Which miners are well placed to ride out the storm, and which are over-exposed to a Chinese slowdown? David Prosser goes digging for winners and losers in the mining industry.
Friday's mining news: Afferro settles tax dispute
By Patrick Smith | Fri, 14th December 2012 - 11:28
Afferro Mining settled a Liberian tax dispute, while Jubilee Platinum announced a tailings-processing agreement in South Africa.
Afferro settles Liberian tax dispute with $10 million payment
Afferro Mining (AFF) has announced the signature of a compromise and settlement agreement with the Liberian government in relation to outstanding tax claims made by the government. The claim relates to the sale of Afferro's 38.5% minority interest in Severstal Liberia Iron Ore to Lybica, an affiliate of Severstal.
The parties have agreed that a single payment of $9.8 million (£6.1 million) will be made to Liberia as full and final settlement for all tax claims relating to the transaction. The payment will be transferred within five business days from funds previously put aside by Afferro.
Investors reacted with relief to the news as the share price gained 9.7% on Friday morning.
Jubilee to start tailings processing ahead of schedule
Jubilee Platinum (JLP) and its subsidiary, Pollux Investments, have concluded a toll-processing agreement with Phokothaba in respect of processing the Dilokong Tailings at Phokothaba's Smokey Hills Mine concentrator, South Africa.
The agreement will accelerate the processing of the tailings by 14 months to commence during the first half of 2013. The news gave shares in the firm a 1.6% boost.
The parties have commenced consultation, expected to be concluded by January 2013, with local communities who may be affected by the transport and movement of Dilokong Tailings from the Dilokong Chrome Mine to the Smokey Hills Mine.
Funding of £573,750 has been secured through a standby equity distribution agreement advance, which will be used towards settlement of a loan.
Condor Gold transfers concession to subsidiary
Condor Gold (CNR) has announced that the Nicaraguan Ministry of Energy and Mines has approved the transfer of the 27-square-kilometre La Mojarra Concession to Condor's wholly-owned subsidiary, La India Gold.
Under the terms of the agreement the approval has triggered a $300,000 payment. $200,000 is payable in cash and $100,000 payable by way of issuing new shares in Condor at the 20-day average traded price.
The ministerial approval completes the legal ownership of the concession by La India Gold. The addition increases the company's La India Project to 194 square kilometres contained within seven contiguous wholly-owned concessions.
Shares in Condor were trading up 1.8% on Friday morning.
Tertiary Minerals targets JORC-compliant mineral resource
Tertiary Minerals (TYM) has commissioned Wardell Armstrong International to prepare an independent estimate of the tonnage and grade of the mineralisation at its MB fluorspar project in the US.
The report will evaluate results from 108 drill holes over an area of 1.5 kilometres by 1.5 kilometres, where thick and flat-lying zones of fluorspar mineralisation occur between the surface and depths of at least 400 metres.
The report is to make recommendations for further drilling aimed at upgrading the tonnage-grade estimate to a Joint Ore Reserves Committee (JORC) compliant mineral resource.