Newsletter 15 /2018
Stock of the week: Sibanye-Stillwater
Sibanye-Stillwater enters into joint-venture for top-class project Altar
Sibanye-Stillwater recently announced, that it has entered into an arrangement agreement with Regulus Resources Inc. and a newly formed subsidiary of Regulus, Aldebaran Resources Inc., creating a strategic partnership in order to unlock value at its Altar copper-gold project in San Juan Province, Argentina.
Under the terms of the Arrangement Agreement, Stillwater Canada LLC, an indirect, wholly-owned subsidiary of Sibanye-Stillwater, will enter into an option and joint venture agreement with Aldebaran, whereby Aldebaran will have the option to earn into a maximum 80% interest in a wholly-owned subsidiary of Stillwater Canada, Peregrine Metals Ltd., which owns the Altar Project. Concurrently, Regulus will also spin-out its Rio Grande copper-gold project and other early-stage Argentine mining assets to Aldebaran, including the drill-ready Aguas Calientes gold-silver project. Aldebaran has entered into a subscription agreement with Route One Investment Company LLC and certain related investment funds of San Francisco, whereby Route One has committed to provide initial financing of at least US$30 million to Aldebaran.
The consideration to Sibanye-Stillwater, for Aldebaran’s option to acquire up to an 80% interest in the Altar Project, comprises:
- An upfront cash payment of US$15 million to Sibanye-Stillwater upon closing of the Arrangement
- 19.9% of the shares of Aldebaran, subject to proration if the initial financing exceeds US$30 million (up to a maximum of US$40 million)
- A commitment from Aldebaran to carry the next US$30 million of spend at the Altar Project over a maximum of five years (inclusive of 2018 drilling that was conducted between February and May of this year) as an initial earn-in of a 60% interest in the Altar Project
This Arrangement creates a new, well-capitalized, Argentinean focused exploration company, Aldebaran, which expects to benefit from the synergies derived from exploring a multi project portfolio.
News: Sibanye-Stillwater enters into strategic exploration partnership to unlock value at its Altar project
It is very rare to find commodity companies, which really wow you! Steppe Gold is such a rare company. Steppe Gold is a precious metals exploration and development company focused on opportunities in Mongolia. The Company owns the advanced-staged ATO Project in Mongolia, acquired in 2017 from Centerra Mongolia, a subsidiary of Centerra Gold Inc. The Company has an objective to commence production in the third quarter of 2018. Steppe Gold has also acquired an additional exploration-stage mineral property in Mongolia, the Uudam Khundii (UK) property. According to CEO Matthew Wood, the company will produce its first gold bar in November 2018.
The Company remains under budget for the development of the ATO heap leach project. The yearly production is being estimated on 40,000 ounces of gold on an open-pit basis. But the most important figure are the all-in-costs of only US$400, which Steppe Gold’s CEO estimates in this interview:
Steppe Gold: IPO Finished - Production Starting End Of 2018
Development update: Steppe Gold Limited: Development Update
Video: Zuri Invest Discussion Panel With Osisko Gold Royalties, McEwen Mining & Steppe Gold
Sibanye-Stillwater achieves approval for Lonmin acquisition
Sibanye-Stillwater recently reported an announcement by the Competition and Markets Authority (CMA) that it has unconditionally cleared the proposed acquisition of Lonmin by Sibanye-Stillwater following its investigation. The CMA is the UK authority responsible for investigating any merger that could restrict competition. The Offer remains subject to the satisfaction or (where applicable) waiver of the outstanding Conditions set out in Appendix I to the announcement of the Offer by Lonmin and Sibanye-Stillwater on 14 December 2017. Such Conditions include, amongst others, the approval of the Offer by the South African competition authorities and the approvals of Lonmin and Sibanye-Stillwater shareholders and the courts of England and Wales.
This approval takes Sibanye-Stillwater one step closer to completion of the Offer. The combination of the businesses will create a leading mine-to-market player with enhanced scale and resources, able to compete more effectively.
News: Proposed Lonmin transaction gets unconditionally cleared by the UK Competition and Markets Authority
EnWave makes another step into Australia
EnWave recently announced that it has signed a Technology Evaluation and License Option Agreement (TELOA) with a major Australian dairy company to evaluate the use of the Company’s Radiant Energy Vacuum (“REV™”) technology for the development of several dehydrated, premium dairy ingredients. The Partner will rent a small-scale REV™ machine for use in Australia for a maximum of six months. During this term, EnWave’s experienced food science team will collaborate closely with the Partner’s innovation group to expedite progress.
Therewith, EnWave does another step into the important Australian market, where the company has signed a total of four TELOAs with Australian companies and has granted two separate commercial licenses to Australian royalty partners.
