Stocks of the Hour: Estrella Resources, BHP Group, Elixir Energy

Company News

by Abbey Phillipps

Estrella Resources (ASX:ESR) announced that it has entered into an ore processing and off-take agreement with Murrin Murrin Operations, a subsidiary of Glencore. The agreement now positions the company to move forward with the metallurgical extraction of 2,000 to 4,000 tonnes of high grade nickel sulphide ore from their nickel mine in Western Australia. Shares are trading 40 per cent higher at 1 cent.

BHP Group (ASX:BHP) has submitted a revised non-binding proposal to the Board of OZ Minerals (ASX:OZL) to acquire 100% of OZL by way of a scheme of arrangement for a cash price of $28.25 per OZL share. This offer price represents the final price BHP is willing to offer under the Revised Proposal, in the absence of a competing proposal. In response, BHP Chair, Ken MacKenzie stated: “BHP’s proposal would provide value to BHP shareholders by increasing exposure to future-facing commodities, attractive synergies and adding to our pipeline of growth options.” Shares are trading 0.2 per cent higher at $43.88.

Elixir Energy (ASX:EXR) provided an update on the Nomgon coal bed methane pilot project underway in its 100% owned Nomgon pilot project in Mongolia. Pumping commenced earlier this week with a Gas breakthrough already occurring. Managing Director, Mr Neil Young, said: “Flaring gas so soon after starting our production pilot is an incredible result for the Company. This is a first for Mongolia and we aim to establish a commercial flow rate in the months to come. Our on-site team – with great assistance as always from their Australian counterparts - has done a fantastic job in installing pilot facilities to a world class standard and we thank them accordingly.” Shares are trading 12.5 per cent higher at 18 cents.

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