ABN Newswire

FINANCE VIDEO: Direct Nickel (DNi) Chairman Julian Malnic Speaks with Brian Carlton about Nickel Laterite Processing

newsroom@abnnewswire.net — Mon, 29 Nov 2010 11:20:28 GMT

FINANCE VIDEO: Direct Nickel (DNi) Chairman Julian Malnic Speaks with Brian Carlton about Nickel Laterite Processing

Executive Chairman, Julian Malnic a professional geologist whose career spans a wide range of industry activity including exploration, mine assessment, corporate management and development and industry media.

Julian is Chairman of the Sydney Mining Club, which he founded in 1997. The Sydney Mining Club, under his leadership has grown to be Sydney's leading forum for mining executives, professionals and suppliers.

In 1997, Julian founded Nautilus Minerals (now Nautilus Minerals Inc. and listed on the Toronto TSX-V and London AIM exchanges). Nautilus is the world's first company to be granted exploration licences to newly discovered, high grade seafloor massive sulphide deposits. Mining of these gold, copper and zinc rich deposits is planned to commence in the last quarter of 2011 following the successful equity fundraisings totaling US$300M.

With one of his founding partners in Nautilus, Russell Debney, Julian founded Direct Nickel Pty Ltd (DNi) in 2006 after having identified the potential of precursor technologies for treating nickel laterites.

The DNi Process

The Direct Nickel (DNi) Process is a hydrometallurgical process for nickel laterite deposits. It is believed to be the only process capable of treating the full laterite profile, from limonitic to saprolitic ores in a single flowsheet. It is a tank leach process that operates at atmospheric pressure, or with the option of mild pressure, and treats the ore at relatively low temperatures. The leach process uses a special reagent package to liberate more than 95% of the nickel, cobalt and other metals into solution. The insoluble residue is neutralised and sent to a waste disposal facility. The solution is then sequentially processed to extract the individual metals. The metal solution processing produces:

- A marketable mixed hydroxide (or oxide, or sulphide) product containing nickel and cobalt.

- Co-products Fe2O3, Al2O3 and MgO.

- A barren solution that is sent to the recycle circuit which recovers +95% of the reagent for reuse.

The high recovery of the reagent package is a unique feature in the DNi Process. Consequently, reagent consumption in the DNi Process is as low as 30kg/t of feed material compared to sulphuric acid leaching processes, which consume 300 to 1000kg/t.

- List of Key Features of the Process are:

- Treats whole laterite profile (limonite and saprolite ores) with one flowsheet

- Extraction of Nickel exceeds 95% and Cobalt 85%

- Reagent recovery +95%

- Operates at atmospheric pressure and low temperature, significantly reducing operating costs compared to other existing technologies.

- Comparatively low technology risk, with a much lower operating intensity than HPAL and smelting plants.

- Uses commercially available equipment and standard materials of construction.

- Environmental benefits - reduced tailings, process emissions captured and recycled.

- Low capital threshold to entry- ability to freely scale up from 5 ktpa of Nickel to any size.

All steps in the process have been demonstrated at bench scale.

View the video cast here:
http://www.abnnewswire.net/press/en/64292/Direct-Nickel

Julian Malnic
Executive Chairman
Tel : +61-2-8014-7780 
Fax : +61-2-8324-6366
email : info@directnickel.com

Sandfire (ASX:SFR) Builds Strategic Alliance with Korea's LS-Nikko

newsroom@abnnewswire.net — Fri, 23 July 2010 16:08:44 GMT

Sandfire Resources Nl (ASX:SFR) said it has concluded an agreement with Korean-based LS-Nikko Copper Inc., the world's third largest copper smelter, encompassing a strategic alliance, sales arrangements for future production and a A$93.9 million share placement.

Under the agreement, LS-Nikko will acquire 12.5 per cent strategic holding in Sandfire through the issue of 18.7 million shares at A$5.02 per share, representing a premium of 10 per cent to the 5-day Volume-Weighted Average Price (VWAP) of Sandfire shares.

The funds will be used to underpin an unprecedented exploration program at the DeGrussa Copper-Gold project in Western Australia.

Sandfire said its relationship with LS-Nikko, together with existing strategic alliance with Korean steel maker POSCO (SEO:005490), will help the company to secure project finance on highly favourable terms.

Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net

Australian Market Report of January 8: Profit-taking Selling

newsroom@abnnewswire.net — Fri, 8 Jan 2010 09:30:23 GMT

The Australian shares closed lower on Thursday despite mining shares were stronger on expectations of higher iron ore prices. The fall was largely due to weakness in financial stocks. The market saw some profit-taking selling in miners in the afternoon. At the close, the benchmark S&P/ASX 200 index fell 22.0 points, or 0.45 per cent, to 4899.4 points, while the broader All Ordinaries index lost 16.3 points, or 0.33 per cent, to 4930.5 points.

Key Economic Facts and Figures

Australian Bureau of Statistics (ABS) on Thursday said Australia's balance of goods and services was a deficit of A$1.70 billion in November, seasonally adjusted, from a revised deficit of A$2.080 billion in October. The November result was better than the market forecast of a deficit of A$1.8 billion, thanks to a fall in imports and China's continued demand for local commodities.

Retail sales jumped surprisingly by 1.4 per cent in November, following a revised 0.4 per cent rise in October, the Australian Bureau of Statistics said. It is more than four times higher than the market expectations of 0.3 per cent. However, the upbeat data could help bolster the case for more rate rises by the Reserve Bank.

Australian Industry Group is due to unveil Performance of Construction Index on Friday.

M&A News

Share in Rocklands Richfield Ltd. (ASX:RCI) plummeted yesterday after Jindal Steel & Power Ltd. (BOM:532286) sold down part of its stake in takeover target Rocklands Richfield. The reduction in Jindal's stake comes after the Indian company this week matched the takeover offer from its Chinese rival, Meijin Energy Group, offering 56 cents a share, valuing Rocklands at A$197 million.

Food brand manager and franchisor Retail Food Group (ASX:RFG) has reached agreements, subject to normal contractual terms and finalisation of due diligence enquiries, by which the Brumby's Bakeries master franchise territories for Western Australia (WA) and the Northern Territory (NT) will be reacquired. It will be funded through a mixture of RFG scrip and cash. Meanwhile, Retail Food Group said it has completed due diligence into its acquisition of DCM Coffee and Doughnuts.

Mineral Resources (ASX:MIN) has increased the cash component of its bid for the remaining stake in Polaris Metals NL (ASX:POL) it does not already own. Mineral Resources will offer one of its shares plus 10.1 cents cash for each Polaris share held, it said in a statement on Thursday.

Important Corporate News

Intec Ltd (ASX:INL) said on Thursday that it has received notice from Green Resources (Asia Pacific) Holding Limited of completion of Chinese and Hong Kong financing for Stage 1 of the Subscription Agreement with INL announced on 5 November 2009. INL is investing RMB 2 million in Green Resources, which apply these and other funds to complete the feasibility study for the previously announced 50,000 tpa metalliferous furnace dust project in Liuzhou City of China.

Engineering and construction services company VDM Group (ASX:VMG) said it had been awarded a A$14.1 million contract for BHP Billiton Nickel West Talc Redesign Project at Mt Keith. Wylie & Skene, VDM's wholly owned subsidiary, was awarded the contract involving extensive earthworks and concrete work at Mt Keith. VDM said recent contracts awarded to the group have been exceeding A$200 million, and brought its order book at over A$415 million.

Australian Market Report of December 24: Weak Trade before Holiday

newsroom@abnnewswire.net — Thu, 24 Dec 2009 09:30:38 GMT

The Australian shares Wednesday were broadly higher in the last full trading day before Christmas holiday. The market rose in a light trade after the US market gained on the upbeat home sales data. At the close, the benchmark S&P/ASX200 index rose 35.1 points, or 0.7 per cent, at 4739.3, while the broader All Ordinaries advanced 31.7 points, or 0.7 per cent, to 4756.1.

Key Economic Facts and Figures

No economic data is due on Thursday.

M&A News

Rio Tinto (ASX:RIO) has formally accepted the $US2.025 billion offer by Amcor (ASX:AMC) for some of the Alcan Packaging businesses. The offer has been cleared by the European Commission but was yet to be cleared by the US Department of Justice, Rio Tinto said. If the sale proceeds, Amcor will buy the Alcan Packaging global pharmaceuticals, global tobacco, food Europe and food Asia divisions.

