Engineering & Mining Journal

DEC 2018

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

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Page 9 of 115

NEWS-LEADING DEVELOPMENTS 8 E&MJ • DECEMBER 2018 to purchase the remaining 86% interest in the company. The transaction is valued at C$31 million, with Mason shareholders receiving C$0.40 for each Mason com- mon share. The enterprise value to Hud- bay, net of Mason's cash and Hudbay's current 14% ownership stake, is approxi- mately US$15 million. "The acquisition of the Ann Ma- son project is another step in Hudbay's consistent strategy of accretive acquisi- tions of scarce, high-quality copper re- sources in mining-friendly jurisdictions," said Alan Hair, president and CEO of Hudbay Minerals. "Ann Mason is an ide- al fit for Hudbay's development pipeline and is at the stage where we can apply our exploration expertise, advance tech- nical studies, and leverage our proven mine development team to create value for our shareholders." The Ann Mason deposit, located in the Yerington District of Nevada, has measured and indicated mineral re- source of 1.4 billion metric tons (mt) grading 0.32% copper, 0.006% molyb- denum, 0.03 grams/mt gold and 0.65 g/mt silver and an inferred mineral re- source of 623 million mt grading 0.29% copper, 0.007% molybdenum, 0.03 g/ mt gold and 0.66 g/mt silver using a 0.2% copper cut-off. "We are very pleased with the prog- ress we have made establishing the Ann Mason project as a world-class and highly prospective copper de- posit," said Stephen Scott, president CEO of Mason. "The acquisition by a well-run, diversified, cash flowing base metal producer ensures a faster and lower risk development path for the Ann Mason project. Given its significant scale, it is not feasible for Mason to de- velop the mine on a stand-alone basis in a timely fashion." Mason's board of directors has unani- mously approved the agreement and rec- ommended that Mason shareholders vote in favor of it. The transaction is expected to close in December. ICMM Commits to Human Rights Principles The International Council on Mining and Metals (ICMM) has committed its members to implement the United Na- tions Guiding Principles on Business and Human Rights. Speaking at the UN Annual Forum on Business and Human Rights, Tom Butler, ICMM's CEO, announced the council's new performance expectations that will define what mining with principles looks like in practice, by setting a benchmark for the industry's environ- mental and social performance. "ICMM's Council of 27 CEOs have shown real leadership in being the first industry body to commit to implement- ing the UN's Guiding Principles on Business and Human Rights," Butler said. "Importantly, other companies will also be able to publicly commit to our performance expectations and I hope this will lead the broader industry to further improve its social and environ- mental performance." The performance expectations will apply to all ICMM's company members who manage almost 650 assets in more than 50 countries, covering nearly half of the world's iron ore and copper pro- duction, and more than a quarter of all mined commodities by value. Therefore, it will be the most far-reaching initiative to advance environmental and social per- formance in the mining industry. The new performance expectations were developed with extensive input from nongovernmental organizations, interna- tional organizations and academics. The initiative has CEO-level support within all ICMM company members, a point that Butler expanded on in Geneva. ICMM is currently developing guidance on how members will validate the perfor- mance expectations at the asset level, in- cluding through independent third-party assessments. This guidance is expected to be complete in the middle of 2019. The guidance will be piloted during the second half of 2019, followed by full implementa- tion across the membership. Premier Will Buy Creek Property in Carlin Trend Premier Gold Mines Ltd. has entered into an option agreement with Ely Gold Roy- alties Inc. to acquire a 100% interest in the Rodeo Creek property located in the Carlin Trend of Nevada. The Rodeo Creek property is a 510-acre land package con- sisting of 31 unpatented claims adjoining The Ann Mason deposit, located near Yerington, Nevada, has measured and indicated mineral resource of 1.4 billion mt grading 0.32% copper. (Continued on p. 38)

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