ANIMOCA BRANDS CORPORATION LIMITED -- Thread aus 2008 (als Animoca noch im Bergbaugeschäft war) - 500 Beiträge pro Seite

[Selfmademillionaer]

Aktuelle Mitteilung:

Proposed Acquisition of Iron Ore, Dolomite and Limestone
Projects in Kogi State, Nigeria

Anbei der Link zum komplette Announcement:

http://www.blackfireenergy.com.au/Docs/BFE%20ASX%20acquisiti…

[Selfmademillionaer]

Antwort auf Beitrag Nr.: 34.193.949 von Selfmademillionaer am 29.05.08 10:43:32

Black Fire to acquire iron ore deposits in Nigeria
Wednesday , 28 May 2008


Transaction Highlights:

· Black Fire Energy to acquire advanced package of iron deposits in Kogi State, Nigeria.

· Package contains six projects containing magnetite style mineralisation. Potential for hematite mineralisation also exists.

· The Company's exploration target is 400-600 million tonnes of potential iron mineralisation grading between 15-65% averaging 30-36%. The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a Mineral Resource under the JORC Code and it is uncertain if further exploration will result in the determination of a Mineral Resource.

· Potential access to existing beneficiation facilities at Itakpe as well as transportation via an existing railway to Warri Terminus, 24km from the port.

· Project proximity to existing rail, road and power infrastructure to limit CAPEX requirements and fast track project development.

· Availability of substantial historical geological data generated by the Geological Survey of Nigeria and National Steel Raw Materials Exploration Agency (NSRMEA).

· Alliance with the Sovereign Ruler of Ebira Kingdom, Kogi State, Nigeria, HM King Dr Ado Ibrahim, provides access to further mineral opportunities within Kogi State.

· Favourable political and regulatory environment for foreign investment. New Minerals and Mining Act introduced in February 2007.

· Development of limestone and dolomite resources as feedstock to the Ajaokuta Steel complex and extension as feedstock to existing cement production.

The Directors of Black Fire Energy Ltd (Black Fire Energy) (ASX:BFE, BFEO) are pleased to announce that they have entered into a conditional Heads of Agreement to acquire a 100% interest in AICO Ado Ibrahim Mining Company Ltd (AICO). AICO is the beneficial owner of a package of exploration and mining licences in Kogi State, Nigeria as follows:

Project Name Commodity Licence Details

Ebiya 1 & 2 Iron Ore EL 786 & 787 (granted)

Ajabanoko Iron Ore EL 764 (granted)

Chocochoco Iron Ore ELA 3683 & 3684 (pending)

Agbaja Iron Ore ELA 5360 (pending)

KotonKarfi Iron Ore ELA 5358 (pending)

Basse Nge Iron Ore ELA 5359 (pending)

Oguda Marble ML 788 & 2541 (granted)

Osara Dolomite/Feldspar ML 725 & 727 (granted)

On completion, Black Fire Energy will have an exclusive Alliance Deed with the Sovereign Ruler of Ebira Kingdom, Kogi State, HM King Dr Ado Ibrahim, to securitise mineral exploration opportunities in Kogi State and through this transaction he will become a major shareholder of Black Fire Energy.

Background to the Kogi State iron and steel industry

Kogi State is situated approximately 300km south-west by road from the Nigerian capital of Abuja. The State has abundant existing reliable infrastructure in the form of sealed roads and highways, and rail links to within 35kms of the Port of Warri. It also has connections to the national power grid, a 414 megawatt gas fired power station (within 50km of the project) and abundant water from the Niger River to support major mineral exploit ation.

Kogi State is also home to a large proportion of Nigeria's known iron deposits. These occurrences present as Banded Iron Formations (BIF) and oolitic ironstones and have been the subject of various geological evaluations over a period spanning approximately 50 years. Comprehensive data includes previous drilling, bulk sampling and metallurgical assessments which have identified significant non-JORC Code compliant hematitemagnetite mineralisation.

