Archive | Canada Mining

Barrick Gold forges ahead on Papua New Guinea mine in face of local backlash – by Jeff Lewis and Melanie Burton (Reuters U.S. – Janaury 15, 2020)

MELBOURNE (Reuters) – Barrick Gold Corp is set to elevate its troubled Papua New Guinea mine to its top-tier assets, despite landowner and government demands to cede a larger stake and deteriorating security at the joint venture with China’s Zijin Mining.

With a 20-year lease renewal application in the balance, Barrick has faced backlash from Papua New Guinea (PNG) landowners and residents. Critics say the Porgera mine has polluted the water supply and created other environmental and social problems, with minimal economic returns for locals.

Seven people have died at the Porgera mine since September, including three so-called illegal miners last month in clashes that prompted Barrick’s local entity to appeal for government intervention. Continue Reading →

Billionaire Frank Giustra slams fake news on hiding Prince Harry, Meghan Markle, says it’s all about Clinton hate not the Royals – Kitco News exclusive – by Daniela Cambone (Kitco News – January 13, 2020)

(Kitco News) – Canadian mining mogul and philanthropist Frank Giustra refuses to remain silent and is fighting back at right-wing media which reported he is providing a luxe hideout for Prince Harry and Meghan Markle in his home in British Columbia.

Over the weekend, the popular gossip site Page Six of the New York Post reported that Harry and Meghan were staying at a multi-million dollar waterfront mansion near Victoria, British Columbia – the place they plotted their “shock exit” from the royal family.

The media outlet tied the mansion to Giustra – an uber successful mining mogul and the founder of film studio Lionsgate which produced hits including American Psycho and Fahrenheit 9/11. The news story was later picked up by Fox News, the Daily Mail and The Sun and has gone viral on various social media outlets. Continue Reading →

This Canadian won millions in a legal fight with Kazakhstan. Was it worth it? – by Nick Taylor-Vaisey (MACLEAN’S Magazine – January 14, 2020)

A Canadian mining exec’s decades-long tussle with Kazakhstan is finally over—he hopes. But even though he won, Paul Carroll doesn’t see much to celebrate.

The town of Stepnogorsk, a remote speck of civilization in the northern steppe of Kazakhstan, is straight out of a Cold War thriller. For decades, it was a secret—nowhere to be found on a map. It was a company town, and its business was, in part, producing weaponized anthrax.

After the Soviet Union dissolved, Stepnogorsk moved away from biological warfare, turning to exploiting vast uranium deposits in the region. But its residents soon found themselves at the centre of a dispute between their national government and a Canadian company that had set up shop there. Continue Reading →

Endeavour Mining ends pursuit of Centamin after takeover talks fall through – by Niall McGee (Globe and Mail – January 14, 2020)

Canada-listed Endeavour Mining Corp. has dropped its pursuit of Centamin PLC after the two miners failed to reach agreement on terms of a takeover deal.

In December, London-based Endeavour tabled an informal all-stock proposal worth $2.5-billion that would have seen it pay a 13 per cent premium for Centamin. Endeavour, which trades on the Toronto Stock Exchange, operates four mines in West Africa. Jersey-based Centamin operates a single gold mine in Egypt.

Endeavour had argued that Centamin would benefit from being part of a larger, and better diversified miner, and that the combined company would be more appealing to investors. Continue Reading →

Nova Scotia: Donkin mine closer to resuming full production after shutdown last year – by Tom Ayers (CBC News Nova Scotia – January 13, 2020)

The underground coal mine in Donkin, N.S., is still operating under a limited licence from the province, but is inching toward approval for full production.

The mine was shut down for about a month last year after a series of rockfalls. It was allowed to reopen, but mining could only take place in a short section.

Harold Carroll, executive director of Nova Scotia Labour’s occupational health and safety branch, said mine operator Kameron Coal’s ground control and ventilation plans have been approved, and an electrical plan has been submitted and is under review. Continue Reading →

Canada and US finalise critical mineral collaboration plan – by Mariaan Webb ( – January 10, 2020)

Canada and the United States have finalised their joint action plan to collaborate on minerals they deem critical – including uranium and rare-earth elements – delivering on the June 2019 commitment by Prime Minister Justin Trudeau and President Donald Trump.

The US last year stepped up efforts to ensure it relies less on rare earth minerals from China, after the Asian giant suggested using them as a leverage in trade negotiations.

