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Silver Wheaton to raise US$500M; Baosteel FY'15 net profit down 82.5%; Up Energy receives winding up petition

TOP NEWS

entered intoan agreement with a syndicate of underwriters led by RBC Capital Markets, BMOCapital Markets, CIBC Capital Markets and Scotiabank whereby they willpurchase, on a bought deal basis, 30,125,000 common shares of the company atUS$16.60 apiece for aggregate gross proceeds of .

BaosteelFY'15 net profit down 82.5% to 1.01B yuan

BaoshanIron & Steel Co. Ltd.'s net profit attributable to shareholdersdropped 82.51% yearover year to 1.01 billion Chinese yuan, or 6 fen per share, in 2015, which isslightly higher than the previously announced net profit of 961 million yuan inits preliminary results. The company attributed the decline to weak demand forsteel products, falling steel prices and the exchange rate reform in China.

UpEnergy receives winding up petition

HEC Securities Ltd. fileda winding up petition against UpEnergy Development Group Ltd. for the outstanding balance ofprincipal, with accrued interest, of the matured HK$230 million convertiblenotes. The hearing would take place July 6. Up Energy Development's controllingshareholders Up Energy Group Ltd. and Up Energy Capital Ltd. were also demandingrepayment of the principal amount of the 2018 convertible notes of HK$2.29billion and HK$237.5 million.

BASE METALS

* Western Areas Ltd. is looking to A$70 million, by placing 30.8million shares at A$1.95 each to raise A$60 million and raising A$10 million froma shareholder purchase plan, to replenish working capital, repay lender ANZBanking Group and provide funds for growth.

*Chinalco Mining Corp.International's Toromochoproject in Peru produced 763,500 tonnes of copper concentrates, while containedcopper and silver output reached182,288 tonnes and 5.3 million ounces, respectively.

*Latin Resources Ltd.said it is cancelinga joint venture agreement with Minera Activa on the Filipina copper project inChile.

* Ascoping study on PNX Metals Ltd.'sHayes Creekzinc-gold-silver project in Australia's Northern Territory a pretax net present value ata 10% discount rate of A$109.4 million, an internal rate of return of 58.0% anda payback period of 1.8 years.

PRECIOUS METALS

*Silver Wheaton Corp.entered into an agreement with a syndicate of underwriters led by RBC CapitalMarkets, BMO Capital Markets, CIBC Capital Markets and Scotiabank whereby theywill purchase, on a bought deal basis, 30,125,000 common shares of the companyat US$16.60 apiece for aggregate gross proceeds of .

*Kinross Gold Corp.said it is proceeding with the phase-one expansion of its gold mine inMauritania, which will increasemill throughput capacity to 12,000 tonnes per day from the current 8,000 tonnesper day. The expansion has an estimated post-tax and unlevered net presentvalue of US$635 million and an internal rate of return of 20%.

*Newmarket Gold Inc.said that holders convertedsome US$34.3 million of the company's US$34.5 million 8% convertible unsecureddebentures due April 30, 2018, into common shares prior to the redemption date.The conversion and redemption of all outstanding debentures will leave thecompany "essentially debt free with no additional future debentureinterest payments," said President and CEO Douglas Forster.

*Under an option to joint venture deal, CenterraGold Inc. is acquiringa 70% interest in Millrock ResourcesInc.'s LosChinos and LosCuarentas gold projects in Sonora, Mexico. Centerra must spendUS$5.0 million on exploration at Los Chinos and US$2.0 million at Los Cuarentasover five years to earn a 70% interest.

*Avnel Gold Mining Ltd.said that a definitive feasibility study for its Kalana Main gold project insouthwestern Mali indicatedan after tax net present value of US$196 million, using an 8% discount rate,and an internal rate of return of 38%. The initial CapEx to achieve commercialproduction, slated 25 months after the start of construction, is estimated tobe US$196.3 million.

* Apre-feasibility study for the Urucum North underground project, part ofBeadell Resources Ltd.'sTucano goldmine in northeastern Brazil, pegsa pretax net present value of US$49 million, at a 5% discount rate, and aninternal rate of return of 30%. The initial pre-feasibility study resultsindicate that underground development at Urucum North is feasible, CEO andManaging Director Simon Jackson said.

*Americas Silver Corp.said that a pre-feasibility study for its San Rafael zinc-silver-lead property in Mexicoindicated that theproject is expected to produce approximately 5.5 million ounces of silver, 254million pounds of zinc and 97 million pounds of lead over an initial 5.5-yearmine life at all-in sustaining costs of negative 19 cents per pound of silverproduced. Pre-tax net present value was at US$24.7 million, at a 5% discountrate, and an internal rate of return of 27%.

