Avanco Resources Ltd ("AVB")- very high grade cu

[Xerof]

A short period of teeth-gnashing, before the significance of what is now able to be done sinks in. Support from large insto's, a rights issue for us (to minimise dilution for a change), and a series of further announcements to come (off-take agreement being one of them Snapiti)

I'm comfortably numb before seeing the full detail

[Xerof]

I think the delayed AGM in order to deal with related parties issues, will cover
the changed royalty deal with BR, the issue of >10% equity, but most significantly, an off-take agreement with Glencore.

I also think the off-take agreement has been held up by the Banks indecision on financing.

Looks to me like the major shareholders have said F you Brazilian banks, lets just get on with it, we will do this ourselves. The premium over VWAP will be a sign of confidence, but immaterial in the longer run.

Yes, I agree snap - 8.0 - 8.5 cents would be my pick

All IMO

[psychic]

2 for 7 at 8 cents
http://www.asx.com.au/asx/statistics...idsId=01617933

[Xerof]

There is no revised Royalty Agreement - it's the same one - see note 2 of announcement.

And given we are no longer tied to any Bank conditions of lending, why do they need an Off-take agreement? - copper is a highly liquid commodity, within highly organised physical markets

[robbo24]

lol....I think TAP thought the same thing about the oil markets when it choose to spot sell.
The rest is history.
A binding off take agreement most certainly would take some risk off the table....don't you think.
Seems management are hell bent on starting mining....good for their ego no doubt.

On 16 May 2014 AVB announced it had completed a $23m placement at 7.5 cents. This was roughly a 10% premium over VWAP.

The chart shows on that day, the share price hit a bottom of 7 cents and a top at 7.3. Seemingly close at 7.2.

From that day forth the share price went steadily upwards.

I wonder if it will happen again?

[psychic]

http://www.asx.com.au/asxpdf/2015071...0t0ccvzhrj.pdf

PB upgrade . Sweet

[slimwin]

I think we need ore to be coming out of the ground before this one moves much.

[robbo24]

Here's a very interesting article about AVB, copper, Brazil and China: http://www.mining-journal.com/world/...ds-for-brazil/

There is a similar, yet slightly larger, story going on in Para state with fellow-Australian listed developer Avanco Resources.


Having acquired Carajás’ second largest land tenement (second only to Vale), the copper-focused company has successfully drafted a mine plan at its Antas North project and funded the $60 million build.
This financing was backed by the likes of BlackRock, Appian Natural Resources and Greenstone Resources, pedigree institutions on the lookout for high returns.


Avanco plans to produce 11-12,000t/y of copper concentrate and 7,000oz/y of gold from the mine, with first concentrate planned for March. It also hosts a 6 million tonne resource at an impressive 2.45% copper grade.


As Avanco’s land holding would indicate, though, the company could be a lot bigger in the future.


This future potential includes the Pedra Branca underground copper project, which the company acquired from Xstrata back in February 2012. It has already shown off high copper and gold grades from several rounds of drilling with an inferred resource of 560,000t of copper, 500,000oz of gold and 1.04 million ounces of silver being defined.


An updated and upgraded resource was likely to come out shorty, according to managing director Tony Polglase. Then, a scoping study could follow in the December quarter, which could consider a number of options to pursue, he said.


“By the end of the year we would then be in a position to tell the shareholders we have settled on one mining plan and we will continue spending money on it. That will then be fully documented in a prefeasibility study by the end of March,” he told Mining Journal.


The publication of such a study could bring about “warp speed change” to the company’s market valuation, according to Polglase, suggesting Pedra Branca could be close to three times the size of Antas North.
And there was even more potential for the company beyond this, which it could capitalise on with cash flow from Antas North when it comes into production, Polglase said.


“We’re sitting in the best copper region of Brazil and there is a chance that with time we will find a very large copper deposit ourselves,” he said.


The company has already discovered mineralisation at Nova Esperança, west of Pedra Branca, an extension to the east of Pedra Branca East (extension) and the Sucurui and Sao Jorge prospects.

Note: this is pre-PB upgrade. The above is a small part of the article.

[psychic]

"warp speed change” to the company’s market valuation I could live with
Very surprised that update yesterday didn't do it. Patience eh....

[robbo24]

"warp speed change” to the company’s market valuation I could live with
Very surprised that update yesterday didn't do it. Patience eh....

I think there's probably more to do with the copper mining scene in total, rather than just AVB, at this point.

As you can see by comparing copper mining ETF and AVB, they line up relatively closely.