Ausmelt Limited (ASX:AET) said Wednesday has received a third proposal to acquire up to 100 per cent of the issued capital of the company. The latest proposal, from the Xiyang Group of Liaoning Province, China, is a non-binding indicative proposal outlining a price of A$1.45 per Ausmelt share. The Ausmelt Board is of the view that the Xiyang Group offer is not a superior proposal as defined under the Bid Implementation Agreement with Finnish mining and metal processor Outotec (HEL:OTE1V), which has increased its takeover bid for Ausmelt to A$1.35 a share.

Australia's Takeover Panel has declined to make a declaration of unacceptable circumstances in response to an application from The Maryborough Sugar Factory Limited (ASX:MSF) in relation to its off-market scrip takeover bid of Tully Sugar Limited. The Panel requested further disclosure be made as it was concerned that Tully shareholders had insufficient information to make decision.

Billabong International Ltd (ASX:BBG) has entered into a conditional agreement to acquire an interest in online board sports retailer, Surfstitch. The agreement will allow Billabong acquire a minority equity interest in Surfstitch, with options to acquire 100 per cent of the business. Billabong said the purchase price was not material and was subject to a confidentiality agreement.

Important Corporate News

AWB (ASX:AWB) chairman Peter Polson said the company expects its 2010 pretax profit before significant items for continuing operations to be between A$115 million and A$140 million, compared with A$93 million last year.

Engineering and construction company Decmil Group Limited (ASX:DCG) said its wholly owned subsidiary, Decmil Australia Pty Ltd has been awarded a A$74 million sub-contract by Thiess Pty Ltd for the design and construction of temporary construction facilities which form part of Thiess' Site Preparation & Temporary Construction Facilities contract for the Gorgon Project. The contract award increases DGL's order book to A$350 million.

Michelle Liang
TEL: +612-9247-4344

Australian Market Report of November 24: Solid Gains in Overseas Markets

newsroom@abnnewswire.net — Tue, 24 Nov 2009 13:00:00 GMT

US stocks posted a strong gain overnight boosted by better-than-expected home sales. Existing-home sales increased by 10.1 per cent to a 6.1 million annual rate, from 5.54 million in September, the National Association of Realtors said. The US dollar was weaker on Monday on expectations that the interest rate would remain at near zero.

The Australian shares opened higher on good leads from the US and stronger commodities. In the local market yesterday, the benchmark S&P/ASX200 index closed up 31.2 points, or 0.67 per cent, at 4717, while the broader All Ordinaries was up 32.5 points, or 0.69 per cent, at 4739.2.

The Australian dollar was pushed up on a rebound in risk assets after the US dollar weakened. At 7am, the Australian dollar was trading at 92.5 US cents.

Key Economic Facts and Figures

The Australian Bureau of Statistics data showed that the car industry is improving. Australian new motor vehicle sales rose by 3.7 per cent, seasonally adjusted, to 81,122 units in October, from 78,243 units in September. The October figure was 15 per cent above the series' six-year low of 70,518 units in March.

M&A News

Whitehaven Coal Limited (ASX:WHC) has completed the sale of a 7.5 per cent interest in the Narrabri joint venture project to a Korean consortium comprising Daewoo International Corporation(SEO:047050) and Korea Resources Corporation. The sale price for the transaction is A$125 million. The Korean consortium is also responsible for contributing 7.5 per cent of the costs of the project from 1 January 2008 going forward.

Ausmelt Limited (ASX:AET) said it has received a further non-binding indicative proposal for an off-market takeover offer for all the shares in Ausmelt in the range A$0.80 to A$0.90 per share. This follows receipt of an earlier indicative non-binding expression of interest from a different bidder to acquire all the shares in Ausmelt at a price of 60-70c per share, which was announced to the market on 19th October 2009.

Billabong (ASX:BBG) said today it agreed to acquire US-based online boardsports retailer Swell.com. The purchase price is not disclosed. Billabong said the acquisition would contribute less than 1 per cent to the company's revenue and would be slightly earnings per share positive in its first full-year as part of Billabong.

Diversa Ltd (ASX:DVA) today said it had acquired an initial 20 per cent ownership of Huon Capital Pty Ltd, a specialist Australian equities manager with A$40 million in assets under management. Consideration for the acquisition is an initial payment of 500,000 shares in Diversa and up to a further 1.5m shares based on the achievement of various performance milestones over the next 36 months.

Important Corporate News

Textile manufacturer Thomas Bryson International (ASX:TBI) will for the first time open a chain of Thomas Bryson homeware stores in China. The first store will be 13,000sq m and will open early next year in Shaoxing, in Zhejiang province. Stores are also planned for Shanghai, Suzhou, Kunshan and Changshu.

