Junior miners go from zeroes to heroesRobin Bromby October 25,...

Junior miners go from zeroes to heroes
Robin Bromby
October 25, 2006
LES Emery is a symbol of how things have changed for mining juniors - shunned by investors one year, showered with money a few years later.
Mr Emery's Marengo Mining was one of three emerging producers to sign off on financing deals yesterday.

Marengo will raise $12.5 million for its Yandera copper-molybdenum project in Papua New Guinea. Societe Generale is lending $15 million for Avoca Resources and its Higginsville gold project in Western Australia. And Investec Bank has ticked the squares to allow View Resources to borrow $16.5 million to reopen the Bronzewing gold mine last worked by Newmont Mining in 2004.

Mr Emery put Marengo together back in 2001 but, after initial inquiries, put off trying to float the company. He tried that in 2002, only to fail.

Marengo finally got away in 2003 but, until mid-2005, lingered well below its 20c issue price.

But that was but a bad memory yesterday.

Cayman Islands-based Sentient Global Resources Fund will become a 19.7 per cent shareholder by taking $6.3 million of the placement, while US refiner Sempra Metals & Concentrate has indicated it will take more shares to retain its 6 per cent stake.

The company has the 371 million tonne Yandera project in PNG, less than 20km from the giant Ramu nickel-cobalt deposit now being developed by the Chinese.

Mr Emery said fund managers had plenty of money for the right projects but were being very selective.

"There's no lack of funds available as long as you have a sensible program," he said.

Sentient is a growing player on the Australian resources scene, with money invested in Queensland Gas Co and Monto Minerals, which is developing the Goondicum industrial minerals project in Queensland ahead of producing ilmenite, feldspar and apatite.

View managing director Tim Gooch is also seeing the ground shift for smaller companies.

In early 2005, View canned plans to get Bronzewing back into production because labour and materials costs were rising so fast in Western Australia.

But since then View has been adding satellite deposits to its holding, with the resource now standing at 461,000 ounces of gold, and the metal's price has risen.

In addition to Investec debt and hedging financing, View is looking to place $20 million in new shares over the coming month.

Mr Gooch said he had found a much more positive attitude from institutions towards the gold project and expected to place at least $5 million of the shares in London.

Such is the enthusiasm for the 1 million ounce Higginsville project that Societe Generale will lend Avoca $15 million, unsecured and without any demands for gold hedging.

And another story - reviving the historic Poseidon nickel find - has been taken on board by US and local institutions.

They have put up $9.5 million for new shares in explorer Niagara Mining.

http://www.theaustralian.news.com.au/story/0,20867,20639519-643,00.html