the NT Independent provides you with up-to-date resource news from across the Northern Territory. This week, KGL appoints a new director, RML closes contracts with OZL Minerals, the territorial government approves TM Gold’s Spring Hill mine project, and more.
Joint Venture Announcement Boosts STO Shares
Shares of Santos Ltd (STO) recently rallied after announcing that its joint venture with State Gas (GAS) had been selected as the preferred bidder for two gas exploration plays in central Queensland.
GAS said the new areas are extremely promising for coal seam gas in the Bandanna formation. The company also noted that prospects may also hold conventional gas and are not inhibited by domestic gas reservations. The exploration areas cover 1,035 square kilometers and will increase State Gas’ area by 60% to 2,630 square kilometers.
Santos holds 65% of the new permits and is the operator, given its experience in managing large projects.
Meanwhile, Santos said its other joint venture Central Petroleum Ltd (CTP) has also received clearances to carry out various exploration activities in the Northern Territory. These approvals include drilling contracts and environmental and land access. This joint venture aims to drill three sub-salt exploration wells next year to search for hydrocarbons, helium and natural hydrogen south of Alice Springs.
Santos’ share price has risen 16% over the past year, mainly due to higher oil prices caused by the war in Ukraine.
KGL Resources Limited appoints new director
The board of KGL Resources Limited (KGL) has announced that Jeff Gerard will join the board as an independent non-executive director.
The appointment of Mr. Gerard will be effective from next month and will assume the functions of both the Audit Committee and the Risk and Remuneration Committee.
KGL chairman Peter Hay said he couldn’t think of a person with a more appropriate skill set to join the current KGL board members than Mr Gerard. “His extensive experience will help the board and management finalize the feasibility study and bring the Jervois project to production,” Mr. Hay said.
Mr. Gerard’s experience in the resource industry (both locally and overseas) in various capacities in operational, technical, commercial and executive management roles spans over 40 years. Mr. Gerard also currently sits on the board of directors of Atrum Coal Limited (ATU) and Australia Future Energy, a private renewable energy/ammonia company.
RML signs affermage contracts with OZL Minerals
Resolution Minerals Ltd (RML), through Xavier Resources Pty Ltd, a wholly owned subsidiary, has entered into a contract (firm and joint venture) for the Benmara Project with OZ Exploration Pty Ltd (OZE), a wholly owned subsidiary of OZ Minerals Ltd (OZL).
The joint venture agreement stipulates that OZL may obtain from Xavier up to 75% legal and beneficial interests in the mineral exploration concessions, EL31287, EL32228, EL32229, EL32849, EL32850, EL32883 and EL33059 (Benmara project), in the Northern Territory. .
“We are very pleased to announce this new exploration financing agreement with copper producer OZ Minerals for the Benmara project in the underexplored South Nicholson Basin in the Northern Territory,” said Christine Lawley, CEO. from RML.
“While all eyes will be on drilling activity in June at our flagship 64North Gold project in Alaska, don’t underestimate the value creation being undertaken in Australia with significant drilling activity planned closer to home on our Northern Territory projects in 2022.”
The new farm and joint venture agreement with OZL validates RML’s strategy in exploring and identifying potential large-scale base metal deposits similar to the world-class McArthur River mine in this underexplored region of during the 2021 field season.
Territorial government approves TM Gold’s Spring Hill mine project
The Northern Territory Government has approved TM Gold to start operations at the Spring Hill mine located 30 kilometers north of Pine Creek, which is initially expected to produce approximately 102,000 ounces of gold over 13 months, after meeting all NT Environmental Protection Authority environmental requirements.
“The Territorial Government is working hard to make the Territory the best place for mineral exploration and investment in Australia,” said Minister for Mines and Industry Nicole Manison. “The Spring Hill Mine will support over 30 local jobs and mining is expected to begin later this year. Our resource industry is one of the biggest contributors to the Northern Territories economy and Spring Hill Mine is now the sixth major mine approved in the past 2 years.
Ashley Pattison, major shareholder of TM Gold and executive chairman of PC Gold (a subsidiary of TM Gold), said the company appreciates the support provided by the Northwest Territories Department of Industry, Tourism and Commerce to have the mine management plan for the Spring Hill gold mine approved.
The Spring Hill deposit is located within one of the largest mining leases in the territory and the first stage of the project is seen as a crucial stepping stone to a much longer mine life.
The Spring Hill Mine project approval joins other approvals over the past 12 months: Core Lithium, Finniss Project; Nathan River Resources, Nathan River Project; McArthur River Mine, Overburden Management Project; KGL Resources, Jervois project; and Vista Gold, Mount Todd mining project.
Up to $1 million of MetalGrove stock reserved for Shree shareholders
Shareholders of Shree Minerals Limited (SHH) will receive a priority allotment of shares of MetalGrove Mining Ltd (MGM) up to an aggregate of five million fully paid ordinary shares in the capital of MGM at an issue price of 0, $20 per share for a maximum of $1 million.
The allotment to shareholders comes as part of MGM’s initial public offering (IPO) of up to 35 million shares at $0.20 per share to raise between $5 million and $7 million.
MGM said eligible SHH shareholder awards of more than five million shares (equivalent to $1 million) will be subject to a customary reduction in requests under the priority offering, which will be subject to a reference to the pro rata holdings of eligible shareholders. This will be subject to a minimum distribution of $2,000 per claimant.
All requests for more than five million shares will be treated as additional requests under the IPO. The closing date for the priority offer is June 6 at 5 p.m.
Earlier this year, SHH sold its stake in the Arunta joint venture with Territory Lithium, which owns the Box Hole, Edwards Creek and Bruce gold projects, all located in the Northern Territory, to MGM. SHH said it aimed to focus on its existing high-priority exploration targets in New South Wales and Western Australia.
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