19th Mar 2014 13:26
LONDON (Alliance News) - Polo Resources Ltd Wednesday said it is taking part in the share placings of two Australian Stock Exchange-listed miners, investing a total of AUD2.2 million.
Polo said it is participating in a share placement in ASX-listed gold explorer Blackham Resources Ltd for 4.2% of its enlarged share capital.
The natural resources and mine development investment company said it will acquire 4.8 million shares at 21 cents per share for a total consideration of AUD1 million.
Blackham is developing the Matilda Gold Project in western Australia, while it is currently completing a sale and purchase agreement for a plant nearby which would re-position Blackham as a near-term gold producer.
Polo said the consolidated Matilda and Wiluna gold projects host a JORC Resource of 40 million tonnes at an average grade of 3.3 grams per tonne gold for 4.3 million ounces, with a land holding of 780 square kilometres and 55 kilometres of mine strike.
Blackham will use the funds it raises in the placement to accelerate drilling programmes in site and to complete further mining and processing studies to optimise the integration of the Matilda deposits with the Wiluna gold plant.
The company also said it has taken up a placement by Celamin Holdings NL for a 12.7% stake in the company in return for an investment of AUD1.2 million.
Celamin, also an ASX-listed company, is advancing a bankable feasibility study on the Chaketma phosphate project in Tunisia, where drilling to date has intersected thick mineralised zones averaging over 15 metres at favourable depths, with grades that generally exceed 20% phosphorous pentoxide, Polo said.
The news comes a week after Polo announced its pretax loss was cut to USD2.5 million for the six months ended December 31, 2013 from USD8.8 million the previous year, as lower charges and impairments offset lower gains from the sale of investments.
The company also noted that Signet Petroleum Ltd, an independent African oil explorer in which Polo has a 42% equity interest, has implemented a share buyback from which Polo expects to receive a minimum of USD22.8 million free of any taxation liability. The buyback follows Signet's sale of Namibian interests to Shell Exploration and Production, part of Royal Dutch Shell PLC.
Polo Resources shares were down 2.2% to 16.50 pence Wednesday afternoon.
By Tom McIvor; [email protected]; @TomMcIvor1
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