Further to a report in our March Mining Sector Update, ASX listed copper miner MOD Resources announced on 25 June 2019 that Sandfire Resources NL will acquire 100% of the shares of MOD by way of a scheme of arrangement. The deal, which was unanimously recommended by the MOD board, values the equity of MOD at A$167 million.
The joint ASX announcement can be read here.
Cazaly’s Parker Range Iron Project to be fully acquired by Gold Valley On 11 June 2019, ASX listed Cazaly Resources Limited announced it has agreed commercial terms for the sale of its Parker Range Iron Ore Project to Gold Valley Iron Pty Ltd, which is part of the Gold Valley Group. Cazaly has agreed to sell its wholly owned subsidiary Cazaly Iron Pty Ltd, which holds the tenements underlying the Parker Range Iron Ore Project that is located in the Yilgarn region of Western Australia. Under the terms of the agreement, after payment of a A$50,000 exclusivity fee and a strategic acquisition of 10 million shares of Cazaly, Gold Valley Iron will commence a three month due diligence and exclusivity period, with the option to extend for a further three month period on payment of a further fee of A$250,000. The agreement also provides for an initial payment of A$5 million upon signing of formal transaction documents and a further A$8 million on the commencement of production from the Parker Range Iron Ore Project, plus royalties of between A$0.50 to A$1 per tonne payable on all ore produced from the project. You can read the full ASX announcement here.
A$1 billion Winchester South Project open for public comment In a Joint Statement on 24 June 2019, the Honourable Cameron Dick (Minister for State Development, Manufacturing, Infrastructure and Planning) and Mrs Julieanne Gilbert (Assistant Minister for State Development) announced that Queensland’s independent CoordinatorGeneral has released draft terms of reference (TOR) for the Winchester South project’s environmental impact statement. The public have from 24 June until 19 July 2019 to comment on the TOR. The project proponent is Whitehaven WS Pty Ltd, a wholly owned subsidiary of Whitehaven Coal. The project is a proposed metallurgical coal mine with a yield of up to 8 million tonnes per annum of product coal for a mine life of approximately 30 years. You can read the joint statement here. You can read the draft terms of reference here. You can read about the Winchester South Project here.
Novo Resources and Sumitomo enter into farm-in and JV worth US$30 million On 7 June 2019, Novo Resources Corp, a TSX listed gold exploration and development company, announced that it has entered into a US$30 million farm-in and joint venture agreement with Sumitomo Corporation and a wholly owned Australian subsidiary of Sumitomo. Under the Agreement, Sumitomo is entitled to earn up to a 40% interest in Novo’s Egina project, ‘an early-stage, high potential gold project’ located in the Pilbara region, Western Australia. You can read Novo Resources’ full news release here
FMG Resources and Tasman Resources sign farm-in and joint venture agreement On 14 June 2019, ASX listed Tasman Resources Ltd announced that it has executed a conditional farm-in and joint venture agreement with FMG Resources Pty Ltd, a subsidiary of ASX listed Fortescue Metals Group. The agreement relates to exploration expenditure for Tasman’s Exploration Licence 5499, located about 30km north of BHP’s Olympic Dam mine in South Australia and has ‘iron oxide-copper-gold-uranium’ prospects. Under the terms of the agreement, FMG Resources may earn a 51% joint venture interest by sole funding A$4 million (plus GST) on exploration expenditure within a three year period, and has an election to increase its joint venture interest to 80% by sole funding a further A$7 million (plus GST) on exploration expenditure within a further 5 year period. You can read the full ASX announcement here. Corrs has been named as a finalist for “Energy and Resources Team of the Year” in the 2019 Australian Law Awards. RECENT ANNOUNCEMENTS (CONTINUED) the acquisition aligns with its strategic plan to increase its underground mining capability Macmahon Holdings to acquire GBF Underground Mining Group for A$48 million On 18 June 2019, ASX listed Macmahon Holdings Limited, an Australian based mining services company, announced that it has executed a binding contract to fully acquire GF Holdings (WA) Pty Ltd and its subsidiaries, the GBF Underground Mining Group. The GBF Underground Mining Group is a specialist underground mining contractor with activities in the Goldfields region of Western Australia. The purchase price is A$48 million upfront, funded in cash and taking on GBF’s finance lease debt. Completion is anticipated to occur by mid-August 2019. According to Macmahon’s announcement, the acquisition aligns with its strategic plan to increase its underground mining capability. You can read the full ASX announcement here. Mincor to divest its Widgiemooltha Gold Operations On 7 June 2019, ASX listed Mincor Resources NL advised it has completed a strategic review of its gold operations in Western Australia. Mincor announced that its board has decided to commence a divestment process for its Widgiemooltha Gold Operations and its gold rights at Bluebush and Jeffreys Find. You can read the full ASX announcement here. Komatsu to acquire Immersive Technologies On 14 June 2019, Komatsu Ltd announced that it has, through its wholly owned Australian subsidiary, agreed to acquire Immersive Technologies Pty Ltd, a mining workforce optimisation company based in Western Australia. Komatsu expected to complete the acquisition on 1 July 2019. You can read Komatsu Ltd’s full press release here. Iluka Resources to commence strategic partnership in Sierra Leone On 6 June 2019, ASX listed Iluka Resources Limited, an international mineral sands company with projects in Australia and Sierra Leone, announced that it has entered into a strategic partnership with the International Finance Corporation (IFC) in relation to Illuka’s Sierra Rutile operations. Sierra Rutile Limited is a wholly owned subsidiary of Iluka and operates mineral sands assets in Sierra Leone. Under the terms of the agreement, IFC will subscribe to shares equivalent to a 10% stake in Sierra Rutile, for US$60 million. This will comprise an initial investment of US$20 million and a further investment of US$40 million. The US$40 million investment is conditional on Iluka’s approval of the construction of early works for the Sembehun project and completion and disclosure of the Environmental and Social Impact Assessment. Another key term of the agreement is Sierra Rutile’s commitment to the IFC Performance Standards on Environmental and Social Sustainability. These standards define IFC clients’ responsibilities for the management of their environmental and social risks. You can read the full ASX announcement here. You can also read the IFC’s Performance Standards here.