*Junior explorer Artemis ResourcesLtd. will be investingUS$8 million in an independently produced action movie, Tango Down, to provideshareholder value amid difficulty in the resource sector, The West Australian reported. Artemis would need to raise A$10.9million from investors to finance the deal.

*Shares in Lodestar Minerals Ltd.fellafter drill results from its CamelHills project in Western Australia, which returned only up to 0.85g/t of gold, disappointed investors, TheWest Australian wrote.

*China Gold InternationalResources Corp. Ltd. booked a net loss of US$6.8 million for theyear ended Dec. 31, 2015, reversing the net income of US$41.9 million a yearago. The company's revenues for the 12-month period, however, 22% year over year toUS$339.9 million.

*Claude Resources Inc.'snet earnings for the year ended Dec. 31, 2015, 610% year over year to C$32.3million, due largely to increased gold production and sales volume, higher oregrades and improved operating efficiencies.

*Sandstorm Gold Ltd.'s2015 fourth-quarter net lossamounted to US$25.0 million, compared to net income of US$2.6 million booked ayear ago.

*China Hanking Holdings Ltd.said it is considering the possibility of spinning off some of its gold mining businesses in aseparate company to be listed on the ASX.

*SEMAFO Inc. executeda US$120 million credit facility with Macquarie Bank Ltd., which will be puttoward the developmentof the Natougougold project in Burkina Faso.

*Kidman Resources Ltd.signed a binding heads of agreement to sell its Gunga West gold project at its operation inWestern Australia to Metals X Ltd.for up to A$2.5 million.

*Torex Gold Resources Inc.'sEl Limon-Guajesgold project in Mexico achieved commercialproduction after running for over 30 consecutive days at an averagerate of 9,470 tonnes per day.

*Gascoyne Resources Ltd.said a pre-feasibility study on its Dalgaranga gold operation in Western Australiaconfirmed that it isone of the highest margin undeveloped gold projects in Australia. Assuming abase case gold price of US$1,200 per ounce, the study pegged net present valueat an 8% discount rate of A$193 million and an internal rate of return of 90%.

*American Creek Resources Ltd.acquired the Silvershot silver property in the Golden Triangle near Stewart,British Columbia, through staking.

*OreCorp Ltd.announced a maidenJORC 2012-compliant mineral resource estimate on the project in Tanzania of21.3 million tonnes at 4.1 g/t of gold for 2.78 million ounces of gold.

BULK COMMODITIES

* Baoshan Iron & Steel Co. Ltd.'s net profitattributable to shareholders dropped82.51% year over year to 1.01 billion Chinese yuan, or 6 fen pershare, in 2015, which is slightly higher than the previously announced netprofit of 961 million yuan in its preliminary results. The company attributedthe decline to weak demand for steel products, falling steel prices and theexchange rate reform in China.

* HEC Securities Ltd. fileda winding up petition against UpEnergy Development Group Ltd. for the outstanding balance ofprincipal, with accrued interest, of the matured HK$230 million convertiblenotes. The hearing would take place July 6. Up Energy Development's controllingshareholders Up Energy Group Ltd. and Up Energy Capital Ltd. were alsodemanding repayment of the principal amount of the 2018 convertible notes ofHK$2.29 billion and HK$237.5 million.

* Mexico's economy ministry imposeda provisional compensation duty of 43.17% on imports of ferromanganese fromIndia, as part of an ongoing investigation into antidumping practices followinga request from local producer CompañíaMinera Autlán SAB de CV, ElFinanciero reported.

* Russia's domestic steel demand mayfall by 10% to 37 million tonnes of rolled steel this year, Kommersant reported, citing owner Alexey Mordashov.Meanwhile, United Co. RUSAL PlcPresident Oleg Deripaska said the government will soon be presented with aprogram to increase the production of aluminum to 2.1 million tonnes by 2021and 2.5 million tonnes by 2024.

*Maanshan Iron & Steel Co.Ltd.'s 2015 full-year net loss attributable to shareholders of theparent totaled 4.80 billion Chinese yuan, swinging from a profit of 220.6million yuan booked in 2014. Group revenue also to 45.11 billion yuan, from 59.82billion yuan in 2014, mainly attributed to the price decline of steel productsduring the year.

*IRC Ltd.'s lossattributable to company owners for the year ended Dec. 31, 2015, increased60.2% year over year to about US$509.0 million.

