Market Report — Rio Makes Good on Cloud as Mining Money Changes Hands

29 November 2009 (Last Updated November 29th, 2009 18:30)

Rio Tinto said it will receive a minimum of $741m for Cloud Peak Energy's initial public offering (IPO) and associated transactions this week The amount covers $434m proceeds from the divestment of a part of Rio Tinto's stake in Cloud Peak Energy Resources (CPER) in relati

Rio Tinto said it will receive a minimum of $741m for Cloud Peak Energy's initial public offering (IPO) and associated transactions this week

The amount covers $434m proceeds from the divestment of a part of Rio Tinto's stake in Cloud Peak Energy Resources (CPER) in relation to Cloud Peak Energy's IPO of common stock and a $307m cash distribution by CPER from the proceeds of its $600m debt offering.

Rio Tinto expects to retain up to 48% interest in CPER.

Koza Madencilik plans to conduct an IPO for its 60%-owned gold mining facility and has submitted an application to Turkey's Capital Markets Board to initiate the process.

Meanwhile, First Quantum Minerals signed an implementation agreement for a $260.2m acquisition of Kiwara's entire issued share capital through a scheme of arrangement.

Cliffs Natural Resources has signed an arrangement agreement with Freewest Resources Canada to acquire all of the latter's shares for $141.9m.

Chapmans' 78%-owned subsidiary Hallmark Minerals has signed a conditional agreement to purchase an initial 10% stake in the share capital of a foreign company that controls an Indonesia-based start-up coal mining project.

Hallmark will have a right to royalty payments per tonne of coal mined and sold.

Xstrata signed an agreement with Jumelles for the early phase of the latter's Zanaga iron ore project located in the Lékoumou District of the Republic of Congo.

According to the agreement, Xstrata will provide at least $50m for exploration and a pre-feasibility study in exchange for an option to purchase a 50% plus one share interest in Jumelles.

The agreement also provides a means for Xstrata to acquire 100% of the project after conclusion of the feasibility study.

Uranium International has signed an agreement to purchase an option to earn a maximum of 80% undivided interest in four Swedish mineral properties from Trans Atlantic Metals and TA Metall, Sweden.

Under the agreement, Uranium International will purchase a lease option in the Staverberget, Märrviken, Labbas and Björklund properties, which covers all rights, permits and licenses.