Thursday, 23 October 2014

Los Azules Copper M&A: Copper Climbs as Chinese Manufacturing Signals Growth.

  Higher Copper prices will drive the valuation of our Royalty on Los Azules Copper and will put this very important project to the forefront of M&A activity in Latin America. 
  McEwen Mining has compared the project to recently acquired Lumina Copper's Taca Taca in Argentina and you can find more on McEwen Mining website. 
  There are money for the good large scale copper projects and China's MMG will invest USD 3 billion in the recently acquired Las Bambas. Lundin Mining acquisition of Copper assets in Chile brings us another indication for the industry insiders evaluation of risks and opportunities. 

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:

Stay tuned: new presentation will reflect this very important development for our company.


Copper Climbs as Chinese Manufacturing Signals Growth

Copper rose in New York after manufacturing expanded at a faster-than-projected rate in China, the biggest consumer of industrial metals, bolstering the outlook for demand.
A Chinese factory gauge from HSBC Holdings Plc and Markit Economics showed a preliminary October reading of 50.4, exceeding the median estimate of 50.2 in a Bloomberg News survey. The nation accounts for about 45 percent of copper demand, according to Standard Chartered Plc. Copper also climbed after a similar euro-area gauge unexpectedly increased.
“While the manufacturing sector likely stabilized in October, the economy continues to show signs of insufficient effective demand,” Qu Hongbin and Julia Wang, economists at HSBC Plc, said of China in a note today. “This warrants further policy easing, and we expect more easing measures on both the monetary as well as fiscal fronts in the months ahead.”
Copper for December delivery added 0.4 percent to $3.029 a pound by 7:32 a.m. on the Comex in New York. The contract for delivery in three months rose 0.6 percent to $6,671 a metric ton on the London Metal Exchange.
“There have been light pockets of consumer buying, some spec short-covering as we approached $6,500,” James Marks, head of global metals at Xconnect Trading Ltd. in London, said by e-mail. Trading interest is low because many market participants are inLondon for LME Week, when supply contracts are discussed, according to Xconnect.
A euro-area manufacturing measure unexpectedly rose to a preliminary 50.7 in October, Markit said. Economists surveyed by Bloomberg expected a drop to 49.9.
Copper stockpiles monitored by the LME fell for a fourth day to 157,500 tons, daily data showed. Orders to remove the metal from warehouses rose 7.7 percent to a one-month high of 28,025 tons amid requests for 1,125 tons in Trieste, Italy, and 875 tons in Antwerp, Belgium. Bloomberg."