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West High Yield CEO knows 'little' about buyer behind US$750M proposal

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West High Yield CEO knows 'little' about buyer behind US$750M proposal

TOP NEWS

West High Yield CEO knows 'little' about buyer behind US$750M proposal

Details are slim on the backers of a proposed US$750 million deal to buy assets from West High Yield Resources Ltd. by Gryphon Enterprises, said to be a Maryland-based company. West High Yield CEO Frank Marasco also acknowledged that he knew little about Gryphon head Stephen Cummins. The potential deal caught the market off guard and propelled West High Yield shares, briefly, up nearly 1,000%. Some market watchers were skeptical, noting that it was unusual for assets to sell for US$750 million when the market cap of the company that owns them is a small fraction of that sum.

Coeur again lowers FY'17 silver equivalent production forecast

Coeur Mining Inc. once again lowered its silver production target for 2017, now expecting full-year silver production to fall between 15.3 million ounces and 16.6 million ounces. The company maintained its gold production forecast at between 367,000 and 392,000 ounces of gold and lowered its expected silver equivalent production to between 37.3 million and 40.1 million silver equivalent ounces. In the third quarter, Coeur produced 4.0 million ounces of silver and 93,293 ounces of gold, up 11% and 10%, respectively, on a yearly basis.

Alrosa begins restoration works at flooded Mir diamond mine

Russian diamond miner PJSC Alrosa has begun restoration works in the flooded Mir mine at its Mirny Division in a process that will take a number of years, company CEO Sergey Ivanov told Interfax. Ivanov said the loss of the mine will have a negative impact on 2018 production levels but the company has substantial ore stockpiles and other deposits it can use to soften the blow.

BASE METALS

* ASX-listed copper producer Finders Resources Ltd. was handed an unsolicited takeover offer by an Indonesian consortium that values the company at much the same as its current market capitalization of about A$175.0 million. Bidding vehicle Eastern Field Developments Ltd. said its offer is "significantly above" the three-month volume weighted average price of about 21 cents and the 12-cent price of Finders' last equity raising in November 2016.

* Trafigura Beheer BV's joint venture with the Cuban government, the Castellanos polymetallic project, started production this week on the first lead and zinc concentrates at its plant in Minas de Matahambre, said Juan Ruíz, general mining director at the Ministry of Energy and Mines, daily Guerrillero reported.

* Codelco plans to invest US$20 billion in developing several structural projects by 2021, mainly the Traspaso Andina, Chuquicamata Underground and the Nuevo Nivel Mina El Teniente expansion plans. The company will also study the feasibility of the Rajo Inca at El Salvador unit, the Desarrollo Andina at Andina mine and the RT Sulfuros project at Radomiro Tomic, CEO Nelson Pizarro said in a Senate hearing, daily La Nación reported.

* The restart of the Bougainville copper mine on Papua New Guinea's Bougainville island has gotten complicated due to a dispute about who will control the mine following a June 2019 vote on independence from Papua New Guinea by the people of Bougainville, Reuters reported. The options are the previous operator, Bougainville Copper Ltd., supported by the Autonomous Bougainville Government and the Papua New Guinea government or an Australian consortium of investors backed by the landowners holding the mineral rights.

* Vast Resources Plc is in discussions with metal traders and debt providers to finance the new metallurgical complex planned for its Manaila polymetallic mine in Romania. The complex is expected to cut production costs by up to 25% by eliminating the transport of ore and waste between the mine, the complex and the tailings facility.

* Aus Tin Mining Ltd. completed the first sale of tin concentrate from its Granville project under its off-take agreement with Traxys Europe.

* A Northern Dynasty Minerals Ltd. unit is considering reducing the footprint of its Pebble copper-gold project in Alaska to about 5.4 square miles. Under the development scenario being considered, the primary mine operations in the Upper Talarik watershed region would be eliminated and enhanced tailing storage facilities with improved safety would be constructed.

* The Chinese government's crackdown on pollution prevented more than 1,000 zinc mines across the country from ramping up production, Metal Bulletin reported, citing sources in China.

* Ferrum Crescent Ltd. believes that it is possible to develop the Toral zinc-lead asset in Spain for a lower cost than planned and is, therefore, withdrawing the resolution to seek shareholder approval at the Oct. 18 annual general meeting for a A$2.7 million fundraising.

