Archive | Gold and Silver

Canadian gold miner SSR to buy Alacer Gold in $2.4-billion all-stock deal – by Niall McGee (Globe and Mail – May 12, 2020)

https://www.theglobeandmail.com/

Canada’s SSR Mining Inc. is buying Denver-based miner Alacer Gold Corp. in an all-stock, zero premium transaction worth $2.4-billion, the latest big mining deal aimed at trying to win back the interest of institutional investors.

Vancouver-based SSR operates precious metals mines in Canada, the United States and Argentina. Alacer’s chief asset is the Copler gold mine in Turkey.

SSR is paying 0.3246 of its shares for each Alacer share, equivalent to $8.19 a share, the same level Alacer closed at on Friday. Continue Reading →

Politics and Porgera: why Papua New Guinea cancelled the lease on one of its biggest mines – by Jonathan Pryke and Shane McLeod (The Guardian – May 12, 2020)

https://www.theguardian.com/

Late in April, in the middle of a global pandemic and slow-boiling domestic economic crisis, the government of Papua New Guinea made the surprising announcement not to extend the mining lease on a goldmine that contributes roughly 10% of the country’s total exports.

The announcement not to renew the special mining lease for the Porgera mine was a shock, not least to the mine’s operator, Barrick Gold, and their joint venture partner Zijin Mining.

Porgera is one of Papua New Guinea’s longest running goldmines. Operating for 30 years in the highlands province of Enga, this large mine was expected to produce around 250,000 ounces of gold in 2019. Continue Reading →

Gran Colombia proposes merger with Guyana, Gold X – by Donna Slater (MiningWeekly.com – May 11, 2020)

https://www.miningweekly.com/

Canadian midtier gold producer Gran Colombia Gold has signed a definitive agreement to complete a business combination with junior miner Gold X Mining and has submitted a proposal to Guyana Goldfields to acquire all its issued and outstanding common shares.

As part of the transaction, Gran Colombia will acquire the remaining 81% of the issued and outstanding shares of Gold X that it does not already own at a share exchange ratio of 0.500 of its own shares for each Gold X share.

This implies a headline value of C$3.17 a piece, representing a premium of 15% to the closing price on the TSX-V on May 8, and a premium of 41% to the volume-weighted average price of Gold X shares over the 20 trading days ended May 8. Continue Reading →

Gold miners’ profits ‘set to explode’, but companies persist with no-premium mergers – by Gabriel Friedman (Financial Post – May 12, 2020)

https://business.financialpost.com/

The gold sector may have reached a critical juncture

In a reminder that some market forces still exert more power than the economic fallout from COVID-19, Vancouver-based SSR Mining Inc. on Monday announced a no-premium, all-stock “merger of equals” with Denver-based Alacer Gold Corp. that was months in the making and would create a US$4 billion company.

The deal marks the latest in a string of mergers in the gold sector during the past 18 months, a trend which has continued even as the coronavirus pandemic has radically handicapped investors’ ability to conduct due diligence such as site visits to mines.

During a presentation to analysts on Monday, Rod Antal, who will move up from chief executive of Alacer to chief executive of the newly combined entity, SSR, once the deal closes in the third quarter, bluntly dismissed coronavirus as a factor, saying talks started last November, allowing ample time for face to face meetings before the pandemic. Continue Reading →

SolGold scores $150m in funding from Franco Nevada – by Cecilia Jamasmie (Mining.com – May 11, 2020)

https://www.mining.com/

Ecuador-focused miner SolGold (LON, TSX:SOLG) has secured up to $150 million from streaming company Franco Nevada (TSX, NYSE: FNV), which it will use to develop its Alpala copper-gold project.

The company said the net smelter return (NSR) agreement includes an initial $100 million. Franco-Nevada, which provides natural resource companies with upfront cash in exchange for future production, will receive a perpetual 1% NSR.

The total amount could increase by $50 million, at SolGold’s discretion. The move would also increase the NSR for Franco Nevada to 1.5%. Continue Reading →

Nunavut’s Hope Bay goldfields to be bought by China’s SD Gold – by Jane George (Nunatsiaq News – May 8, 2020)

https://nunatsiaq.com/

TMAC Resources Inc., which owns the Hope Bay gold mine complex in western Nunavut, is poised to be bought up by a Chinese gold-mining giant.

