MINEX Forum

Tag: funding

  • Audit Findings on Kazakhstan’s Geological Exploration and Subsoil Use Sector Reviewed by the Higher Audit Chamber

    Audit Findings on Kazakhstan’s Geological Exploration and Subsoil Use Sector Reviewed by the Higher Audit Chamber

    At a session of the Higher Audit Chamber of the Republic of Kazakhstan, the outcomes of a state audit on the utilisation of national resources in the fields of geological exploration and subsoil use were presented.

    📊 Currently, subsoil use contributes over 20% to the nation’s GDP. Kazakhstan possesses substantial reserves of mineral resources, including chrome, iron ore, lead, zinc, copper, uranium, gold, silver and others.

    📌 However, the audit identified several systemic shortcomings in the governance of the mineral resource sector.

    Among these is the high proportion of so-called “paper” resources—estimated but unconfirmed reserves not yet integrated into the economic cycle—particularly concerning as confirmed reserves become depleted. One key factor behind the slowdown in new reserve development is the lack of adequate funding for geological research. Despite the introduction of a licensing framework for exploration rights, investment activity among subsoil users remains low.

    Auditors observed that the Ministry of Industry and Construction had failed to implement initiatives involving the digitalisation of geological data, the creation of a digital database, updating of archives and promotion of private sector engagement. A lack of modern storage facilities poses risks of damage or loss of valuable geological records.

    Due to insufficient oversight by the Committee on Geology and poor compliance by contractors, the government paid 68.2 million tenge for incomplete works related to the digitalisation of geological materials.

    The Ministry of Industry permits amendments to subsoil users’ operational programmes without requiring tax expert review, allowing companies to interpret tax rules in their own favour—potentially avoiding budgetary contributions.

    Amid growing interest in Kazakhstan’s natural resources, demand is increasing for reliable laboratories that meet international standards. The lack of sufficient accredited laboratories weakens the quality control of precious metal and raw material exports.

    Auditors documented 81 procedural violations and 16 systemic flaws.

    As a result of the review, the Higher Audit Chamber issued a set of recommendations and directives aimed at developing the country’s geological exploration and subsoil use sector. Follow-up on these measures has been placed under active monitoring.

  • Gabriel Resources Announces Private Placement to Raise Up to $4 Million

    Gabriel Resources Announces Private Placement to Raise Up to $4 Million

    Gabriel Resources (TSXV:GBU:CA) revealed on Wednesday its plan to complete a private placement of up to 114.15 million units at C$0.05 per unit, targeting total proceeds of up to $4 million. Each unit will consist of one common share, one common share purchase warrant, and one contingent value right.

    The company has already entered into binding subscription agreements with certain existing institutional and accredited investors, including Electrum Global Holdings, Paulson & Co., and Swiss Capital S.A., which are expected to contribute $3 million to the offering. An additional $1 million may be issued on either a brokered or non-brokered basis to eligible investors.

    As part of the offering, Gabriel Resources has also negotiated shares-for-debt settlement agreements with Electrum, Paulson, and Swiss Capital. These agreements will see the company issue an aggregate of 43.95 million units to these lenders in full settlement of $1.54 million in outstanding debts. After this settlement, the company expects to net approximately $2.46 million in proceeds.

    The company plans to use the net proceeds for general corporate purposes, which include costs associated with pursuing its annulment application, maintaining its rights and interests in Romania regarding the Rosia Montana exploitation concession and the Bucium projects, and managing its real estate assets in Romania.

    The closing of the offering is scheduled to take place on or around February 28, 2025.

  • Kazakhstan Addresses Concerns Over Geological Exploration Funding

    Kazakhstan Addresses Concerns Over Geological Exploration Funding

    In a recent off-site meeting in Kazakhstan, deputies, geologists, and representatives of authorized bodies convened to discuss issues pertaining to geological exploration and potential solutions. It’s worth noting that last autumn, Kazakhstan’s President Kassym-Jomart Tokayev instructed to increase the number of prospective territories for geological exploration to 2.2 million square kilometers by 2026.

    During the discussion, industry experts expressed concerns over insufficient funding for exploration activities, as reported by the AGMP press service. Recent records indicate a decline in investments in geological exploration in Kazakhstan. For instance, the value of minerals exported from the country in 2023 exceeded annual investments in exploration by six times.

    It is known that Kazakhstan’s investment in geological surveys amounts to only $8 per square kilometer, whereas Russia spends $28 on similar research areas, and Uzbekistan and the United Kingdom allocate $97 and $267 respectively.

    In light of this, Erlan Akbarov, the head of the RK Geological Committee, acknowledged that in the absence of funds to bolster efforts in exploring valuable subsoil resources, it might be necessary to reallocate finances earmarked for other purposes. According to Mr. Akbarov, a portion of the budget allocated for scientific research and experimental design work could be invested in geological exploration.

    As of today, subsoil users spend around 73 billion tenge on research and development.

  • Adriatic Metals proposes $30 million placing to fund exploration

    Adriatic Metals proposes $30 million placing to fund exploration

    Adriatic Metals PLC on Monday announced it intends to conduct a placing to raise $30.0 million to fund an expanded exploration programme at the Rupice and Rupice Northwest deposits in Bosnia & Herzegovina.

    Adriatic Metals is a precious and base metals explorer and developer that owns the Vares silver project in Bosnia & Herzegovina and the Raska zinc deposit in Serbia. Shares in the firm closed down 1.7% at 169.40 pence on Monday in London.

    Monday’s placing price of £1.70 per share – or A$3.30 per CHESS depositary interest, representing such shares – represents a discount of 5.1% to the company’s average price share in the last 10 days on the Australian Securities Exchange.

    The total number of placing securities is expected to represent approximately 5.0% of the company’s existing share capital.

    Adriatic Metals said the proceeds of the placing will fund an expanded and accelerated exploration programme at Rupice and Rupice Northwest, including an additional 40,000 metres of drilling, and associated facilities and equipment. It will also contribute to the general working capital associated with exploration, as well as growth opportunities, general corporate purposes and fees.

    ‘Rupice and Rupice Northwest remain open and there are numerous regional targets such as Droskovac, SP1 and SP2 that have exciting prospects. We believe this exploration programme will deliver impactful results by more aggressively testing priority targets across our emerging high-grade polymetallic district,’ said Chief Executive Paul Cronin.