Mining Roundup

Avocet Mining (LON:AVM) was the sector's biggest faller after saying that in connection with the gold seizure at the group's Inata gold mine in Burkina Faso, announced on 7 October, the company has received a further indication from the court that a verdict on whether the gold should be released is to be deferred until 19 December.

The initial seizure was lifted by the court on 7 November , but as yet the gold has not been released.

Accordingly, Societe des Mines de Belahouro SA (the group subsidiary which owns the Inata gold mine) applied to the court for clarification and to secure the release of the gold.

In the meantime, the judge instructed both SMB and the former employees to work together to find a negotiated settlement.

Following initial discussions, the company is optimistic that SMB will be able to agree a framework for allowing the mine to return to operation and to making gold shipments without the threat of further seizures, while the final settlement figure is being established, over the coming days.

The company intends that once a resolution has been reached, and gold shipments resumed, the payment of management fees by SMB to the Company will also recommence, without which the Company would need to obtain third party funding in order to meet its head office and corporate costs falling due in December.

If no funding were obtained either from Inata or a third party, as announced previously, it is likely that the company will enter an insolvency process, in which circumstance it is highly unlikely that any value will remain for shareholders.

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Galantas Gold Corporation (LON:GAL) posts a net loss of C$257,214 for the three months to the end of September - down from C$409,880. Losses for the first nine months fell to C$1.3m from $1.5m.

Sales revenues for the third quarter and nine months ended 30 September consisted of jewellery sales and amounted to C$ (1,006) credit and C$28,715 respectively (2015: C$37,262 and C$52,159 respectively). Following the suspension of production during the fourth quarter of 2013 there have not been any shipments of concentrates from the mine.

Cost of sales, which includes production costs and inventory movement, for the third quarter and nine months amounted to C$45,780 and C$255,883 respectively (2015: C$101,871 and C$286,524). Production costs were mainly in connection with ongoing care, maintenance and restoration costs at the Omagh mine site.

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Rio Tinto (LON:RIO) has reached an agreement to sell its assets at Lochaber, Scotland to SIMEC for consideration totalling $410 million.

The sale purchase agreement comprises the sale of Rio Tinto's 100% shareholding in Alcan Aluminium UK Limited which includes the operating smelter, the hydroelectric facilities at Kinlochleven and Lochaber as well as all associated land.

Rio Tinto Aluminium chief executive Alf Barrios said "This is a value-creating sale for Rio Tinto and represents another example of refining our portfolio to focus on our suite of tier one assets.

"At the same time, our priority has been to ensure a long-term sustainable future for Lochaber and economic benefit for the wider Fort William community. There was significant interest in the assets, but SIMEC is committed to continuing operations at the smelter and working with the community on further economic development."

SIMEC's intention is that the smelter will be operated by the Liberty House Group, its sister company within the international GFG Alliance.

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Horizonte Minerals (LON:HZM) has been awarded three new mineral exploration concession areas, which increase its land position to a total of 132,278 hectares.

The new areas are adjacent to the company's recently acquired Glencore Araguaia project forming part of Horizonte's 100% owned Araguaia nickel project which is being developed as the next major nickel project in Brazil.

Horizonte says initial exploration work indicates the areas contain ultramafic intrusion of a similar type and structural setting to those hosting the high grade resource at the Vale dos Sonhos deposit.

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The sector's biggest riser was Anglesey Mining (LON:AYM) - up by more than 10.5% in late trading.

At 4:10pm:

(LON:AVM) Avocet Mining PLC share price was -8.62p at 48.63p

(LON:AYM) Anglesey Mining PLC share price was +0.25p at 2.63p

(LON:BEM) Beowulf Mining PLC share price was 0p at 5p

(LON:BKY) Berkeley Energia Ltd share price was 0p at 44.75p

(LON:CEY) Centamin PLC share price was -1.65p at 130.85p

(LON:CHL) Churchill Mining PLC share price was -1.38p at 36.25p

(LON:CZA) Coal of Africa Ltd share price was -0.04p at 3.39p

(LON:FDI) Firestone Diamonds PLC share price was -1.25p at 55.25p

(LON:FRES) Fresnillo PLC share price was -49.5p at 1232.5p

(LON:GAL) Galantas Gold Corporation share price was -0.25p at 7.88p

(LON:GEMD) Gem Diamonds Ltd share price was -3.87p at 111.13p

(LON:HOC) Hochschild Mining PLC share price was -8.6p at 213.9p

(LON:HZM) Horizonte Minerals PLC share price was +0.05p at 2.48p

(LON:KMR) Kenmare Resources PLC share price was -1.25p at 248.5p

(LON:RIO) Rio Tinto PLC share price was +23.5p at 3096.5p

(LON:VED) Vedanta Resources PLC share price was +21p at 873.5p