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Evolution Mining (ASX:EVN) Signs $729M Deal for Glencore’s (LON:GLEN) Ernest Henry Mine

Evolution Mining (ASX:EVN), based in Australia, is a globally recognized gold miner. On October 5, 2021, the company acquired the Ernest Henry Mining (EHM)…

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Source: Glencore

Evolution Mining (ASX:EVN), based in Australia, is a globally recognized gold miner. On October 5, 2021, the company acquired the Ernest Henry Mining (EHM) copper and gold mine in Queensland, Australia, from Glencore (LON:GLEN) for $729.60 million (A $1 billion). 

Ernest Henry includes an underground mine that produces copper and gold concentrate that is transported to Mount Isa Mines for smelting.

Evolution acquired the company $582 million (A$800 million). After completion of 12 months, a further A$200 million will be paid. Evolution had previously acquired an economic interest in Ernest Henry in 2016 through a joint structure, with the asset managed and operated by Glencore. This new deal brings the Ernest Henry Mine under Evolution’s control and ownership. Evolution is now the sole owner of the asset so it will assume full ownership of its operations as well.

An Exit for One of the World’s Largest Natural Resource Companies

Glencore is one of the world’s largest diversified natural resource companies, as well as a major producer and marketer of more than 60 commodities. In Australia, Glencore produces coal, copper, cobalt, nickel, zinc, lead, silver, and gold between 26 mining operations. Glencore is also one of the country’s biggest employers.

Glencore employs approximately 17,700 people in Australia (including around 600 at the Ernest Henry Mine) and in 2020 the company contributed more than $13.8 billion to the regional, state, and national economies. 

Glencore CEO Gary Nagle said in a statement, “Evolution has been a strong partner at Ernest Henry Mine for five years. They share our way of working and our commitment to operating responsibly in all aspects of the business.”

Glencore’s commitment to northwest Queensland will continue with the Mount Isa Mines copper and zinc complex, copper smelter, and Townsville copper refinery. Glencore will also pivot from this mine and increase its focus on lower-cost, long-life copper assets in its global portfolio, such as those in Africa and South America.

Shares of Evolution Mining Ltd (ASX: EVN) were up nearly 8% on the day of the announcement. 

An Effort to Boost Production

The company advised that the acquisition will increase its copper production from its previous forecast to between 34,000 and 38,000 tons and reduce its all-in sustaining cost (AISC) to around A$90 to A$100 per ounce. This will help cement it as one of the lowest-cost gold producers in the world.

The recent acquisition aligns with Evolution’s strategy of investing in assets with immediate material increase in cash flow generation. 

Once the initial $800 million round of the transaction is completed, Evolution will have about $900 million in liquidity available at settlement, the release noted. 

Evolution Mining’s CEO said, “We have long coveted ownership of Ernest Henry. It is a world-class asset, in Australia, and one we know extremely well due to our successful investment in the asset in 2016 and we are proud that it will once again be 100% Australian. The acquisition is consistent with our strategy, substantially improves the quality of our portfolio and offers both strong cash flow and life-of-mine extension opportunities.”

He continued, “The site management team has an outstanding track record of operational delivery and we are delighted to have them join Evolution and look forward to working with them to make this an even better operation. We are also pleased to continue our strong relationship with Glencore and that product will continue to be treated in the local region at their Mt Isa smelter and Townsville refinery.”

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

The post Evolution Mining (ASX:EVN) Signs $729M Deal for Glencore’s (LON:GLEN) Ernest Henry Mine appeared first on MiningFeeds.




Author: Matthew Evanoff

Articles

The Buckingham Graphite Project – Noble Mineral Exploration (TSX.V: NOB)

CEO, Vance White and Exploration Manager, Wayne Holmstead had us out to the Buckingham Graphite property to highlight the opportunity it presents the company….

CEO, Vance White and Exploration Manager, Wayne Holmstead had us out to the Buckingham Graphite property to highlight the opportunity it presents the company. Graphite of this quality will be in high demand as several auto manufacturers have publicly stated they will shift to EV’s by 2030. Furthermore, the Quebec government is already taking steps to ensure that Quebec is a leader in Battery metals, manufacturing and clean energy.

