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Freeport-McMoRan Completes $1 Billion Sale Of 13% Interest In Morenci Mine

iconJun 1, 2016 16:52
Source:SMM
Freeport-McMoRan Inc. (NYSE: FCX), the world’s largest publicly traded copper company and also a major gold producer.

Tuesday May 31, 2016 09:25

Freeport-McMoRan Inc. (NYSE: FCX), the world’s largest publicly traded copper company and also a major gold producer, reports completion of its previously announced sale of a 13% interest in its Morenci joint venture to Sumitomo Metal Mining Co. Ltd. $1 billion. Freeport says it plans to use net proceeds from the transaction repay some $500 million under its bank term loan, with the balance to reduce amounts drawn under its revolving credit facility. Freeport says it expects to record an approximately $600 million after-tax gain on the transaction in second-quarter 2016.

By Allen Sykora of Kitco News; asykora@kitco.com

Centerra Gold Inc. (TSX: CG) says it is seeking to resolve a series of disputes, all relating to the Kumtor project, with the Kyrgyz government through international arbitration. Officials report that the company has delivered a notice of arbitration to the government. The issues are both environmental and financial. “The arbitration proceedings will be held at Stockholm, Sweden and will be conducted under the UNCITRAL rules of arbitration and the governing law will be the law of the State of New York,” Centerra says. “Despite the commencement of arbitration proceedings, the company has reiterated to the Kyrgyz Republic government its openness to receive and discuss proposals to resolve all outstanding matters affecting the Kumtor project in a manner that is fair to all of Centerra’s shareholders.” Kyrgyzstan has sought to renegotiate its agreement with Centerra to gain more income, and a court has fined Centerra’s local subsidiary $100 million over environmental issues. Also, according to news reports, prosecutors raided company offices last month to collect documents in cases in which the firm is alleged of financial violations, with Centerra saying this was connected to an inter-corporate dividend. According to Centerra’s website, Kumtor is the largest gold mine operated in Central Asia by a Western-based company, producing more than 10.4 million ounces of gold between 1997 and the end of 2015. Output last year was 520,694 ounces.

Source:Kitco

Silver Standard Completes Acquisition Of Claude Resources

Tuesday May 31, 2016 09:22

Silver Standard Resources Inc. (Nasdaq: SSRI; TSX: SSO) has completed the previously announced acquisition of Claude Resources Inc. (TSX: CRJ), the companies announce. "Adding the Seabee gold operation together with Silver Standard's Marigold and Pirquitas mines creates a quality intermediate precious-metals producer, having both scale and margin with pro forma 2016 production in the order of 390,000 gold-equivalent ounces,” says Paul Benson, president and chief executive officer of Silver Standard. “With exposure to both gold and silver production, an attractive cost profile and a very strong balance sheet, we are well positioned to continue to pursue both internal and external opportunities to create value for shareholders." Effective immediately, Brian Booth, the former chairman of the Claude Resources board of directors, has been appointed to the Silver Standard board. Also, Silver Standard repaid all amounts outstanding under Claude Resources’ term and revolving credit facilities, which totaled approximately C$17.9 million.


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