Qantas (ASX:QAN) will spend A$4.4 billion over the next two years as it purchases new aircraft and embarks on a campaign to shore up margins. The company will spend A$1.7 billion in the 2010 financial year and A$2.7 billion in 2011. That includes buying 43 planes of which eight will be Airbus SAS A380s.

Bank and insurance company Suncorp-Metway (ASX:SUN) says bad debts have stabilised in the September quarter. The company also said the non-core should run-off in an orderly manner and it was seeing positive signs in the market regarding opportunities for divestment.

Ruralco Holdings (ASX:RHL) posted an annual net profit for fiscal 2009 of A$8.45 million, down 47 per cent on the prior year, following a general downturn in the rural services sector. The company expects overall trading conditions in the rural sector to improve in fiscal 2010 and says the company is well placed to take advantage of the uplift.

Toll Holdings (ASX:TOL) today said it had secured an Australian Department of Defence contract that could be worth about A$2 billion in revenue over nine years. The contract to supply removal and relocation services to defence personnel is expected to generate more than A$1 billion in revenue over its initial five-year term.

Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net

Australian Market Report of November 11: Sentiment Remained Strong

newsroom@abnnewswire.net — Wed, 11 Nov 2009 13:00:28 GMT

Wall Street closed mixed overnight as investors took profits after a massive gain in previous session. US shares mostly fell earlier in the day, but rebounded towards the close. Analysts said that market sentiment remained bullish.

Australian stocks today edged higher at the opening. Yesterday the local market was up on merger and acquisition activity and a positive survey of business conditions. The benchmark S&P/ASX 200 index rose 58.7 points, or 1.26 per cent, to 4733.6 points, while the broader All Ordinaries index gained 1.23 per cent to 4,744.0 points.

The Australian dollar was trading at 93.03 US cents this morning. During the overnight session, it was struggling to break through the 93 US cents level. The unit traded in a tight range between 92.5 and 93.06 US cents.

Key Economic Facts and Figures

The Westpac-Melbourne Institute survey showed that the consumer sentiment index dropped by 2.5 per cent in November to 118.3, compared to a 1.7 per cent rise in the previous month. The index had risen for five months to October, as the sharemarket recovered and interest rates remained low.

In economic news, the Australian Bureau of Statistics is to publish lending finance data for September today.

M&A News

Glengarry Resources Limited (ASX:GGY) and Centaurus Resources Limited (ASX:CUR) have reached agreement to merge to create a well funded Brazilian focused iron ore group. The companies have executed an Implementation Agreement to effect the merger by way of an off-market takeover bid under which Glengarry will bid for all the shares in Centaurus.

Mineral Resources Ltd (ASX:MIN) has increased its takeover offer to Polaris Metals NL (ASX:POL) shareholders. Mineral Resources will now offer one MRL share for every 10 Polaris shares and five cents cash for every one Polaris share.

Oil and gas explorer Australian Worldwide Exploration Limited (ASX:AWE) will increase its share in BassGas project from 42.5 per cent to 50 per cent. The company and CalEnergy Gas (Australia) Ltd have entered into arrangements under which CalEnergy will sell its 15 per cent equity interest in the BassGas Project for a total consideration of A$80 million. Innamincka Petroleum Limited (ASX:INP) will acquire 7.5 per cent of the CalEnergy equity for A$40 million under a participation agreement between AWE and Innamincka.

Zedex Minerals Limited (ASX:ZDX) and Toronto listed company Olympus Pacific Minerals Inc. (TSX:OYM) today announced that they intend to merge. Zedex and Olympus NZ will merge and Olympus NZ will continue as the surviving legal entity.

Important Corporate News

Ausenco Limited (ASX:AAX) anticipates a strong growth in 2010 as the levels of new project opportunities in Canada, Africa and South America are increasing. It has revised its expected full year sales revenue for 2009 to between A$435 million and A$465 million and underlying net profit after tax of between A$26 million and A$30 million. The guidance followed a review of significant contracts underway and those expected to be awarded during the remainder of the year.

Securities in Babcock and Brown Power (ASX:BBP) have been placed in a trading halt, pending the outcome of gas contract negotiations in Western Australia. BBP said it is currently in the process of assessing the impact of the interim award in relation to the previously announced gas contract arbitration in Western Australia.

