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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Zambezi Nickel | LSE:ZNI | London | Ordinary Share | BMG9884M1064 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 6.40 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
RNS Number:9869W Zambezi Nickel Ltd 21 May 2007 21 May 2007 Zambezi Nickel Limited ("Zambezi Nickel" or the "Company") Heads of agreement signed with Zambezi Resources for Joint Venture at the Oryx Uranium Prospect in Zambia Completion of Placing * Completion of placing of 40,000,000 ordinary shares at a price of 5p per share to raise gross proceeds of #2,000,000. * Heads of agreement signed with Zambezi Resources Limited with the intention of creating a joint venture arrangement pursuant to which Zambezi Nickel could initially acquire 51% of the uranium rights over the Oryx prospect and additional radiometric anomalies over four granted Zambian Prospecting Licences. The directors of Zambezi Nickel (AIM: ZNI) announce that today they signed Heads of Agreement with Zambezi Resources Limited ("Zambezi Resources") (AIM: ZRL) with a view to entering into a joint venture agreement with Zambezi Resources within three months. Under the Heads of Agreement, Zambezi Resources and the Company will enter into a joint venture agreement, pursuant to which Zambezi Nickel will, conditional upon certain financial commitments, be entitled to acquire initially 51% of the uranium rights to four Zambian Prospecting Licences covering over 6800km(2) which include the highly prospective Oryx uranium prospect as well as a further 11 high priority radiometric anomalies. The Oryx Uranium prospect is favourably located approximately 80km south east of the Zambian capital, Lusaka. Covering an area of 12km(2), the Oryx radiometric anomaly was discovered by Zambezi Resources in 2005 through the completion of a regional airborne magnetic and radiometric survey. Subsequent exploration identified surface accumulations of the uranium-rich mineral davidite, which has assayed up to 6.44% U3O8. A further announcement will be made in due course when the joint venture agreement is finalised. Zambezi Nickel's Managing Director Jim Kerr commented, "The uranium rights over the Oryx prospect and indeed the entire suite of tenements contemplated in the Heads of Agreement will allow Zambezi Nickel to diversify the Company's portfolio into Uranium. With an experienced exploration team already established, we are geared up to commence exploration as soon as the joint venture agreement is signed and intend to rapidly delineate uranium resources and where economically feasible, bring them into production." Placing At the same time, Zambezi Nickel has completed a placing of 40,000,000 ordinary shares of 1p each, (the "Placing Shares") at a price of 5p per share, raising gross proceeds of #2,000,000. Application will be made for the Placing Shares to be admitted to AIM and dealings in the Placing Shares is expected to commence on 25 May 2007. . The total number of issued ordinary shares in the Company, including the Placing Shares, will be 75,374,120 Ordinary shares. Zambezi Resources have subscribed for 20,000,000 ordinary shares of 1p each ("Ordinary Shares") in the Placing. Following admission of the Placing Shares, Zambezi Resources will hold 36,633,621 Ordinary Shares (48.6% of the total number of Ordinary Shares in issue) The proceeds from the placing will be used to assist the Company fulfil its obligations under the joint venture agreement when it is executed. Terms for the Heads of Agreement Under the Heads of Agreement and subject to entering into a joint venture agreement with Zambezi Resources, Zambezi Nickel will earn its equity interest in the uranium rights on the Mpande, Rufunsa, Mulungushi and Chumbwe licences as follows: * Zambezi Nickel must spend a total of US$5 million on the licence areas over two and a half years in order to earn a 51% equity interest in the companies controlling the Zambian uranium rights (these companies are currently wholly owned by Zambezi Resources); * Zambezi Nickel must spend a minimum of US$3 million before it can withdraw from the joint venture agreement, of which US$2 million must be spent on the Chumbwe licence, which contains the Oryx prospect; * After Zambezi Nickel has earned its 51% interest in all uranium rights, Zambezi Resources can elect to fund ongoing exploration and development costs on a pro rata basis or elect to allow Zambezi Nickel to fund exploration through to completion of a Definitive Feasibility Study or Studies ("DFS"); * For the Chumbwe licence, after Zambezi Nickel has earned its 51% interest, Zambezi Nickel must, within the four years after the date of the acquisition of interest, complete a DFS on a JORC compliant uranium resource to earn a 75% equity interest in the company holding the licence; * For the other three licences, Zambezi Nickel must, within four years of the date of the acquisition of interest, complete a DFS on a JORC compliant uranium resource not located on the Chumbwe licence to earn a 75% equity interest in the company holding the licences; * On completion of a positive DFS, and on making a decision to mine, Zambezi Resources may elect to retain their 25% ownership by contributing their share of costs or dilute their