Connect with us

Business

India in talks with Guyana for long-term crude supply -minister

Spread the love

Author of the article: Reuters Neil Marks and Nidhi Verma GEORGETOWN/NEW DELHI — India, the world’s third-largest crude consumer and importer, has approached Guyana’s government about a possible long-term deal to buy the South American country’s oil, a Guyanese official said. India has expressed interest in buying one of the 1 million-barrel cargoes Guyana’s government…

Published

on

Spread the love

Author of the article:

Reuters

Reuters

Neil Marks and Nidhi Verma

GEORGETOWN/NEW DELHI — India, the world’s third-largest crude consumer and importer, has approached Guyana’s government about a possible long-term deal to buy the South American country’s oil, a Guyanese official said.

India has expressed interest in buying one of the 1 million-barrel cargoes Guyana’s government is entitled to in order to test the crude in its refineries, according to Guyana’s Natural Resources Minister Vickram Bharrat. If the crude is compatible, the parties could begin talks on a long-term arrangement.

India’s oil demand has risen by 25% in the last seven years, more than any other country, and officials there have pledged to use the country’s position as a leading purchaser as a “weapon” in an effort to keep prices low.

New Delhi is already exercising its growing clout in the crude market. It viscerally opposed a decision by the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, to extend production cuts that have lifted the price of oil, and is seeking to diversify its purchases away from top producer Saudi Arabia.

State refiners plan to buy 36% less oil from Saudi Arabia in May than normal, sources told Reuters, and the country is now attempting to swap out Saudi supply with new origins like Guyana.

Advertisement

This advertisement has not loaded yet, but your article continues below.

Private Indian refiner HPCL-Mittal Energy Ltd purchased India’s first-ever cargo from Guyana this month, but the talks have taken place on a government-to-government basis.

“India is interested in taking Guyana’s share of its crude, based on mutual agreements, as part of its crude source diversification across the world,” said one source with knowledge of the talks, who spoke on the condition of anonymity.

The two parties are still negotiating pricing, said the person, adding that the crude would be processed by state-owned refineries in India.

Bharrat said pricing was the “most important” factor for Guyana in any potential deal.

“First and foremost is us getting the best price for our crude,” he told Reuters in a telephone interview.

Guyana has become the world’s newest energy hotspot after a consortium led by Exxon Mobil Corp began to produce light crude at the offshore Stabroek block in late 2019.

But with no domestic refining nor state oil company, Guyana has relied on private companies like Hess Corp and Royal Dutch Shell PLC to market its share on a spot basis. President Irfaan Ali’s government has relaunched a search for a long-term partner to market its share, but has not yet selected a firm.

Bharrat said the government planned to re-launch the search for a marketing firm “soon.” He said there was no guarantee the government’s next cargo – which he said is due in June but may be delayed due to mechanical issues that have reduced production levels – would go to India.

Advertisement

This advertisement has not loaded yet, but your article continues below.

Long term oil export deals negotiated between governments have been common in some South American oil-exporting countries in recent decades. Venezuela and Ecuador, for example, have supplied large quantities of crude to China under such long-term deals.

Guyana and India have strong historical and cultural ties. A large portion of Guyana’s population of around 750,000 is of Indian descent, and Ali’s People’s Progressive Party – which won parliamentary elections last year – is traditionally associated with the Indo-Guyanese population. (Reporting by Neil Marks in Georgetown and Nidhi Verma in New Delhi Additional reporting and writing by Luc Cohen in Caracas Editing by Marianna Parraga and Marguerita Choy)

In-depth reporting on the innovation economy from The Logic, brought to you in partnership with the Financial Post.

Top Stories Newsletter

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Read More

Business

UEX responds to Denison’s JCU (Canada) offer

Spread the love

UEX Corp. [UEX-TSX; UEXCF-OTC] has responded to Denison Mines Corp.’s [DML-TSX; DNN-NYSE American] May 4, 2021, announcement, which said it has delivered a binding offer to Overseas Uranium Resources Development Co. Ltd. (OURD). If the bid succeeds, it will result in Denison acquiring 100% ownership of OURD’s wholly-owned subsidiary, JCU (Canada) Exploration Co. Ltd. In…

Published

on

By

Spread the love

UEX Corp. [UEX-TSX; UEXCF-OTC] has responded to Denison Mines Corp.’s [DML-TSX; DNN-NYSE American] May 4, 2021, announcement, which said it has delivered a binding offer to Overseas Uranium Resources Development Co. Ltd. (OURD). If the bid succeeds, it will result in Denison acquiring 100% ownership of OURD’s wholly-owned subsidiary, JCU (Canada) Exploration Co. Ltd.

In its press release Wednesday, UEX said it has the right to acquire JCU, not Denison. UEX went on to say that as announced on April 22, 2021, it entered into a binding agreement with OURD to acquire its wholly-owned JCU unit.

It said OURD cannot deal with or respond to the Denison offer and is bound to complete the sale of JCU to UEX, pursuant to the terms of the UEX agreement, which it said is subject only to the approval of shareholders of OURD at a meeting which is scheduled to be held on June 18, 2021.

It also said the UEX transaction was approved by the board of directors of OURD who are obligated to recommend its acceptance to OURD shareholders. As those directors represent shareholders of OURD who hold the majority of shares of OURD, UEX said it is confident that shareholders of OURD will approve the UEX agreement.

UEX is a Canadian uranium and cobalt exploration and development company involved in an portfolio of uranium projects. Its portfolio of projects is located in the eastern, western, and northern perimeters of the Athabasca Basin in Saskatchewan.