With a rich minerals sector, Canada is well positioned to supply the US with rare-earth elements and already supplies about one-quarter of its southern neighbour’s uranium needs. Continue Reading →

Gold miners set to build on record year for mergers and acquisitions – by Niall McGee (Globe and Mail – December 30, 2019)

Deal making in the Canadian gold sector went into overdrive in 2019 and industry players expect that is likely to continue in 2020, with smaller companies becoming targets as fund managers push the industry to create bigger, more diversified miners.

In 2019, $31.8-billion worth of gold-mining deals were announced, the largest on record for the Canadian gold sector, according to data from Refinitiv. Headline deals included Newmont Gold Corp.’s US$10-billion purchase of Goldcorp Inc., Kirkland Lake Gold Ltd.’s $4.9-billion bid for Detour Gold Corp. and China’s Zijin Mining Group Co. Ltd.’s planned acquisition of Canada’s Continental Gold Inc. for $1.4-billion.

The merger and acquisitions bonanza is being driven by a number of factors, including the need for companies to replace reserves, cut costs, increase production and attract more interest from institutional investors. Continue Reading →

Canada is on an economic road to nowhere – by Diane Francis (Financial Post – January 7, 2020)

Who’s going to look after Canada’s economic wellbeing for the next five years? Canada slips and there’s nobody to catch it, not Parliament or other levels of government. The Liberals spent five years variously pandering to environmental, regional or anti-capitalist interests. Now in a minority position, the situation will worsen.

The country’s governance, like a 100-car pile-up, is a tangled mess that is transiting out of the free enterprise system every year.

The Liberals have adopted a soak-the-rich taxation approach and swallowed whole the green’s concocted “Climate Change Emergency.” As a result, Canada has missed out on what The Economist labelled the recent, half-decade global “jobs boom.” Continue Reading →

2019 was a dream come true for gold bugs — 2020 could be even better – by Gabriel Friedman (Financial Post – December 30, 2019)

What a difference a year can make — just ask a gold bug. As 2018 drew to a close, the price of the yellow metal was struggling to break US$1,300 per ounce and precious metals mining companies were stuck in the doldrums: Barrick Gold Corp., for example, was trading at $17.88 while Detour Gold Corp was sitting at $10.88, having just emerged from a contentious battle with its shareholders.

As 2019 ends, it’s a totally different story: Gold broke through the US$1,500 per ounce barrier in August for the first time in six years before settling just below that threshold, sparking a run on gold mining equities that was bolstered by a string of transformational mergers. That included deals involving Barrick and Detour, which sat in the $24 and $25 range, respectively, in late December.

But even as gold’s hot run tempered slightly to end the year, its most enthusiastic investors say its prospects have seldom been so positive. They argue that the same factors that helped gold perform so well in 2019 — including trade tensions, potential interest rate cuts, a volatile stock and bond market and geopolitical uncertainties such as Brexit — remain in place to a certain degree and are setting the stage for a massive rally in 2020. Continue Reading →

Billionaire Eric Sprott dishes on his golden investment spree: ‘It’s like being at a table with a winning run’ – by Gabriel Friedman (Financial Post – December 18, 2019)

One week before Halloween, Canada’s biggest gold enthusiast, the septuagenarian billionaire Eric Sprott, wearing a neatly pressed tuxedo, bounded onto a stage in a downtown Toronto ballroom and accepted his induction into Canada’s Investment Industry Hall of Fame.

He declared himself both humbled and honoured, and then rollicked into the wee hours of the night at his home in a nearby tower with expansive views of the city’s sparkling skyline. The next morning, though 75 and technically retired, he showed up at his office, grumbling about a lack of sleep, but dressed in a magenta-coloured, paisley button-up, ready for a 9 a.m. meeting with a penny stock exploration company.

“I keep reading that people are never making (gold) discoveries, the rate of discoveries is going down,” he said, occasionally rubbing his temples and closing his eyes. “The funny thing, well, I guess I’m the sucker then because I keep buying guys who say they’re making discoveries.” Continue Reading →

‘Scale really does matter’: Equinox and Leagold announce merger to create $1.75-billion miner – by Gabriel Friedman (Financial Post – December 17, 2019)

Latest merger in what’s turning into a boom year for the gold mining space with more than $30 billion of deals announced already

As 2019 draws to a close, the long-anticipated consolidation in the gold sector is picking up speed with news of yet another merger. On Monday, Equinox Gold Corp. proposed a no-premium, all-stock combination with Leagold Mining Corp. valued at around $770 million.

