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There were plenty in the running for this week's award, but all are trumped by this short, sweet and nasty one from Colossus Minerals (CSI.to), a company that's just lost its lender of last resort.
TORONTO, ONTARIO--(Marketwired - Dec. 20, 2013) - Colossus Minerals Inc. (CSI.TO)(COLUF) ("Colossus" or the "Company") On Friday, December 20, 2013 the Company was advised by Arias Resource Capital Fund II L.P. and Arias Resource Capital Fund II (Mexico) L.P. (together, the "ARC Funds") that the ARC Funds would not be proceeding with the two tranche financing previously announced on December 18, 2013.
For the 5th year running, IKN's Friday OT features the world's greatest ever Christmas song.
- You, the mining or mining related company, spend about a nanosecond of true creative thought on the subject.
- We, the recipients, think you are jerk-offs of the highest order.
- Inside the meeting hall in the town of Cocachacra, 1,200 people assembled to hear SCCO do its thing. Which they did.
- Of those 1,200 people, those against the mine's development were very thin on the ground despite the overwhelming majority of Islay locals being against the project. Also, those against the mine, including the local priest (not normally known for telling fibs) were adamant that the assembly was filled with people shipped in from locations outside Islay and were being paid to attend by the mining company. Just the same as in other meetings, in fact.
- But even then, there was no sort of vote or formal public approval process. According to the justice-seen-to-be-done artificial Peru system, all SCCO has to do is give its presentation and hold its meeting, no sort of yea or nay decision is required, looked for or received. The people inside the hall may as well have been mannequins.
- Meanwhile, outside the hall with 1,200 people were 2,000 police officers, fully equipped with riot gear, as well as a couple of riot containment vehicles (armour plating, water cannon etc). Their job was to keep thousands of real locals away from the hall; the protesters who are against the mine project weren't allowed to attend the social audience meeting because we wouldn't want to encourage a real debate at a meeting now, would we? Anyhow, the police did a good enough job (according to all media reports), with just a few skirmish-type incidents in outlying areas and a few tear gas canisters to upset the near-total success of the containment operation.
Yours, bored with morons, Otto.
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec 19, 2013) - Aurcana Corporation ("Aurcana" or the "Company") (TSX VENTURE:AUN)(AUNFF) wishes to provide an update as to the status of its Shafter Project. The Aurcana Board of Directors, after careful consideration and review of the development and mining options for the Shafter Project under current economic conditions and low silver prices, has elected to put the Shafter Project on "care and maintenance". Employees were notified Wednesday, December 18, 2013.Aurcana is planning to initiate an exploration program designed to test targets within Shafter's known mineralized areas in further detail, to help determine whether additional higher grade mineralization can be delineated. Aurcana geologists have identified areas of interest to justify such a program.Lenic Rodriguez, Aurcana's President and CEO, states "Aurcana's management and its board of directors are very disappointed that (another batch of Lenic bullshit follows here)
Yup, $1,200/oz again.
...the gold/silver ratio, 12 months:
The trend is clear and the moving averages indicate more of the same, within the daily fluctuations and noise of course. Or put another way, you think gold's had a hard year?
Wassat you say, guv? Wot? Me?
Nah, nowt t'do wi me, mate.
(exit stage left, hands in pockets, quietly whistling)
Not satisfied with its previous forays into third party juniors in Colombia for example...
Buying 15.38m shares of Tolima Gold for $10m (those are now worth $0.46m)
Buying 11m shares of Bellhaven Copper & Gold for $6.05m (those are now worth $0.36m)
Buying 12m shares of Colombia Crest for $3.42m (those are now worth $1.2m)
UPDATED: Colossus (CSI.to): We can safely say Sandstorm doesn't want to throw any more good money after bad
As has been previously disclosed, Colossus is in dire financial circumstances. Colossus believes that the Noteholders' Resolution is necessary in order for it to improve its balance sheet in order to raise the short term equity financing needed to implement the Company's de-risking strategy and thereby make it more attractive to future investors and potential partners to a mergers and acquisitions transaction.
UPDATE: That didn't take long. ARC Fund bites the bullet, the swimming pool dilutive placement is outlined as well as a loan that pays 20% per annum (!!) interest. Details here
h/t reader MM
Good news for the bullshit promo sharks in junior mining: The action in Carpathian Gold (CPN.to) proves there are still a whole bunch of suckers out there
1) As at end 3q13, before CPN explained to the world that it was facing a nasty cash crunch, it had a working capital of negative $102.524m (with very little of that in real cash) and on top of that, another $43m in long-term financial debt. The only thing balancing the sheets at that point was its declared property values (and if you think, for example, that its Romanian snafu is worth $50m, then jolly good luck is wished upon you) but as this isn't an asset story, it's a liquidity and (supposedly) cash generation story, what really matters isn't some mutually convenient fixed asset value but the financial parts of the balance.2) At end 3q13, it had 694.17m shares out. That means today's 12c share price gives it a market cap of $83.3m.3) According to its own Feasibility Study (that by way of a slight sidebar is looking a little long in the tooth, what with the changes in costs in the industry since its publication), at U$1,250/oz gold RDM has an after-tax 5% discount NPV of $172m.4) So therefore, even if we take a couple of giant leaps of faith, assume this perenially underperforming management team stops being crap and starts delivering 100% on its promises and then things go perfectly with operations at RDM, the NPV of the RDM project is less than the combination of the negative working cap and the current market cap. That's without even mentioning the LT debt portion.
