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San Leon Energy, Roxi Petroleum, Cluff Gold Plc, African Minerals, Namakwa Diamonds, Horizonte Minerals, Pangea DiamondFields news briefs

By Fox-Davies Capital

San Leon Energy announced that, further to the announcements on 23 December 2009 and 29 January 2010 regarding the provision of a EUR500,000 working capital facility to Island Oil & Gas plc, the Company has agreed to extend the Loan to 26 February 2010. The Loan and accrued interest will now be repayable on 26 February 2010 if San Leon and Island do not make an announcement pursuant to rule 2.5 of the Irish Takeover Rules in relation to Island by this date and is also immediately repayable if a 2.5 Announcement is made in relation to Island by any person other than San Leon. Discussions between San Leon and Island are continuing and both companies are working towards an agreement on an offer for Island, which the Directors of Island currently intend to recommend.

Roxi Petroleum announced that, together with its partners Roxi's indirect 59% owned subsidiary Galaz Energy BV ("GEBV"), it has agreed through back to back agreements to sell a 40% interest in the operating company for the NW Konys Field, Galaz and Company LLP ("Galaz") to the Korean multinational trading company LG International Corp. ("LGI") for US$15.6m. In addition, LGI will pay US$8.4m for a 40% interest in existing debt of an equivalent value, which will be repayable through future production. LGI will also provide financing to Galaz of up to $26 million for appraisal and development of the NW Konys field.  Management considers these funds will be sufficient to finance this project through to commercial production.  GEBV currently has a 73.4% interest in Galaz, but as part of the back to back agreements GEBV will acquire a 24.6% of Galaz from its other local partners.  Following the sale of 40% of its interests to LGI, GEBV will retain a 58% interest in Galaz. As part of the above arrangements, Roxi has varied the terms of the previous agreement with KazRozMunai LLP, announced on the 19 November 2008, such that GEBV will now pay for services provided towards the work programme, rather than transferring any equity participation in Galaz to KazRozMunia LLP. The Galaz Agreements are subject to due diligence by LGI and the receipt of certain waivers from the regulatory authorities. However, if the Galaz Agreements are completed as expected by Roxi management, the company will retain an indirect 34.2% participating interest in Galaz, and be provided with approximately US$10m funding available for other assets.

Cluff Gold Plc announced that total production was 28,335 ozs from Kalsaka and 9,640 ozs from Angovia since their respective commissioning on 30 June 2009 and 30 September 2009, equating to an annualised production rate of 95,038 ozs. Total annual production from both producing mines was 76,753 ozs in 2009. Strong gold production continues to date in Q1 2010, and remains on track to achieve the 100,000 ozs production target. Significant progress has been made with scoping study for the Baomahun project in Sierra Leone, with initial mine optimisation results indicating that current defined resources are capable of sustaining a conventional CIP/CIL processing facility to profitably recover more than 1m ozs of gold.

African Minerals announced that further to its press announcement of 21 January 2010, the conditions precedent to the cash placing to raise a gross amount of ?80M, in which a total of 20,000,000 new common shares of $0.01 each in the Company were placed with institutional investors at a price of 400 pence per share, have been fulfilled in all respects save admission of the New Shares to trading on AIM. Application has been made and the New Shares are expected to be admitted to trading on AIM with effect from 8:00am today, 11 February 2010.

Namakwa Diamonds announced that it has signed a co-operation agreement with B.L.I.D International, the operating company of the Andre Messika Group, a leading diamantiare based in Paris and Tel Aviv. Andre Messika is a preferred wholesale diamond supplier to internationally recognised jewellery houses, as well as being a wholesale jewellery manufacturer and retailer with numerous outlets in Europe, the latest addition being an outlet in Gallery Lafayette, Paris. Andre Messika is established as a pre-eminent purveyor of high quality diamonds, and Namakwa is proud to enter into the Agreement to assist Andre Messika to continue to secure greater access to a regular supply of quality diamonds from territories within Southern Africa.

Horizonte Minerals announced that resource definition drilling is to commence Q2 2010 at the Lontra Project laterite nickel discovery in northern Brazil. Troy Resources Limited has commenced a new phase of targeting on Tangara. The AngloGold Ashanti exploration alliance is progressing well and a regional programme commenced with targets generated. The expanded portfolio with joint venture partner LGA Minera??o e Siderugia Ltda. Follows after acquiring prospective ground at the Tucuma nickel project in the Carajas District northern Brazil.

Pangea DiamondFields announced that is has entered into a US$2.8 million convertible loan facility, to be  provided by Pangea Exploration (Proprietary) Limited.