Archive | Canada Mining

Barrick proposes low-ball buyout offer for beleaguered Tanzanian subsidiary Acacia – by Gabriel Friedman (Financial Post – May 23, 2019)

https://business.financialpost.com/

Barrick offered a nine per cent discount to the London-listed Acacia’s closing price, valuing it at US$787 million

Earlier this month, Barrick Gold Corp. chief executive Mark Bristow had said his company would consider buying out minority shareholders in its embattled subsidiary, Acacia Mining Plc, but only at the right price.

“The problem is that we are not prepared to overpay for these assets,” Bristow said. On Wednesday, the Toronto gold company made its price clear — proposing a share swap at 0.1533 of a Barrick share for each Acacia share in an offer that values the smaller company at US$787 million.

That’s a nine per cent discount to the London-listed company’s closing price on Tuesday, which comes on top of a 68 per cent decline since 2017 amid an ongoing dispute with Tanzanian authorities, which slapped a US$190 billion tax bill and banned the export of processed metals. Continue Reading →

Hudbay preparing sale of Arizona Rosemont copper mine stake – by Dinesh Nair and Scott Deveau (Bloomberg/Financial Post – May 22, 2019)

https://business.financialpost.com/

Hudbay Minerals Inc. is preparing a sale of a stake in one of the largest copper mines under development in the U.S. as an investor pushes the company to review its portfolio, people familiar with the matter said.

The Toronto-based base metals miner has interviewed potential advisers about selling a 30 per cent stake in the Arizona Rosemont project and is planning to kick off a process in the coming months, the people said, asking not to be identified as the matter is private.

The stake is likely to draw interest from financial bidders, such as private equity firms, the people said. No final decisions have been made and Hudbay may still decide to keep the asset, they said. Continue Reading →

The Northern Miner Podcast – episode 139: Indigenous People as ‘Resource Rulers’ in Canada ft Bill Gallagher – part 2 (May 21, 2019)

Northern Miner

This episode wraps up our two-part conversation with strategist, lawyer and author Bill Gallagher on the topic of Canada’s Indigenous People and their land rights, and how that affects resource development in the country.

Based in Waterloo, Ont., Bill is the author of two popular books on the topic: the recently published “Resource Reckoning: a Strategist’s Guide from A to Z” and the 2012 milestone “Resource Rulers: Fortune and Folly on Canada’s Road to Resources.”

To buy the books and for more information, visit www.billgallagher.ca and find him on Twitter at @ResourceRulers. Continue Reading →

Australian gold miners on the hunt for Canadian assets – by Niall McGee (Globe and Mail – May 21, 2019)

https://www.theglobeandmail.com/

Here come the Aussies. Flush with cash, Australian mining companies are buying Canadian gold mines and more are expected to join the fray.

Last week, Melbourne-based St. Barbara Ltd. reached a friendly agreement to buy Vancouver’s Atlantic Gold Corp. for $722-million. Atlantic owns and operates a very profitable gold mine in Nova Scotia with a long reserve life.

Earlier this year, Australia’s biggest gold company, Newcrest Mining Corp., paid US$806-million for a majority stake in Red Chris, one of Imperial Metal Corp.’s prized gold and copper mines. Continue Reading →

Canada, U.S. and Mexico reach deal to lift Trump administration’s steel and aluminium tariffs – by Adrian Morrow and Lawrence Martin (Globe and Mail – May 17, 2019)

https://www.theglobeandmail.com/

Prime Minister Justin Trudeau and Foreign Minister Chrystia Freeland have scheduled an announcement in Hamilton Friday, where they are expected to announce a deal to lift the Trump administration’s steel and aluminum tariffs on Canada and Mexico.

Mr. Trudeau spoke with U.S. President Donald Trump Friday on tariffs and other trade matters, the Prime Minister’s office said. A Canadian official said Mr. Trudeau and Ms. Freeland will announce the deal today.

The agreement will end the continental trade war that has raged for most of the last year. But sources in industry and government on both sides of the border cautioned that Canada is not out of the woods yet: Canada will likely have to agree to tough new export rules on its metals industry that will benefit the U.S. in exchange for the end of tariffs. Continue Reading →

NEWS RELEASE: Canada Invests in Climate Change Adaptation for the Mining Sector (Natural Resources Canada – May 17, 2019)

A changing climate is the single greatest global challenge of our time. That is why the Government of Canada is investing in climate adaptation and resilience, while supplying the minerals and metals needed for clean technologies throughout the world.