On Wednesday, UEX shares rose 2.6% or $0.01 to 39 cents on volume of 3.2 million. The shares are trading in a 52-week range of 49.5 cents and 11.5 cents.

JCU holds a portfolio of uranium project joint venture interests in Canada, including a 10% interest in Denison’s 90%-owned Wheeler River uranium project in Saskatchewan.

Under the terms of its offer, Denison said it will issue a $40.5 million cash payment and assume JCU’s existing liabilities. The cash payment includes a $10 million refundable deposit on signing of a definitive agreement, an additional $28 million on closing, and a further $2.5 million. The $2.5 million is expected to be paid within 45 days of the closing date and is subject to an adjustment based upon JCU’s actual working capital on the closing date.

Denison is focused in the Athabasca Basin region of northern Saskatchewan, including its 90%-owned Wheeler River Project which hosts the high-grade Phoenix and Gryphon uranium deposits (on the Wheeler River property).

Proven and probable reserves stand at 109.4 million lbs U3O8. That includes 141,000 tonnes at 19.1% U3O8 or 59.7 million lbs in the Phoenix Zone, and 1.26 million tonnes at 1.8% U3O8 or 49.7 million lbs in the Gryphon Zone.


Read More

Continue Reading

Business

Rackla Metals acquiring DRC gold project

Spread the love

Rackla Metals Inc. [RAK-TSXV] said Wednesday May 5 that it has struck a deal to acquire a 73.5% interest in the Misisi gold project in the Democratic Republic of Congo. The project consists of three contiguous mining leases, valid until 2045, covering 133 km2. It includes the Akyanga deposit, which hosts inferred resources of 3.1…

Published

on

By

Spread the love

Rackla Metals Inc. [RAK-TSXV] said Wednesday May 5 that it has struck a deal to acquire a 73.5% interest in the Misisi gold project in the Democratic Republic of Congo. The project consists of three contiguous mining leases, valid until 2045, covering 133 km2. It includes the Akyanga deposit, which hosts inferred resources of 3.1 million ounces averaging 2.16 g/t gold.

Rackla shares were trading at 40.5 cents before trading in the stock was halted at 8.07 a.m. (ET), Wednesday. The shares had been trading in a 52-week range of 50 cents and 12.5 cents.

In conjunction with the company’s shift in focus to Africa, Rackla appointed James Sullivan to its board of directors. “James brings a wealth of experience globally with senior mining companies and a significant depth of experience in the Congo and Africa,” said Rackla CEO Simon Ridgeway.

Rackla is a spin-out from Radius Gold Inc. [RDU-TSXV] and is led by Simon Ridgeway, a successful prospector and mining financier. Ridgeway is the founder and CEO of Radius, which holds a large equity position in Rackla. He is also the founder of Fortuna Silver Mines Inc. [FVI-TSX, Lima; FSM-NYSE; F4S-FSE] and is currently CEO of Volanic Gold Mines Inc. [VG-TSXV]

“The expansive 133 km2 property, which encompasses a 55-kilometre gold belt, is already host to a significant multi-million-ounce resource, which we feel has a tremendous potential for future growth,” he said.

Rackla will acquire all of the issued and outstanding shares from an arm-length vendor, Golden Mining Ltd. The project is owned Leda Mining Congo SA, of which Casa Mining Ltd. owns 73.5%, with the remaining interest in Leda held by MMG Ltd., which owns 21.5%. The DRC government holds a 5% free carried interest.

Rackla said Golden Mining has entered into an agreement with Golden Square Equity Partners Ltd. to acquire 99.43% of the outstanding shares of Casa Mining.

Under the terms of the Casa Mining agreement, Golden Mining is acquiring the outstanding shares of Casa for US$4.8 million in staged cash payments. Under the definitive agreement, Rackla said it will acquire Golden Mining by issuing up to 11.0 million common shares at 40 cents per share. It will also assume the obligation to make the staged cash payments.

The transaction is subject to Rackla completing financing that raises a minimum of $5 million.


Read More

Continue Reading

Business

Argonaut Gold posts record gold production in Q1 2021

Spread the love

Argonaut Gold Inc. [AR-TSX; ARNGF-OTC] reported financial and operating results for the first quarter ended March 31, 2021. The company reports record quarterly production of 59,704 gold equivalent ounces, record quarterly revenue of $105.3-million, cash flow from operating activities before changes in operating working capital of $27.7-million and net income of $27.0-million or earnings per…

Published

on

By

Spread the love

Argonaut Gold Inc. [AR-TSX; ARNGF-OTC] reported financial and operating results for the first quarter ended March 31, 2021. The company reports record quarterly production of 59,704 gold equivalent ounces, record quarterly revenue of $105.3-million, cash flow from operating activities before changes in operating working capital of $27.7-million and net income of $27.0-million or earnings per share of nine cents. All dollar amounts are expressed in US dollars.

Pete Dougherty, president and CEO, stated: “It was our second consecutive quarter of record quarterly production and revenue. We demonstrated strong cash flow during the first quarter, which underpins our strategy to harvest cash from the existing operations, replace depleted ounces and invest in our growth asset portfolio to transform Argonaut from a high-cost, junior producer with short mine lives to a lower-cost intermediate producer with long mine lives. With the cash we are generating, the recent announcement of an increase of mineral reserves by 43% and measured and indicated mineral resources by 26% year over year and the early progress of the Magino construction project, we are delivering on all three phases.”


Read More

Continue Reading
Advertisement

News Trending