*According to Tata Steel Ltd.,the book value of its lossmaking steel operations in the U.K., recently put upfor sale, was "almostzero," London's Financial Timesreported, citing Koushik Chatterjee, the company's finance director. "Wehave taken about £2 billion of impairment. It is not a valuation exercise, itis a question of reducing an exposure," Chatterjee added. The company hasprojected that it would take another £2 billion of investment to transform thePort Talbot steel plant in the U.K. into a high-quality steel producer foradvanced industries. The FTseparately reported that potential buyers of Port Talbot are few and farbetween, with Germany's ThyssenKruppAG being one of the fewcandidates.

*Meanwhile, Reuters reportedthat the plan by Tata Steel to put its steelmaking business in the U.K. up forsale has raised expectations of a long-awaited consolidation in the steelsector in Europe.

*Yanzhou Coal Mining Co. Ltd.CFO Zhao Qingchun said the company expects annual coal sales to rise over thenext five years to more than 100 million tonnes by 2020. Chairman Li Xiyongnoted that the company does not plan to export coal products, with its 2020sales objective aimedat the domestic market.

*The District Court of Limassol in Cyprus dropped all charges leveled againstOJSC PhosAgro,certain board members and company shareholders by a former employee, AlexanderGorbachev. Gorbachev had requested the court to declare that he was of theright to ownership of shares in the Russian company.

* Ina bid to curb cheap supplies from imports, India extended a safeguard duty onsome steel imports up to 2018, though the levies are only meant to betemporarily imposed to protect the local industry from a damaging surge inimports. According to Bloomberg News, the Central Board of Excise and Customs saida 20% levy will apply until mid-September and will drop in stages to 10% forthe six months through mid-March 2018.

*Peru's phosphate production in 2015 rose 2.6% year over year to 11.15 milliontonnes while coal output grew 10% to 251,789 tonnes, Business News Americas reported,citing the energy and mines ministry.

SPECIALTY

* Olivier Fric, an energy consultantmarried to former AREVA SAboss Anne Lauvergeon, is under investigation for alleged insider trading byFrench prosecutors as part of the probe into the acquisition of shares in 2007, Financial Times reported.

* SierraRutile Ltd. set a rutile production guidance rangingfrom 120,000 tonnes to 135,000 tonnes this year, in line with its 2015 outputof 126,021 tonnes of rutile. The output of the mineral is expected to beseasonally lower, at around 26,000 tonnes, in the first quarter.

* entered into anoption and purchase agreement to acquireNext Advancements Pty. Ltd., which owns three exploration license applicationsthat are prospective for tantalum-lithium minerals, covering around 220 squarekilometers at Morrissey Hill in Western Australia's Gascoyne region.

*GoviEx Uranium Inc.and Denison Mines Corp.executed a definitive share purchase agreement to merge their African uraniummineral interests and establish an Africa-focused uranium development company.The deal will see GoviEx acquiring Denison's Rockgate Capital Corp. unit, whichholds all of Denison's uranium interests in Africa, for about 56.1 million GoviExshares. The transactionis expected to close on or about May 17.

*Belmont Resources Inc.said it is acquiring the Kibby Basin property in Clayton Valley, Nev. The propertyis highly prospectiveto host lithium, and consists of 13 place claims, totaling about 1,036 hectaresin Esmeralda County.

*Magnis Resources Ltd.'sbankable feasibility study for its wholly owned Nachu graphite project in Tanzania a post-tax net presentvalue at a 10% discount rate at US$1.69 billion with an internal rate of returnat 98%.

*Vimy Resources Ltd.announced its maiden ore reserve estimate comprising 15.2 million tonnes at 660parts per million of U3O8 for a totalof 22.1 million pounds of U3O8 at its Mulga Rock project in Western Australia.

INDUSTRY NEWS

* Data from the Superintendency ofInsolvency and Reenterpreneurship showed that 18 producers of copper, iron andcoal operating in Chile have filedfor bankruptcy since 2014, when commodity prices began to decline, Diario Financiero reported.

* In2015, exploration budgets were again dominated by Canadian and Australianminers, followed by companies from the Rest of the World (Asia, FSU and MiddleEast), Latin America, Europe, Africa, the U.S. and Pacific/Southeast Asia,according to an exclusive reportby SNL Metals & Mining Research.

*The Thoracic Society of Australia and New Zealand has called for the formationof a national body to monitor the spread of the black lung disease, which iscaused by breathing in excessive levels of coal dust, ABC reported.

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