In the early 1970's the evident abundance of iron deposits prompted the Nigerian Government to collaborate with Soviet expertise to establish an iron and steel ind ustry within the country. This collaboration culminated with the construction of the Ajaokuta Steel Complex on the banks of the Niger River in Kogi State in 1991. Ajaokuta is rated to produce up to 10mtpa of steel product, but since completion, it has essentially remained moribund on care and maintenance for lack of funding, ore supply and technical expertise.

Ajaokuta is reported to have a current replacement value of approximately US$5bn and is currently under the direct control of the Nigerian Federal Go vernment pending a task force review of future operational strategies to fast track the commencement of production.

In addition to Ajaokuta, Kogi State is also the location of the Itakpe iron ore processing facility near Okene. This facility was originally designed and constructed with the capacity to beneficiate up to 3Mtpa into concentrate for supply to Ajaokuta as 10% of its feedstock, using the existing rail facility.

Similar to Ajaokuta, Itakpe is also under the direct control of the Nigerian Federal Government as part of the above strategy to seek alternatives to fast track production. This plant is currently on care and maintenance but it is understood that production capacity of up to 1Mtpa was being achieved at Itakpe by its previous operators, Global Steel Holdings Ltd.

It is the Directors' opinion that the acquisition by Black Fire Energy of the various iron ore, dolomite and limestone interests as well as other potential projects within Kogi State, provides the Company with a real opportunity to participate in the rapid and imminent revitalisation of Nigeria's iron and steel industries. The access to existing available infrastructure and beneficiation facilities will provide for an expedited exploration programme to satisfy the growing demand for these mineral commodities.

The Precambrian rocks of Nigeria may simplistically be grouped into three principal subdivisions of the ancient gneiss migmatite complex, the schist belts and the tectonically deformed plutonic series. This Precambrian terrain may have been part of an Archaean proto-shield that was later affected by Proterozoic crustal activities and subsequent evolvement of the Phanerozoic basins. Overlying these older assemblages are sedimentary sequences of Cretaceous to Tertiary ages deposited in five large basinal areas.

The BIF of Nigeria generally occurs in metamorphosed folded bands associated with Precambrian basement complex rocks, which include low grade metasediments, high grade schist, gneisses and migmatites. Included in this group are the well known Lokoja- Okene District (LOK) occurrences that form the core of the project area being acquired. The Company's exploration target is 400-600 million to nnes of potential iron mineralisation graded between 15-65% averaging 30-36%. The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a Mineral Resource under the JORC Code and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Early Geological Bulletins of the Geological Survey of Nigeria and other reports list estimates of quantum of mineralisation associated with the deposits. These estimates were generated prior to the introduction of the JORC Code guidelines for the reporting of identified mineral resources and ore reserves. Due to lack of original digital data the Company is unable to fully determine the consistency of the estimates with the December 2004 JORC Code guidelines. On this basis, the estimates therefore cannot be reported as 'resources' or 'reserves' under the JORC Code guidelines. Whilst the Company considers that the estimates of previous mineralisation generated in Nigeria are reliable and provide a reasonable reflection of the quantum and grade of mineralisation, there is no guarantee the re-classification, in whole or in part, will occur in the short term or at all. No more recent estimates are available. The previous estimates provide some confidence to implement a targeted drilling program which may enable the estimates to become JORC Code compliant.

There are other minor BIF occurrences in western parts of Nigeria that occur sporadically in narrow bands and lenses interbedded with pelitic and semi-pelitic phyllites and schists. The BIF layers vary in thickness from about 3cm to 5m and are commonly found in groups intercalated within surrounding country rocks or as isolated thin units. The bands have variable strike extent with some stretching though discontinuously over several kilometres.

Three main facies of oxide, silicate and sulphide have been identified. The oxide facies that is represented by the silica iron oxide assemblage is the most widespread and usually consists of a thinly banded but occasionally slaty rock having a rhythmic alternation of light coloured silica rich bands of variable thickness. The silicate facies is a quartzgarnet- grunerite assemblage and the sulphide facies has only been identified in western Nigeria.

