• Viewed 10,240 times by 3014 users (Last 30 days)
  • print Created with Sketch. Print

Corporate Spotlight

A specialised minerals producer focused on bulk commodities and precious metals in Brazil. Crusader has a diverse portfolio of projects including gold, iron ore, tin, tungsten and uranium and is currently producing a variety of iron ore products for both domestic and international markets.
View the full Corporate Spotlight arrow Created with Sketch.

Marcus Engelbrecht, MD

ADDITIONAL FUNDING

arrow-down-2 Created with Sketch.

ADDITIONAL FUNDING 

ASX Announcement 27 December 2018 


Crusader Resources Limited (“Company” or “Crusader”)


The Board of Crusader Resources Limited (ASX:CAS, AIM:CAS) is pleased to announce that the Company has received subscriptions for an issue of further secured convertible notes to raise an additional A$0.5 million before costs (“Convertible Notes”), bringing the total funds raised under the Convertible Notes to A$1.4 million. The Board has approved the issue of a further A$0.1 million of Convertible Notes.


The proceeds from which the Convertible Notes will be used to provide general working capital for the Company. 


The principal terms of the Convertible Notes are set out further below. The Company still intends to proceed with a pro rata entitlement issue to eligible shareholders (“Entitlement Issue”). The quantum and pricing for the Entitlement Issue is being finalised and the Board now expects to make a further announcement, including publication of the prospectus for the Entitlement Issue (together with a Notice of General Meeting), in January. 


The Convertible Notes have a principal amount of A$100,000 each, carry an interest rate of 8% per annum payable in new fully paid ordinary shares (“Shares”) at the 30-day volume weighted average price of Crusader Shares (subject to a floor price equal to the lower of A$0.01 or the Entitlement Issue price) and mature one year from the date of issue, unless converted. The Convertible Notes will be convertible into Shares in Crusader at a conversion price of the lower of A$0.01 or the Entitlement Issue price at any time up to 10 business days prior to the maturity date, at the election of the note holder. The issue of Shares on conversion of the Convertible Notes and payment of interest is subject to the receipt of prior Crusader shareholder approval (at a General Meeting to be convened in due course). In the event that shareholder approval is not received, or certain other events occur, the principal amount of the loans and accrued interest will become immediately repayable to the investors in cash.


Convertible Note subscription by Stephen Copulos 

Pursuant to today’s Convertible Note issue, Eyeon Investments Pty Limited (a company controlled by Stephen Copulos) subscribed for A$200,000 in Convertible Notes on the terms set out above. In aggregate, companies related to Stephen Copulos have now subscribed for A$500,000 of Convertible Notes. At a conversion price of A$0.01 per share, the conversion of these Convertible Notes would result in the issue of 50 million new shares (representing approximately 9.9 per cent of the current issued share capital of the Company. Stephen Copulos is a related party under the AIM Rules as he is both a former director within the last 12 months and a substantial shareholder and the issue of conversion rights to the Convertible Notes (which is subject to independent shareholder approval in due course) is a related party transaction under the AIM Rules (as well as the ASX Listing Rules).


The grant of security to the companies related to Stephen Copulos is subject to the receipt of prior shareholder approval in accordance with ASX Listing Rule 10.1. 


Marcus Engelbrecht, Managing Director of Crusader said: 

“I would like to thank investors for their continued support of the Company through the issue of the convertible notes and ongoing financing initiatives. The funds generated from the convertible notes will provide additional working capital for the Company prior to the completion of a Entitlement Issue that is expected to be launched in 2019, following which, work on the Borborema Bankable Feasibility Study will be accelerated.”


The Directors of the Company consider, having consulted with the Company’s Nominated Adviser, that the terms of the transaction, and in particular the proposed issue of conversion rights, are fair and reasonable insofar as its shareholders are concerned. In forming this view the Directors have taken into account the current financial position of the Company, the subscription by independent parties for the Convertible Notes and that the issue of conversion rights and grant of security to the entities associated with Stephen Copulos is subject to the approval of independent shareholders and the issue of a fair and reasonable third-party report in accordance with the rules of ASIC and ASX.


Special note concerning the Market Abuse Regulation 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014 ("MAR"). The person who arranged for the release of this announcement on behalf of the Company was Marcus Engelbrecht, Managing Director.


Click here to view the full announcement

OPERATIONS UPDATE

arrow-down-2 Created with Sketch.

Crusader Operations Update

ASX Announcement 5 November 2018

Crusader Resources Limited (ASX: CAS, AIM: CAS) is pleased to announce the following updates in relation to the Company’s Brazilian projects.

