Juniors consider legal options after Chinese divestment order – by Nelson Bennett (Business In Vancouver – November 7, 2022)

https://biv.com/

Lithium exploration companies react to Canada ordering Chinese investors out

A junior exploration company in the critical minerals space says it is considering its legal options in response to the Canadian government ordering one of its investors to divest from the company.

Ultra Lithium Inc. (TSX-V: ULT) is one of two B.C.-headquartered companies that has Chinese investors ordered to divest their equity positions in the Canadian companies, based on national security concerns over control over critical minerals.

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Gold Fields ends effort to acquire Canada’s Yamana, which has backed Agnico Eagle-Pan American takeover bid – by Niall McGee (Globe and Mail – November 9, 2022)

https://www.theglobeandmail.com/

South Africa’s Gold Fields Ltd. has ended its flawed attempt to acquire Toronto-based Yamana Gold Inc., handing victory to Canadian precious metals miners Agnico Eagle Mines Ltd. and Pan American Silver Corp.

In late May, Johannesburg-based Gold Fields proposed buying Yamana for US$6.7-billion in stock, a 42-per-cent premium to Yamana’s market price. The deal was poorly received, with Gold Fields shares losing as much as 40 per cent in the months that followed, and two of its biggest shareholders, VanEck and RWC Partners Ltd. (known as Redwheel), denounced the deal as making no sense strategically.

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Gold Fields refuses to make new offer for Yamana, despite competing bid from Canadian miners – by Naimul Karim (Financial Post – November 7, 2022)

https://financialpost.com/

South Africa’s Gold Fields Ltd. will not make a new bid to buy Toronto-based Yamana Gold Inc. after Canadian miners Agnico Eagle Mines Ltd. and Pan American Silver Corp. on Friday made a combined US$4.8-billion offer that includes stock and cash.

Yamana on Friday said the new proposal is superior to the one it inked with Gold Fields on May 31 and that the South African miner had five days to match it. But Gold Fields’ chief executive Chris Griffith said the company’s board unanimously voted not to propose a new offer.

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Rio Tinto’s Turquoise Hill takeover in doubt as Quebec’s securities regulator studies fairness of side deal negotiated with dissidents – by Niall McGee (Globe and Mail – November 7, 2022)

https://www.theglobeandmail.com/

Turquoise Hill Resources Ltd. is postponing its shareholder vote on Rio Tinto PLC’s proposed takeover of the Canadian copper company yet again, as Quebec’s securities regulator considers whether a side deal negotiated with dissident shareholders is legal, injecting even more uncertainty into the market.

London-based Rio last week said it had reached an agreement with Pentwater Capital Management LP and SailingStone Capital Partners LLC, under which they would be paid out 80 per cent of the takeover amount being offered to all Turquoise Hill shareholders and, after a ruling from an arbitrator, the remaining 20 per cent, plus interest, and potentially much more.

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Column-Canada slams the door on China in critical minerals race – by Andy Home (Reuters – November 4, 2022)

https://www.reuters.com/

The Canadian government this week ordered Chinese companies to divest their holdings in three Canadian-listed junior mining companies planning to develop lithium deposits.

The ban comes within days of Canada announcing a tougher policy on investment in the minerals sector by state-owned entities, particularly those from China, which dominates the processing of key energy transition metals such as lithium, cobalt and rare earths.

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Barrick CEO sees few decent deals in ‘fragmented’ gold industry – by Jacob Lorinc (Bloomberg News – November 3, 2022)

https://www.bnnbloomberg.ca/

Barrick Gold Corp.’s top executive says he’s on the hunt for more gold deals — there just aren’t many appealing choices.

The world’s No. 2 bullion producer is keeping “a sharp outlook for M&A opportunities,” Chief Executive Officer Mark Bristow said Thursday in his company’s third-quarter earnings report, though those that could pass the company’s strict investment criteria “are few and far between.”

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Federal government’s economic update includes mining natural resources to fuel green economy – by Lindsay Richardson (APTN News – November 3, 2022)

https://www.aptnnews.ca/

Canada is officially moving from “rebalancing” to “rebuilding” post-COVID-19, according to Finance Minister and Deputy Prime Minister Chrystia Freeland and mining natural resources will play a significant role in making it happen.

During the reveal of Canada’s Fall Economic Statement (FES), Freeland told the House of Commons the next few years will be a “historic” opportunity for Canada to build an economy that “works for everyone.”

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Beijing accuses Canada of ‘suppressing Chinese companies’ – by Steve Chase and Niall McGee (Globe and Mail – November 4, 2022)

https://www.theglobeandmail.com/

Beijing is accusing Canada of “suppressing Chinese companies” by forcing three of its state-controlled corporations to sell their stakes in Canadian critical minerals businesses.

