EDITOR: | July 22nd, 2013 | 1 Comment

Alkane’s JV with Treibacher moves stock +21.97%, Northern Minerals secures $6 million and Arafura appoints new CEO

| July 22, 2013 | 1 Comment

2013-7-19-REELMarket sector was virtually flat last week: REE (Rare Earth Elements) Leaders Index (Bloomberg Ticker: REEL) moved up from 383.01 points to 386.39 points last week, +0.88 % for the week; while the InvestorIntel Rare Earth & Critical Minerals members fell on average by -0.21%.

Alkane Resources Ltd. (‘Alkane’, ASX: ALK | OTCQX: ANLKY) lead the pack, up +21.97% in the US and +7.14% in Australia on news that Alkane through its wholly owned subsidiary Australian Zirconia Limited (AZL) signed a Joint Venture Framework Agreement with Treibacher Industrie AG (TIAG). Under the agreement AZL and TIAG will form a company, initially wholly owned by AZL, to use TIAG’s proprietary technology to process Dubbo Zirconia Project (DZP) niobium concentrate at a facility in Australia (or other agreed location) to produce Ferro-Niobium. TIAG will have the option to purchase 50% of the new company within three years of commissioning of the plant and will have exclusive rights to market the Ferro-Niobium. DZP is technically and financially robust project representing a world-class deposit enriched with zirconium, hafnium, niobium, tantalum, yttrium, as well as LREEs and HREEs.

Alkane have secured the services of Credit Suisse, Sumitomo Mitsui Banking Corporation and Petra Capital to assist with the $1B financing. A base case of a 20-year mine life gave a net present value of $1.23B, yet mine life is likely to be in excess of 70 years, which makes this deposit an important strategic asset for REE world supply. What makes Alkane a great investment today is that shareholders do not have to wait two or three years until REE production at Dubbo starts; shareholder value is likely to be increased substantially within the next few months as construction on the company’s Tomingley gold mine is underway and cash flow is anticipated in early 2014.

Northern Minerals Limited (ASX: NTU) was up +13.79% on the news that they have secured a further $6 million in new funding from the Conglin International Investment Group (ACIIG) — Northern Minerals is now debt free.

Medallion Resources Ltd. (TSXV: MDL | OTCQX: MLLOF)  was up +13.76% and +10.14% again this week on news that they raised approximately $400k with the exercise of warrants.

Arafura Resources Ltd. (ASX: ARU) shares went up by +11.11% last week, while Chris Tonkin stepped down from the position of Chief Executive Officer and Managing Director citing personal reason. Arafura’s CFO Gavin Lockyer replaces Chris Tonkin as the new CEO and Managing Director and is an obvious choice, reinforcing Arafura’s focus on the continued mandate towards reducing costs and creating shareholder wealth through the timely delivery of the Nolan’s Project (click here to access Arafura Resources: Letter to Shareholders from outgoing CEO released today). 

Buchans Minerals Corp. (‘Buchans’) merged with Minco Plc. (AIM: MIO) after shareholders of Buchans voted overwhelmingly in favour of the merger. Minco, which has $13 million in cash will give Buchans much needed access to capital to continue its mining development plans. Under the merger terms, Buchans will become a wholly owned subsidiary of Minco; but Warren MacLeod, President and CEO of Buchans Minerals, will remain the head of the subsidiary, which will retain its name for the time being, and he will also have a seat on the Minco board.

While no news was announced last week, Montero Mining and Exploration Ltd. (TSXV: MON) witnessed a ‘massive’ jump closing the week up +62.50 % higher than previous weeks close. Montero’s primary REE project is located at Wigu Hill in Tanzania, plus they have phosphate assets in South Africa and uranium assets in Tanzania and Canada (Quebec).

Frontier Rare Earths Limited (TSX: FRO) moved north +15.38% and Canada Rare Earths (TSXV: LL) followed suit — up +14.29% for the week.



Tracy Weslosky


An accomplished entrepreneur Tracy Weslosky is the CEO for InvestorIntel Corp., a company that publishes InvestorIntel.com, a trusted source of online market information for investors ... <Read more about Tracy Weslosky>

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  • Steve


    It the statement regarding Alkane’s finances correct? From their latest presentation, the companies mentioned are responsible for arranging the finance NOT financing the project themselves.

    Nowhere has Alkane management state that they have secured $1 billion in funding. I believe it was not expected until the end of the year.

    Can you clarify this as it is important piece of information.


    July 23, 2013 - 12:29 AM

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