World Copper reaches definitive agreement to acquire Cardero Resource

World Copper has signed a definitive agreement to acquire Cardero Resource, which owns the advanced-stage Zonia copper-oxide project in central Arizona, US.

In April 2021, the Canadian firm entered a letter agreement to acquire Cardero in an all-stock deal via a business combination between the two firms. According to the letter agreement, World Copper would acquire all of the Cardero outstanding common shares by issuing 40% of the issued and outstanding shares of World Copper. The remaining 60% would be held by existing WCU shareholders.

“Our team sees upside potential at Zonia that has, to this point been unrealised, including a low-cost development and permitting path,” said World Copper CEO Nolan Peterson. “We will apply the same knowledge and expertise to Zonia, as we have to our Escalones property, and work to advance and de-risk the project going forward.”

In accordance with the definitive agreement, a wholly owned subsidiary of World Copper will merge with Cardero and continue as a single corporation. Upon completion of the transaction, the outstanding and unexercised stock options of Cardero will be cancelled.

Greenland prepares legislation to ban uranium exploration and mining

Greenland’s newly formed government is reportedly preparing legislation that would ban mining at uranium mines and cease development of the Kvanefjeld mine. Owned by Australian firm Greenland Minerals, the Kvanefjeld mine is claimed to be one of the world’s biggest rare-earth projects. A public hearing ended this week on the project, which has an initial operational life of 37 years.

Greenland Mineral Resources Minister Naaja Nathanielsen was reported by Reuters in an interview as saying that Greenland’s left-leaning government intends to ban exploration on deposits that have more than 100 parts per minute uranium concentration, which is considered very low-grade by the World Nuclear Association.

Nathanielsen said: “What we know is that the background radiation in and around Narsaq is quite high, which means that the project will collide with the upcoming zero-tolerance policy on uranium mining.”

Greenland Minerals CEO John Mair told Reuters that the firm believes to hold the ‘valid right to pursue an exploitation licence for the project in compliance with Greenland laws’. Through its Chinese partner Shenghe Resources, Greenland Minerals has already spent more than $100m preparing the mine and has proven processing technology.

AngloGold Ashanti to buy remaining stake in Corvus Gold for $370m

AngloGold Ashanti has agreed to acquire the remaining 80.5% stake it does not already own in Canada-based Corvus Gold in a cash deal worth about $370m. Under the agreement, AngloGold will purchase Corvus common shares at $3.24 (C$4.10) apiece.

Corvus is focused on developing gold-silver mining projects, including North Bullfrog, Lynnda Strip and Mother Lode, located in the Beatty District of Nevada, US.

AngloGold Ashanti said in a statement: “The combination of Corvus and AngloGold Ashanti’s Nevada assets further consolidates one of the largest new gold districts in Nevada (the Beatty District) and provides the opportunity for AngloGold Ashanti to establish, in the medium and longer term, a meaningful, low-cost production base in a premier mining jurisdiction.”

AngloGold Ashanti currently holds an indirect stake of 19.5% in Corvus, and CEO and executive director Alberto Calderon said that the transaction would enable the Beatty District to become AngloGold Ashanti’s potential Tier 1 asset.

Corvus president and CEO Jeffrey Pontius said: “The proposed all-cash offer provides a compelling opportunity for Corvus shareholders to realise significant value and eliminates exposure to future capital requirements to fund construction of Corvus’ projects.

“AngloGold Ashanti has been a supportive shareholder of Corvus since its inception and has supported us in our capital raising needs along the way.”

Aluminium hits decade high after supply disruptions

Aluminium hit highs of $3,000 a tonne for the first time in 13 years on the London Metal Exchange on 9th September. Climbing by as much as 2.6%, the rise has been attributed to supply disruptions throughout the industry, with a recent coup in Guinea and production curbs in China contributing to the sharp rise in price. In China, the metal surged as much as 5.4%, to the highest prices since 2006.

Analysts at Goldman Sachs said that metals prices would only increase due to strong demand in China and developed economies such as the US and Europe. The bank increased its 12-month price target for aluminium to $3,200 a tonne on Monday. It seems likely then that prices will continue to rise as a result of both production concerns and increasing demand throughout the globe for the metal.

However, production concerns in China have been heightened by cutbacks, with the government increasing overall scrutiny over highly polluting industries in an attempt to meet its climate commitments.

Aluminium production in China has already been hit by electricity shortages over the summer, especially in south-west Yunnan province. The province, which relies on hydropower, has rationed electricity in recent months due to a prolonged dry season.

Osino seeks mining licence for Namibian gold project

Canada-based Osino Resources has submitted an application for a mining licence at Twin Hills Gold Project in Namibia.

The gold exploration and development company filed the application with Namibia’s Ministry of Mines and Energy, following the completion of the project’s preliminary economic assessment earlier this month. The Twin Hills Gold Project forms part of the Canadian firm’s Karibib Gold Project, which comprises 12 contiguous licences to the north-east of Karibib.

Osino president and CEO Heye Daun said: “Applying for a mining licence is a major step forward in the de-risking and advancement of the Twin Hills gold project towards construction and gold production.

“It is the most significant component amongst a variety of other permitting activities and clearance certificates required under Namibia’s minerals and environmental legislation. Osino plans to conclude all these steps over the next 12 months.”

Osino seeks the mining licence for a term of 20 years, covering an area of 6,229.7ha.

As a pre-requisite for the mining licence application to be granted, the firm has to complete an environmental and social impact assessment, and an environmental management plan. It also requires a mine closure plan and environmental clearance certificates for several activities listed under Namibia’s mining and environmental regulations.

Terra Uranium signs letter of intent for stakes in three CanAlaska uranium projects

CanAlaska Uranium has signed a letter of intent (LOI) with Australia’s Terra Uranium, whereby the latter would earn interests in CanAlaska’s three uranium projects in Canada.

According to the LOI, Terra will have the option to earn an interest of up to 80% in the Waterbury East and McTavish projects, as well as up to 20% in the Waterbury South project. Covering a total area of 5,010ha, the three projects are located in the Eastern Athabasca Basin in Saskatchewan.

“CanAlaska is pleased to work with Terra Uranium, a pending new Australian-listed player in the Basin, to help fund the next stage of exploration on these highly prospective Eastern Athabasca uranium projects,” said CanAlaska CEO Cory Belyk.

“This significant investment by Terra will allow CanAlaska to achieve its objective of being a hybrid explorer and project generator by moving these projects toward discovery and preserving upside without diluting current shareholders.”

To acquire up to 80% in the Waterbury East and McTavish projects, Terra will make a cash payment of $181,859, issue 6% worth of common shares, incur $1,818,590 in exploration expenditures, in addition to delivering and filing a JORC compliant resource.