The tie-up would unite two Vancouver-based intermediate miners that are both backed by industry heavyweights and both focused on the Americas, with six mines spread across Brazil, Mexico and the U.S.

Ross Beaty, chairman and the largest shareholder of Equinox, pitched the deal as a means to achieve scale. He argued the new company, which will keep the Equinox name and have a market capitalization of roughly $1.75 billion, would have better liquidity and better risk diversification. Continue Reading →

Striving to understand the mining workforce of the future – by Len Gillis (Northern Ontario Business – December 16, 2019)

Sudbury mining panelists discuss how to recruit, retain employees in the digital age

It is going to take imagination, better communications and some good listening skills for the mining industry to attract and retain enough workers skilled in data-driven and digital technology.

Those were some of the comments during a recent panel discussion held in Sudbury at the annual general meeting of SAMSSA (Sudbury Area Mining Supply and Service Association).

The panel was made up of well-known experts in various sectors of mining. They included Michael Gribbons, vice-president of sales and marketing at Maestro Digital Mine; Lynn Iturregui, project management for mining at Hatch; Roy Slack, the president of CIM (Canadian Institute of Mining, Metallurgy and Petroleum); and Shayne Wisniewski, general manager of mining projects for Glencore’s Sudbury Integrated Nickel Operations. Continue Reading →

NEWS RELEASE: Equinox Gold and Leagold Mining Combine to Create a Premier Americas Gold Producer (December 16, 2019)

Vancouver, Canada – December 16, 2019 – Equinox Gold Corp. (TSX: EQX, NYSE American: EQX) (“Equinox Gold”) and Leagold Mining Corporation (TSX: LMC, OTCQX: LMCNF) (“Leagold”) have entered into a definitive agreement (the “Arrangement Agreement”) to combine in an at-market merger (the “Transaction”), creating one of the world’s top gold producing companies operating entirely in the Americas. The combined entity will continue as Equinox Gold and be headquartered in Vancouver, Canada.

Transaction Highlights

• Gold production of 700,000 ounces in 2020, increasing to 1 million ounces annualized production during 2021 and beyond, based on analyst consensus estimates
• Diversified operating platform with six operating mines in USA, Mexico and Brazil
• Substantial gold reserve and resource base
• Robust revenue, EBITDA and free cash flow
• Concurrent $670 million financing package: an at-market $40 million equity investment from Ross Beaty, a new $130 million convertible debenture issued to Mubadala Investment Company (“Mubadala”) and $500 million in underwritten commitments from a syndicate of lenders to refinance existing credit facilities Continue Reading →

CEO says Barrick has plenty of financial ‘firepower’ for deals – by Danielle Bochove (BNN/Bloomberg News – December 12, 2019)

Barrick Gold Corp.’s chief says the gold miner has the financial heft it needs to support its loftiest ambitions — and some day those might include a merger with Freeport-McMoRan Inc.

“Barrick, by end of next year, or during next year, will be net debt zero,” Chief Executive Officer Mark Bristow said Thursday in a phone interview. “We’ve definitely got the firepower to build a mine or to support a transaction. We don’t need any external support, for any of our ambitions, as we stand today.”

The world’s second-largest gold miner has been generating more cash flow, with higher bullion prices, even as it has sold assets. By the end of this year net debt will be under US$2 billion, Bristow said. “We’re going to settle all the near-term debt, and we’re left with debt that’s only due from 2023 onwards.” Continue Reading →

Gold exploration trends: drilling up, Canada leads – September 2019 – by Vladimir Basov ( – December 11, 2019)

Mining Intelligence data indicates that after a bleak month of August, exploration activity in the gold sector jumped in September and hit the second highest bar since the beginning of 2019, and both the number of drilled projects and the number of drillholes reported in September, were up in all major regions.

A trend towards exploration of advanced projects, rather than greenfield opportunities, was reversed in September with companies willing to take more early-stage exploration risks.

There was a noticeable improvement in overall drill intersection grades, with reported gold intersections with grades greater than 2 g/t have risen from 23% of their total count in August to 40% in September 2019. Continue Reading →