* Codelco and Antofagasta Plc reported no damage to their operations following a magnitude 5.4 earthquake at Calama in Chile's Antofagasta region, Metal Bulletin wrote.

PRECIOUS METALS

* Lonmin Plc received approval from its lending banks to go ahead with the acquisition of Anglo American Platinum Ltd. and Northam Platinum Ltd.'s interests in the Pandora platinum joint venture in South Africa.

* Riversgold Ltd. has been admitted to the ASX and will begin trading Oct. 10.

* Classic Minerals Ltd. completed the sale of its Doherty's gold project in Western Australia to Accelerated Mining Pty. Ltd. for A$1.2 million. The company retained a 7.5% net smelter royalty over production from the tenement.

* Tonogold Resources Inc. secured an exclusive six-month right to earn a 51% interest in 1,162 acres of gold mining claims, including the Lucerne deposit, in Nevada held by Comstock Mining Inc. To earn the stake, the company will be required to invest US$20 million over the next 42 months on work programs over the Lucerne properties.

* Kalamazoo Resources Ltd. entered an option to acquire between 80% and 100% equity in three gold projects, comprising Hill Gold, Sisters and Marble Bar, covering 252 square kilometers in Pilbara, Western Australia.

* Gold Fields Ltd. is reviewing its A$100 million annual exploration budget for Western Australia amid the state government's proposal to hike gold royalties by up to 50%, The West Australian reported, citing Stuart Mathews, the company's executive vice president for Australasia.

* Cash-strapped Central Rand Gold Ltd. needs at least US$20 million to continue mining operations and remain listed. The company said its "overall financial position is negative" and it is looking for "urgent financing options."

BULK COMMODITIES

* Exxaro Resources Ltd. priced a public offering of class A shares of Tronox Ltd. at US$22 apiece and is now offering 19.5 million shares, compared to 16 million shares previously.

* Russian fertilizer producer PJSC PhosAgro and Saudi Arabian Mining Co. signed a memorandum of understanding that aims to contribute to the sustainable development of the companies and to domestic and global food security.

* Seriti Resources Holdings Ltd., the consortium that is close to completing the purchase of Eskom Holdings SOC Ltd.-linked coal mines from Anglo American Plc, also reportedly agreed to buy the New Largo coal project in South Africa. This could allow Seriti to go public, depending on its ability to fund the 20 billion South African rand CapEx required to build the mine, Miningmx reported. If the transaction goes through, it will mark Anglo American's exit from South African coal production, the report added.

* Australia's Office of the Chief Economist sees India needing 1 billion tonnes per annum of steel by 2035, which could spur demand for Australian coking coal and iron ore, The Australian reported.

SPECIALTY

* De Beers Consolidated Mines Ltd.'s exploration program is grinding to a halt due to ongoing issues the miner is experiencing with South Africa's Department of Minerals Resources, Mining Weekly reported. The company is unlikely to continue budgeting between 30 million South African rand and 40 million rand a year for greenfields diamond exploration in the country, with as many as 54 prospecting license applications being held up for as long as two years.

* Plymouth Minerals Ltd. agreed to form an alliance with lithium carbonate producer Shandong Ruifu Lithium Co. of China in relation to Plymouth's San Jose lithium project in Spain.

* W Resources Plc identified two major customers for about 80% of the company's planned 2,700 tonnes per annum of tungsten concentrate production at its La Parrilla tungsten-tin project in Spain.

INDUSTRY NEWS

* Australia's resource and energy export earnings in fiscal 2016/2017 rose 27% to A$204 billion and are expected to hit a record A$211 billion in fiscal 2017/2018 before falling to A$201 billion in fiscal 2018/2019, according to a report by the Department of Industry, Innovation and Science.

* BMI Research forecasts Mexico's mining industry value to average 3% year-over-year growth over 2017 to 2021, driven by a strong pipeline of projects, competitive costs, supportive policies and rising metals prices, Mining.com reported. From US$15.7 billion in 2016, the industry value will reach US$17.8 billion by 2020, according to the report.

The Daily Dose is updated as of 7 a.m. London time and scans news sources published in Chinese, English, Indonesian, Malay, Portuguese, Russian, Spanish, Thai and Ukrainian. Some external links may require a subscription.