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Sibanye-Stillwater plans acquisition of competitor Lonmin for a bargain price!
A couple of days ago, Sibanye-Stillwater announced, that it has reached agreement with the Lonmin Board on the terms of a recommended all-share offer pursuant to which Sibanye-Stillwater, and/or a wholly-owned subsidiary of Sibanye-Stillwater, will acquire the entire issued and to be issued ordinary share capital of Lonmin.
A detailed due diligence confirmed significant synergies between Sibanye-Stillwater and Lonmin’s contiguous PGM assets. The company therewith expects the transaction to be net asset value accretive on closing, and earnings and cash flow accretive in respect of Sibanye-Stillwater Shares from 2021, once all synergies are realized and related one-off costs incurred. Thereby Sibanye-Stillwater is also buying downstream processing business with a replacement value significantly higher than the acquisition costs. Furthermore, Lonmin owns sizeable PGM Resources of 180.6 million ounces (including 31.7 million ounces in reserves) with potential upside from advanced brownfield projects and greenfield project pipeline.
Based on the 30-trading day volume weighted average price of R18.67 of Sibanye-Stillwater Shares on the Johannesburg Stock Exchange for the period ended 13 December 2017 (being the last Business Day prior to the date of this announcement), the Offer values each Lonmin Share at 100.0 pence and values the existing issued ordinary share capital of Lonmin at approximately £285 million.
Although Lonmin recently realized a huge operational deficit, because of a number of obsolete shafts, Sibanye-Stillwater grabs a bargain with this deal, the Lonmin shows a huge resource base, several large plants with a combined capacity of 1.5 million ounces of PGM and a couple of great development projects, including three joint ventures, especially in Canada’s Sudbury Basin.
News: Proposed acquisition of Lonmin by Sibanye-Stillwater
Video: Sibanye-Stillwater interview Mines and Money London 2017
Gold: after FED’s interest rate increase it looks good for several reasons!
After the recent FED decision to increase the US interest rate by 0.25% to 1.25-1.50%, the gold price was able to recover from the last interim low at US$1.240. What is the reason for this movement? Primarily the more and more upcoming doubts of a lot of market participants, if the FED would be able to realize its aimed three interest rate increases for 2018. By now, two of the FED members voted against the recent increase, which was mainly caused through the fact, that the inflation rate wasn’t able to keep up with the FED’s interest rate increase pace. Contrariwise, the inflation rate in the US sank in the last few weeks. Shouldn’t the inflation rate approach the FED’s goal of around 2.00%, the FED would lose a lot of credibility, when it will continue to increase the interest rate. Lower or even not higher interest rates in the US are afflicting the price of the US-dollar, which plays into the gold price’s hands.
Another point is, that lastly, the speculator’s mood at the future exchanges went to an absolute bottom. This in combination with a traditional, seasonal positive environment for gold at the beginning of the year, could lead to encouraging results for the gold price and the corresponding gold stocks in the coming months. By the way: The majority of gold stocks didn’t realize the recent downwards-turn of the gold price, which clearly speaks for a bottom building.
There are some similarities at the silver sector, where many silver stocks partly showed price increases of 15 to 20%, like Endeavour Silver or MAG Silver.
On the chart-technical front, a break of the important support at US$1,235 has been prevented. The next resistance levels lie at US$1,264, 1,284 and 1,300.
Treasury Metals: Massive interest in Flow-Through Financing!
Osisko Gold Royalties plans massive share repurchase program!
Treasury Metals recently announced, that it has entered into an amending agreement with a syndicate of agents led by Haywood Securities Inc., to increase the amount of the private placement financing from 4,500,000 flow-through common shares up to 6,350,000 flow-through common shares of the Company for aggregate gross proceeds of approximately CA$4.25 million.
This massive expansion of the financing shows a high interest from investors into Treasury Metals and its Goliath Gold Project.
News: Treasury Metals Announces Increase to Previously Announced Flow-Through Financing to C$4.25 Million
First Cobalt secures another potential top-class property within the Ontario Cobalt Camp!
