(MENAFN- ProactiveInvestors)INTRODUCTION In the news: Africa Oil Corp There are a few bits and bobs out there today. Africa Oil Corp (CVE:AOI) has announced a farm-out deal on its Kenyan and Ethiopian operations with Maersk Oil & Gas. Maersk will acquire 50% of Africa Oil's interests in Blocks 10BB 13T & 10BA in Kenya and the Rift Basin and South Omo Blocks in Ethiopia. Maersk will pay US$350m as reimbursement for approximately 50% of past costs and carry up to US$75m for the company's share of development expenditures upon the confirmation of resources and US$15m of the share of exploration expenditure. Maersk will also carry up to US$405m of AOI's working interest share of development expenditures for the Lokichar Development Project. This is actually quite an exciting piece of news. It represents a major new investment in East African oil exploration and development despite the fact that the pipeline route hasn't even been finalised. Unsurprisingly both Tullow Oil and AOI's share prices soared on the news and then promptly fell back. Tullow managed to go back below its previous closing price. You do wonder about the markets sometimes. Let's see how Africa Oil fares when trading kicks off today in Toronto. Having read that Lonmin is recapitalising itself to the tune of £269m at a 94% discount to its previous share price close I presumed a private client broker was handling this. Not so. It turns out that the deal is being underwritten by some of the grand old dames of British banking — HSBC JP Morgan Cazenove and Standard Bank. This really does seem to be the unacceptable face of capitalism. Hey ho. Anyway it's not the only capitulation out there. Zinc producer Nyrstar has said that it plans to raise US$296m to pay down debt and has appointed some more bankers to explore a complete exit from mining. The Belgian company — the world's biggest zinc producer — is mulling a cut in production of as much as 400000tpa if prices remain depressed. Glencore has already announced a cut in zinc production of 500000tpa. Coloured gemstones now that's a bit more cheery. There's an auction in Geneva this week that is being dominated by pinks and blues with new world record prices expected to be set. According to Rahul Kadakia the International Head of Jewellery at Christies 'there is a little bit of softness in the white diamond market' while prices for coloured stones are approaching levels not seen for 25-30 years. One stone charmingly named 'in the pink' could fetch more than US$32m. Well that's as long as it isn't stolen by a debonair English playboy before being recovered by a bumbling French detective.
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