Riverfort Global Opportunities (RGO)

Sector:

Financials

Index:

FTSE AIM All-Share

 0.075p
   
  • Change Today:
      0.000p
  • 52 Week High: 0.097
  • 52 Week Low: 0.065
  • Currency: UK Pounds
  • Shares Issued: 6,789m
  • Volume: 5,495,602
  • Market Cap: £5.09m
  • RiskGrade: 580

Alecto Minerals agrees financing deal and DBO for Zambia gold mine

By Oliver Haill

Date: Wednesday 13 Apr 2016

LONDON (ShareCast) - (ShareCast News) - Alecto Minerals has agreed a financing deal for the construction of its Matala gold project in Zambia.
AIM-listed Alecto has agreed partnerships with Chinese mining engineer Yantai Xinhai Machinery and South Africa's PenMin to cover the development and operations of the project.

PenMin has delivered a feasibility study on Matala that indicates what Alecto said was "positive economics" for a 400,000 tonnes per annum oxide and transitional open pit operation, with a mine life of roughly four years and eight months at a cost of $1,200/oz of gold, plus potential for exploration upside underground.

As part of an agreement by all three parties to enter into a proposed design-build-operate (DBO) contract, Xinhai, a well established Chinese provider of engineering, procurement, construction (EPC) services, has agreed to arrange vendor financing in the form of a loan for the DBO contract, meaning Alecto remains sole owner.

This means, while Xinhai and PenMin will jointly manage the plant's operations, Alecto will take control on conclusion of the term of the contract.

Alecto, whose management have visited Xinhai's operations, said financing, asset procurement and operating agreements all still remain subject to agreement on pricing and detailed contractual terms.

Chief executive Mark Jones said the signing of this agreement and, more importantly, the commitment from Xinhai to arrange vendor financing, "de-risks the Matala gold project significantly and is testament to the excellent opportunity that the project represents for stake holders".

"In recent months, we have developed a strong relationship with both PenMin and Xinhai that has provided Alecto with the confidence we need to partner with them in both the development and operational phases of the project."

Alecto, in which London-listed Paternoster Resources is an investor, acquired Matala and nearby Dunrobin gold mines in November for £1.54m, alongside a £650,000 placing.

It said at the time that two mines have, in aggregate, 760,000 ounces of gold at an average grade of 2.3 grams per tonne.

Shares in Alecto, which also in February agreed a new joint venture with FTSE 100 gold giant Randgold for exploration and development of its Kossanto West Gold Project, were up 49% to 0.15p, a six-month high.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

RGO Market Data

Currency UK Pounds
Share Price 0.075p
Change Today 0.000p
% Change 0.00 %
52 Week High 0.097
52 Week Low 0.065
Volume 5,495,602
Shares Issued 6,789m
Market Cap £5.09m
RiskGrade 580

RGO Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value Not Available
Price Trend
52.89% below the market average52.89% below the market average52.89% below the market average52.89% below the market average52.89% below the market average
58.9% below the sector average58.9% below the sector average58.9% below the sector average58.9% below the sector average58.9% below the sector average
Income Not Available
Growth
72.58% above the market average72.58% above the market average72.58% above the market average72.58% above the market average72.58% above the market average
75.21% above the sector average75.21% above the sector average75.21% above the sector average75.21% above the sector average75.21% above the sector average

RGO Dividends

No dividends found

Trades for 27-Jan-2020

Time Volume / Share Price
15:53 1,306,918 @ 0.075p
11:37 47,976 @ 0.075p
09:24 4,140,708 @ 0.076p

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