Category: Mergers & Acquisitions

Sandfire dips toes in the Balkans

InternationalMergers & AcquisitionsNews

Sandfire dips toes in the Balkans

BY ELIZABETH FABRI SANDFIRE Resources has become a cornerstone investor in base and precious metals explorer Adriatic Metals, after pouring $2 million into its IPO early May. The investment will give Sandfire a 7.7 per cent stake and strategic partner status in Adriatic, which owns the Vares project in Bosnia and Herzegovina. Adriatic is now the first ASX-listed company with exposure to the emerging mining scene in the formerly war-torn country. Its Vares project comprises a historic open-cut zinc/lead/barite and silver mine at Veovaca mined between 1983 and 1987, and the undeveloped Rupice deposit. Adriatic said it would benefit from Sandfire’s significant technical expertise to fast track the feasibility and development of both Veovaca and Rupice. Sandfire also has the…

Rio exits coal industry

Mergers & AcquisitionsNews

Rio exits coal industry

The Kestrel mine in central QLD. Image: Rio Tinto. BY ELIZABETH FABRI RIO Tinto has completed its exit from the coal industry after agreeing to sell its remaining QLD coal assets for $US4.15 billion. The mining giant has been on a selling spree in recent years, letting go of assets such as its $US2.7 billion Hunter Valley Operations (HVO) to focus on growth in iron ore and copper. In March, Glencore was named the winning bidder for Rio’s 82 per cent interest in Hail Creek open cut mine and its 71.2 per cent interest in the undeveloped Valeria project, paying $US1.7 billion for the assets. Days later, Rio entered a binding agreement to sell its 75 per cent interest…

Newcrest spends big on Lundin

Mergers & AcquisitionsNewsUncategorized

Newcrest spends big on Lundin

Fruta del Norte mine is currently under construction with first gold expected in late 2019. Image: Lundin Gold. BY ELIZABETH FABRI NEWCREST will invest $US250 million to acquire a 27.1 per cent interest in Canadian miner Lundin Gold, which is developing the Fruta del Norte gold project in South East Ecuador. The 340,000 ounce per annum Fruta del Norte project, currently under construction, is aiming for first production by the end of 2019. Under the deal, Newcrest has the right to appoint two directors to the Lundin Gold board, and one of its nominated directors to a project advisory committee that will oversee Fruta del Norte development. The companies have also signed a binding Heads of Agreement to form a…

WA drives M&A uptick

Mergers & AcquisitionsNews

WA drives M&A uptick

Mergers and Acquisitions in Australia’s Energy, Mining and Utilities sector is on the rise. Image: Mergemarket. BY CAMERON DRUMMOND THE WA mining sector is leading the charge in the merger market on the back of increased foreign interest in a range of commodities. According to Mergemarket’s 2017 Australia M&A report, Energy, Mining and Utilities (EMU) has taken over Transportation as the most targeted merger and acquisitions (M&A) sector, with 77 deals worth a total $37.1 billion made during 2017– a 56.7 per cent increase on 2016 figures. Australia, and in particular WA, is poised for further increases in 2018 for deals in the tech metals sector, as the Federal and State Governments open doors to capitalise on growing global demand.…

GFG’s European expansion

InternationalMergers & AcquisitionsNews

GFG’s European expansion

BY ELIZABETH FABRI BRITISH steel magnate Sanjeev Gupta’s GFG Alliance will pay $US500 million for Rio Tinto’s Aluminium Dunkerque smelter as part of a planned expansion into central Europe. Rio Tinto announced it had received a binding offer from GFG Alliance’s industrial arm Liberty House, which it expected to complete in the second quarter of 2018, subject to final adjustments. The deal followed GFG Alliance’s acquisition of Rio Tinto’s Lochaber Smelter and assets in Scotland in December 2016; however this would be the group’s first significant step into continental Europe. GFG Alliance executive chairman Mr Gupta said Liberty planned to develop the 570-worker plant, and potentially create thousands more jobs on-site and for the wider community. The company also hoped…