Osisko Gold Royalties shortly announced, that the Toronto Stock Exchange has approved the Corporation's notice of intention to make a normal course issuer bid (the "NCIB Program"). Under the terms of the NCIB Program, Osisko may acquire up to 10,567,441 of its common shares from time to time in accordance with the normal course issuer bid procedures of the TSX. Any repurchases under the NCIB Program will be made in Canada through the facilities of the TSX. Repurchases under the NCIB Program commenced on December 11, 2017 and will terminate on December 10, 2018 or on such earlier date as the NCIB Program is complete.
The 10,567,441 Common Shares that may be repurchased under the NCIB Program represent approximately 10% of the public float of the Corporation as of December 4, 2017, being 105,674,419 Common Shares.
Repurchase of up to 10% of all outstanding shares - that is a really heavy statement!
News: Osisko Announces TSX Approval to Renew Normal Course Issuer Bid
First Cobalt does 25-million-dollar financing!
First Cobalt recently announced, that it has purchased four contiguous mining claims located in the Central Cobalt region of the Cobalt Camp in Ontario near the past producing Caswell mine. The claims cover an area that may contain the extension of structures related to mineralization at the Caswell mine and the Thompson prospect and the properties are contiguous to First Cobalt properties to the west of the Caswell and La Tour mines and the Thompson prospect in Central Cobalt, further consolidating this highly prospective area.
News: First Cobalt Acquires Property Near Caswell Mine
Video: First Cobalt: Merging 3 Cobalt Companies Into One
Pershing Gold plans to generate US$13.6 Million
In addition, First Cobalt recently announced, that it has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. pursuant to which they have agreed to purchase, on a bought deal private placement basis, an aggregate of 4,700,000 units of the Company at a price of $1.51 per Flow-Through Unit for gross proceeds of $7,097,000 and an aggregate of 16,400,000 units of the Company at a price of $1.10 per Unit for gross proceeds of $18,040,000. The net proceeds of the Offering will mainly be used to advance the exploration and development of the Company’s mineral properties located in Ontario.
A 25-million-dollar financing for a relatively small company like First Cobalt clearly shows, that investors have a huge interest in the currently most important cobalt player in Canada.
News: First Cobalt Announces $25 Million Bought Deal Private Placement Financing
TerraX Minerals shines with top-class sampling results
Pershing Gold recently announced, that it plans to generate in total US$13.6 million from a bought-deal financing and a private placement. The Company intends to use the proceeds from the public offering and the private placement mainly to advance its Relief Canyon project, including pre-construction and development and exploration drilling to expand mineralization at Relief Canyon.
Therewith, Pershing Gold does a big step towards the full financing of the future Relief Canyon Mine.
News: Pershing Gold Announces Bought Deal of US$6.8 Million and Private Placement of US$6.8 Million
Only a few weeks ago, TerraX Minerals reported top-class sampling results from its Yellowknife City gold project. Now, the company once more shines with corresponding results. It recently announced high-grade surface sampling results from the Ryan Lake area on its Northbelt property, one of eight new high-grade target areas identified on the Yellowknife City Gold Project during fieldwork this summer. Exploration this summer focused on defining the surface extent of polymetallic mineralization associated with the Ryan Lake intrusion originally identified in 2013. A total of 230 surface outcrop samples were taken in the Ryan Lake area with assay results up to 97.7 g/t Au, 32.4 g/t Ag, 2.09% Cu, and 0.32% Mo. The gold mineralization at surface is widespread and appears to stretch for 3.8 km along the eastern contact with the Ryan Lake intrusion, with high grade molybdenum mineralization overlapping the gold and covering 3.0 kilometers of that strike length.
The Ryan Lake porphyry intrusion has now developed into a significant exploration target, with potential for world class size and grade. This exciting target has been developed over 4 years and is now a priority for immediate drilling in 2018.
News: TerraX Expands high grade Au-Mo-Cu-Ag zone at Ryan Lake Porphyry
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