Singapore Telecommunications (ASX:SGT)(SIN:Z74) has posted 8.9 per cent growth in its first half net profit to S$1.9 billion, up from S$1.75 billion in the previous corresponding period. Its Australian Optus business posted a strong growth in net profit for the first half to A$291 million, up 18 per cent on A$247 million in the previous corresponding period.

Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net

Australian Market Report of October 19: US Deficit Hits Record High

newsroom@abnnewswire.net — Mon, 19 Oct 2009 13:30:19 GMT

The Dow index gave up last week's success and slipped back slightly over the weekend. US and European stock markets closed lower on Friday after the latest US corporate results disappointed high hopes and pushed Wall Street back down through the key 10,000 points level.

The U.S. budget deficit hit a record US$1.4 trillion to the end of the fiscal year, the US government said on Friday, as the recession and a series of bank rescues cut a hole in public finances. That figure was US$162 billion smaller than the White House had forecast in August, but it still amounted to 10 percent of total U.S. economic output, the most for any budget shortfall since World War Two.

The Australian dollar opened lower today, as investor appetite for the risk sensitive currency decreased following poor profit results from major US companies.

Key Economic Facts and Figures

Forecasters are revising their unemployment figures and expecting the unemployment rate to peak at 6.8 per cent in the middle of next year. The Federal Government had previously flagged a rise in unemployment to 8.5 cent by mid-2010, when delivering its Budget last May. The jobless rate currently stands at 5.7 per cent.

M&A News

Transport and logistics group Toll Holdings (ASX:TOL) is eyeing more takeover opportunities as it seeks to become a dominant player in Asia, with plans to spend between A$500 million and A$700 million from cash and bank borrowing facilities. Chief executive Paul Little said yesterday that with valuation multiples at their lowest in a while, the time was right to look at mergers and acquisitions of freight forwarders.

Services and Technology company to the metals industry, Ausmelt Limited (ASX:AET), has received an offer from an unidentified company to acquire all of its shares. Ausmelt has recently announced new lead smelting operations in China and India, and indicated that the offer price is significantly in excess of Ausmelt's current share price.

Polaris Metals (ASX:POL) has advised shareholders to take no action on the offer by Mineral Resources (ASX:MIN) to acquire all of its shares. Polaris favours a superior offer from Lion-Asia Resources representing a premium of 6% on the Minerals Resources offer.

Pilbara Iron Ore hopefuls Brockman Resources (ASX:BRM), FerrAus Limited (ASX:FRS), BC Iron Limited (ASX:BCI) and Iron Ore Holdings Limited (ASX:IOH) rallied strongly on Friday as a result of BHP Limited's (ASX:BHP) takeover offer for United Minerals Corporation (ASX:UMC).

Important Corporate News

U.S. oil company Chevron Corp (NYSE:CVX) has made a gas discovery off Western Australia, which could underpin its plans for the expansion of the A$37 billion Gorgon liquefied natural gas project. Chevron, operator and 47.75-percent owner of the Gorgon project, said late on Sunday it had achieved drilling success at its Achilles-1 exploration well in the offshore Carnarvon Basin, encountering approximately 100 metres of net gas pay.

Myer Holdings Limited chief executive Bernie Brookes begins his United States east coast road show this week as he puts the department store before leading fund managers and institutional investors in the lead-up to its November 2 float. Capital Group, Fidelity and Templeton are among the larger fund managers targeted during the road show who already have extensive investments in Australia. Their interest in the A$3 billion Myer float will greatly affect the final price of the shares.

Norton Gold Fields (ASX:NGF) one of the largest ASX listed gold producers, today announced the successful placement of shares worth A$40.5 million to sophisticated investors in Canada, USA, UK and Hong Kong at A32.83 cents per share. The placement provides significant funding for the company's growth plans for the Mount Morgan Mine project in Queensland.

Monaro Mining (ASX:MRO) announced an independent re-evaluation of the Rio Puerco mine in New Mexico USA, resulting in a significant increase of 250% in the project's uranium resource inventory. Monaro's chairman Jim Malone said the results of this work have dramatically exceeded the company's expectations.

Wesfarmers Limited (ASX:WES) and Arch Rival Woolworths Limited (ASX:WOW) are among a number of companies to update investors this week. Wesfarmer's all important first quarter sales numbers for Coles Supermarket outlets are to be released on Friday.

Other companies who will supply market updates this week from their annual meetings include Qantas (ASX:QAN) and Fosters Group (ASX:FBW).

