Deals this week: Tungsten Mining, Diamcor Mining, MC Mining

7 September 2018 (Last Updated September 13th, 2018 10:46)

Tungsten Mining has entered an agreement with GWR Group to acquire the Hatches Creek tungsten project in the Northern Territory, Australia, for A$8.68m ($6.25m).

Tungsten Mining has entered an agreement with GWR Group to acquire the Hatches Creek tungsten project in the Northern Territory, Australia, for A$8.68m ($6.25m).

GWR’s wholly owned subsidiary NT Tungsten holds a 100% interest in the Hatches Creek project, which comprises two granted exploration licences, EL22912 and EL23462, extending over 31.4km².

Tungsten Mining is a resources company primarily engaged in the exploration and development of tungsten projects in Australia, while GWR Group is focused on developing high-quality mineral exploration and development projects. Both companies are based in Australia.

Diamcor Mining has raised approximately $1.23m in a second tranche of non-brokered private placement by issuing 3.5 million additional units. The company previously raised gross proceeds of $2m in the first tranche.

Each unit offered in the second tranche consists of one common share of the company and one-half of one common share purchase warrant, which entitles the holder to purchase an additional share at a price of C$0.60 ($0.45) within three years from the closure date.

“MC Mining intends to use the quarterly payments and the annual cost savings arising from the Mooiplaats disposal for developing the Makhado hard coking coal project.”

The two finders who participated in the second tranche closing were paid an aggregate cash commission of C$6,510 ($4,936), equivalent to 6% of the gross proceeds received from subscribers.

Diamcor intends to use the proceeds raised from the second and final tranche for improving water recoveries from the project’s settling dams to support planned increases in processing volumes in the long-term.

Based in Canada, Diamcor Mining is engaged in identifying, acquiring and operating quality production based diamond projects.

MC Mining has sold its Mooiplaats thermal coal colliery in South Africa to Mooiplaats Coal Holdings (MCH) for R179.9m ($12.15m).

The acquisition was initially announced last October and a sum of R67m ($4.55m) was paid in November 2017, upon meeting certain conditions. The remaining balance of R112.9m ($7.66m) will be paid in ten equal quarterly payments, with the first payment of R11.3m ($0.76m) made in September 2018.

MC Mining intends to use the quarterly payments and the annual cost savings arising from the Mooiplaats disposal for developing the Makhado hard coking coal project.

MC Mining is engaged in developing high-quality coking and thermal coal assets located primarily in the Limpopo province of South Africa, whereas Mooiplaats Coal Holdings operates as a holding company and provides services in South Africa through its subsidiaries.

Zijin Mining plans to acquire a 63% stake in the Serbian RTB Bor copper complex by investing $1.26bn. The company was recently awarded a tender to become a strategic partner in the complex.

The transaction is part of Serbian Government’s strategy to offload state-run companies, which are under heavy debts.

Zijin Mining will invest an additional $200m to settle RTB Bor’s debt in addition to absorbing all the workers currently employed at the complex, under the deal. The investment will include $135m for improving the environment and $320m for starting a new copper mine.

Based in China, Zijin Mining is engaged in metals production and refining.