Resources round-up: Rare Earths, Egdon, Angel, Minco
Egdon Resources has been granted permission for an an exploratory borehole near the UK village of Westerdale through its 40 per cent-owned licence in the area. The Westerdale-2 well is planned to evaluate the Ralph Cross/Westerdale gas discovery in an area near the Ralph Cross-1 well, which previously flowed gas at a depth of 1,040 metres below surface. Company evaluations have indicated the potential for between five and 38 billion cubic feet of gas in place, with a most likely case of around 18bn cf. The firm had previously drilled a well in the Westerdale area in 2006. This well did not find commercial gas reserves and the site was subsequently restored to farmland.
Egdon Resources has been granted permission for an an exploratory borehole near the UK village of Westerdale through its 40 per cent-owned licence in the area. The Westerdale-2 well is planned to evaluate the Ralph Cross/Westerdale gas discovery in an area near the Ralph Cross-1 well, which previously flowed gas at a depth of 1,040 metres below surface. Company evaluations have indicated the potential for between five and 38 billion cubic feet of gas in place, with a most likely case of around 18bn cf. The firm had previously drilled a well in the Westerdale area in 2006. This well did not find commercial gas reserves and the site was subsequently restored to farmland.
Rare Earths Global, a mining services group, has exercised its option to buy up the remaining 39% of Pingyuan Sanxie Rare Earth Smelting from Grace Coast. In July 2010 the company acquired a 60% share in Sanxie, a rare earth separation and refining business. The stake will be acquired by the issue of four million new shares and a further $10m in cash, paid in three installments by September 15th. The total consideration is around $31.06m. The initial tranche will be funded out of the company's internal resources with the subsequent tranches funded out of negotiated facilities.
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
