Tuesday, 13 May 2014

China Is In The Hunt For Copper: Guangdong Rising Bids $1 bln For Copper Miner PanAust


  Now we can together appreciate a little bit more M&A market observations I have shared with you couple of days ago:
"... the rumours of collapse in China are greatly exaggerated in the West, to the benefit of ... China. China buys record amount of Gold as well as Copper projects all over the world like Las Bambas and looking at others using the "soft market environment". 
  China continues its buying spree of copper assets all over the Globe: last month the huge Las Bambas copper project in Peru was bought by Minmetals Group for $5.85 B and now Guandong is bidding for PanAust. Reuters reports on the deal and you can notice how the activity in M&A by Chinese companies is picking up during the "soft market". It is the very important indication of the major bottom in the mining cycle: it is cheaper "to dig" for Copper and Gold on the Stock Exchanges now, when valuations of assets in the ground of listed companies are discounted by the depressed mining markets.  
  "PanAust rejected the unsolicited bid from its biggest shareholder as too low but agreed to allow it to conduct due diligence in the hope of getting a better offer.
The takeover proposal comes amid a slew of interest in Australian mining assets from Chinese firms eager to secure global resources.
  Steel giant Baosteel Resources and an Australian partner last week offered A$1.1 billion for Aquila Resources Ltd . In December, Chinese miner Shenzhen Zhongjin Lingnan Nonfemet Co, in which Guangdong Rising has a controlling stake, bought Australian base metals explorer Perilya Ltd. Reuters."

Our Story - TNR Gold Investor Presentation: Lithium, Gold And Copper

  "Maybe you have heard about our legal battle for the Los Azules Copper project in Argentina? Gary Schellenberg, our founder, have found this prospect in Argentina at the turn of the century and now it has grown into The One of The Largest Copper Deposits of The World, according to McEwen Mining! 

  After our settlement with McEwen Mining TNR Gold has reinstated its Back-In Right to the Northern Part of the project and received 1 million shares of McEwen Mining. You can find more information in our Q&A on the Los Azules Settlement and in presentation below. All technical information is presented very good at McEwen Mining - The Operator on Los Azules, and it is always a great idea to give us a call or just contact me directly to get the latest info. We have hired PI Financial to market our Los Azules assets and now the time is coming to receive the benefits of this world class asset. 
  I personally find it very positive that Chinese Minmetal Group has purchased huge Las Bambas Copper project from Glencore a few weeks ago for $5.85 B. All copper market M&A activity is getting  the very positive vibe now and it will help us to work with Los Azules Copper asset. Our strong ties to China with International Lithium help us to open the doors and news about "Chinalco Mining Sets Sights On Copper Projects In Latin America" are very positive as well.
  Argentina was not the best place for mining for the last couple of years, but now I can see a lot of positive developments. After Repsoil compensation, Chevron has stricken major deal for Shale Gas  and Oil development. Yamana Gold, Gold Corp, Silver Standard - all have commented positively on Argentina mining climate recently and continue their investments in the country. Going forward it should improve the valuations and investment appetite for the projects like Los Azules. The sale of our Back-in Right will provide the necessary liquidity and catalyst to all of our group of companies. Rob McEwen has done a great job as Operator developing this project and now Los Azules is at the top of the list of the best copper projects in the world available for sale, according to PI FinancialI would recommend to contact Jim Mustard VP at PI Financial to get more information about Los Azules Copper project and our Back-In Right Asset."

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