Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr
Issue link: https://emj.epubxp.com/i/131325
NEWS-LEADING DEVELOPMENTS States, Australia and Tanzania. The company had 10.7 million lb of attributable U3O8 production in 2011. ARMZ and Uranium One expect to complete the transaction in the second quarter of 2013, subject to receipt of the remaining required regulatory approvals. The transaction provides total consideration to Uranium One's minority shareholders of approximately C$1.3 billion and implies an equity value for Uranium One of approximately C$2.8 billion. Hecla Close to Finalizing Aurizon Acquisition Hecla Mining appeared set to succeed in its bid to acquire Aurizon Mines following a March 19, announcement from Alamos Gold that Alamos would allow its competing bid to expire and would not take up any Aurizon shares tendered to its offer. Aurizon's board of directors continued to recommend that the company's shareholders vote to approve acceptance of the Hecla offer at a shareholders meeting expected to take place in May. Details of Hecla's offer were set forth in an announcement dated March 4, stating that Hecla and Aurizon had entered into a definitive agreement pursuant to which Hecla would acquire all of the issued and outstanding common shares of Aurizon in a transaction having a total value of approximately C$796 million in cash and Hecla shares. Assuming completion of the transaction, the combined company will have three operating underground mines: Hecla's Greens Creek mine in Alaska and Lucky Friday mine in Idaho, and Aurizon's Casa Berardi mine in Quebec. Hecla President and CEO Phillips S. Baker Jr. said, "Hecla and Aurizon together create a unique precious metals company with three long-life, highgrade, low-cost mines in some of the best mining jurisdictions in the world. These three properties have in common strong exploration potential on very large and contiguous land positions as well as locations near communities that are supportive to mining. "In addition, all three utilize similar mining methods, enabling Hecla to leverage the knowledge and experience from each mine across the organization. Hecla's expertise in operating low-volume, high-value mines complements these assets, resulting in a value-added proposition for Hecla and Aurizon shareholders," he said. Hecla anticipates production of approximately 8 million to 9 million oz of silver in 2013 from its primary silver mines, while Aurizon expects the Casa Berardi mine to produce 125,000 to 130,000 oz of gold during the year. The combined company would have 150.1 million oz of proven and probable silver reserves and 1.18 million oz of proven and probable gold reserves. Assuming Aurizon shareholders approve the transaction at the special meeting and all court and regulatory approvals are obtained, the transaction is expected to close in the second quarter of 2013. Current Aurizon shareholders will have approximately a 17% stake in the combined company. Zijin Establishes JV for Offshore Investment China's Zijin Mining Group, Canadian investment company Sprott Inc., and Americas Now Resources Investment Management Corp. (a company incorporated in Toronto) have entered into a joint venture agreement to establish an offshore (from China) investment fund that will be co-managed by Zijin and Sprott. The fund will primarily invest in equities and debt instruments in relation to gold and other precious metals, copper and other minerals. The target size of the fund is $500 million. Pursuant to the joint venture agreement, Zijin agreed to make initial capital contributions to the fund of $100 million. Sprott agreed to make initial capital contributions of $10 million and to continue to invest to match at least 5% of the aggregate capital contributions of the fund. The fund will also seek other investors. Under the joint venture agreement, Americas Now agreed to provide technical and marketing services to the joint venture. The agreement is conditional on Sprott receiving regulatory approvals in Canada and Zijin receiving regulatory approvals in the People's Republic of China. Zijin Mining Group is a large-scale, state-owned mining group with headquarters in Shanghang county, Fujian province, China. It is China's largest gold producer, second largest copper producer, and an important producer of zinc, tungsten and iron ore. Great Basin Gold in Bankruptcy Proceedings Map showing the locations of combined mines and development projects that would result from a proposed C$79million cash-and-shares acquisition bid by Hecla for Vancouver-based Aurizon Mines Ltd. 8 E&MJ; • APRIL 2013 Great Basin Gold announced in late February 2013 that its subsidiary Rodeo Creek Gold has entered U.S. www.e-mj.com