StockMarketWire.com - Turkey-focused Ariana Resources [LON:AAU] was the sector's biggest riser in late trading after it announced that it remains on track for its maiden gold pour during the second half of this year.

An open letter to shareholders says the company is exceptionally well-positioned in relation to many of its peers, holding significant investments in several high-value projects and opportunities. While its primary and most advanced interests remain in Turkey, the company now has exposure to both Australia (lithium) and Colombia (gold) via agreements with and interests in Dakota Minerals Limited and Royal Road Resources, respectively.

The full letter will be posted today on the company's website at www.arianaresources.com.

* * *

Three new prospecting licences have been issued to Kibo Mining's [LON:KIBO] wholly owned subsidiary Rukwa Coal Limited.

These are contiguous with its existing PL block in southern Tanzania that contains the 109 million tonne Mbeya coal mineral resource which underpins the company's Mbeya coal to power project, currently in the final stages of a bankable feasibility study.

Kibo Mining chief executive Louis Coetzee said: "The addition of these prospecting licences to the Company's Mbeya portfolio completes an important and very strategic consolidation of the ground immediately adjacent to its Mbeya Coal Resource.

" This is of significant strategic importance as it secures the long term fuel supply to the power station, provides confidence that the power plant can ultimately be expanded to 1 000MW and allays any fears from long term investors about possible instability in the long term fuel prices, at which the power station will be able to procure fuel for the power plant. It also demonstrates the Tanzanian Government's on-going support for and acknowledgement of the strategic importance of the MCPP."

* * *

Forte Energy NL [LON:FTE] says shareholders of BOS GLOBAL Limited with a relevant interest in more than 90% of the remaining 49.7% of BGL shares not held by the DJ Family Trust have accepted the offer from Forte to acquire their shares on the same terms as those provided to the DJFT.

With more than 90% of acceptances received, Forte will be in a position to compulsorily acquire any remaining shares under the Corporations Act once the conditions of the offer have been satisfied.

* * *

KEFI Minerals [LON:KEFI] reports progress on the development and financing plan for the Tulu Kapi gold project.

This follows feedback from the financiers who have now been engaged and other recent appointees, including project contractors (selected in October 2015), project partner (in November 2015) and debt financiers (in December 2015), along with the results of now-completed reviews by the independent technical consultants to the financiers.

KEFI is now focused on selecting the preferred gold-streamer based on tabled headline terms and then formalising documentation for the financing syndicate as a whole. Front end development engineering and design is now at an advanced stage, and the development schedule along with that for community resettlement anticipates production starting in 2017. In refining the plans, the long-term gold price for corporate planning is USD1,250/oz as per analysts' consensus. The debt-finance structuring has been based on a conservative gold price of USD1,000/oz. Highlights of the syndicate's 2016 preferred development plan (100% of Tulu Kapi gold project)

- Gold production of 980,000 ounces over ten years with an average of 115,000 ounces per year, excluding the start-up year and the closure year. The comparative 2015 DFS estimates were 960,000 ounces over 13 years at a steady-state average of 95,000 ounces per year for the core production period.

- All-in sustaining costs estimated at US$742/oz, which ranks the project in the lowest cost quartile globally for existing gold producers. This includes all operating costs, royalties, sustaining capital and closure, but excludes initial capital investment. The comparative 2015 DFS estimate was US$780/oz.

- Projected net operating cash flow has increased to US$66 million per annum compared with the 2015 DFS estimate of US$47 million.

- The Syndicate's preferred financing plan would result in an Internal Rate of Return ("IRR") of 50% and a projected Net Present Value ("NPV") at the commencement of production at the end of 2017 of US$197 million (c. �123 million), at a discount rate of 8%.

Preferred syndicate's preferred development funding plan (100% of Tulu Kapi gold project)

- The initial funding requirement is estimated at c. US$120 million, including working capital. The exact quantum will be finalised nearer to financial closing, which is anticipated in Q2-16 (for minor elements such as cost-overrun requirements and pre-production costs of hedging and finance), to reflect final plant procurement terms and the then-prevailing gold spot and forward prices.

- Gold price hedging will be c. 10% of base case production as part of the risk-management program without detracting from project upside.

- Project debt-based and gold stream finance to be approximately USD100 million, excluding cost-overrun facilities (to be refined in due course), pre-production financing charges and hedging facilities.

- The equity financing component remains focused at the project level for up to c. USD20 million from the Government of Ethiopia, in addition to the more than USD50 million project investment to date.

- Net cash flow after tax and all charges including servicing debt and gold stream, averages USD32 million per annum. At the current spot price of gold of US$1,100/oz, this would be USD22 million per annum.

Executive chairman Harry Anagnostaras-Adams said: "The development and financing plan has been further improved with the syndicate of contractors and bankers which has emerged from our rigorous international selection process.

"Despite very tough capital market conditions, Tulu Kapi's robust economics have attracted support for production start-up in 2017 as planned. Whilst we continue to optimise our financing options pending finalisation and approval by the National Bank of Ethiopia in mid-2016, we have already selected our preferred syndicate of contractors and the investors of equity and non-equity capital, and look forward to working with this high calibre consortium to bring this project to fruition."

* * *

Coal of Africa Ltd [LON:CZA] said the Integrated Water Use Licence (IWUL) for its Vele Colliery, in the Limpopo Province, has been renewed for a further 20 years. The original licence was for five years from March 2011.

Furthermore, the IWUL has been amended in line with the requirements for the Plant Modification Project (PMP) at the Colliery.

During H2 2015, the Company commenced a process to obtain approval relating to a non-perennial stream diversion. This decision is anticipated in H2 2016.

Once this regulatory approval in respect of the Colliery has been received, the final decision to proceed with the PMP will be placed before the board, which will include an assessment of forecast global coal prices.





At 4:08pm:

[LON:AAU] Ariana Resources PLC share price was +0.06p at 0.88p

[LON:AQP] Aquarius Platinum Ltd share price was -0.37p at 11.63p

[LON:BEM] Beowulf Mining PLC share price was -0.12p at 6.38p

[LON:BKY] Berkeley Resources Ltd share price was 0p at 25p

[LON:CEY] Centamin PLC share price was +2.55p at 64.8p

[LON:CHL] Churchill Mining PLC share price was -0.88p at 20.75p

[LON:CZA] Coal of Africa Ltd share price was -0.26p at 2.35p

[LON:FDI] Firestone Diamonds PLC share price was 0p at 18.75p

[LON:FRES] Fresnillo PLC share price was +11p at 692.5p

[LON:GEMD] Gem Diamonds Ltd share price was +6p at 116.25p

[LON:HOC] Hochschild Mining PLC share price was -0.25p at 42.25p

[LON:KEFI] KEFI Minerals PLC share price was -0.01p at 0.35p

[LON:KIBO] Kibo Mining share price was +0.13p at 5.13p

[LON:KMR] Kenmare Resources PLC share price was -0.02p at 0.64p

[LON:VED] Vedanta Resources PLC share price was -9.2p at 224.8p



Story provided by StockMarketWire.com