Cobar Consolidated collapses

SILVER producer Cobar Consolidated Resources has called in the administrators after failing to secure $A8 million in funding.

The company said the board appointed Stephen Longley, David McEvoy and Christopher Hill of PPB Advisory as administrators late yesterday.

Cobar said the action was taken after it was unable to secure commitments from shareholders for $8 million as part of a share purchase plan.

Patersons Securities was appointed lead manager of the SPP and was in talks to underwrite it, though an underwriting agreement never materialised.

Early last week, the company extended the SPP to Friday, but obviously that wasn't enough to secure the funds.

All money received under the SPP will be returned to shareholders.

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Kopejtka, Caruso back to iron ore with $31.7M buy

THE team behind Murchison Metals has moved back into the iron ore sector, with their latest venture Ascot Resources acquiring Ochre Group Holdings' Wonmunna iron ore project for $A31.7 million.

The cash payment will be split in two, with an initial $2 million on completion of the deal and a further $29.7 million paid within five years, at interest of 5.8%.

Along with the cash payment, Ascot will issue 88 million fully paid ordinary shares and pay a 1% gross revenue royalty starting 12 months after the first shipment.

It will also take on Ochre's obligation to pay Talisman Mining a 1% gross revenue royalty starting from the first shipment.

The deal will see Ascot executive chairman Andrew Caruso take on the role of managing director, while Paul Kopejtka will become executive chairman.

Ochre Group director McAndrew Rudisill and executive chairman Nathan Featherby will also join the Ascot board as non-executive directors.

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Leighton faces job losses

LEIGHTON Holdings' majority shareholder Hochtief has warned of potential job cuts and a major restructure at the company following the Leighton board's approval of Hochtief's $A1.2 billion takeover offer.

Releasing its bidder statement today, Spanish controlled Hochtief said some roles at Leighton might be made redundant and some of the company brands, such as John Holland and Thiess, merged or dropped.

"As a result of the general review by Leighton already underway, some employees may become redundant," Hochtief said.

"A particular focus of the review is whether the existing operating businesses of Leighton can be more efficiently structured."

The review is expected to be completed by the end of the year.

Subject to its outcome, more management changes may be made.

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Strategic soars on ‘lost' assays

SHARES in Strategic Elements jumped as much as 96% today after the company released an assay result grading more than 5000 grams per tonne gold, found in a "dusty box of forgotten records"

The company found old records for its Aorangi gold mine in New Zealand, which included underground exploration assays of 663.8gpt gold over 0.75m, including 5324.5gpt gold over 0.25m, from a sample of specimens.

The results reported gold mineralisation as continuing below the historical mine.

The assays also allowed the company to estimate an average head grade of 46.9gpt gold from production records.

"After reviewing over approximately 1000 pages of information, due diligence and field validation, investigation of the Aorangi mine at depth is the next step," Strategic Elements managing director Charles Murphy said.

"Work has also begun to understand any potential early mine development opportunities, including drilling and underground sampling requirements along with identifying optimal means of regaining access to the historic workings.

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Roy Hill gets the cash

ROY Hill Holdings signed documentation overnight for a $US7.2 billion ($A7.97 billion) financing package, said to be the largest ever for a land-based mining project.

After almost two years of negotiations, the 10.5-year package completes the financing for the $10 billion iron ore project.

Roy Hill, 115km north of Newman in the Pilbara, is already under construction, thanks to equity contributions from minority partners Marubeni Corporation (15%), POSCO (12.5%) and China Steel Corporation (2.5%).

The package comprises loans and guarantees from five export credit agencies from Japan, Korea and the US, and a consortium of 19 commercial banks from Australia, Japan, Europe, China, Korea and Singapore, including the big four Australian banks.

"I am advised this is the largest ever project financing for the development of a land-based mining project worldwide," Roy Hill CEO Barry Fitzgerald said.

"It is testament to the project, and the steadfast support and commitment from our quality shareholders: Hancock Prospecting, Marubeni, POSCO and CSC.

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