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DGR Global Provides an Update on Its Quarterly Activities

DGR Global Provides an Update on Its Quarterly Activities
Oct 02, 2015 By Ben Visser

DGR Global (ASX:DGR) released its quarterly activities update today. The report covers activity and development updates for all of DGR’s interested companies.

DGR specialises in the creation of resource exploration development and mining companies. The company uses a team of geoscientists to identify resource projects capable of yielding discoveries of attractive commodities.

DGR paid its maiden dividend in July of 0.25 cents per share, fully franked, representing a yield of approximately 7 per cent. It was the first of a program of dividends the company plans on distributing to shareholders in the future. The company’s dividend reinvestment plan offered at a 5 per cent discount was well supported, with over 20 per cent of the dividend entitlement taken up by shareholders using the opportunity to increase their shareholding in the company.

DGR currently has significant stakes in five resource companies for which it has provided the following activity updates:

Armour Energy Ltd (ASX:AJQ), in which DGR holds a 24.7 per cent stake, holds prospective whole basin oil and gas positions in the Northern Territory and North West Queensland. Updates from Armour include:

  • A signed agreement with American Energy for a $130 million farm–out of NT petroleum areas, a 9.9 per cent placement at 20 cents per share and additional cash payments of up to US$23 million to Armour.
  • Executed agreements to acquire petroleum resources, tenures and production and transportation infrastructure assets on the Roma Shelf from Origin Energy. Plus a planned program to recommission plants and wells to bring on production and early cash flow.

  • Armours wholly owned subsidiary, Ripple Resources Pty Ltd have emerged as a highly prospective lead-zinc explorer with over 20,000 square kilometres under application or tenure in Northern Australia.

  • Armour has also received a hostile unsolicited takeover offer from Westside Corporation Ltd.

SolGold plc (LSE:SOLG), in which DGR holds a 9.8 per cent stake, has increased focus on the potential copper gold porphyry system at Cascabel in Ecuador. Conveniently, Cascabel is close to the capital and ports, has a low elevation, has adequate water supplies and access to power. SolGold also indicated that several drill holes at the Alpala prospect has confirmed a large scale, high grade porphyry system.

IronRidge Resources Ltd (ASX:IRR), in which DGR has a 26.3 per cent stake, has announced that highly prospective hematite rich iron targets have become evident in the Tchibanga and Belinga Sud licence areas in Gabon.

Navaho Gold Ltd (ASX:NVG), in which DGR holds a 19.6 per cent stake, has announced its plans for low cost coal production and sale to local industries within the San Juan province of Argentina, with power generation potential. Navaho’s subsidiary, NavGas Pty Ltd have released a presentation which can be viewed on its website.

DGR Global has also proved the following quarterly highlights:

Austin Mining Ltd (ASX:ANW), in which DGR has a 19.96 per cent sake, has indicated that the maiden JORC research estimate for Taronga confirms it as a world class tin project. A metallurgical flow sheet has been completed for the Taronga pre-feasibility study. There has been advancement of the Taronga Project with commitment to a Stage 1 Development, comprising trial mining and pilot plant operations. Austin is currently evaluating potential near-term small scale production operation at Granville East in Tasmania.

Archer Resources, in which DGR has a 67 per cent stake, has rejuvenated as a zinc-copper-gold company, with fundraising commenced and advancement towards ultimate listing.

DGR’s share price has experienced significant volatility over the last twelve months however has gained approximately 46.8 per cent. Following today’s update, its share price has gained almost 3.0 per cent as at 12.30 (AEST).

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Ben Visser Author: Ben Visser Oct 02, 2015

Ben is a Wise-owl equity analyst focusing on ASX blue-chips stocks. Ben has a Bachelor of Business in Finance majoring in property valuations and management. In his role at Wise-owl Ben conducts in-depth fundamental and technical analysis which helps him to find profitable investment opportunities on the ASX and abroad.

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