De Grey Launch Bumper $600m Capital Raise

Ganfeng look to consolidate Goulamina ownership

G’day GC #

The Pre-Start

  • Further to the breach notice received from the Government of Sierra Leone on 6 May to restart Area 1 operations, and while Sierra Rutile doesn’t consider it had committed a breach, the company intends to restart operations (SRX)

  • Leo Lithium has signed an MoU with the Malian government, including a US$60m settlement, whilst also signed a sale agreement for the remainder of Goulamina to Ganfeng (40% for US$343m) (LLL)

  • Sovereign Metals received graphite flotation and cleaning testwork results on graphite circuit feed from their Kasiya Rutile-Graphite Project, which all produced graphite concentrate grading 94.9 - 97.8% TGC, at high flotation recoveries of 91.2 - 97.2% (SVM)

  • Spartan delivered further high-grade assays results from various prospects at its Dalgaranga Gold Project including the deepest “project” assay at Never Never of 10.5m at 7.95g/t Au from 1043m (SPR)

  • Boss Energy provided an update on the commissioning process at its Honeymoon Uranium Project, confirming it was “proceeding to plan”, with key metrics exceeding feasibility study forecasts and first uranium sales set for July (BOE)

  • Black Cat released the May 2024 Restart Study for its Paulsens Gold Operation. Credit approval of a secured debt facility of up to $30m is targeted for June 2024 (BC8)

  • Viridis shared drilling results at Colossus, announcing numerous new ‘discoveries’, helping establish prospects for follow-up deeper drilling (VMM)

High Grade It

  • A claim to be the “best operator” in the global mining industry is shaping up to be a key part of BHP’s pitch to Anglo American investors (AFR)

  • Iluka’s boss Tom O’Leary says China is weaponising its domination of the rare earth market (The Australian) we actually think the AGM address is worth a read in its entirety, you rarely read such punchy views on China and never at an AGM (ILU)

  • Ganfeng is seeking full control of Goulamina, planning to payout $408m for the Malian asset from JV partner Leo Lithium (Bloomberg)

  • Iron ore royalties are on track to pour $1.3 billion more into Treasury coffers than forecast in December, handing the Treasurer a major windfall in preparation for her first Budget on Thursday (The West)

  • Germany has sent its foreign minister on a mission to Australia to explore Australia’s potential for expanding its critical minerals processing capacity (MiningNews)

  • Bonds & stock in Volcan Minera have fallen after Glencore announced it was selling its stake in the Peruvian zinc miner (Bloomberg)

  • White House adviser says US must support critical mineral projects in risky nations (Reuters)

  • First Quantum seeks “dialogue” with new Panama president over disputed copper mine (Mining.com)

  • Iron ore once again defied the naysayers, creeping back over US$120/t (The West)

  • Shares in Poland’s state-run energy companies surged on Tuesday after the industry minister unexpectedly backed plans to relieve them of loss-making coal assets (Bloomberg)

Wheelin’ n Dealin’

  • Codelco and SQM lithium talks are on track, but there are several pending issues to be resolved (Mining.com)

  • Bushveld has agreed to sell its South African vanadium mine, Vanchem for up to US$40.6 million in a distressed sale (miningmx.com)

  • Pembroke Resources’ Olive Downs majority stake sell down looks likely to net more than $1bn, with two Indonesian-backed bidders apparently battling for the asset (The Australian)

  • Our friends at Collins St AM became a substantial holder (5.08%) of Namibian gold explorer Wia Gold overnight (WIA) There seems to be no slowing down by Collin St on playing the junior gold thematic

Rattlin’ the Tin

  • De Grey launched a HUGE capital raising this morning to raise $600m, which is expected to fully fund the equity component of the Hemi project financing. Expected receipt of credit approved term sheets for debt financiers is on schedule for mid-2024 (DEG)

  • Queensland’s Critical Minerals and Battery Technology Fund will provide EQR’s Mt Carbine Tungsten mine with an up to $20m 3-year loan facility (EQR)

In the Weeds

  • A new report has revealed a significant portion of Australia’s Generation Z population has a negative attitude towards the mining industry (The West)

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Today’s Top Tweet

Devil’s in the Detail

Can we please all agree that companies announcing their future attendance at an overseas conference is not “news flow” worthy of its own ASX announcement? Investors give you money to advance your project, not to fly overseas (usually in business class).

And when we see these kinds of announcements, it only encourages us to look under the hood at how the said company allocates capital. We didn’t have to look too far before being disheartened in this instance.

Atlantic Lithium Annual Report 2023

 

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