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On October 26, 2015, the Company closed its definitive acquisition agreement with AM Gold Inc. (“AM Gold”) that gives the Company 100% ownership of the Pinaya Copper-Gold Project (the “Pinaya Project”) in Peru’s provinces of Caylloma and Lampa. Under the acquisition agreement, the Company has acquired Canper Exploraciones S.A.C. (“Canper”), a Peruvian subsidiary of AM Gold. The Pinaya Project is Canper’s principal asset. AM Gold received 15,384,615 common shares of the Company, a cash payment of $500,000 and a US$198,617 reimbursement for certain property-maintenance payments made by AM Gold (note 4).The Company also closed a concurrent agreement with Rokmaster Resources Corp. (“Rokmaster”), which previously had entered into an option and joint-venture agreement with AM Gold to earn up to a 75% interest in the Pinaya Project by spending approximately $26 million. Rokmaster and AM Gold have been engaged in arbitration proceedings, which were suspended pending closing of the transaction with the Company. Under the terms of the agreement with Rokmaster, (i) Rokmaster transferred to the Company certain of Rokmaster’s drill equipment located in Peru and (ii) Rokmaster agreed to, among other things, terminate the arbitration proceedings with AM Gold and Canper. As consideration, the Company issued 2,000,000 common shares of the Company and paid $300,000 to Rokmaster.
Andrés Sepúlveda rigged elections throughout Latin America for almost a decade. He tells his story for the first time.
1) Rig this to a quality speaker
2) Turn up the volume
3) Hit play
Thank you AK.
PS: once you're done and you want more, start here.
...gold, dailies, post jerbs reports:
UPDATE 09:30am local time Friday: Reader S mails in and adds extra information to this breaking story:
"...FCX is also in on the deal, all three are rolling up into a conglomerate, and they even have a name picked out, Freeport Occident & Orient Lingotes."
This could become a world record mining deal.
UPDATE 2: The market is beginning to react to the news on this potential massive deal. More information here and here.
UPDATE 3 midday Friday April 1st: We at IKN Nerve Centre send you warm and fraternal greetings on this April Fool's Day and hope you have a pleasant weekend.
In US dollars, gold went down 0.6% in March 2016
In Canadian Dollars, gold went down 4.04% in March 2016.
Note to Reuters re. Kinross (K.to) (KGC): When covering a mining company please use a reporter who understands mining
"Phase One is expected to reach full production by the end of Q1 2018 with estimated capital expenditures of approximately $300 million."
Kinross to spend $300 mln on N. Africa mine expansionMarch 30 (Reuters) - Kinross Gold Corp said it would spend $300 million on the first phase of expansion at its Tasiast mine in Mauritania in North Africa. (continues here)
"Preparations for Phase One construction will begin immediately, with expected forecast capital expenditures of $300 million, plus estimated capital stripping of $428 million (2016-2019)."
- When is capex not capex?
- Wouldn't it be fun to watch K spend $300m in capex, then decide not to spend that extra 428 large on capitalized stripping work, then try to claim all the capital expenditures on phase one are complete and they don't need to spend any more in order to mine phase one?
- Why do birds fly South for the winter?*
- Why do mining companies insist on bullshitting us to within an inch of our lives?
- Why do fools fall in love?
These conditions and events cast significant doubt on the assumption that the company may continue as a going concern.
No dissent from your humble scribe on what he's written, here's how it starts:
"The latest move is the resignation of Eric Olson as Chief Operating Officer and the appointment of Francis O’Kelly to the Board as a non-executive director. To an outsider this may not mean very much, but Olson was very much a member of the group, led by Daryl Hodges, which dissident shareholders felt had usurped control of the company following the untimely death of former CEO Courtney Chamberlain, while O’Kelly was a long-time consultant to the company and was close to Chamberlain for many years, and has an understanding of the company’s assets and potential which few others will have possessed."
Go see it all here.
A protest by locals, who have blockaded the mine gates.
Has TXG mentioned this to the market yet?
Today, Peru's main bizmedia paper 'Gestión' ran a report on the ongoing Minera IRL saga, a photo of the dead wood version right here:
Minera IRL will look for more gold in Ollachea and its return to the stock marketFavourable winds and blowing for Minera IRL. Sector sources told Gestión that the relationship between the financial entity Cofide and the community of Ollachea (Puno) are still in good conditions after the situation generated in 2015 by the directorate of Minera IRL and the ex-presidents Daryl Hodges and Jaime Pinto, both of whom having been voted out (of the company) with more than 93% of shareholder votes against them. It is also understood that, in compliance with the mandate subscribed with Cofide, Minera IRL S.A. expects to begin an additional drilling program in Ollachea in May in order to increase its gold resources.Return to the stock exchangeRecently, the Minera IRL Ltd parent company stopped trading on the London AIM exchange, which will allow the company a significant cost saving as the exchange is an expensive one in which to list. Regarding this, the company last week sent a notification to the Lima Market Superintendency in which it reiterated its solicitation for an extra 30 days in order to evaluate its return to the Lima Stock Exchange (BVL).According to information supplied to Gestión, Minera IRL expects to maintain its BVL listing and to re-list in Toronto in April, the reason behind the aforementioned solicitation.The note
ActivitiesDiego Benavides continues as President of Minera IRL S.A. and Kuri Kullu Mining Company S.A.Also, Cofide is still interested in completing the mandate for the U$240m debt financing package. We were told, "The company is looking to create value for its shareholders".
- Preferably, somebody who talks constantly about your preferred sector of the market
- Normally, somebody who's been around the market for long enough to sound expert.
- Importantly, somebody who thinks highly of their own opinion.
- Usefully, somebody who is easily swayed by other people's points of view.
