Deals this week: Vectren, Newmont Mining, Eloro Resources and more

3 July 2014 (Last Updated July 3rd, 2014 18:30)

US-based Vectren has signed a deal with Sunrise Coal to sell its wholly owned coal mining subsidiary, Vectren Fuels, for $296m.

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US-based Vectren has signed a deal with Sunrise Coal to sell its wholly owned coal mining subsidiary, Vectren Fuels, for $296m.

Vectren Fuels owns three underground coal mines in south-western Indiana, including two in Oaktown and one in Petersburg, which are operated by Black Panther Mining and Five Star Mining respectively.

The three mines together have approximately 850 contract miners.

Sunrise will also pay around $20m in working capital between 31 December 2013 until the transaction is closed in the third quarter of this year.

Newmont Mining has completed a deal to sell its Jundee underground gold mine in Australia to Northern Star Resources for about $91m.

Located 520km north of Kalgoorlie in Western Australia, the Jundee gold mine initially started as open pit mine in 1995 and was later transformed into an underground operation in 1997.

Following the deal, Northern Star will own the existing fixed plant and onsite equipment, and retain majority of Jundee's non-contract staff members.

Jundee produced 279,000oz of gold in 2013.

Eloro Resources has signed a definitive option and joint venture agreement with Tartisan Resources to buy a 50% stake in La Victoria, located in the north-central mineral belt of Peru.

The La Victoria property, which was previously owned by a Peruvian-based Tartisan subsidiary, features nine mineral concessions over an area of 43.6km².

As per the deal, Eloro will spend C$1.5m in staged exploration and work expenditures on the property and make cash payments of C$150,000 over a four-year period to purchase a 50% share in the property.

Energy Fuels has signed a deal with a private investor group to sell some of its non-core uranium assets, including the Piñon Ridge mill license and related assets, for around $2m.

The mining assets that formed part of the transaction include the Sunday Complex, the Willhunt project, the San Rafael project, Sage mine, Van 4 mine, the Farmer Girl project, the Dunn project and the Yellow Cat project.

The transaction for the Piñon Ridge project and some of the mining assets will be executed through the sale of one of its wholly owned subsidiaries.

The remaining assets will be sold through separate asset transactions involving other subsidiaries.

With the sale of certain assets, the company expects to realise reductions in holding, permitting, litigation and compliance costs in the next several years.

The transactions are subject to regulatory approvals.

Avino Silver & Gold Mines has signed a letter of intent to purchase Bralorne's 100% outstanding common shares in its gold mine, located in British Columbia.

Upon completion of the deal, Avino will issue its 2,636,857 common shares to former Bralorne shareholders to purchase Bralorne.

Avion had earlier agreed to buy 9,500,000 common shares of Bralorne from a third party.

The previous agreement and the latest deal will allow Avino to own 9,679,149 common shares, representing a 34% stake in Bralorne.


Image: Several deals were signed this week. Photo: courtesy of adamr / FreeDigitalPhotos.net.

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