Andrew Matzger
Asia Bureau 
Asia Business News
TEL: +61-2-9247-4344

ArcelorMittal (NYSE:MT) To Source Equipment From India and China

newsroom@abnnewswire.net — Fri, 7 Aug 2009 16:53:08 GMT

ArcelorMittal (NYSE:MT), the world's largest steel producer, is to source more equipment from India and China for its greenfield projects worldwide.

ArcelorMittal is increasingly looking at sourcing most of the new equipment for our greenfield plants from India and China. The company is eyeing a 20% cut in equipment cost. In particular, it could help reduce equipment costs by 35-40% for the two projects in India, said Pierre Jonette, CEO of ArcelorMittal Design & Engineering Centre. Equipment costs comprise nearly 50% of the total project cost of a greenfield unit.

ArcelorMittal will use India and China as hubs for procuring equipment for projects worldwide without compromising on the quality. The company is in talks with different vendors in the two countries to source boilers, infrastructure and steel structures from India and blast furnaces, coke oven and sinters from China.

Apart from India, where it is setting up two 12 million tonne steel plants, ArcelorMittal has planned smaller greenfield ventures in Indonesia, China, Saudi Arabia and Kazakhstan.

Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net

Australian Market Report of May 18: Market Softened on US Economy Outlook

newsroom@abnnewswire.net — Mon, 18 May 2009 13:00:58 GMT

US stocks ended the week lower Friday with drops in financials and energy companies. Financial sector was hit by Fitch Ratings' warning that it is considering lowering credit ratings on nine U.S. financial companies. Falls in oil prices also weighed down the energy firms.

Australian shares gained 1.3% on Friday but still lost 4.3% for the week. The benchmark S&P/ASX200 index was 49.8 points, higher at 3773.2 and the broader All Ordinaries index was also up 1.3%, or 48.1 points, at 3758.9. The local market is expected to soften on jitters over the US economy.

Key Economic Facts and Figures

A study of Australian house prices by RBS has questioned the common view that the housing shortage will prop up prices. Economists say house prices, which have plunged 7 per cent from their peak, could continue dropping despite cuts to interest rates and the extension of the first-home buyers grant.

The Housing Industry Association is due to release its affordability report for the March quarter today.

M&A News

Beach Petroleum (ASX:BPT) has built up a 13.2 per cent strategic stake in its takeover target Drillsearch Energy (ASX:DLS). Beach Petroleum said it had entered into pre-bid agreements with some shareholders.

It is reported that GPT Group (ASX:GPT) will challenge minority shareholder Stockland Group (ASX:SGP) about its intentions regarding its stake in the company. GPT's chief executive Michael Cameron said he would ask the managing director of Stockland, Matthew Quinn, to decide on increasing the stake or selling out.

Consolidated Rutile Ltd (ASX:CRL) said it has reached agreement with Unimin Australian Ltd under which Unimin will increase the unconditional takeover offer for all of CRL shares to A$0.45 per CRL share. The CRL board unanimously recommend its shareholders accept the offer.

Coal miner Whitehaven Coal (ASX:WHC) has dropped a planned merger with Gloucester Coal (ASX:GCL). Gloucester recommended a bid by Noble Group (SIN:N21) after the Hong Kong commodities trader raised its offer for Gloucester on Friday to A$7 a share, or A$572 million.

Important Corporate News

Graincorp (ASX:GNC) posted a net profit of A$32.33 million for the half year to March 31, up from a loss of A$6.5 million in the prior corresponding period. Graincorp plans to raise A$60 million capital from institutional investors.

Surfwear maker Billabong International (ASX:BBG) is expected to post a fall in its net profit for the year ended June 30 to between A$160 million and A$165 million, down from A$176.4 million last year. The company has launched a A$290 million capital raising and cut its full-year earnings forecast due to weaker US retail sales.

The Commonwealth Bank of Australia (ASX:CBA) will persevere the 43 east coast branches of BankWest for the next two years despite the eastern states branches are still operating at a lost.

Former acting chairman of Australian Agricultural Company Limited (ASX:AAC), Charles Bright, has resigned as a director of the company, effective last Sunday, May 17.

New Hope (ASX:NHC) posted a 48 per cent surge its coal sales in the April quarter, compared to the corresponding period last year. The company also reported its raw coal production in the three months to April was 2.52 million tons, up 24% on year.