The Cretaceous sedimentary iron formations are described as sedimentary but are in fact partly lateritic in character. Two deposits in the Agbaja Plateau area have been investigated in detail and they include both oolitic iron stones and rubble iron stone that grade up to 52% Fe.

The most notable iron ore occurrences that have open pit mining potential in the project area include Itakpe, Ajabanoko, Chocochoco, Ebiya and some others. They occur as bands and lenses of banded and sometimes massive BIF dipping between 21-85° and mostly conformable to the host rocks. The tabular ore bodies, up to 45m thick, and extending for distances from hundreds of metres to over 5km, are developed to a depth of over 300m, and are often displaced by small to large faults.

The mineralisation is mostly magnetite and/or hematite with quartz, biotite and amphiboles in the groundmass. Iron content ranges between 15-65% averaging 30% to 36%. For the major deposits, rich zones exceeding 50% Fe apparently constitutes some 4.5% of the deposits while the 30-50% Fe material constitutes about 85.4% of the deposits. However, given the limited amount of detailed exploration to date, this ratio may change significantly given exploration success in the programme which is about to be initiated. Sulphur and phosphorous levels are low where evident while the high silica and alumina are reduced through the beneficiation process.

The Ajabanoko deposit is apparently genetically related to the Itakpe deposit (which is not currently under acquisition), being located in the northern limb of the Itakpe- Ajabanoko anticline where it dips northwards. The Chocochoco deposit is predominantly magnetite BIF comprising 3 to 5 bands whose total thickness increases with depth and can be traced to 150m down dip .

The initial exploration programme, excluding the cost of the scoping study to be conducted in parallel independently will include visits to all deposits in order to select drill pad locations and to prioritise drilling sequence to lift mineralisation to JORC compliant levels of Resource or Reserves. Where warranted bulk samples will also be collected for additional beneficiation test work. An aerial aeromagnetic survey will also be commissioned and flown as soon as possible and ground magnetics will also be completed in conjunction with detailed geological and geophysical mapping.

The initial first year exploration budget of A$2.5M is designed to check all the Company's iron deposits so that a rational second year budget can be planned and will be allocated as follows:

· Aeromagnetic and ground magnetic data acquisition, processing and interpretation A$400,000

· 5,000m HQ core drilling and assay A$1.0M

· 3500m RC drilling and assay A$350,000

· Site and drill pad access and preparation A$100,000

· Bulk samples and beneficiation testing A$50,000

· Detailed geological mapping A$50,000

· Administration, satellite imagery (eg Quickbird), travel, salaries and head office operating expenses A$550,000

Alliance with AICO Ado Ibrahim & Co Ltd

In addition to the proposed acquisition, Black Fire Energy has also secured an alliance with AICO Ado Ibrahim & Co Ltd, whereby Black Fire Energy has first rights of refusal over additional resource opportunities within Kogi State, until 30 June 2010, renewable for an additional 3 years.

Black Fire Energy considers this alliance will provide considerable opportunities to the Company as Nigeria opens its vast mineral potential to foreign investment.

Transaction Details

Initial Consideration and AICO Performance Milestones

Consideration for the acquisition will be through the initial issue of 20,000,000 Ordinary Shares and 20,000,000 30 June 2010 Options, to the vendors, followed by incentive share issues which would convert into a maximum of 41,500,000 Ordinary Shares, subject to pre-agreed commercial milestones.

The initial consideration of 20,000,000 Ordinary Shares is subject to a 12 month voluntary escrow agreement with the vendors.

The incentive shares are based on performance and the achievement of qualitative and quantitative milestones. These incentive shares are subject to ASX approval of the terms and conditions of the class of non- voting redeemable converting performance shares.

These milestones are summarised as follows:

AICO Performance Milestones

Milestone 1:

20,750,000 fully paid ordinary shares upon the completion, by 30 June 2010, of a total of 8,500 metres of drilling and analysis of the drilling results, including assays.

