A busy session of corporate news across the mining sector saw KEFI Gold and Copper lock in a landmark $400 million services contract for its Tulu Kapi gold project, while Pensana strengthened its board with Qatar-backed backing ahead of a $165 million rare earth investment. Elsewhere, BHP flagged a significant cost overrun at its Jansen potash project, and Ajax Resources surged on drilling news out of Argentina.
Ajax Resources expects July greenlight ahead of Macacha drilling
Ajax Resources (AIM:AJAX) rose 9.34% to 5.795p after the company confirmed it expects regulatory approval in July to begin drilling at its Macacha gold project in Argentina. Chief executive Ippolito Ingo Cattaneo said the company's internal exploration objective is to assess the potential to increase the historical resource estimate by up to five times, setting an ambitious target ahead of what would be the project's first modern drill programme.
Shuka Minerals fourth Kabwe drill hole hits western extension
Shuka Minerals (AIM:SKA) reported that its fourth drill hole at the Kabwe zinc-lead project in Zambia has intersected the western extension of the orebody, adding further structural definition to the deposit. CEO Richard Lloyd said the programme was delivering increasing geological insight with each hole, noting that the team is "learning more and more about the orebody" as the campaign progresses. The shares eased 1.47% to 3.35p on the day.
Panther Metals raises £2.5 million to expand Obonga zinc drilling campaign
Panther Metals (AIM:PALM) raised £2.5 million to fund an expanded drilling campaign at its Obonga zinc project in Ontario, Canada, after encountering what the company described as highly encouraging massive sulphide intersections. Chief Executive Darren Hazelwood highlighted the apparent thickness of the sulphide zones as a key positive from drilling to date. The stock dipped 1.79% to 137.5p, a modest retreat that likely reflects near-term dilution from the placing rather than any negative operational news.
Qatar-backed Cascade bolsters Pensana board ahead of $165 million rare earth investment
Pensana (AIM:PRE) announced the appointment of Sheikh Dr Badr bin Dalhim Al-Faheid Al-Hajri to its board, a move that brings direct representation from Qatar-backed investor Cascade ahead of a $165 million investment into the company's Longonjo rare earth project in Angola. Chairman Paul Atherley said the appointment would accelerate Longonjo's development as one of the world's largest rare earth mines and support downstream processing ambitions. The shares added 1.1% to 87.655p.
BHP flags $2 billion cost overrun and $2.3 billion impairment at Jansen potash
BHP (LSE:BHP) disclosed that the total investment estimate for its Jansen Stage 2 potash project in Saskatchewan has risen to $6.9 billion, up from $4.9 billion, a $2 billion increase, while also flagging a $2.3 billion impairment on the broader Jansen asset base. The cost escalation reflects ongoing inflationary pressures in large-scale underground mining construction. BHP shares fell 2.4% to 88.19p on the news.
KEFI signs $400 million mining services contract for Tulu Kapi gold project
Kefi Gold and Copper (AIM:KEFI) secured a $400 million open-pit mining services contract for its Tulu Kapi gold project in Ethiopia, described as the largest single operational agreement in the project's history. The contract covers the full provision of open-pit mining services and marks a significant step towards bringing Tulu Kapi into production. Despite the scale of the announcement, the shares slipped 2.34% to 1.125p.