Ausmelt Limited (ASX:AET) has won its second lead smelter contract in China. The contract price is confidential but will provide material revenues and profits to Ausmelt over the next two years. The company will supply a lead smelter with a capacity to produce 60,000 tonnes of lead a year to Hulunbeier Chihong Mining Limited (HCML) in China's Inner Mongolia Province. HCML is a subsidiary of Yunnan Metallurgical Group (YMG

Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net

Bass Metals Ltd (ASX:BSM) Signs Hellyer Mill & Mining Lease Purchase From Intec Ltd (ASX:INL)

newsroom@abnnewswire.net — Thu, 11 Dec 2008 13:09:57 GMT

Bass Metals Ltd (ASX:BSM) is pleased to announce that it has signed a binding agreement to purchase from Intec Ltd (ASX:INL) the Hellyer processing plant, associated infrastructure and the Hellyer Mining lease for A$4.0 million to be paid on settlement. Bass Metals will also pay Intec a Processing Royalty of A$2.50/tonne processed, capped at A$5.0 million.

Settlement is conditional on a number of factors, including; consent from Intec's secured creditor, Macquarie Bank Limited and the Tasmanian Minister of Mines, possibly respective shareholder approvals as well as completion of formal documentation.

Highlights

- Binding agreement to acquire from Intec Ltd the Hellyer Mill, associated infrastructure, tailings resource and Mining Lease for $4.0M plus a Processing Royalty of $2.50/tonne processed (capped at $5.0M).

- Hellyer Mill is a 1.5mtpa flotation concentrator within 1 km of Bass Metals' Hellyer Mine project resources and well suited to treat its polymetallic ore types to produce high value metal concentrates.

- The acquisition will be funded from cash reserves which currently stand at $8.0 million and underpinned by expectations of continued strong cashflow from the Que River mine well into 2009, subject to commodity price and exchange rate movements.

- This is a transformational acquisition for the Company; Bass Metals will now evaluate processing ore from a variety of its projects, such as the Hellyer-Que River mineral resources and more regional prospects as well as 3rd party ores, to maximise the revenue potential of this modern, well maintained, comprehensive mineral processing facility.

The Hellyer Assets

The assets to be acquired include:

- The 1.5mtpa crushing, grinding, flotation concentrator plant currently on care and maintenance, including a 2MW SAG and Ball milling circuit and a sizable spares inventory. The Hellyer plant was last operational from November 2006 to September 2008 re-treating Hellyer tailings to produce a low grade bulk zinc-lead concentrate and hence is in overall good operational condition.

- All associated supporting infrastructure including grid power, storage sheds, spares inventory, warehouses, water treatment facilities and railway line access.

- A 300kW, electric cutter suction dredge and spares recently utilised to reclaim tailings for the retreatment project.

- The remaining Hellyer tailings resource. In April 2008 Intec reported a "pre-mining" resource comprising Hellyer tailings of 11 million tonnes at 2.8% zinc, 3.0 % lead, 88 g/t silver and 2.6 g/t gold. Intec's Hellyer zinc concentrate project processed approximately 2 million tonnes of this material through the Hellyer Mill, and Bass Metals will acquire the residual tailings.

- The Hellyer Mine Lease (CML103/1987), which Bass Metals already holds a sublease over giving it the mineral rights. Purchase of the Mining Lease transfers the environmental management responsibility to Bass Metals and it will be required to post a $0.99 million security deposit with Mineral Resources Tasmania.

Rationale for the acquisition

Bass Metals' 100% owned Hellyer Mine Project (HMP) comprises 2 distinct resources; Hellyer and Fossey which total 1.6 million tonnes of moderate to high grade massive sulphide base metal resources, located within 1 km of the Hellyer processing plant (refer ASX Report 30 September 2008). The mine development concept for the HMP is to mine a "base load" ore for processing at the Hellyer Mill at approximately 200 ktpa from Fossey and supplement it with another 50 to 100ktpa of ore from other sources such as the Hellyer or Que River Mineral Resources to the extent that grade and metallurgical characteristics allow.

The Hellyer Mill is especially suited to treat the very fine grained Hellyer style ore, and therefore can treat most other "simpler" polymetallic ore types such as occur at Fossey or Que River.