On Wednesday, Ottawa ordered Chinese state-owned companies to immediately divest their interests in three Canadian critical minerals companies. The federal government had faced an avalanche of criticism earlier this year for allowing too much investment from the Asian superpower in Canada’s domestic mining sector.

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Gold Fields target Yamana catches eyes of Agnico Eagle, Pan American – by Helen Reid and Mrinalika Roy (Reuters – November 4, 2022)

https://www.reuters.com/

Nov 4 (Reuters) – Agnico Eagle Mines Ltd (AEM.TO) and Pan American Silver Corp (PAAS.TO) swooped in with a joint bid for Yamana Gold (YRI.TO) on Friday, in an attempt to scupper Gold Fields’ (GFIJ.J) planned acquisition of the Canada-listed gold miner.

The cash and stock offer, valuing Yamana at around $4.8 billion, would see Agnico and Pan American split Yamana’s mines between them. Yamana shareholders would receive $1.0406 in cash, 0.0376 of an Agnico Share and 0.1598 of a Pan American Share for each share held.

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Federal government moves to cut China out of Canadian critical mineral industry – by Mia Rabson (Canadian Press/CBC News Politics – November 2, 2022)

https://www.cbc.ca/news/politics/

China a dominant player in critical minerals refining and processing battery cell components

After a national security review, Innovation Minister François-Philippe Champagne is ordering three Chinese resource companies to sell their interests in Canadian critical mineral firms. Champagne’s order comes less than a week after he said Canada would be limiting the involvement of foreign state-owned companies in the industry.

Critical minerals and metals, such as lithium, cadmium, nickel and cobalt, are essential components of everything from wind turbines and electric cars to laptops, solar panels and rechargeable batteries.

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Ottawa orders Chinese divestment in three Canadian critical minerals companies – by Niall McGee and Steven Chase (Globe and Mail – November 3, 2022)

https://www.theglobeandmail.com/

Ottawa is ordering Chinese state-owned companies to immediately divest their interests in three Canadian critical minerals companies, after the federal government faced an avalanche of criticism earlier in the year for allowing too much investment from the Asian superpower into the domestic mining sector.

The government’s order marks the second time in a week it has taken a more aggressive stand against China, after allowing it to acquire a Canadian critical minerals company earlier this year amid little scrutiny.

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OPINION: Canada needs more clean power. Ottawa’s $1-billion for nuclear is just a start – by Editorial (Globe and Mail – October 31, 2022)

https://www.theglobeandmail.com/

It’s been three decades since a new nuclear power plant started producing electricity in Canada. Last week, Ottawa put almost $1-billion on the table to kick-start work on the next one.

This time, the technology is American and Japanese, and the power output will be a third of the hulking CANDU reactors of the past. The new technology, a small modular reactor (SMR) that’s never been built in North America, remains unlicensed in Canada, but its backers, Ottawa and Queen’s Park, believe it will be operating in six years at the Darlington nuclear facility northeast of Toronto.

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Ottawa cracks down on foreign state-owned investments into Canadian critical minerals industry after facing criticism it went too easy on China – by Niall McGee (Globe and Mail – October 29, 2022)

https://www.theglobeandmail.com/

The federal government is tightening the rules to make it considerably harder for foreign state-owned firms to invest in Canadian critical-minerals companies, after it faced harsh criticism earlier this year for allowing too much Chinese investment into domestic resource firms.

Effective immediately, transactions involving investments by state-owned firms into Canadian critical-minerals companies will only be approved on an “exceptional basis,” the government of Canada said in a release.

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Canadian resources coveted by Asian superpower – by Nelson Bennett (Business In Vancouver – October 26, 2022)

https://biv.com/

As China’s “wolf warrior diplomacy” has strained Sino-Canadian relations in recent years, there is a growing sentiment in Canada that it’s time to rethink Canada’s relations with China and look for better trade partners.

“We should continue to trade, but we should avoid strategic vulnerabilities in our supply chains and our economies more broadly,” Deputy Prime Minister Chrystia Freeland said in a recent speech at the Brookings Institute.

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Fund manager denounces Gold Fields’ planned US$6.7-billion acquisition of Yamana – by Niall McGee (Globe and Mail – October 27, 2022)

https://www.theglobeandmail.com/

The top gold fund manager with the firm that owns the largest amount of shares in South Africa’s Gold Fields Ltd. GFI-N and Toronto’s Yamana Gold Inc. is denouncing the proposed merger of the two companies as Gold Fields struggles to win shareholder support for the deal.

Joe Foster, portfolio manager with New-York-based Van Eck said in an interview the deal is “poorly structured,” received a “horrible market reaction” and he cannot comprehend the rationale for the multibillion-dollar transaction from the viewpoint of either the acquirer or the target.

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