Paul Lefebvre, Parliamentary Secretary to the Minister of Natural Resources, the Honourable Amarjeet Sohi, today announced an investment of more than $325,000 to the Mining Association of Canada (MAC) for a climate change adaptation project for the mining sector. This investment was announced as part of National Mining Week (May 13 to 19, 2019), reiterating the importance of the mining sector to Canada’s clean growth future.

Funded through Natural Resources Canada’s Climate Change Adaptation Program, this project will enable MAC to work with industry and other experts to develop best practices and guidance for the mining sector on climate change risks and adaptation measures. Continue Reading →

Iamgold Explores Sale Amid Gold Sector Consolidation – by Scott Deveau and Dinesh Nair (Bloomberg News – May 16, 2019)

https://www.bloomberg.com/

Canadian miner Iamgold Corp. is exploring a possible sale of all or part of the company amid a wave of consolidation in the gold sector, according to people familiar with the matter.

The Toronto-based miner is working with advisers and has spoken to several potential buyers, said the people, who asked not to be identified because the matter is private.

Iamgold’s plans could still change and there’s no guarantee it would succeed in selling itself, the people said. A representative for Iamgold declined to comment. Continue Reading →

‘Farmers are hurting’: Rising pressure on U.S. agriculture key to removal of steel tariffs from Canada, Mexico – by Naomi Powell (Financial Post – May 16, 2019)

https://business.financialpost.com/

Faltering U.S.-China trade talks, rising tariff pressure on American farmers and a rapidly disappearing opportunity to ratify the new North American Free Trade Agreement are fuelling Washington’s renewed push to negotiate the removal of steel and aluminum levies from Canada and Mexico, analysts say.

“I think we are close to an understanding with Mexico and Canada,” on resolving the tariffs, U.S. Treasury Secretary Steven Mnuchin said at a U.S. Senate Appropriations subcommittee hearing Wednesday. He not provide any details about the potential agreement.

Foreign Affairs Minister Chrystia Freeland was in Washington Wednesday to push for the removal of the tariffs during meetings with U.S. Trade Representative Robert Lighthizer. Continue Reading →

Australia’s St. Barbara to acquire Canada’s Atlantic Gold in $722-million deal – by Niall McGee (Globe and Mail – May 16, 2019)

https://www.theglobeandmail.com/

Australia’s St. Barbara Ltd. is buying Canada’s Atlantic Gold Corp. in a friendly transaction worth $722-million – more evidence of a resurgence in deal-making in the global gold sector. Vancouver-based Atlantic owns and operates a small but very profitable gold mine in Nova Scotia.

St. Barbara is paying $2.90 a share for Atlantic, about a 40-per-cent premium to the Tuesday closing price. In addition, shareholders will receive the equivalent of 5 cents a share in a spin-off company that will hold Atlantic’s equity stake in Velocity Minerals Ltd., a small development stage company.

St. Barbara is funding the deal through a mix of cash on hand and proceeds from an equity issue. In an interview, Atlantic’s chief executive officer Steven Dean said there was “a good deal of interest from a number of parties,” but that St. Barbara’s offer, which was almost all-cash, was particularly compelling. Continue Reading →

N.S. mine where roof collapsed allowed limited production increase (Canadian Press/Financial Post – May 15, 2019)

https://business.financialpost.com/

DONKIN, N.S. — Nova Scotia’s Labour Department has allowed a limited increase in production at Canada’s only operating underground coal mine after a series of roof collapses last year.

Kameron Coal’s operations in Cape Breton were suspended for just under a month by the province in late December before it was allowed to partially resume activities in one portion of the mine while it prepared a revised roof support plan.

Scott Nauss, the province’s senior director of inspection compliance, said the new plan approved on May 7 allows Kameron to mine in two sections of the Donkin mine totalling 730 metres of added rock face, which is less than 10 per cent of the mine. Continue Reading →

OPINION: Canadian investors need to stop suing foreign governments over environmental-friendly policies – by Hadrian Mertins-Kirkwood (Globe and Mail – May 14, 2019)

https://www.theglobeandmail.com/

Hadrian Mertins-Kirkwood is a senior researcher at the Canadian Centre for Policy Alternatives and the co-author with Ben Smith of the new report Digging for Dividends

Canadian corporations are taking advantage of Canada’s free trade and investment agreements to undermine environmental policies in developing countries. And it’s putting the global fight against climate change – and Canada’s international reputation – at risk.