The Hellyer Mill has always been an important aspect of Bass Metal's development strategy. The value in the assets being acquired comprises the plant and "hard machinery" as well as the "operational footprint" which includes a permitted tails dam and supply corridors for power, water and vehicles. The prime motivating factors for this transaction are:

1. High Replacement Cost

The replacement cost of the Hellyer plant is estimated by Bass Metals and its technical experts to be well in excess of $100 million. Whilst currently the HMP may not need such a large facility, the replacement cost of a processing plant sized to the current conceptual rate of 200 to 300ktpa is approximately $40 to $50 million based on recently completed comparable projects.

2. Unique Flexibility

Mining and treatment of the Fossey mineralisation is the current base case scenario which could increase to include; high grade Hellyer and Que River ore, low grade material from both Hellyer and Que River, copper rich Que River ore and perhaps even the gold-silver-barite material. The Hellyer Mill is purpose built for the Hellyer-Que ore types and gives Bass Metals flexibility to maximise the exploitation of its resources, which a smaller plant or an extension of existing ore sales arrangements would not allow.

3. Higher Payability

Preliminary metallurgical results from 14 Fossey Zone drill samples indicates that by utilising the Hellyer Mill it should be possible to produce separate zinc, lead and coppersilver- gold concentrates. Sales of metal concentrates will generate higher returns and margins than the sale of whole ore.

Summary Terms & Conditions

BSM, through its wholly owned subsidiary Que Metals Pty Ltd, has entered into a binding agreement to acquire the Hellyer assets from Intec Hellyer Metals Pty Ltd, a 100% subsidiary of Intec Ltd, on the following terms and conditions:

Assets:

Consolidated Mining Lease 103M/1987, the complete Hellyer plant including all associated infrastructure and spares, the tails dam resource and reclamation equipment including the electric dredge.

Consideration:

- Refundable Deposit: A$500,000, payable on signing binding agreement.

- Cash Payment: A$3,510,000, payable on settlement.

- Processing Royalty: BSM will pay Intec a royalty of A$2.50/tonne processed through the plant, up to a total payment of A$5.0 million.

- Security Deposit: BSM has undertaken to replace Intec's environmental security deposit held by Mineral Resources Tasmania comprising A$990,000.

Conditions & Obligations:

Settlement of the acquisition is conditional on the following occurring or being completed to Bass Metal's satisfaction:

1. completion by Bass Metals of legal due diligence;

2. no material adverse effects arising prior to settlement which a have potential detrimental effect of greater than A$0.25 million;

3. consent for the transfer of the Mining Lease by the Minister of Mines;

4. completion of formal documentation, that is a Sale and Purchase Agreement and A Processing Royalty Agreements; and,

5. to the extent required, approval from ASX and respective shareholders.

Intec and Bass Metals have agreed a non-compete provision during this time to facilitate completion of this agreement.

Bass Metals has agreed to take over responsibility for the care and maintenance activities on site, until settlement is complete. Intec retain ownership and full environmental responsibility for a stockpile of electric arc furnace dust and the associated storage facilities.
Commentary

This is the most significant transaction undertaken by Bass Metals since listing in October 2005. It will provide a major boost in transforming the company from a small scale (and profitable) mining and exploration company, but reliant on third parties to treat or buy ore, into an independent, emerging mining company producing and marketing metals concentrates in accordance with its own development objectives, priorities and timetable.

This acquisition enables the Company to review all of its resources and prospects against the backdrop of owning a sophisticated, large scale mineral processing facility which can be adapted to a variety of ore types and processing rates - located within close proximity to its own resources at Hellyer, Que River and Mt Charter.

The cash outlay of $4.0 million to Intec and $0.99 million for the environmental bond is regarded as excellent value given the scale and quality of the assets being acquired and their potential utilisation by Bass Metals. The Company has the cash reserves to meet this acquisition and is comfortable that on present performance indicators Que River will continue to perform strongly and generate cash well into 2009, subject to no significant adverse external factors. Whilst Bass Metals is not reliant on raising any additional funds it may choose to accept one of several offers for third party financing to supplement its working capital position, particularly in the wake of this transaction and in anticipation of fast tracking the HMP developments, but this has not been decided nor finalised.

The Board and management of Bass Metals are excited by the opportunities this acquisition will generate for its business in Northwest Tasmania and the eventual flow-on expected for shareholders. I look forward to reporting further on the Company's progress and outcomes in pursuit of its growth objectives in the near term.

Mike Rosenstreich
Managing Director
T: +61-8-9322-8044
F: +61-8-9481-2846
http://www.bassmetals.com.au