Borborema Gold Project 

Following the announcement on 20 August 2018 on the Borborema Gold Project (“Borborema” or the “Project”) Bankable Feasibility Study (“BFS”), the Company has a number of updates to report as detailed below.

Installation Permit 

As announced on 28 April 2017 (updated on 30 July 2018), the Company was granted the critical Pre‐Licence (Licença Previa or ‘LP’) for Borborema from the Rio Grande do Norte State Government Environmental Department (IDEMA).

The Company has been working closely with IDEMA to ensure that the permitting process is completed efficiently and intends to submit the final application for the installation permit for its Borborema Gold Project middle November.

The Project’s 2.0Mtpa processing plant design required for the installation permit is expected to be finalised before the end of October 2018 by the Belo Horizonte office of Ausenco do Brasil Engenharia Ltda (“Ausenco”). The Company will announce the results of this design work once Ausenco have finalised it. In addition, the remaining outstanding items required for the permit have been identified and are being finalised ahead of the November permit submission.

The Company has been advised by IDEMA that the approval of an installation permit would typically be provided within three months of submission and is expected to be received well in advance of completion of the Borborema BFS.

As the Company already has the environmental licence, and subject to the Company’s on-going construction financing conversations, once the installation permit has been received, the Company will be in a position to commence construction of the Boborema Mine.

Metallurgy 

The Company is pleased to provide the following updates on the on-going Borborema metallurgical test work being undertaken in Perth by Orway Mineral Consultants (“OMC”) since the 20 August 2018 announcement.

The comminution test work has indicated that Project ore can achieve a 2.0 Mtpa throughput rate at grind sizes of 80% of the material a grinding size of 106μm, would be sufficient to ensure targeted gold recoveries. The impact of the increased grind size on the power requirements are significant and are expected to have a positive impact on the AISC of the project once in operation.

Crusader confirms that the optimisation work undertaken to date and disclosed in this announcement does not materially change any of the material assumptions and technical parameters underpinning the Company's previously announced mineral resource and ore reserve estimates. Following completion of the Company's optimisation work and BFS, if there are any material changes to these material assumptions or technical parameters, the Company will release all information required under the Listing Rules, the AIM Rules and the JORC Code 2012.

Bankable Feasibility Study 

Crusader has finalised its shortlist of Brazilian based external engineering consultants for the BFS as well as the detailed scope of work required and has issued the request for proposals with a view to appointing a BFS partner in November 2018 and having a final copy of the BFS for the 2Mtpa throughput project available at the end of Q1 2019

Juruena Gold Project 

The Company is pleased to announce that it is pursuing the potential of a farm-in transaction in light of Crusader’s core focus of developing Borborema. The Company has already received initial expressions of interest with regard to third parties interested in partnering with Crusader in developing its 100% owned Juruena Gold Project (“Juruena”) in the state of Mato Grosso in Brazil.

The Juruena project is located on the western end of the highly prospective Juruena-Alta Floresta gold belt and comprises a circa 770km2 area of contiguous tenements. The Alta Floresta belt has recently seen significant activity from multi-nationals and is estimated to have produced more than 7Moz of gold, primarily from artisanal miners.

The Juruena campsite includes site offices, housing and catering amenities for a 60-person crew, a core shed and its own 1,000m airstrip.

Gold mineralisation defined at Juruena is hosted by steeply dipping narrow high-grade quartz veins and discrete zones of sheeted quartz veins, stockworks and breccias, within an intrusive suite of granitic to micro-granitic rocks, and rhyolite in the south-western part of the project, with overall low metamorphic grade. The exact width of the mineralised zones is variable between 20cm and 3m with respect to the narrow vein type and up to 30m for the sheeted veins.

Click here to view the full announcement

QUARTERLY

arrow-down-2 Created with Sketch.

Quarterly Activities Report September 2018

ASX Announcement 31 October 2018 

Highlights 

  • Metallurgical testwork underway as part of ongoing technical and financial optimisation of the 2.0Mtpa Borborema Gold Project (“Borborema”) 
  • Ausenco do Brasil Engenharia Ltda (“Ausenco”) engaged to assist Crusader in completing and reviewing the final documentation required to submit the application for the Installation Licence for Borborema 
  • Favourable ruling on debt outstanding from Posse Iron Ore Mine sale

Operational Updates 

Borborema Gold Project 

Bankable Feasibility Study (BFS) - Metallurgical Test Work

During the September quarter, Crusader Resources Limited (ASX:CAS, AIM:CAS) (“Company” or “Crusader”) announced it was undertaking ongoing technical and financial optimisation of the 2.0Mtpa Borborema Gold Project. This optimisation work includes detailed metallurgical test work utilising samples originating from eight large diameter (PQ) diamond drill holes which have provided approximately 6 tonnes of sample from 1,200m of core. The holes are deemed representative of the larger ore body, both along strike and down dip, and reflect the various lithologies present at Borborema. Finalisation of the metallurgical test work and subsequent processing plant flowsheet design is a critical path item for the completion of the BFS for Borborema.

