Category: Mergers & Acquisitions

AUSTRALIAN-LISTED gold company Resolute Mining has confirmed media reports that it is in exclusive talks with a potential buyer for its Ravenswood gold mine in Queensland. Responding to Australian media reports, Resolute Mining said in a statement to the ASX that it had entered into exclusive negotiations with private equity firm EMR Capital Management for the sale of the mine. Negotiations between Resolute and EMR Capital on the sale are ‘significantly advanced’ and could net the gold miner up to $300m, comprising $100m upfront and a deferred payment of $200m. The deferred payment of $200m could vary as it is subject to a number of factors, including future gold prices, production rates and investment outcomes for Ravenswood. The talks between…

ASX-LISTED lithium company Sayona Mining is to bid for the North American lithium mine in Québec, Canada, after securing $2.75m of funding from a New York-based investor. Sayona Mining said the funding injection reflects increased investor confidence in the lithium sector. In a statement, the company said: “The new investment follows an upturn in the lithium sector since the start of 2020, and as Sayona builds momentum in its bid for the NAL mine, which it aims to make the centrepiece of a lithium hub comprising a concentrator supplied by two or potentially three ore bodies.” Sayona said it will use the funds from Obsidian Global to press ahead with its bid for NAL, and to advance its flagship Authier…

SOON-TO-BE producer Core Lithium has announced the strategic acquisition of the Walanbanba Lithium Project from Todd River Resources – adjacent to its existing Anningie and Barrow Creek (ABC) project in the Northern Territory. The ABC Lithium Project comprises large-scale lithium rich pegmatite fields and historic tin-tantalum mining districts with established “LCT” granite sources – similar to Core’s Finniss Lithium Project and various WA lithium pegmatite projects. Core’s managing director Stephen Biggins said the company is positioning itself, and the NT, to be an important long-term lithium supplier in Northern Australia. “Core’s recent discussions with a number of large lithium consumers at various levels within the electric vehicle and lithium battery supply chain suggest that world needs to heavily invest in…

NORTHERN Star Resources (ASX: NST) has entered into a binding agreement with Newmont Goldcorp to acquire 50pc of the KCGM Super Pit and other tenements in Kalgoorlie, WA, for US$775m, and another US$25m for a separate parcel of tenements close by. Northern Star said it expects its share of the KCGM JV to add 120,000-140,000oz to its 2020 gold production at an AISC of A$1240/oz-A$1340/oz. The US$800m (A$1.16b) transaction is expected to be completed by January 2020, subject to approval from the WA minister of lands, while all economic benefit will transfer from 1 January 2020. Saracen Minerals purchased 50pc of the KCGM JV in November, 2019, from Barrick Gold for A$1.1b. Northern Star’s acquisition will put the iconic Super…

MINING services company NRW has acquired 100pc of BGC Contracting for an equity value of $116.4m and implied enterprise value (EV) of $310m. Essentially, the implied EV is an alternative measure of a company’s value and covers BGC’s market cap including short and long-term debt as well as any cash on the balance sheet. NRW’s chief executive and managing director Jules Pemberton said the company is extremely pleased with the acquisition as it aligns with goals to pursue diverse revenue opportunities. “BGC Contracting has a well-recognised and proud history build around the strong foundations set by the late Len Buckeridge,” Mr Pemberton said. “With an excellent track record supported by a diversified earnings base, extensive fleet and a long history…

CLIVE Palmer’s company Mineralogy has announced the expansion of operations in Western Australia – entering into a long-term lease of a 1100sqm commercial property in Perth. Mr Palmer said Mineralogy has received vast wealth from WA, and it was now looking at expanding operations and reinvesting funds back into the state. The company’s George Palmer Deposit (part of the Balmoral magnetite deposit) hosts the Sino Iron Project, one of the world’s largest magnetite iron ore projects, operated by Citic Pacific Mining. “Nobody expected back in 1985 that this project would be so successful and create so much wealth for this country,” Mr Palmer said. “The Sino operation profits in Australia and China grew by 88pc in the last 12 months…

INDEPENDENCE Group (ASX: IGO) has increased the pressure in its takeover bid for Panoramic Resources (ASX: PAN), after Savanah downgraded its FY20 guidance at the Savannah nickel project in the East Kimberley, WA. Citing ongoing difficulties at the Savanah project, including underperformance of the paste filling system that impacted the stoping sequence, low nickel grade due to hanging wall failure, and continuing equipment availability, IGO has requested expedited and thorough due diligence to be completed. Panoramic had indicated it would need to raise additional capital, potentially through an entitlement offer in the near term, and that there would likely be a breach of several conditions of the off-market takeover offer bid made on November 4. “Given the material change to the…

INDEPENDENCE Group (ASX: IGO) has launched a $312m takeover bid for Panoramic Resources (ASX: PAN). IGO said the hostile all-scrip bid was taken to shareholders after a number of attempts to engage with the board for a friendly takeover were unsuccessful. The company cited poor performance and a “lack of engagement from the Panoramic board” as the reason for backing the takeover. “The offer represents, in IGO’s view, the best opportunity for Panoramic’s shareholders to crystalise and de-risk meaningful value from their investment in Panoramic in the foreseeable future,” it said. The offer would pay a premium 42pc to the last closing price of Panoramic shares before the date of the bidder’s statement, and 51pc to the one-month VWAP. Under…

MINERAL Resources (ASX: MIN) and Albermarle have mothballed the Wodgina lithium project in the Pilbara to wait out the lithium price slump after finalising the establishment of the unincorporated MARBL JV. The MARBL JV (60:40 Albermarle MIN), has joined a growing number of developments cutting back, or halting lithium production to wait for better prices as the US-China trade wars and the stalled EV boom continues to frustrate the international market. MIN said that it will take about four weeks to transition to care and maintenance. During that time, Albermarle will manage the marketing and sale of spodumene concentrate, and under the terms of the JV, will continue to manage it once Wodgina goes back into production. Mineral Resources managing…

RIO Tinto (ASX: RIO) chief executive J-S Jacques waxed philosophical to investors in London on Monday speaking of his vision of the company’s future. He spoke about the ‘deeper world’ awaiting the mining industry in the 2020s, and the importance of recognising the finite nature of the resources being mined. As Rio Tinto moves into the next decade, the shift from excess to discipline will be emphasised. Mr Jacques said that as the world becomes faster, so it becomes deeper too – meaning AI and big data present an opportunity to transform mining majors’ business models toward circular economies. “The world will not wait for us,” he said. “The time for change is now.” China’s insatiable appetite for resources in…