- Beowulf [LON:BEM] was one of the sector's biggest risers after Sweden's Mining Inspectorate has awarded the company an exploration licence for Atvidaberg nr 1, with the company focusing on the prospect of polymetallic discoveries.

The licence area covers 225 square kilometres and is located in the Bergslagen area, southern Sweden. The licence is valid for 3 years from the 30 May 2016.

Chief executive Kurt Budge said: "We are delighted to have been awarded an Exploration Licence for Atvidaberg nr 1, maintaining our Nordic focus, while adding some commodity diversification to our asset base.

"We are reaffirming our commitment to doing business in Sweden, re-building our exploration activities with such an exciting prospect in the country. It's often said that the best place to explore is next to a producing mine, and that is the potential offered by Atvidaberg, benefited also by its location in an established mining jurisdiction, with access to infrastructure and a highly skilled workforce.

"With both our graphite portfolio in Finland and polymetallic focus with Atvidaberg, we are focused on 'intelligent exploration'. This includes managing our costs, understanding all the historic data that is available, efficiently committing resources to fieldwork to develop our knowledge base, to eventually define the best possible targets for drilling.

"The Company already has personnel in the field conducting an initial 'brainstorming' assessment of priority targets, and an off-site expert team is analysing various aspects of the GIS database. The findings of these activities will inform our work for a second field programme later this summer.

* * *

Kibo Mining [LON:KIBO] has signed a memorandum of understanding with Lake Victoria Gold to consolidate the companies' respective Imweru and Imwelo gold projects.

These will be amalgamated into a new company (NEWCO) the board of which will comprise a mix of Kibo and Lake Victoria management which will combine significant experience across exploration and mine development.

Highlights: - Total combined JORC compliant stated resources of approximately 755,300 ounces

- Based on upside potential identified in existing Imweru CPR, the combined project will provide NEWCO with the potential to achieve >1 million oz. resource in relative short time frame

- Production target of 50,000 oz. of gold per annum within 12 to 18 months of forming NEWCO, targeting 100,0000 oz. per annum within 24 to 30 months

- Existing LVG mining right will also cover Kibo Imweru project after amalgamation under existing provisions of Tanzanian Mining Act for continuous mineral deposits

Kibo chief executive Louis Coetzee said: "The past two years' steady work on the Imweru DFS advanced the Imweru project to a level where we could come to an arrangement with Lake Victoria Gold, which will see the amalgamation of the respective projects on a like for like basis, to create a project with critical mass and a clear path to near-term production.

"Amalgamation of the two projects will establish a project with a significant gold resource with the added strategic advantage of an existing mining right and the opportunity to pursue near-term production. At a resource level we believe that the combined project can reach more than a 1 million oz. resource. This view is based on the resource expansion potential identified in the latest Imweru competent persons report. According to this report the Imweru resource can be increased with a further 40% to 80% through an already defined 3rd phase exploration programme. From a production perspective the combination of the two projects also provides the potential to achieve a 100,000 oz, per annum production target.

"I am particularly excited about the gold mine development and production expertise that LVG will bring to the enlarged project, which will complement Kibo's exploration experience.

"We believe that the proposed transaction can unlock significant value for Kibo shareholders and we will be updating shareholders on an ongoing basis as we progress with the implementation and execution of the Kibo/LVG MOU."

* * *

Obtala Resources Limited [LON:OBT] has proposed changing its name to Obtala Limited, with shareholders able to vote on the matter at the company's annual meeting. A date has yet to be confirmed for the meeting.

* * *

Sirius Minerals [LON:SXX] has announced the selection of preferred contractors for key components of its North Yorkshire polyhalite project and the future revision to the Stage 1 capital requirements.

"This is the culmination of a huge amount of work by both the successful bidders and those that have been unsuccessful and we thank all of the groups involved for their efforts," said MD and CEO Chris Fraser in a statement.

"We are delighted to now be moving forward with our selected partners towards the implementation of the Project."


� AMC UK (a joint venture between Thyssen Group and Redpath Group) selected as preferred contractors for mine site development

� Hochtief Murphy Joint Venture selected as preferred contractors for mineral transport system development

� 19 month competitive tender process has delivered refined construction methodologies and cost estimates based on current market conditions

� Stage 1 capital requirements for the start of the project are now being adjusted and are expected to reflect a reduced cost in the near future.

* * *

KEFI Minerals [LON:KEFI] has further reduced the funding requirements and finance costs for the development of the Tulu Kapi gold project in Ethiopia. The company remains on track to execute syndicated financing documentation at the end of Q3-16.

Highlights of the changes include:

� Net funding requirement reduced from c. US$145 million to c. US$130 million due to further refinements to project contracting arrangements and the project plans;

� Average cost of finance reduced by removing a large gold stream finance facility - decision taken in consultation with the proposed lead banks and major shareholders at project and Company level;

� Updated plan facilitates increased net cash generation - projections at gold price of US$1,250/oz now indicate US$173 million available for debt repayment, reinvestment and dividends in first 3 years of production.

* * *

North River Resources [LON:NRRP] has widened its FY pretax loss to GBP9.8m, from a year-earlier loss of GBP3.3m, with a GBP6.7m impairment of goodwill weighing.

"We remain committed to bringing the Namib Project into production," said chairman Rod Beddows in a statement.

"We believe it is an economically robust, technically straightforward project with real potential to deliver benefits to both its shareholders and wider stakeholders in Namibia.

"The targeted increase in mineral resource, and consequent potential for a longer life of the mine will further enhance the economics of Namib and its funding options."

Beddows said that whilst the average prices for zinc and lead in 2015 were lower than for the prior period, recent market developments indicated that the supply and demand balance was tightening, which augured well for the price outlook.

"In light of the uncertain timeframe for securing the mining licence and gaining clarity on the implications of the proposed broad based economic empowerment legislation, we are focusing our immediate efforts in two areas: completing the resource expansion drilling campaign and progressing the mining licence application," he said.

"Pending clarity on the timing for receiving the mining licence and taking the project forward, we are redoubling our efforts to conserve cash and identify further cost savings."

At 4:04pm:

[LON:BEM] Beowulf Mining PLC share price was +0.5p at 4.25p

[LON:BKY] Berkeley Energia Ltd share price was 0p at 32.5p

[LON:CEY] Centamin PLC share price was +1.85p at 100.7p

[LON:CHL] Churchill Mining PLC share price was +0.38p at 21.13p

[LON:CZA] Coal of Africa Ltd share price was +0.51p at 4.16p

[LON:FDI] Firestone Diamonds PLC share price was 0p at 30.38p

[LON:FRES] Fresnillo PLC share price was +12.5p at 1044.5p

[LON:GEMD] Gem Diamonds Ltd share price was -5.12p at 131.63p

[LON:HOC] Hochschild Mining PLC share price was -4.62p at 143.63p

[LON:KEFI] KEFI Minerals PLC share price was -0.03p at 0.57p

[LON:KIBO] Kibo Mining share price was +0.38p at 5.13p

[LON:KMR] Kenmare Resources PLC share price was 0p at 0.75p

[LON:NRRP] North River Resources PLC share price was -0.01p at 0.11p

[LON:OBT] Obtala Resources PLC share price was 0p at 8.5p

[LON:VED] Vedanta Resources PLC share price was -6.25p at 368.75p

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