of the world class Fosterville mine. Fosterville has delivered spectacular investment returns over recent years for owner Kirkland Lake Gold, not to mention some of it’s now millionaire shareholders.

The Bailieston license areas include a raft of prospects, including HR3, Black Cat, Cherry Tree, Red Moon and Yellow Moon, and with drilling permissions now received, the company reported last Friday that its newly acquired drilling rig will shortly be en route to the HR3 prospect from ECR’s new operational base at Bendigo. Work also continues apace at the Cherry Tree prospect, with soil geochemistry and geological mapping recently completed.

ECR’s Baillieston project also has a high profile neighbour in the form of mining giant Newmont, which has a license application in for ground immediately to the north of ECR’s Black Cat prospect.

Tambo Gold Project – Local Knowledge

One of the key advantages lies in the fact that ECR’s principal geologist Dr Rodney Boucher was born and raised in Bruthen, East Victoria, and therefore has an intimate knowledge of the region. In September 2020, this area knowledge was further employed by ECR when it lodged two new license applications for the new Tambo gold project in eastern Victoria. ECR CEO Craig Brown highlighted Dr Boucher’s knowledge in the stock exchange press release.

“Good quality exploration ground available for direct application is very difficult to find in Victoria, so we are very pleased to have identified and applied for the Tambo project, which covers a sizeable area of prospective geology near historic goldfields and has received little contemporary exploration.”

Brown added “Our principal geologist, Dr Rod Boucher, was born and raised nearby in Bruthen. He grew up gold prospecting with his father throughout the application areas and has an in-depth knowledge of the gold potential in the small streams and gullies. He is a descendant of gold miners from a locality once known as Boucher Town between Cassilis and Swifts Creek and completed his third-year undergraduate thesis on the geology of the Tambo Crossing area.”

Untapped Potential

There is a sense that despite the rush of license applications in the region, the current day Victoria gold rush is still very much in its infancy.

As other leading mining companies, including Newmont Corporation (NYSE: NEM), Power Metal Resources (LSE:POW), Red Rock Resources (LSE:RRR), Fosterville South and a host of other smaller mining groups queue for licenses, their respective CEO’s will no doubt be harbouring ambitions for a Kirkland Gold–esque share price explosion.  Indeed, Kirkland’s share price has rocketed over 2,200% in the past few years thanks to its ownership of the Fosterville Gold Mine and a 315% jump in annual gold production between 2014 and 2018 .

Despite movement restrictions in the Victoria region due to Covid-19, the foresight of the ECR board and CEO in securing the key licenses has not been lost on investors.

Following a further £600,000 fundraise in July, and further £400,000 from warrant exercises, ECR took the decision to acquire it’s own diamond drilling rig to press on with exploration Bailieston and Creswick. Investor bulletin boards are agog with anticipation, but despite the share price having nearly trebled between June and September 2020, in November the stock still trades on a ridiculously modest £13m market cap.

If, as all the pundits seem to be saying, we are at the start of a new Victoria Gold rush, then expectations that shares in small, incumbent explorers like ECR will deliver spectacular Kirkland-style increases in value may not be so far fetched after all.

*Source The Guardian: https://www.theguardian.com/business/2020/oct/13/imf-covid-cost-world-economic-outlook

**Source Reuters:

https://www.reuters.com/article/global-precious/precious-gold-holds-tight-range-as-vaccine-progress-offsets-rising-cases-idUSL4N2I43M1

 

Blencowe Resources #BRES – Director Warrant Exercise and Purchase of Shares

Blencowe Resources, the natural resources company focused on development of the Orom-Cross Graphite Project in Uganda, is pleased to announce that Directors Cameron Pearce and Sam Quinn have increased their holdings in the Company through the purchase of 500,000 shares and 250,000 shares respectively, pursuant to the exercise of warrants at 4p per share. Following the acquisition of shares Mr Pearce now has a shareholding of 6,500,000 Ordinary Shares (6.4% of the enlarged share capital ) and Mr Quinn has a shareholding of 4,250,000 Ordinary Shares (4.1% of the enlarged share capital ). In addition, the Company has received warrant exercise notices in respect of a further 1,000,000 ordinary shares at 4p per share from other warrant holders. The aggregate proceeds from the exercise of the Warrant Shares are £70,000.

An application has been made for the 1,750,000 ordinary shares of 0.5p to be admitted to trading on the London Stock Exchange with effect from 8.00 a.m. on 27 November 2020.

In accordance with the FCA’s Disclosure Guidance and Transparency Rules, the Company confirms that following the issue of the Warrant Shares, the Company’s enlarged issued ordinary share capital will comprise 103,423,132 Ordinary Shares. The Company does not hold any Ordinary Shares in Treasury. Therefore, following Admission, the above figure may be used by shareholders in the Company as the denominator for the calculations to determine if they are required to notify their interest in, or a change to their interest in the Company, under the FCA’s Disclosure Guidance and Transparency Rules.

 

 PDMR Notification Form

1

Details of the person discharging managerial responsibilities / person closely associated

a)

Name

Cameron Pearce

2

Reason for the notification

a)

Position/status

 

Chairman

b)

Initial notification /Amendment

Initial Notification

3

Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor

a)

Name

Blencowe Resources PLC

b)

LEI

213800UXIHBIRK36GG11

4

Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted

a)

Description of the financial instrument, type of instrument

Ordinary shares

 

Identification code

GB00BFCMVS34

b)

Nature of the transaction

Purchase of shares following exercise of warrants

c)

Price(s) and volume(s)

Price(s)

Volume(s)

£0.04

500,000

d)

Aggregated information

– Aggregated volume

500,000

– Price

£20,000

e)

Date of the transaction

23/11/2020

f)

Place of the transaction

Outside a trading venue

 

1

Details of the person discharging managerial responsibilities / person closely associated

a)

Name

Sam Quinn

2

Reason for the notification

a)

Position/status

 

Non-Executive Director

b)

Initial notification /Amendment

Initial Notification

3

Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor

a)

Name

Blencowe Resources PLC

b)

LEI

213800UXIHBIRK36GG11

4

Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted

a)

Description of the financial instrument, type of instrument

Ordinary shares

 

Identification code

GB00BFCMVS34

b)

Nature of the transaction

Purchase of shares following exercise of warrants

c)

Price(s) and volume(s)

Price(s)

Volume(s)

£0.04

250,000

d)

Aggregated information

– Aggregated volume

250,000

– Price

£10,000

e)

Date of the transaction

23/11/2020

f)

Place of the transaction

Outside a trading venue

 

For further information please contact:

Blencowe Resources Plc

Sam Quinn (London Director)

www.blencoweresourcesplc.com

Tel: +44 (0)1624 681 250

info@blencoweresourcesplc.com

Brandon Hill Capital Limited

Jonathan Evans (Corporate Finance)

Tel: +44 (0)20 3463 5000

jonathan.evans@brandonhillcapital.com

Background

Orom-Cross is a potential world class graphite project both by size and end-product quality, with a high component of larger flakes identified from previous work performed. A 21-year Mining Licence was issued by the Ugandan Government in 2019 following extensive historical work on the deposit.

Orom-Cross presents as a large, shallow open pitable deposit, with an estimated resource in excess of 3 billion tonnes of graphite. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.

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