The Shandong Gold Mining Co. Ltd., better known as SD Gold, is willing to pay $207.4 million for the western Nunavut mine. That’s $1.75 per share in cash, a price that is 4.2 per cent above Thursday’s closing price on the Toronto Stock Exchange.

“We look forward to completion of the transaction and the opportunity to invest in the project for years to come as the generational potential of the camp is unlocked,” said Yumin Chen, chair of SD Gold. Continue Reading →

China’s Shandong buys Canadian gold miner TMAC Resources for US$149-million – by Niall McGee (Globe and Mail – May 8, 2020)

https://www.theglobeandmail.com/

State-controlled Chinese gold company Shandong Gold Mining Co. Ltd. is buying Canada’s TMAC Resources Inc. for US$149-million, the latest struggling junior to be swept up by larger and better capitalized seniors.

Shandong is paying $1.75 a share in cash, 4.2 per cent above the Thursday close on the Toronto Stock Exchange.

Toronto-based TMAC was founded by well-known mining entrepreneur Terry MacGibbon. Its chief executive is ex-BMO Nesbitt Burns Inc. mining banker Jason Neal. TMAC operates the Doris gold mine in Nunavut, which went into production in 2017. Over the years, the miner has grappled with operational issues, particularly problems with its mill. Continue Reading →

Papua New Guinea seeks $191-million in back taxes from Barrick, Chinese partner as mining row escalates – by Niall McGee (Globe and Mail – May 7, 2020)

https://www.theglobeandmail.com/

Papua New Guinea wants Barrick Gold Corp. and its Chinese joint-venture partner to fork over US$191-million in back taxes, as the world’s second biggest gold producer dukes it out in court over whether it has the right to continue mining in the country.

Late last month, Papua New Guinea (PNG) refused Barrick’s request to renew its mining lease on the Porgera gold mine, citing environmental and other legacy issues.

Barrick subsequently took legal action against the government, filing a judicial review with the National Court of Justice. The court ordered both sides to negotiate and report on their progress on Friday. If the two can’t reach an agreement, a mediator will be appointed to hash out a settlement. Continue Reading →

Western Nunavut gold miner deals with fallout from COVID-19 pandemic – by Jane George (Nunatsiaq News – May 6, 2020)

https://nunatsiaq.com/

For more than a month, under new COVID-19 restrictions, TMAC Resources Inc. has managed to operate its Hope Bay gold mine complex with reduced staff and operations.

Now the junior mining company has obtained some temporary relief from meeting its 2020 Nunavut Tunngavik Inc. exploration requirements due to the challenges in fielding exploration crews this year.

“Under this agreement, we are required to explore on tenured Inuit owned lands a minimum amount per hectare per year. This is just not logistically possible at this moment,” Alex Buchan, TMAC’s vice-president for corporate social responsibility, told Nunatsiaq News. Continue Reading →

Gold price boosts Barrick profit as miner eyes copper deals – by Arundhati Sarkar, Zandi Shabalala and Helen Reid (Reuters U.S. – May 6, 2020)

https://www.reuters.com/

(Reuters) – Barrick Gold Corp (ABX.TO) (GOLD.N) reported a nearly 55% rise in quarterly profit on Wednesday as gold prices surged, bolstering its ability to snap up mines including in copper, its chief executive said.

Investors’ anxiety about a global economy brought to its knees by the coronavirus pandemic has boosted “safe-haven” gold XAU= by 12% so far this year, while copper CMCU3, seen as a bellwether for economic growth, is down about 15%.

Barrick CEO Mark Bristow has previously said the world’s No. 2 gold miner aims to increase its exposure to copper because of its expected higher use in electrification. He added on Wednesday the relative price performance between copper and gold made deals more attractive. Continue Reading →

NEWS RELEASE: Solaris Regrets to Announce Passing of David Lowell (May 5, 2020)

https://ceo.ca/

https://www.solarisresources.com

VANCOUVER, May 5, 2020 /CNW/ – Solaris Resources Inc. (“Solaris” or the “Company”) regrets to announce that J. David Lowell, a consultant and strategic partner of the Company, passed away at his home in Tucson, Arizona, earlier this week at the age of 92. David is survived by his wife, daughter and two sons.