Milestone 2:

20,750,000 fully paid ordinary shares upon the establishment by 30 June 2011, of a JORC Code compliant combined Indicated and Inferred Mineral Resource on the Tenements of a minimum 200 million tonnes (with at least 100 million tonnes at the Indicated level) of hematite or magnetite mineralisation, which yields an iron ore concentrate with a grade and contaminant levels that are at generally acceptable levels of tradeable product, as determined by an independent expert appointed by the board of Black Fire Energy (Saleable Iron Ore).

Milestone 3:

Alternatively, all 41,500,000 convertible shares shall also convert into fully paid ordinary shares in Black Fire upon reaching the following milestone:

(i) securing access to the Itakpe processing facility with a legal right to process at least 1 million tonnes of iron ore per annum for a minimum of a 10 year period; and

(ii) producing more than 83,000 tonnes per month of iron concentrate from the Itakpe processing facility over any consecutive 3 month period; and having established a JORC Code Indicated Mineral Resource on the tenements of a minimum:

(iii) 80 million tonnes magnetite ore at a defined average grade + 35% Fe and which does yield Saleable Iron Ore; or

(iv) 80 million tonnes lumpy hematite ore at a defined average grade + 58% Fe.

The convertible shares are subject to ASX approval with regards to the terms and conditions. In the event that individual Milestone s are not achieved by 30 June 2011, the convertible shares remaining on 1 July 2011 shall be redeemed for a total of $10.00.

Placement

Black Fire Energy currently has approximately A$2.5m cash. The Board is currently considering the capital raising options to raise a minimum of A$2m before costs. The Company confirms that it has placed 15% of the existing capital at an issue price of 15 cents each to sophisticated investors immediately to raise $691,875 before costs. It is intended that these funds will be used by the Company to execute its forward exploration plan, as outlined in this announcement.

Capital Structure on Completion:

Future capital structure Number Cash $A

Current issued capital 30,750,000 2,500,000

Placement - immediate 15% 4,612,500 691,875

Initial vendor consideration (Voluntary escrow - 12 months)

20,000,000

55,362,500 3,191,875

Performance based converting shares - milestones - maximum

41,500,000

Options (Ex 30 June 2010 @ 20c) Number

Options currently on issue 30,750,000

Issued to Vendors 20,000,000

Post acquisition Options on issue 50,750,000

Board Appointments

The Board of Black Fire Energy will change on completion of the transaction to bring in further operational and corporate experience. The final composition is being discussed but it will be up to 5 members with a position being offered to HM King Dr Ado Ibrahim.

Shareholder approvals required

A Notice of Meeting is currently being prepared to convene a meeting to approve the transactions and it is anticipated that this will be dispatched to shareholders to hold a meeting in July 2008.

Other transaction costs

To date, Black Fire Energy has incurred approximately A$130,000 in due diligence costs.

Under the Heads of Agreement, Black Fire Energy will incur further costs of approximately A$100,000 in relation to the transaction.

Upon completion of the transaction, Black Fire Energy will pay an amount of A$100,000 as a success fee, as directed by the vendors.

Key Operational and Technical Support

Black Fire Energy wishes to acknowledge the input and support provided by HM King Dr Ado Ibrahim, who through his traditional role provides access to certain customary property rights. Dr Ado Ibrahim has a distinguished academic and professional career since 1954.

He is a graduate of the Camborne School of Mines, a graduate in statistics from the London School of Economics and has an MBA from Harvard University. His other academic achievements include being awarded a Doctor of Science (Honoris Causa) from the University of Jos and an honorary Doctor of Laws (Honoris Causa) from Kensington University, California. Furthermore, he is a Fellow of the Nigerian Society of Mining Engineers, a Corporate Member of the Nigerian Association of Petroleum Explorationists and a Fellow of the Nigerian Association of Masters of Business Administration.

