Thursday, 6 November 2014

TNR Gold Los Azules Copper M&A: Barrick In Talks With Chinese Miner Zijin On Pascua-Lama Investment.


  Argentina comes to the forefront of mining M&A activity with this report about Barrick's talks with another Chinese miner. Los Azules copper is located in the same province San Juan in Argentina and will benefit from any potential development at Pascua Lama. China is very active in Argentina. Trade and military cooperation agreements were signed and currency swap line is in place now. Recent change to the investment rules will allow more investment into the very lucrative shale oil sector in the country. Next year elections should be changing the investment climate for the better as well continuing this trend.

Mr. Kirill Klip, Non-Executive Chairman of TNR states, “I have commented regularly on the merits of the Los Azules project. It is a unique, long-life, copper mining opportunity in Argentina. The acquisitions that include the Las Bambas copper mining project in Peru and the Taca Taca copper deposit in Argentina confirm there is significant value to be realized for projects in this region. We have had a good working relationship with PI Financial. They understand our needs and have great familiarity with the Los Azules asset. I am confident that this expanded engagement will have a favourable result for our stakeholders. Both TNR and PI Financial are of the opinion that the conversion of the back-in right will greatly enhance the ability for prospective purchasers to value the NSR and the deposit.” Read more."

Presentation: TNR Gold Receives Royalty From McEwen Mining On "One Of The Largest Undeveloped Copper Projects".

TNR Gold NSR In Los Azules Copper Project: What Is Net Smelter Return?

Net Smelter Return (NSR) is the net revenue (total revenue minus production costs) that the owner of a mining property receives from the sale of the mine's metal/non metal products less transportation and refining costs. As a royalty it refers to the fraction of net smelter return that a mine operator is obligated to pay the owner of the royalty agreement. The royalty is paid in variable or fixed payments based on sales revenue received by a mining operator in return for mining output. It is contingent only on the sales price and quantity of product sold.[1]  Read more."

I am very pleased to report our latest development on Los Azules.

We have finally locked up the participation in this unique world-class copper  asset for the benefit of all our shareholders:

1. Now we do not have to wait for feasibility study.

2. We do not have to contribute any capital.

3. Our industry standard NSR in "one of the largest undeveloped copper projects", according to McEwen Mining, is in effect immediately and can be monetised now at any time.

4. 0.4% NSR is now attributed to the entire Los Azules project - it is higher than pro-rata 0.6% attributed to only our part of Los Azules before.

5. We will participate in sale of Los Azules by McEwen Mining within 36 month and it is not affecting our NSR. 

6. We are receiving shares in McEwen Mining.

7. Now TNR Gold will benefit directly from:

A. Sale of Los Azules by McEwen Mining within 36 months.
B. Rise in value of McEwen mining shares.
C. Rise in Copper prices.
D. Potential increase in the deposit size and quality of the reported resources of the entire Los Azules.
E. Further feasibility studies conducted by the McEwen Mining or the new Operator and advancement of the project.

Jim Mustard VP of PI Financial can provide you with additional information on Los Azules Copper project and TNR Gold assets related to it.

Please read our full legal disclaimer in our presentation and on our website:

Financial Post:

TORONTO — Barrick Gold Corp. is in talks with state-owned Chinese miner Zijin Mining Group Co. to form a partnership on the botched Pascua-Lama project, according to a government official in Argentina.
Felipe Saavedra, mining minister of Argentina’s San Juan province, said in a local radio interview on the weekend that Zijin is interested in coming into Pascua as an investor, and has visited the mine site several times. The interview was first reported in English by the blog IKN.
Toronto-based Barrick declined to comment on the minister’s remarks. But spokesman Andy Lloyd noted that Barrick said in the past that it is “open to considering a partner on Pascua-Lama.” Financial Post."

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