Daniel Earle, President & CEO, commented, “We are deeply sorry to have learned of David’s passing and extend our thoughts and prayers to his family and everyone touched by this extraordinary person. David was the ‘World’s Best Mine Finder,’ discovering 17 major minerals deposits over a 50-year career. Our flagship project, Warintza, was a discovery he made while exploring in southeast Ecuador in the early 2000s, and our pipeline of grassroots exploration projects were his targets for future discoveries.”

Up until the very end of his life, David was busy designing programs to test his vision for the future of discovery in the Americas. Innovation and ingenuity were constants throughout his legendary career, which began with first defining the porphyry copper model with John Guilbert, a deposit type which is now thought to account for 60% of the world’s copper. Continue Reading →

Exclusive: Fears rise for illegal South African miners hiding underground in virus lockdown – by Kim Harrisberg (Reuters U.S. – April 29, 2020)

https://www.reuters.com/

JOHANNESBURG (Thomson Reuters Foundation) – At least 100 illegal gold miners in South Africa are hiding underground, too scared to surface with police on patrol to enforce the coronavirus lockdown, according to industry sources.

Many illegal miners, known as zama-zamas – a Zulu expression for “taking a chance” – were underground in abandoned or disused mines in Gauteng province when the lockdown began on March 27.

Lawyers, activists and illegal miners told the Thomson Reuters Foundation that zama-zamas had little choice but to continue working, worried about being arrested if they surfaced and knowing there was no other work. Continue Reading →

Zijin warns Papua New Guinea of China anger over end of gold mine lease – by Tom Westbrook and Tom Daly (Reuters U.S. – April 29, 2020)

https://www.reuters.com/

SINGAPORE/BEIJING, April 29 (Reuters) – China’s Zijin Mining has warned Papua New Guinea that its failure to renew the lease of a gold mine it jointly owns with Barrick Gold Corp there could damage bilateral relations.

Papua New Guinea on Friday said it would not renew a 20-year mining lease at its Porgera gold mine, citing environmental damage and social unrest even as gold prices have soared to more than seven-year highs.

Barrick (Niugini) Limited (BNL), the local venture in which both miners have a 47.5% stake, suspended operations on Saturday, saying the government had not given it formal notification that it would not renew the lease, or any details of a planned transition. Continue Reading →

Can gold love a coronavirus crisis? – by Peter Hobson, Rajendra Jadhav and Saqib Iqbal Ahmed (Reuters U.S. – April 27, 2020)

https://www.reuters.com/

LONDON/MUMBAI/NEW YORK (Reuters) – Gold loves a crisis, the old adage goes. And with prices up 13% this year to their highest since 2012 and many predicting further gains as investors search for safe places to put their money, it looks true for the coronavirus crisis so far.

But, as individuals and countries alike see a drop in income, traditional gold consumers in India and China are buying less and central banks are cutting purchases. Without them, gold’s run higher may be hard to sustain.

For now, gold XAU= costs around $1,700 an ounce. Driven by investors’ clamour for insurance against economic turmoil and the potential devaluation of assets and currencies, some predict a bull run reminiscent of gold’s price rally to record highs just shy of $2,000 in 2011. Continue Reading →

Papua New Guinea lashes out at Barrick for halting Porgera – by Cecilia Jamasmie (Mining.com – April 28, 2020)

https://www.mining.com/

Papua New Guinea is threatening to take immediate control of Barrick Gold’s (TSX: ABX) (NYSE: GOLD) Porgera mine after the company’s local unit halted operations over the weekend following news that the mining lease would not be renewed.

Barrick, the world’s second largest gold miners, and its joint venture partner, China’s Zijin Mining, had applied in June 2017 for a twenty-year renewal of the mine lease, which expired in August.

Since then, the company has faced backlash from landowners and residents over what they claim are negative social, environmental and economic impacts from the mine. Continue Reading →