First the scenario: The world has offered up two interesting projects NR this morning:
1) The pre-feas of the large-ish Magino project, owned by Argonaut Gold (R.to), with a post-tax 18% IRR using $1,250/oz gold. Lots more details here.
2) The PEA (scoping study) of the smallish Karma project, owned by True Gold (TGM.v), with a post-tax 43.1% IRR using $1,250/oz gold. Again, mull over the details at the company NR, here.
And so to the test: We discount immediate reaction (eg this morning) and set the clock for, say, Thursday evening. Right now AR.to is priced at $5.43 and TGM.v is 38.5c, so let's see how those prices sit at the end of three days of market because if these projects can't bring love to these stocks, gawd help us all.
Caracas, 16 December AVN: The Vice-President of the Economy, Rafael Ramirez, said on Monday that a JV gold company would be created by the Venezuela Central Bank and PDVSA."The only partner of the State oil company in this JV will be the Venezuela Central Bank", said Ramirez, who is also the minister of petroleum and mines, during a press conference."The company is very important because PDVSA, via the Venezuela Mining Corporation, has been granted the rights over 92 billion* ounces of gold," he said.Ramirez pointed out that this JV company is valued at U$40Bn, and would contribute to the re-launching of the Venezuelan] gold sector in 2014.He added that the make-up of this JV company will allow the State to receive a larger amount of the gold that's produced in the country
Argentina: Barrick cuts 1,500 jobs at Pascua Lama ArgentinaThe decent local media channel covering the Northeastern Argentina region, El Diario Del Cuyo, first reported a story on Friday (13) which was then picked up by regional media and even made English language copy by yesterday Saturday (e.g. here’s Reuters, reporting about ¾ of the story (14)). The need to know is:Of the 4,800 to 5,000 workers employed at Lama (the number varies), which is the Argentina side of the Pascua Lama project, the 3,500 workers who are residents of San Juan are being kept on until end April minimum. The other 1,300 to 1,500 workers, said to be comprised of 400 foreign nationals and around 1,000 Argentines from other provinces, are being laid off.At a best guess, the decision to employ the 3,500 (pre-crisis there were around 10,000 workers at Lama) instead of trimming workforce to the bone as was originally planned, will cost Barrick around U$30m until April and around U$70m if employed to the end of 2014. This would roughly double the U$60m ABX had originally set aside for care and maintenance costs in 2014 for the Lama end of the project, however it’s the veritable drop in a bucket compared to the overall U$5Bn+ already thrown at the project.The decision to keep on the 3,500 local workers is almost certainly politically motivated and comes after some negotiations. As noted in the very interesting report linked on the blog last week (15) ABX was coming under pressure from the San Juan province to keep paying salaries, with the big bargaining chip being the “continued well-being” of Veladero, the ABX gold mine that lies South of the Pascua Lama project and also in San Juan. The provincial government’s strategy may not have been very subtle, but it’s probably the difference between full-scale lay-offs and the 3,500 who’ll keep on receiving salaries. Also, the inference is that the April 2014 minimum employment will likely get extended, else cause “problems” for the other mine. It’s how business is done in Argentina, ladies and gentlemen, though the April minimum decision does give ABX the chance to play hardball come the time, which is always a possibility if the world gold market deteriorates further. We shall see.Changing the subject slightly, we also had plenty of talk floating around the Southern Hemisphere last week that Barrick is actively looking for a Chinese JV partner to move Pascua Lama forward, one example of many this report in Chile’s best biznews paper (16), which is one of those unsubstantiated rumours that makes a lot of sense. But as the saying goes down here, “Hay un gran trecho entre dicho y hecho” (close enough is “there’s a big gap between word and deed”) and as ABX really doesn’t have much in the way of kudos to lose at this point in the South, there’s no reason to suppose the propagation of the jungledrums equates to a near-done deal this time, either.
...25%, his lowest ever score:
Because he sucks, apparently. Nadine's at 32%, if you're keeping count of that one. Data from Peru's benchmark pollster, Ipsos.
Robert Frost's sonnet, Design, is best read on a Sunday: