MEDIA RELEASE PR41902
Blackthorn Resources - Post Glencore Deal Valuation of US$152m
LONDON, Oct. 27 /PRNewswire-AsiaNet/ --
- Research Report From Edison Investment Research
Following a comprehensive due diligence exercise and detailed
negotiations, Australian mining company Blackthorn Resources (ASX: BTR) has
signed a binding agreement with Glencore to form a JV for the Perkoa zinc
project in Burkina Faso. Glencore is paying US$50m for 50.1% of the project
and providing a further US$30m in project finance. The Glencore agreement
supports Edison's assumption that Perkoa will be commissioned and producing
concentrate by Q212. In addition, Blackthorn Resources has completed the
first phase of exploration drilling for gold and expects to announce a JORC
code compliant mineral resource by the end of the year. In Zambia the fourth
phase of drilling has confirmed additional copper mineralisation at the
company's Mumbwa JV copper and gold project, consistent with an IOCG-type
interpretation of the geology.
Edison's combined valuation of Blackthorn is US$152m (A$154m) or A$1.44
per share with c 107m shares in issue. This is based on a long-term zinc
price of US$3,000/t and an exchange rate of US$0.985/A$. The valuation will
increase if the company announces a gold resource in Burkina Faso.
Please click here to view the full report:
Blackthorn Resources is an Australian exploration company with gold and
zinc projects in Burkina Faso and a copper/gold project in Zambia. By
focusing on priority projects, it aims to become a self-funding exploration
and mining company.
Edison Investment Research is Europe's leading investment
research company. It has won industry recognition, with awards in both the UK
and internationally. The team of more than 50 includes over 30 analysts
supported by a department of supervisory analysts, editors and assistants.
Edison writes on more than 250 companies across every sector and works
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Contact details: Charles Gibson
enquiries@edisoninvestmentresearch.co.uk
+44(0)20-3077-5700
SOURCE: Edison Investment Research
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