Resources round-up: Edge, Creon, Orsu Metals and CIC

Edge Resources, an oil and gas exploration, development and production company, has purchased two undeveloped sections of land covering 1,280 acres for a cash payment of 60,000 dollars and a non-convertible overriding royalty of three per cent. The transaction was made at the start of June this year. "These two sections fit perfectly within our existing asset, where we have now created a large, enviable land position," the firm said.

CIC, the consulting and advisory firm operating primarily in the mining and energy infrastructure sectors, has reported that following a 48-day leaching period, the Shanba gold mine in China has produced 3,825 ounces gold, with a further three-heap leach due to complete final leaching in the near future. A total of 4,790 ounces gold has been produced to date. The company is planning to cover the mine and processing equipment costs, which are expected to total $8.3m, from initial gold production. Once these are paid the company will receive a diviend from Shanba, although shareholders will have the choice to fund increased oxide gold production at its various gold leases.

Orsu Metals has announced it is to sell its 40% interest in its Talas gold-copper-molybdenum project in the Kyrgyz Republic to a wholly owned subsidiary of Gold Fields $10m. It also unveiled plans to raise CAD$10m through an agreed subscription for 25m units at 40cents each. The proceeds of both will fund Orsu's equity portion of the Karchiga Project capital expenditure. The Gold Fields group currently owns a 60% interest in the Talas Project and is the project's operator. Orsu has sold the interest as part of its plan to focus on bringing its 94.75% owned Karchiga Volcanogenic Massive Sulphide copper project in north eastern Kazakhstan into production as soon as possible.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Resources investment firm Creon has entered into a joint venture with a multi-billion dollar China based shipbuilding giant, Yangzijiang Shipbuilding, in the offshore oil and gas infrastructure sector. Under the terms of the JV, Creon and YZJ Holdings will each invest into the joint venture company, YZJ Offshore Engineering, a Singapore registered company. Creon will invest $15.33m, with YZJ Holdings and its associates investing a further $14.67m. As at June 30th 2012, YZJ Offshore had net assets of around $2.85m and made an operating loss of around $0.15m in the six month period to June 30th 2012.

NR