Previous notable appointments include his invitation as Special Guest of Honour at the 75th Anniversary of the Association of Commonwealth Universities, Perth, (1988). The Directors of Black Fire Energy would also like to acknowledge the ongoing operational and technical assistance of Mr Ian Whiteley and Mr Kevin Joseph.

Mr Whiteley, who is a resident of Perth, Western Australia, has over 35 years experience in the industrial, mining and hydrocarbon sectors including corporate and project finance. His experience has included executive roles with Bank of America and Woodside Petroleum. He is a former President of the Federal Executive of the Petroleum Exploration of Australia and is a Fellow of the Australian Institute of Mining and Metallurgy. His recent experience also includes acting as transitional Project Manager for Sundance Resources Ltd's Mbalam Iron Ore Project in West Africa.

Mr Joseph has extensive experience in Nigeria and the West Africa n region. A 17 year resident of Nigeria, he has invaluable in-country relationships which will assist Black Fire Energy in executing its development strategies. Mr Joseph is a former Executive Director of Operations for OANDO Petroleum, one of two major local marketers of petroleum in Nigeria, where he headed up Supply Chain Development in the West African Region, with Executive responsib ility for new business development. Black Fire Energy will base its exploration operations out of Okene and utilise the existing professional staff and local expertise of AICO, including its Chief Geologist and Chief Mining Engineer. These staff will be directly seconded to Black Fire Energy to assist with the future exploration and mining plans.

About Nigeria

§ Africa's most populous country with approx 140m people.

§ Democratic elections held since 1999.

§ Member of OPEC since 1971 and the world's 7th largest oil producer.

§ English speaking and former British protectorate.

§ Liberalised exchange control regulations ensuring free capital flows.

§ Minerals and Mining Act introduced in February 2007 and comparable to Australia's "Mining Act 2003".

Overview of the mining industry in Nigeria

§ Organized mining activities began in Nigeria in 1903 when the Mining Survey of the Northern Protectorate was created by the British colonial government. A year later, the Mineral Survey of the Southern Protectorate was founded. The British started tin mining operations in Nigeria in 1904 and were also mining gold by 1906. By the 1940's, Nigeria was a major producer of tin, columbite and coal.

§ Historically, Nigeria's mining industry was monopolized by state owned public corporations. In recent times, far-reaching changes have been introduced by a shift in government policy. Accordingly, in line with global trends, the Government has embraced deregulation of the sector to allow for private participation in mining activities.

§ The Mining and Cadastre Office under the Ministry of Mines and Steel Development is directly responsible for the regulation and issuance of mining licences in Nigeria.

§ The Cadastre office is the repository of all information and data with regard to all mining activities in Nigeria. All issues relative to the scope of mining rights, assignment of mining rights and other forms of dealings with mining rights are required to be recorded or noted with the Cadastre department. The Cadastre office operates as an autonomous department under the Federal Ministry of Mines and Steel Development.

§ The principal legislation for the mining sector is the Mineral Act of 2007 which re - enacts, with applicable modifications, the 1946 Mineral Act. The Government is currently working on a national policy on mineral resources.

The document is to be tagged the "National Mineral and Metal Policy 2008".

Contact Information

For Black Fire Energy: Matthew Sheldrick [phone]

Competent Persons Statement

The information in this report which relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Brian Varndell, who is a corporate member of the Australasian Institute of Mining and Metallurgy and independent consultant to the Company. Mr Varndell is an associate of Al Maynard & Associates and has over 35 years of exploration and mining experience in a variety of mineral deposit styles including iron ore mineralisation. Mr Varndell has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualif y as a Competent Person as defined in the 2004 Edition of the "Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Varndell consents to inclusion in the report of the matters based on his information in the form and context in which it appears

[Popeye82]

[Popeye82]

Changes in Director Interest

Company Date of change Quantity Change Type Research report
Australian Power and Gas Company Limited (APK)
18/07/2008 26,498 Acquired download report
Impress Energy Limited (ITC)
16/07/2008 2,200,000 Acquired -
Black Fire Energy Limited (BFE) 15/07/2008 250,000 Acquired -