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DGR GLOBAL LIMITED — Capital/Financing Update 2013
May 9, 2013
64771_rns_2013-05-09_9a1a6857-b10d-4206-ba65-9d0e4a2eacce.pdf
Capital/Financing Update
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DGR Global Limited
10 May 2013
Market Update of Global Resource Industry Interests
Further to previous market updates, the Board of Directors of DGR Global Limited (ASX:DGR) is pleased to report the continued development of its wider global resource industry interests with the following recent developments.
DGR Global is represented on the board of each of these investment interests and has provided varying degrees of corporate and technical support contributing to their initial and on‐going development. The combined market value of DGR Global’s retained equity position in the listed companies mentioned below currently exceeds $33 million[1] .
In addition there are a number of unlisted subsidiaries in the DGR Global group which promote the opportunity for further world class discoveries. The most advanced example of which is IronRidge Resources, which holds prospective tenements in Queensland, as well as several prospective iron ore projects in Gabon; the first major tenement area being close to the giant Belinga Railway project, and a second site at Tchibanga, which is only 60km east of the Gabonese port of Mayumba.
It is important to note that DGR Global is not merely the collection of a series of investment assets. The DGR Global business model is focused on the repeatable process of generating commodity‐focused resource exploration projects and developing them from their early exploration stages through to independently financed, listed and managed companies. Projects are generated directly through the skills and experience of DGR Global’s team of exploration geoscientists, not by the costly purchase of properties. It is important to note that the timeframe from value creation to value realization within the resource industry is sometimes variable and unpredictable. However, the project generation process championed by DGR Global is typically a cheaper route to ultimate value realization than the acquisition of projects on the open market.
Orbis Gold Limited (DGR: 39 million shares: 18%)
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Orbis Gold has announced the discovery of significant gold mineralization at its Natougou prospect in Burkina Faso , which has the potential for expansion with further drilling, aimed at the definition of a JORC compliant resource.
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The Company has also announced the discovery of new gold mineralized structures at its Tankoro and Bantou Prospects in Burkina Faso, based on recent drilling results.
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Orbis Gold believes that significant potential exists to extend the mineralization at Tankoro through on‐going exploration, and has commenced a program of grab and rock chip sampling to better define the distribution of near‐surface gold mineralization.
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New assay results for the Bantou Prospect have defined a 300m strike extension to the existing zone of gold mineralization. Orbis Gold believes that significant potential exists for the further extension of gold mineralization at Bantou through additional drilling.
1 Represented by 75 million shares in AJQ at 29 cents per share, 18.84 million listed options in AJQO at 7.5 cents per option, 39 million shares in OBS at 19.5 cents per share, 54 million shares in SOLG at AU2.34 cents per share, 60 million shares in ANW at 0.9 cents per share and 58 million shares in NVG at 2.2 cents per share.
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- Full details of these highlights are available in the Orbis Gold (ASX:OBS) market releases of 11 April and 6 May 2013 or by reviewing same at www.orbisgold.com.au
Armour Energy Limited (DGR: 75 million shares: 25%)
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Armour Energy recently instructed its drilling contractor Silver City Drilling to mobilize the rig for its 2013 Queensland exploration program to be conducted on ATP 1087. The rig has arrived at site, and the spudding of the Egilabria 2 vertical well is scheduled to commence shortly.
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Armour Energy is targeting a total of 9 TCF (Trillion Cubic Feet) of gas resources and reserves from the Lawn Hill Shale Play over the next 3 years in the eastern area of ATP 1087. This is enough gas to potentially supply 6 million tonne per annum Liquefied Natural Gas (LNG) production for a period of 25 years.
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In the Northern Territory , Armour Energy has received independent certification of its previous estimates for conventional gas prospectivity of 322 PJ (Petajoules) of unrisked Mean Prospective Resources in the Coxco Dolomite associated with 23 conventional gas prospects in the Batten Trough, McArthur Basin. Furthermore, the Company received independent estimates of 12.5 PJ of 3C Contingent Resources for its successful 2012 Glyde discovery wells, and 120 PJ of Mean Prospective Resources within the Greater Cow Lagoon Structure as discovered by Armour Energy in 2012.
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Armour Energy is currently compiling a prospects and leads inventory for additional conventional oil and gas targets in its Northern Territory and Queensland project areas.
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Full details of these highlights are available in the Armour Energy (ASX:AJQ) market releases of 24 and 26 April 2013 or by reviewing same at www.armourenergy.com.au
Solgold Plc (DGR: 54 million shares: 10%)
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Channel sampling at the Alpala Prospect within the Cascabel Project in Ecuador has returned highly encouraging gold and copper assays and confirmed the presence of a significant high‐grade copper‐ gold porphyry system .
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3D magnetic modeling at Cascabel supports the presence of a copper and gold rich magnetic core zone at the apex of a deep regional intrusion feeding copper‐gold rich solutions to Cascabel. The magnetic core zone covers an area of 1,000m x 500m under a clay‐silica‐pyrite cap, south east of an outcropping rich copper‐gold zone. The extent of surface copper and gold mineralization, and accompanying clay, pyrite and silica cap rocks covers most of an area of 2km[2] .
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In the Solomon Islands, SolGold has secured 100% ownership of the prospective Kuma prospecting licence as part of the third‐party sale arrangements for the Guadalcanal Joint Venture project areas previously held in conjunction with Newmont.
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Full details of these highlights are available in the SolGold (AIM:SOLG) market release of 1 May 2013 or by reviewing same at www.solgold.com.au
AusNiCo Limited (DGR: 60m shares: 14%)
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AusNiCo is now primarily focused on its advanced‐stage Taronga tin project , which complements its existing suite of nickel sulphide, copper and gold projects. The Taronga Tin Project is currently ranked as the 11[th] largest undeveloped hard rock tin project globally.
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Recent research reports into the Taronga Tin Project have supported a positive economic evaluation and the potential for a significant valuation upgrade for the Company.
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Full details of these highlights are available in the AusNiCo (ASX:ANW) market releases of 27 March and 8 April 2013 or by reviewing same at www.ausnico.com.au
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Navaho Gold Limited (DGR: 57 million shares: 28%)
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Navaho Gold id currently awaiting an independent appraisal of the gas resource potential of its NavGas Project . The NavGas Project is located in the Flinders Ranges in South Australia, and covers 50,000km[2] of petroleum exploration licence applications. NavGas is targeting conventional and unconventional gas plays in a region with historic gas flows in the 1990’s. The tenements are in close proximity to the Moomba to Adelaide gas pipeline and Moomba to Port Bonython liquids pipeline.
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Full details of these highlights are available in the Navaho Gold (ASX:NVG) market release of 4 April 2013 or by reviewing same at www.navahogold.com
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On behalf of the board Karl Schlobohm Company Secretary
Competent Persons Statement
The information herein that relates to Exploration Results is based on information compiled by Nicholas Mather B.Sc (Hons) Geol., who is a Member of The Australian Institute of Mining and Metallurgy. Mr Mather is employed by Samuel Capital Pty Ltd which provides certain consultancy services including the provision of Mr Mather as the Managing Director of DGR Global Ltd (and a director of DGR Global Ltd’s subsidiaries and associates).
Mr Mather has more than five years experience which is relevant to the style of mineralization and type of deposit being reported and to the activity which he is undertaking to qualify as a Competent Person for the purposes of the Listing Rules. This public report is issued with the prior written consent of the Competent Person(s) as to the form and context in which it appears.
The resource estimates used in this announcement with respect to oil and gas were, where indicated, compiled by MBA Petroleum Consultants, and detailed in the Independent Expert’s Report, Replacement Prospectus dated 20 March 2012 for Armour Energy (Chapter 9). Raymond L Johnson Jr., General Manager Exploration and Production for Armour Energy, is qualified in accordance with the requirements of ASX listing rule 5.11 and has consented to the use of the resource figures in the form and context in which they appear in this announcement.
About DGR Global Limited
DGR Global Limited is focused on generating exploration and development companies in a wide array of minerals.
Projects are conceived directly through the skills and experience of DGR Global’s accomplished team of exploration geoscientists (with an enviable track record), not by the costly purchase of properties. Each project or exploration strategy is held in a separate subsidiary.
Focused and specialist management is then engaged in the subsidiary, with project specific finance raised in the subsidiary – faster and less dilutive to DGR Global. As the subsidiary project develops and starts to derisk the subsidiary is separately capitalised (seed raisings followed by an IPO).
Investors can choose to invest specifically in a particular project/commodity, or by investing in DGR Global, invest in the resource company generating business which retains a significant carried interest in each project.
DGR Global projects tend to be very large, targeting new provinces with the potential to make world‐class discoveries. The exploration concepts are often novel. While increased metal prices and advances in technology can turn former sub‐economic deposits into viable projects, DGR Global subsidiary projects frequently emerge from detailed reassessment and reinterpretation of large databases – looking at things from a new angle and with a different focus using state of the art techniques. The DGR Global Directors and Managers have in the past applied new exploration models to extensive tenement areas which have led to identification of new mineral provinces and the discovery of nationally significant resources. These efforts are now being dedicated to DGR Global.
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DGR Global currently holds 75 million shares (25%) in Armour Energy Limited (ASX: AJQ) currently focused on the discovery and development of world class gas resources in northern Australia, 39 million shares (18%) in Orbis Gold Limited (ASX: OBS) currently exploring for gold in Burkina Faso, 46 million shares (10.9%) in SolGold plc (LSE: SOLG) currently exploring for gold and copper in the Solomons, Ecuador and Queensland, 59.8 million shares (14%) in AusNiCo Limited (ASX: ANW) exploring for nickel sulphides, cobalt, gold and silver in Queensland and Tasmania, and 57 million shares (28%) in Navaho Gold Limited (ASX: NVG) exploring for Carlin style gold in Nevada and New Mexico (USA) and Queensland.
DGR Global is currently progressing the corporate development of Archer Resources Limited and IronRidge Resources Limited.
DGR Global currently has 324,202,760 shares on issue.
Email: [email protected]
Electronic copies and more information are available on the Company website: www.dgrglobal.com
For further information contact:
Mr Nicholas Mather Managing Director DGR Global Ltd Ph: 07 3303 0680
Karl Schlobohm Company Secretary, DGR Global Ltd Ph: 07 3303 0680
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