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June 05, 2014 --- Vol. 08, No. 23June 2014

Nunavut

ACQUISITION – Mandalay Resources Corp. and Elgin Mining Inc. June 4 said they have entered into an arrangement agreement in which Mandalay will acquire all of the outstanding common shares of Elgin for C37 cents cash, or 0.4111 of a Mandalay common share, per Elgin common share, subject to pro ration. The total value of the proposed transaction is roughly C$70 million. Based on the closing price of Mandalay’s shares on June 3, the deal’s value of C37 cents per Elgin share would represent an 85 percent premium to Elgin’s closing share price of C20 cents on June 3, the last trading day before the announcement of the transaction and a 53 percent premium to Elgin’s 20-day volume-weighted trading price of C24 cents on June 3. If approved by shareholders and regulators, the transaction will add Elgin’s Björkdal gold mine in Sweden as Mandalay’s third producing and positive-cash-flow-generating asset. Elgin is a Canada-based company focused on production at the Björkdal gold mine. In addition, the junior’s portfolio includes the Lupin and Ulu gold projects in Nunavut. Mandalay Resources is a Canada-based natural resource company with producing assets in Australia and producing and development projects in Chile. It is focused on executing a roll-up strategy, creating critical mass by aggregating advanced or in-production gold, copper, silver and antimony projects in Australia and the Americas to generate near-term cash flow and shareholder value. “The combination of Mandalay and Elgin will provide our shareholders with the opportunity to gain exposure to a growing and profitable producer with operations in politically and fiscally stable jurisdictions, while still providing exposure to the upside at Björkdal,” Elgin CEO Patrick Downey said. “Mandalay has an excellent track record of growing and optimizing mine operations and producing value for their shareholders. With their balance sheet and technical expertise, I believe that the combined company will maximize the value of Björkdal for the benefit of both the Mandalay and Elgin shareholders, and I look forward to working with the Mandalay team.”

ANNUAL MEETING – Kivalliq Energy Corp. May 30 reported that shareholders voted at its annual general meeting held May 29, in Vancouver, to re-elect the company’s six-member board of directors, approve a stock option plan and advance notice policy, and re-appoint Davidson and Co. as its auditors. Kivalliq is a uranium exploration company holding Canada’s highest-grade uranium resource outside of Saskatchewan’s Athabasca Basin. Its flagship project, the 123,131-hectare (304,257 acres) Angilak Property in Nunavut Territory, hosts the Lac 50 Trend with a NI 43-101 Inferred Resource of more than 2.83 million metric tons grading 0.69 percent U3O8, totaling 43.3 million pounds U3O8. Kivalliq’s comprehensive exploration programs continue to advance the Lac 50 Trend and demonstrate the “district scale” potential of the Angilak property.


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