About The Buckingham Graphite Project

The Buckingham graphite property is located in the Outaouais area of the Grenville Subprovince of Quebec. It consists of 30 claims (1803 hectares) and contains 3 separate graphite occurrences. The main occurrence (McGuire) was worked by Stratmin Inc. in 1985-86 when a ground electromagnetic survey was done following a regional airborne survey. Three diamond drill holes were completed to intersect the electromagnetic anomalies, 2 of which intersected graphite mineralization which was found to be hosted by marble and gneissic rocks.

Although the nature of the graphite on the Buckingham Property has not been determined, graphite concurrences in this area are normally coarse grained, flake graphite. This type of graphite is the most desirable of the naturally occurring types that is used to produce lithium-based batteries. Lithium-based batteries are required for a variety of ‘green’ technologies, including electric vehicles. The global demand for these types of products is expected to rise as world governments lean towards environmentally friendly products rather than petroleum-based ones.

The second graphite occurrence (Cummings) is described as a “deposit in the form of narrow bands of graphite occurring in gneiss and marble over a length of 300 m and a width of 30 m. The graphite occurs in several irregular bands within the 30 m zone.” The Cummings Occurrence is located about 1.5 km southeast of the McGuire Occurrence.

The third graphite showing on the property is called the Robidoux Occurrence and is located about 4 km east of the McGuire Occurrence. It was described by the Quebec Superintendent of Mines in a 1910 report as a “partially uncovered graphitic bed over a length of about forty feet. Some shallow pits have also exposed graphitic outcrops, presumably of the same bed, for an additional distance of 75 to 100 feet. The bed where exposed by the main stripping is about four feet thick and dips into the side of a low hill at an angle of 40 to 50 degrees.” It was also noted that “the graphite ore contains over 30% carbon.”

About Noble Mineral Exploration

Noble Mineral Exploration Inc. is a Canadian-based junior exploration company which, in addition to its shareholdings in Canada Nickel Company Inc., Spruce Ridge Resources Ltd. and MacDonald Mines Exploration Ltd., and its interest in the Holdsworth gold exploration property in the Wawa, Ontario area, holds approximately 72,000 hectares of mineral rights in the Timmins-Cochrane areas of Northern Ontario known as Project 81. Project 81 hosts diversified drill-ready gold, nickel-cobalt and base metal exploration/VMS targets at various stages of exploration. More detailed information is available on the website at www.noblemineralexploration.com

For additional information please visit www.insidexploration.com/nob/ and be sure to follow Insidexploration through our various social media platforms.

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Disclaimer

The content of this video contain forward looking statements and are subject to change. We caution the viewer that this video is for informational purposes and should not be considered investing advice. Prior to making investment decisions, we encourage you consult a financial advisor and always do your own due diligence.






Author: MikeyMike426

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Energy & Critical Metals

EV Nickel starts trading on TSX Venture Exchange

  TORONTO – EV Nickel Inc.’s [EVNI-TSXV] initial public offering (IPO) prospectus dated November 19, 2021, has been filed with and accepted by the…

 

TORONTO – EV Nickel Inc.’s [EVNI-TSXV] initial public offering (IPO) prospectus dated November 19, 2021, has been filed with and accepted by the TSX Venture Exchange and has begun trading on the Exchange.

The closing of the IPO, scheduled for December 2, 2021, was expected to have gross proceeds of $5,440,292 for a total of 1,442,200 flow-through (FT) common shares at 86 cents per FT common share and of 5.6 million units at 75 cents per unit. The company has 30,355,667 common shares issued and outstanding

EV Nickel, classified as a Tier 2 issuer, is a Canadian nickel exploration company, focused on the Shaw Dome area, south of Timmins, Ontario. The Shaw Dome area is home to its Langmuir project, which includes W4, the basis of a 2010 historical estimate of 677,000 tonnes at 1% nickel for approximately 15 million pounds of Class 1 nickel.

EV Nickel’s objective is to grow and advance a nickel business, targeting the growing demand for Class 1 nickel from the electric vehicle battery sector. EV Nickel has almost 9,100 hectares to explore across the Shaw Dome area and has identified 30 km of additional strike length.