interests; * Where Zambezi Resources elects not to fund development costs pro rata, it shall be entitled to a 2.5% Net Smelter Return (NSR) on uranium produced; and * Under the underlying Uranium Rights Agreement, Zambezi Resources will also be entitled to a 2.5% NSR on any other minerals produced as a by product of uranium mining. The Agreement will be subject to normal regulatory and Ministerial approvals. As already set out above, if a joint venture agreement is executed between the parties, a further announcement will be made in due course. About Oryx The Oryx Uranium prospect is favourably located approximately 80km south east of the Zambian capital, Lusaka. Covering an area of 12km(2), the Oryx radiometric anomaly was discovered by Zambezi Resources in 2005 through the completion of a regional airborne magnetic and radiometric survey. Field reconnaissance of the 6km long radiometric anomaly revealed the occurrence of davidite, which is a heavy titanium-iron oxide mineral that contains significant uranium and rare earth elements including yttrium, cerium and lanthanum. Initial exploration activities including mapping, 1.6km of trenching, soil sampling, a ground radiometric survey and rock chip sampling focused on the peak radiometric anomaly in the north eastern zone of the prospect area. Trenching identified significant uranium grades over widths of up to 50m, with a peak value of 1527ppm U3O8 (0.15% U3O8). Selected sampling of surface accumulations of uranium-rich iron oxides possibly derived from davidite, returned values of up to 6.44% U3O8. A high resolution airborne radiometric survey completed after this initial phase of exploration clearly shows that a larger, cohesive radiometric anomaly exists to the west of the initial exploration area. This anomaly remains untested. Zambezi Resources also collected samples of davidite-bearing material to be submitted for metallurgical testwork to confirm the likely metallurgical characteristics of the Oryx uranium mineralisation. Testwork on a low-grade (160 ppm U3O8) bulk 50 kg sample suggested that gravity separation alone is unable to effectively upgrade the uranium and that low intensity magnetic separation would be required. Pressure acid leaching on a high grade sample (sorted by spectrometer by Zambezi Resources) grading 4.4% U3O8 extracted 68% of the uranium over a 6 hour period. A further 50 kg sample was collected to assess the potential to upgrade the davidite mineralisation in order to form a high grade concentrate. The results of this metallurgical programme remain pending. Towards the end of 2006, diamond drilling was carried out at the Oryx uranium project in the north-eastern part of the radiometric anomaly where previous trench sampling had returned up to 760 ppm U3O8 and extensive davidite float was evident at surface along a northeast trending ridge. The diamond drill holes, targeted to generate structural information, reportedly intersected sheared pegmatite, biotite schist, amphibolite and dolerite. Even though not specifically targeting mineralisation, Initial sampling results returned a value of greater than 300 ppm U3O8 over a sample length of 0.6 m in one sample. Other Uranium Targets In addition to the Oryx prospect, at least 11 high priority radiometric anomalies identified by regional airborne radiometric surveys exist within the Mpande and Mulungushi licences covered by the proposed Joint Venture. The Mpande anomalies consist of four prominent bullseye-style and one elongate lithological/shear-related style surface radiometric uranium anomalies. The bullseye anomalies range in size from 0.25 square kilometres to 1.5 square kilometres, while the lithological/shear-related anomaly is approximately 4 kilometres long and 200 metres wide. The Mulungushi anomalies consist of five elongate surface radiometric uranium anomalies, and are strongly associated with prominent regional shear systems interpreted to be related to the major crustal Mwembeshi Shear Zone. The anomalies are generally of the order of 2 kilometres in length and 0.5 kilometres in width. Further processing of the data is awaited to assist in target selection. Zambezi Nickel intends to initiate extensive mapping, trenching, detailed radiometric surveys and drilling of these target areas once the joint venture agreement is signed. Through its alliance with Zambezi Resources, Zambezi Nickel is well placed to quickly and efficiently explore target areas and search for new prospects. It is Zambezi Nickel's intention to rapidly delineate uranium resources and where economically feasible, bring them into production Jim Kerr, who is a Member of the Australasian Institute of Mining and Metallurgy, and who has sufficient experience which is relevant to the style of mineralisation and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves has reviewed the information contained in this announcement. Jim Kerr Managing Director Zambezi Nickel For further information please contact: Jim Kerr, Zambezi Nickel Limited Tel: +61 8 9216 9000 David Youngman, WH Ireland Limited Tel: +44 161 832 2174 Laurence Read/Jos Simson, Conduit PR Tel: +44 207 429 6603 This information is provided by RNS The company news service from the London Stock Exchange END MSCEAXSFAASXEFE
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