StockMarketWire.com - Horizonte Minerals [LON:HZM] was the sector's biggest riser after it was granted a preliminary environmental licence for the mining and beneficiation plant to produce ferronickel for its Araguaia nickel project by the Brazilian Para State Environmental Agency.

Horizonte says the LP, granted to Horizonte's wholly owned subsidiary, Araguaia Niquel Mineracao Ltda, is a significant milestone which demonstrates the viability of Araguaia and represents the State Government approval for the planned project.

As a result of the award of the LP, Horizonte can now progress work towards the installation licence, permitting construction of Araguaia.

* * *

Sirius Minerals [LON:SXX] has entered into a new take-or-pay agreement with Yunnan Dian Huang Peony Industrial Group Co Ltd.

The new agreement replaces the offtake contract announced on 27 June 2013 with Yunnan TCT Yong-Zhe Company Limited (TCT), which TCT and Sirius have mutually agreed to cancel.

The TCT Agreement was for a period of three years with a seven year extension option. The new agreement is for a period ten years from first production, ramping up to one million tonnes per annum over the first six years of the contract.

TCT has facilitated the Dian Huang agreement as a replacement and upgrading of the contract to supply Yunnan.

The Agreement with Dian Huang strengthens the Company's supply position in Yunnan by supplying a customer closer to the end user and also by removing the conditions that were included in the original TCT Agreement.

Dian Huang is a national peony seed oil production enterprise in China with strong government support and backing.

* * *

Shanta Gold [LON:SHG] said the effective date regarding the restructuring of the senior unsecured subordinated convertible loan notes has occurred.

* * *

Red Rock Resources [LON:RRR] has identified a new low-cost recompletion opportunity at the LM19 well, Shoats Creek. It added that it would update on a spud date for the LM21 well.

Chairman Andrew Bell commented: "There have been development delays since production began earlier this year and the original spud date for the LM21 was not met, but the investor group has been quick to assess and seize the new opportunity at the LM19.

"As the operator gains experience, we expect to improve operational effectiveness, while retaining this flexibility and entrepreneurial drive.

"The LM19 recompletion is a low cost and low risk attempt to exploit established Frio pay and add inexpensive and meaningful production to the project.

"We look forward to the results of this effort and to updating the market on quarterly production and the spudding of LM21.

"The 2016 work programme at Shoats Creek is focussed on driving production growth by taking advantage of current low drilling and development costs, and with improved oil prices this should flow through directly to the Company's bottom line."

* * *

The sector's biggest faller was GCM Resources [LON:GCM] - down by more than 8.7% in late trading.


At 4:03pm:

[LON:BEM] Beowulf Mining PLC share price was 0p at 4.25p

[LON:BKY] Berkeley Energia Ltd share price was -1p at 33p

[LON:CEY] Centamin PLC share price was +2.4p at 112.7p

[LON:CHL] Churchill Mining PLC share price was +0.63p at 21.63p

[LON:CZA] Coal of Africa Ltd share price was -0.27p at 4.91p

[LON:FDI] Firestone Diamonds PLC share price was 0p at 30.63p

[LON:FRES] Fresnillo PLC share price was +54.5p at 1203.5p

[LON:GCM] GCM Resources PLC share price was -1.38p at 14.38p

[LON:GEMD] Gem Diamonds Ltd share price was +2.25p at 136.75p

[LON:HOC] Hochschild Mining PLC share price was +3.13p at 155.13p

[LON:HZM] Horizonte Minerals PLC share price was +0.38p at 2.5p

[LON:KMR] Kenmare Resources PLC share price was +0.01p at 0.78p

[LON:RRR] Red Rock Resources PLC share price was -0.02p at 0.53p

[LON:SHG] Shanta Gold Ltd share price was 0p at 5.88p

[LON:SXX] Sirius Minerals PLC share price was +0.13p at 19.63p

[LON:VED] Vedanta Resources PLC share price was +19.05p at 410.65p



Story provided by StockMarketWire.com