- Unfortunately, somebody with views and a voice that annoys you deeply on a natural, instinctive level and you need to concentrate just to listen to them and resist the urge to tell them to STFU on umpteen occasions.
- But most vital of all, somebody who, when it comes right down to it, truly does not have a single clue about the markets.
UPDATE: Reader 'SP' reads this post and kindly sends in this link to an XKCD:
Good shot, SP.
UPDATED: First Mining Finance (FF.v): Keith Neumeyer props up its share price by quietly using First Majestic (FR.to) (AG) cash
Here's an interesting part of the First Majestic Silver (FR.to) (AG) year-end financials:
Suddenly, and for the first time ever, FR.to has declared an equity position in First Mining Finance (FF.v) to the tune of U$3.5m (which is probably something close to 11m shares of FF.v). This is a brand new line-item, it didn't exist in the 3q15 financials or any other before it and that basically means Keith Neumeyer, head honcho of FR.to, has been using the big corporations cash treasury to keep his other smaller company's shares from collapsing under heavy selling pressure.
UPDATE: FR.to rebuts this post:
Otto - you are incorrect. First Majestic received equity in FF as a result of property transfer in April 2015. See link…http://www.firstmajestic.com/en/news/first-majestic-announces-acquisition-of-shares-of-first-mining-corpNon-cash transaction.Todd Anthony, MBAVP Investor RelationsTel: 604-688-3033Toll Free: 1-866-529-2807
UPDATE 2: We get to the bottom of this and the result is I was wrong, but.....
Here's the exchange:
Otto: "so why wasn't it declared previously?"
Todd: "It was....From our Q2'15 financial statements" (at which point Todd shows Otto a screenshot of the 2q15 note 16, "other investments", where it was declared in this way:
Due to certain common directors and a common officer, the Company’s investment in First Mining is accounted for as an investment in associate. During the three and six months ended June 30, 2015, the Company’s share of First Mining’s net loss was $0.3 million (2014 ‐ $nil) and $0.4 million (2014 ‐ $nil), respectively.
As at June 30, 2015, the Company’s investment in First Mining has a carrying value of $3.0 million and a market value of $7.1 million based on Level 1 fair value measurement.
Otto: "But it wasn't classed as a financial asset (note 13, or note 14 in the YE). Why the change?" (because after all, it still has common directors and a common officer).
And then the e-mails went cold. So I asked the same question again and the answer came back.
Todd: "In short, due to the dilution of the Company through acquisitions, the ownership fell below of “significant influence” of FR over FF, and as a result it was downgraded from “Investment in Associates” and moved in Q4 into the category of “Other Financial Assets” where it must henceforth be marked to market every quarter."
And that's fair enough. Case closed.
"NIA has been compensated by LIX $40,000 cash to produce a video about the company's Clayton Valley Lithium project, which NIA has agreed to feature on its web site."
- Bad people do a bad thing in San Bernardino.
- FBI retrieves an iPhone from the scene of bad things.
- They know exactly how to get the information from that phone from day one (see Edward Snowden for more on that)
- Apple pushes back against the government strong-arm tactics, stands up for privacy laws and civil liberties, takes plenty of flak in the process (esp from the Make Murica Great Again mouthbreather end of the political spectrum, all in an election year).
- Suddenly and mysteriously the FBI manages to "find a way" of getting the access it needs to this one physical phone in its possession. From a "third party". Legal case against Apple goes away.
"We have been compensated by Lithium X fifty thousand dollars for our promotional pieces, online ads, and other digital marketing."
Here's a ten day chart of GLD, SLV, GDX and GDXJ to make the point clear:
The games people play...
LIMA, PERU--(Marketwired - March 28, 2016) - Minera IRL Limited ("Minera IRL" or the "Company") (BVLAC:MIRL) is pleased to announce the release of its delayed June 2015 interim financial statements, and the appointment of Mr. Francis O'Kelly as a non-executive director of the Company with immediate effect. The company also announces the resignation of its Chief Operating Officer, Mr. Eric Olson.Financial StatementsAs reported previously, completion of the June 2015 interim financial statements was delayed because of uncertainty about the costs of eventual closure of the Corihuarmi mine in Peru, and related matters. An international consulting engineering firm retained by the board to review these matters has completed its work and issued its report, and the findings have been reflected in the June 2015 interim financial statements. These statements will be released today and posted to the company's website at www.minera-irl.com and within the Company's SEDAR profile at www.sedar.com.Directors and OfficersMr. O'Kelly has an extensive background in Mining and Mining Finance. In his early career he worked in mines in Central and South America initially as a shift boss and ultimately as manager of a large gold mine. He then transferred to the banking sector and was appointed VP Mining at J P Morgan. He subsequently co-managed a mining investment house and ultimately worked on M&A mining projects for Standard Bank. He currently runs his own company dedicated to consulting to the mining sector. Mr. O'Kelly holds an honors degree in Mining Engineering awarded by the Royal School of Mines, Imperial College. He is a fellow of the Institute of Mining & Metallurgy, Chartered Engineer and Associate of the RSM.In addition, the company reports that the Chief Operating Officer, Mr. Eric Olson, has tendered his resignation with effect from 31 March 2016. The board wishes to thank Mr. Olson for his valuable contribution during his time with the company. The board is in the process of considering candidates to fill this role and other senior roles in the company.
Here's a 2016 year to date chart of the two, with GDXJ as a benchmark:
It takes an underachiever to spot an underachiever, I suppose.
Eastmain's initial response to the proxy slate here. This is going to be fun.
UPDATE: Reader "R" writes in to comment on the CGT news release:
This is the best sentence ever…“The Concerned Shareholders are dissatisfied that, after more than 21 years under the leadership of the same President and Chief Executive Officer, Eastmain has not made sufficient progress in advancing its projects.”
Total agreement in Ottolandia.