EnWave signs agreement for the production of food products in Peru
In addition to this, announced today that it has signed a Technology Evaluation and License Option Agreement with Fresh Business Consulting S.L., part of a diversified investment and consulting firm headquartered in Spain that has business interests in its home country, the United Kingdom and Peru. The TELOA grants FBC a six-month term to evaluate EnWave’s Radiant Energy Vacuum (“REV™”) technology for the production of several undisclosed food products in the country of Peru.
FBC has a proven history of forging successful joint partnerships and plans to target several established Peruvian agricultural companies and food manufacturers to collaborate on product-specific projects through its Peruvian business Fresh Business Peru. Prior to signing the TELOA, FBC has been actively developing its business in Peru since 2015. FBC and the wider group’s 2017 total revenue was more than 27 million Euros.
FBC will rent a small-scale REV™ machine for intensive new product development, which will be installed in Lima, Peru within the next few months.
Treasury Metals earns CA$5 million
A short time ago, Treasury Metals announced, that it has closed a non-brokered private placement financing on June 25, 2018. The Company issued 11,904,762 units at a price of CA$0.42 per Unit for total gross proceeds of CA$5 million. The net proceeds of the Offering will be used to fund the advancement of the Company’s Goliath Gold Project, and for working capital and general corporate purposes.
This secures the development of the Goliath Gold Project for many months.
Auryn Resources discovers two new prospects and acquires a third one
A few days ago, Auryn Resources announced the acquisition of rights to the Mollecruz concessions, which are key claims in the northern area of the Sombrero Project, located in southern Peru. The Mollecruz concessions include the Good Lucky prospect, which is located five kilometers from the Sombrero project, where Auryn recently trenched 99 meters of 0.46% copper equivalent. Samples taken within the Mollecruz concessions yielded results up to 5.12 g/t gold and 4.29% copper.
In addition, two new prospects, Totora and Uchuy, have also been discovered through sampling. At Totora, Auryn’s geologists have sampled gold values up to 5.07 g/t and copper values up to 3.14%. At Uchuy, strong arsenic and antimony values have been sampled which indicate the potential for proximal base and precious metal mineralization.
Therewith the company proved the high potential of the Sombrero project and secured another potentially high-grade concession nearby.
Panoro Minerals announces positive PEA for the Antilla Copper Project
A short time ago, Panoro Minerals announced the filing of the Technical Report for the Antilla Copper Project Preliminary Economic Assessment Technical Report (PEA) on SEDAR. The Antilla project is a copper-molybdenum porphyry deposit, located 140 km south west of the city of Cuzco in the Apurimac region in Southern Peru. The PEA results are highlighted as follows:
- Pre-Tax Estimates:
- NPV (7.5%) of US$ 519.8 million;
- IRR of 34.7%; and
- Payback of 2.6 years.
- After-tax Estimates:
- NVP (7.5%) of US$ 305.4 million;
- IRR of 25.9%; and
- Payback of 3.0 years.
The Company is well financed to expand, enhance and advance its projects in the region where infrastructure such as railway, roads, ports, water supply, power generation and transmission are readily available and expanding quickly. The region boasts the recent investment of over US$15 billion into the construction or expansion of four large open pit copper mines.
Presentation: Panoro Minerals: Developing Two Copper Projects In Peru
First Cobalt Announces Results from AGM
First Cobalt recently announced the nominees listed in the management information circular dated May 25, 2018 were elected as directors of First Cobalt.
All other resolutions provided for in the management information circular were also approved. The continuation of the Company under the Canada Business Corporations Act and the amended and restated long-term incentive plan remain subject to receipt of final acceptance from the TSX Venture Exchange.
Aurania Resources generates CA$4 million
Aurania Resources recently announced, that further to its news releases dated June 1, 2018 it has completed a first tranche of a non-brokered private placement financing of 2,000,000 units of the Company at a price of CA$2.00 per Unit, for total gross proceeds of CA$4 million.
The gross proceeds raised from the sale of the Units will be used by the Company for mineral exploration, which includes continuing the geochemical sampling survey and prospecting that has been successful in discovering several epithermal targets, additional geophysical surveys over specific target areas, and remote sensing, all with a focus on further defining specific drill targets, and for general working capital purposes.
Swiss Resource Capital AG and the authors of the Swiss Resource Capital AG directly own and/or indirectly own shares of the following companies which are described in this publication: Sibanye-Stillwater + Steppe Gold + EnWave + Treasury Metals + Auryn Resources + Panoro Minerals + First Cobalt + Aurania Resources.
Swiss Resource Capital AG has closed IR consultant contracts with the following companies which are mentioned in this publication: Sibanye-Stillwater + Steppe Gold + EnWave + Treasury Metals + Auryn Resources + Panoro Minerals + First Cobalt + Aurania Resources.
This publication is based on Swiss Resource Capital‘s detailed risk notes, liability limitations and disclaimers, which can be viewed here:https://www.resource-capital.ch/en/disclaimer-agb.html