Major Deals This Week: Essar, Exeter, Kinross and more

21 January 2010 (Last Updated January 21st, 2010 18:30)

India's Essar Group said it plans to acquire coal mining companies across the world and to take a 100% stake in a UK coal company with assets in Australia for $330m and a 100% stake in a company with metallurgical coal assets in the US for $225m. Essar also plans to acquire a 78.

India's Essar Group said it plans to acquire coal mining companies across the world and to take a 100% stake in a UK coal company with assets in Australia for $330m and a 100% stake in a company with metallurgical coal assets in the US for $225m.

Essar also plans to acquire a 78.84% stake in a South African coal mining company for $150m and a 100% stake in an Indonesian firm with rights to thermal exploration coal blocks for $110m to $120m.

It also plans to invest $1bn in its subsidiary Essar Steel Minnesota to establish a new iron ore pellet plant.

Kinross has agreed in principle to purchase the Dvoinoye deposit and the Vodorazdelnaya property in Russia for $165m in cash and 10.56 million newly issued Kinross shares valued at $203m bringing the total consideration to $368m.

The deal involves the indirect purchase of 100% of the participatory interests in Northern Gold and Regionruda, the owners of the Dvoinoye and Vodorazdelnaya exploration and mining licenses.

CGA Mining has signed an agreement with BMO Capital Markets, Haywood Securities and several other underwriters to acquire 34,000,000 ordinary shares on a private placement, bought deal basis, at a C$2.20 ($2.14) price per ordinary share for C$74.8m ($72.72m) gross proceeds.

CGA said the net proceeds will be utilised for exploration work at the Masbate Gold project, to repay 12% Senior Promissory Notes and for general corporate purposes.

African Minerals conditionally raised £80m ($130m) through cash placing with institutional investors.

Further to the 6 January conditional strategic agreement with China Railways Materials Commercial (CRM), African Minerals has agreed to provide CRM with the option to subscribe in cash for 2.88 million new common shares at the placing price, which accounts for 14.4% of the placing.

The proceeds will be used for construction of infrastructure for the first phase of the company's flagship Tonkolili iron ore project.

Northern Iron will implement an equity to garner A$54.3m ($49.7m) that will be used for capital items needed for plant performance and short-term working capital.

For the equity raising, Singapore's OM Holdings has agreed to subscribe for 28.25 million new shares at a price of A$1.45 per share to raise A$41m ($37.5m) and will emerge as a 10% stakeholder.

Northern Iron will execute an institutional placement of 9.9 million new ordinary shares to sophisticated and professional investors to garner A$13.3m ($12.17m).

Zambia Copper Investments received approval from its stakeholders to provide African Copper with a new $31.1m four-year secured credit facility that will replace the $7m and the $25.4m bridge loan facilities provided in May 2009.

And Exeter Resources plans to execute a spin-out deal in which its assets would be split into two companies.

Under the deal, Exeter will retain all the Caspiche gold-copper discovery's assets and $50m in working capital.

Exeter will transfer its Argentinean exploration properties including Cerro Moro and nearly $25m in working capital to a new corporation Newco, which will become an emerging gold-silver producer.