An opportunity has been identified in minimising the usage of grinding media via optimisation of the grinding circuit. Work is ongoing, with Orway Mineral Consultants (OMC) embarking on assessment of operating cost criteria for the comminution circuit options. Options under evaluation are:

  • Single stage SAG (lowest capex option) recently shown suited to achieving the nominal 106µm grind 
  • A SAG/ball mill flowsheet (SAB) 
  • A multiple stage crush/ball mill flowsheet, as previously proposed in the PFS 
  • A hybrid coarse fed ball mill/SAG which includes primary crushing, and open circuit secondary crushing feeding a high ball charge SAG mill

Work completed indicates the optimal grind size of 80% material passing 106µm and a leach residence time of 24 hours. The 106µm grind size provides a positive impact on the project’s NPV over both finer and coarser grinds and residence time considerations. Final grind size selection is expected to be confirmed post the completion of the OMC operating cost criteria determinations.

Ongoing metallurgical testing is focusing on variability testing where some 40 composites along strike and down dip will be subjected to a matrix of gravity-leaching test work encompassing variables of grind size, cyanidation conditions and residence time. Short range variability testing will also be undertaken to populate a geo-metallurgical model to forecast process recovery. Bulk test work will generate the key design parameters needed to take the BFS forward by providing the basis for capital and operating cost estimation as well as revenue estimates. This data will also ultimately support detailed design of the facility as the project is taken forward to production.

Crusader confirms that the optimisation work undertaken to date and disclosed in this announcement does not materially change any of the material assumptions and technical parameters underpinning the Company’s previously announced mineral resource and ore reserve estimates. Following completion of the Company’s optimisation work and BFS, if there are any material changes to these material assumptions or technical parameters, the Company will release all information required under the Listing Rules, the AIM Rules and the JORC Code 2012.

Licensing 

During the quarter, the Company engaged Ausenco do Brasil Engenharia Ltda (“Ausenco”) to assist Crusader in completing and reviewing the plant design required to submit the application for the Installation Licence for Borborema.

Crusader has commenced the application process for the full Installation Licence required for mine construction. Ausenco’s contribution will be highly valuable in enabling Crusader to present an attractive and cost-effective solution in its application for the Installation Licence. Ausenco will focus initially on the design of the metallurgical processing plant.

Ausenco has significant experience working with some of the leading international mining companies, with experience, in particular, in Brazil and has demonstrated success in delivering engineering outcomes at the project level.

The Installation Licence will allow the commencement of engineering work in accordance with the already approved environmental control plan and is the only major outstanding permit required to commence mine construction at Borborema.

Crusader has already received the Pre-Licence (Licença Previa or ‘LP’) from the Rio Grande do Norte State Governmental Department (IDEMA) in Brazil, which approved the Environmental Impact Assessment for Borborema.

The Company has submitted to IDEMA all studies related to kinetics of the rocks in relation to drainage generation and lodged an authorisation request for clearing the vegetation in the area of the project for the pit and infrastructure.

Critically, Crusader has significant positive support from IDEMA, the local government and communities for the project.

Crusader currently expects to receive the Installation Licence in Q1 2019 and will provide an update on progression of the work streams in due course.

Posse Iron Ore Mine 

As previously announced, Crusader entered into a sale agreement to divest its 100% interest in the Posse Iron Ore Mine ("Posse") to Inter Invest B.P. S/A on 28 July 2017 via an SPV, CNS Empreendimentos Em Transportes E Minerios Eireli (together, the "‘Buying Company").

Under the agreement, a consideration of R$8m (8 million Brazilian Real) was to be paid by an initial payment of R$1m with the balance payable in 15 equal monthly instalments until November 2018. The Company has received approximately R$1m to date.

Crusader commenced legal proceedings in June 2018 to recover the outstanding monies. Post the period end, following the judgement passed by the Brazilian courts on 26 October 2018, the Buying Company is obliged to make payments totalling R$9.5m (US$2.6m), including fines, interests and penalties.