“We are excited to get out into the public markets and begin telling the world about our wonderful assets, on the Shaw Dome, just south of Timmins,” said Sean Samson, president and CEO. “The world needs more nickel and especially the type of high-grade, clean nickel that we plan to build our business around. Decarbonization is the challenge of a lifetime and we plan to source the material that will help the EV [electric vehicle] companies grow and help address that challenge.”





Author: Editor

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Base Metals

Vision Lithium to Buy The Cadillac Canadian Lithium Property

Canadian-based exploration company Vision Lithium agreed to acquire 100% interest in 215 contiguous mining claims in Quebec, Canada.  Combined with an…

Vision Lithium Property Portfolio
Cadillac lithium property located approximately 40 km west of Val-d’Or. Source: Vision Lithium

Canadian-based exploration company Vision Lithium agreed to acquire 100% interest in 215 contiguous mining claims in Quebec, Canada. 

Combined with an additional 105 stakes claimed by the company, the group of claims will be collectively referred to as The Cadillac lithium property.  

Details of the agreement include the vendor groups receiving an aggregate cash consideration of $102,427.92 from Vision Lithium, as well as ​​issue a total of 4,300,000 common shares of the company. The shares are not divided evenly, with 1.5 million each going to the CMH Group and Fancamp, the Leblanc-Lavoie Group will receive 1 million and 300,000 Shares will go to the Tremblay Group. The company will also pay each vendor group a 2% net smelter return royalty on the claims. 

President & CEO of Vision Lithium Yves Rougerie commented in a press release, “The Cadillac lithium project is an exciting addition to our growing portfolio of lithium properties. The Property is located 10 km south of the Trans-Canada highway and only metres from the secondary road, ensuring easy access for logistics, materials and qualified manpower.”

The claims acquired by Vision Lithium combined with the additional 105 claims staked, means the property holds a total of 320 claims covering 18,378 hectares. The property is easily accessible year-round in an area with well-maintained roads. This is especially helpful since Quebec can become covered in snow for multiple months of the year, and established infrastructure gives the company a head start.

There are also at least 4 pegmatite dikes which are spaced approximately 100 metres apart and traced for at least 300 metres along on the property. 

Rougerie continued “The property hosts a cluster of close-spaced parallel lithium-bearing dikes. Spodumene has been observed in the outcropping dikes and we believe there are likely more dikes in the cluster. The dikes have seen surprisingly little historical exploration with only a handful of samples and no drilling to date.” 

High Potential for Additional Lithium Discoveries

Lithium crystals have been observed on all four dikes of the property, with even a few large crystals visible. 

The property is located approximately 10 km south of Cadillac, a historic mining town, and about halfway between the major mining centres of Rouyn-Noranda and Val-d’Or in Quebec. 

“We believe the potential for additional lithium discoveries within the main cluster area is excellent and the larger property also has tremendous upside potential for discovery. The entire area acquired and staked is very large at almost 200 square kilometres. We plan to aggressively explore the Property over the winter by drilling the main cluster of dikes and to plan and complete field work next summer over the large tract of land,” Rougerie said. 

There are a number of closing conditions and post-closing obligations for the company until the transaction is officially completed. This includes the execution of certain deeds and instruments of conveyance, and the approval of joining the TSX Venture Exchange. Completion of the transaction is expected to be finished in the coming days. 

Vision Lithium focuses on exploring and developing mineral assets such as lithium and copper in different parts of Canada. Other than the claims they have just received in the recent transaction, the company has operations in Manitoba, and multiple properties in New Brunswick and Quebec. The first drill program at the company’s Dome Lemieux copper property in Quebec has commenced. Vision has also recently completed the Red-Brook copper and zinc drill program in New Brunswick. 

Vision Lithium is focused on developing their Sirmac lithium project in Quebec which is a hard rock source of lithium. Lithium can either come from hard rock sources or brines, and about 50% of each make up the world’s lithium compound production. Both sources can produce battery-grade lithium, but the extraction process is very different. The company plans on using existing methods to extract lithium for the battery market. This is a key area for the company as demand for battery materials is soaring in the middle of a global energy transition. 

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

The post Vision Lithium to Buy The Cadillac Canadian Lithium Property appeared first on MiningFeeds.





Author: Matthew Evanoff

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