Using a little-known legal mechanism called investor-state dispute settlement (ISDS), foreign investors can sue governments to claim compensation for alleged violations of an investment agreement. Canada has negotiated ISDS clauses into dozens of investment treaties with developing countries where there is or could soon be a Canadian mining presence.

Canadian mining companies operating overseas are already notorious for disregarding human rights and damaging the environment, especially in poor countries. Now, they’re increasingly turning to ISDS to directly challenge government measures taken in the public interest. Continue Reading →

‘Cash crunch’: Canada’s shrinking junior mining sector struggles for relevance — and deals – by Gabriel Friedman (Financial Post – May 15, 2019)

https://business.financialpost.com/

Cannabis companies raised $4 billion in 2018 compared to $217 million by mining companies

Last spring, Vancouver-based Hecla Mining Company’s chief executive Philip Baker Jr. announced a $600 million deal to purchase three gold mines in Nevada at a 59 per cent premium.

Baker assured investors his company conducted extensive due diligence to justify the hefty price tag. “There isn’t anyone on the planet who knows this asset better than us,” he told the Financial Post.

About one year later, Hecla has initiated “a comprehensive review” after running into a flurry of problems in Nevada, including “unacceptable” costs, lower than expected production, problems expanding the mine life, excessive water in one mine and other issues. The mines produced 10,000 ounces of gold in the first quarter, down from the 162,000 annual production estimate given at the time of the purchase. Continue Reading →

Freeland renews push to remove steel, aluminum tariffs during Washington trip – by Mike Blanchfield (Canadian Press/Global News – May 14, 2019)

https://globalnews.ca/

Foreign Affairs Minister Chrystia Freeland is bound for Washington to meet with Trump trade czar Robert Lighthizer in a renewed push to get punitive steel and aluminum tariffs lifted.

The meeting at the United States trade representative’s Washington office is to take place on Wednesday but Freeland will also venture to Capitol Hill for a meeting with the influential Republican chair of the Senate finance committee, Chuck Grassley.

“We continue to lobby very assertively for the lifting of the tariffs. We’re at a point where we need to do everything we can and talk to everyone we can about why we see these as unjust,” a senior government source said Tuesday, speaking on the condition of anonymity because of the sensitivity of the ongoing dispute. Continue Reading →

Australia’s St Barbara snaps up Canada’s Atlantic Gold for $536 mln – by Melanie Burton (Reuters Canada – May 14, 2019)

https://ca.reuters.com/

MELBOURNE (Reuters) – Australian gold miner St Barbara said on Wednesday it will buy smaller Canadian peer Atlantic Gold Corp for C$722 million ($536 million), marking a second overseas acquisition for cashed-up Australian producers.

St Barbara’s C$2.90 a share cash offer represents a 39% premium to Atlanta Gold’s closing price on Tuesday in a deal that analysts said opened up growth options, but could lead to a call on capital and crimp dividends.

“Buying an unknown asset in a new country which itself potentially requires a fresh injection of capital… could present an additional barrier for some investors,” said RBC Capital in a report. Continue Reading →

This goofy clause in Bill C-69 will ensure resource development in Canada stops cold – by Diane Francis (Financial Post – May 14, 2019)

https://business.financialpost.com/

“Obviously, resource development will stop cold. This is a bill
written by economic ignoramuses who have no understanding as to
why Canada enjoys high living standards and supports a generous
social safety net. … This is not legislation. This is sabotage.”

The Liberals’ Bill C-69, a train wreck of politically correct nonsense, passed last year and is now in the Senate where dozens of amendments have been proposed.

Frankly, the Senate should reject the bill because it will impose onerous consultative and other burdens that will severely hobble all energy projects in future. It grants power to the environment minister — not the minister of natural resources — over fossil fuel, mining, nuclear, pipeline, and rail transportation projects.

The bill extends the Liberals’ anti-oil bias because other large-emissions industries such as chemicals, aluminum, fertilizer, cement, agricultural and waste treatment facilities are not included. Continue Reading →