An initial payment was received in October 2018 of R$0.2m (US$0.05m) with the agreement requiring monthly payments of between R$0.2m (US$0.05m) and R$0.25m (US$0.06m) between November 2018 and March 2019 followed by 8 monthly payments of approximately R$1m (US$0.27m) between April 2019 and November 2019.

In case of non-payment, the debt will return to the value of the current enforcement action being approximately R$14.5m (US$4.0m).

Click here to view the full announcement

BORBOREMA GOLD

arrow-down-2 Created with Sketch.

Borborema Gold Project Bankable Feasibility Study Metallurgical Testing

ASX Announcement 20 August 2018 

Crusader Resources Limited (ASX:CAS, AIM:CAS) (“Company” or “Crusader”) is pleased to provide the following update on Bankable Feasibility Study (BFS) metallurgical test work at the Company’s Borborema Gold Project.

Highlights 

  • Orway Mineral Consultants (OMC) is evaluating comminution flowsheet options. Evaluations suggest the Borborema ore is amenable to single stage SAG milling which will reduce upfront capital expenditure compared to the previous three stage crush / ball mill option. 
  • Recommissioned test work on the Borborema resource has confirmed the validity of a simple crush‐grind‐ cyanidation processing circuit to provide high gold extractions in excess of 90%. 
  • As expected heap leach and flotation options have been further evaluated and have been shown not to be optimal. 
  • Recent test work has identified 80% material tests passing 106µm as the optimum grind size when operating costs and revenue benefits are analysed. 
  • Mineralogical evaluations are continuing to assess the gold deportment and mineralogical associations. Notably the role of mica present in the ore and gold liberation characterisation as a function of mica content and grinding energy input.

As part of the BFS the Company is undertaking an ongoing technical and financial optimisation of the 2.0Mtpa Borborema Gold Project. This optimisation work includes detailed metallurgical test work utilising samples originating from eight large diameter (PQ) diamond drill holes which have provided approximately 6 tonnes of sample from 1,200m of core. The holes are deemed representative of the larger ore body, both along strike and down dip, and reflect the various lithologies present at Borborema. Finalisation of the metallurgical test work and subsequent processing plant flowsheet design is a critical path item for the completion of the BFS for the Borborema Gold Project.

An opportunity has been identified in minimising the usage of grinding media via optimisation of the grinding circuit. Work is ongoing, with OMC embarking on assessment of operating cost criteria for the comminution circuit options. Options under evaluation are:

  • Single stage SAG (lowest capex option) recently shown suited to achieving the nominal 106µm grind 
  • A SAG/ball mill flowsheet (SAB) 
  • A multiple stage crush/ball mill flowsheet, as previously proposed in the PFS 
  • A hybrid coarse fed ball mill/SAG which includes primary crushing, and open circuit secondary crushing feeding a high ball charge SAG mill

Work completed indicates the optimal grind size of 80% material passing 106µm and a leach residence time of 24 hours. The 106µm grind size provides a positive impact on the project’s NPV over both finer and coarser grinds and residence time considerations. Final grind size selection is expected to be confirmed post the completion of the OMC operating cost criteria determinations.

Ongoing metallurgical testing is focusing on variability testing where some 40 composites along strike and down dip will be subjected to a matrix of gravity‐leaching test work encompassing variables of grind size, cyanidation conditions and residence time. Short range variability testing will also be undertaken to populate a geo‐metallurgical model to forecast process recovery. Bulk test work will generate the key design parameters needed to take the BFS forward by providing the basis for capital and operating cost estimation as well as revenue estimates. This data will also ultimately support detailed design of the facility as the project is taken forward to production

Crusader confirms that the optimisation work undertaken to date and disclosed in this announcement does not materially change any of the material assumptions and technical parameters underpinning the Company’s previously announced mineral resource and ore reserve estimates. Following completion of the Company’s optimisation work and BFS, if there are any material changes to these material assumptions or technical parameters, the Company will release all information required under the Listing Rules, the AIM Rules and the JORC Code 2012.

Marcus Engelbrecht, CEO of Crusader said: “The metallurgical test work on the Borborema Gold Project BFS is progressing well and is delivering some key positives with regard to optimising work‐streams. In particular the results from the OMC review regarding the SAG mill option, as well as the conclusions reached on grind size will have a real and positive impact on capital and operating costs and project economics.”

Click here to view the full announcement

VIDEOS

arrow-down-2 Created with Sketch.
Little_logo.jpg




GET SUPPORT arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.