Companies: DWY   

Expansive nickel and gold spec Dwyka Resources has ‘the appetite for one more acquisition’, says chief executive officer Melissa Sturgess.

AIM-quoted Dwyka, which has sold its original South African diamond tailings interests for a 50.09 per cent stake in fellow AIM counter KimCor Diamonds, is now focused on the Muremera nickel project in Burundi. The project is 30 km from the scenes of previous genocide and 2 km from the Kabanga nickel project across the border, which boasts an estimated resource of 36 million tonnes at the high grade of 2.8 per cent nickel.

Mining giant BHP Billiton has agreed to a deal that allows it to earn up to 50 per cent in the Muremera project by spending £2.6 million. Dwyka, which still has a five per cent royalty interest in its former Indian gem joint venture with BHP, intends to start drilling this year.

Drilling starts later this year at the company’s Daisy gold project in Swaziland, which boasts deposits of narrow-vein high-grade gold. Results are expected later this year.

Sturgess says that ‘any major new acquisitions’ the company might contemplate would most likely be in ‘hot metals’, such as nickel or platinum. Only if it were a significantly company-improving deal would the company seek to raise equity to fund it, she insists.

Dwyka’s volatile shares, floated six years ago at 40p, rose from a depressed 14p in March to 66.5p in June. They now stand at 37.5p, down 0.5p today, and should outperform several sector peers.

Growth Company Investor subscribers have full access to all our AIM and small-cap share recommendations. To subscribe today, and gain immediate access, click here or on the following link:
www.growthcompany.co.uk/offers/GCI/ARTICLEEND07

Dwyka Resources	AIM	£24.52m	13.00p	-0.50p
Click here for interactive charting
Other company articles:
Dwyka moots new expansion			06/09/2007
Gem groups strike £9m deal			21/08/2007
Robert Tyerman’s Exploration Insights			09/02/2007
Dwyka goes for nickel			25/01/2007
CEO Focus by Sally Giles			06/12/2005