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   Gold/Mining/EnergyDISCOVERY BOARD ~ PRECIOUS METALS ENERGY URANIUM OIL


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From: PaperPerson7/22/2012 2:31:43 AM
   of 4690
 
Must-read on the global financial outlook.

'Smartest man in the world is a firedancer'

blackstone.com

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From: Rob J237/23/2012 10:12:39 AM
   of 4690
 
Stornoway to Commence Bulk Sampling of Renard 65 Kimberlite

MONTREAL, QUEBEC--(Marketwire - July 23, 2012) -Stornoway Diamond Corporation (TSX:SWY) is pleased to announce that it will shortly commence a 5,000 tonne bulk sample program of the Renard 65 Kimberlite pipe, located at Stornoway's 100% owned Renard Diamond Project in north-central Quebec.

The objective of the bulk sample program is to collect a large enough parcel of diamonds to allow the conversion of material that is currently classified as an Inferred Mineral Resource to an Indicated Mineral Resource and then, if warranted, to a Mineral Reserve. Five thousand tonnes will be acquired from a previously opened trench where the R65 kimberlite is exposed at surface at its northern extent, and will be processed initially at Stornoway's 10 tonne per hour dense media separation plant located at the project site. Final diamond recovery will be conducted at Stornoway's North Vancouver lab facilities. The program is budgeted at C$2.5million, and is scheduled to be completed by the end of the year. Given previously measured grades at the sampling site, it is expected that approximately 1,000 carats of diamonds will be recovered, which will be sent to Antwerp, Belgium for valuation.

Matt Manson, President and CEO, commented: "The Renard 65 bulk sample program announced today offers the opportunity to add a large tonnage of open pit reserves to the Renard mine plan. Renard 65 is the largest of the project's kimberlites, and although its grade is lower than Renard 2 and 3, its diamond characteristics are similar and it is easily accessible from surface. The cost of developing an open pit at Renard 65 is already included in the Renard Feasibility Study, as a borrow pit for backfill waste required in the underground mine, and as a sump for water management. However, as an Inferred Mineral Resource, ore extracted from this pit is excluded from the Feasibility Study's production schedule. The upgrading of Renard 65's resource classification this year is expected to add value to the project by allowing an immediate expansion of planned processing capacity from 6,000 to 7,000 tonnes per day, and by extending the reserve mine life beyond the current 11 years. Renard has a considerable resource upside potential, and this sampling program will allow us to pursue the project's continued growth as we work towards final project financing."

In November 2011, Stornoway released the first National Instrument ("NI") 43-101 compliant Mineral Reserve estimate for Renard of 18.0 Mcarats (representing 23.0 million tonnes at an average grade of 78 carats per hundred tonnes, or "cpht") at a weighted average diamond valuation of US$180/carat. The project's Inferred Mineral Resources comprise an additional 17.5 Mcarats (31.1 Mtonnes at an average grade of 56 cpht), and targets for further exploration outside of the Mineral Resource statement have been estimated at between 23.5 and 48.5 Mcarats (55.1 to 75.5 Mtonnes at grades ranging from 23 to 188 cpht). Within this resource inventory, Renard 65 contains an Inferred Mineral Resource of 3.7 Mcarats (representing 12.9 mtonnes at an average grade of 29 cpht) to a depth of 290m, with an exploration potential estimated at between 6.8 and 13.7 Mcarats (29.5 to 41.6 Mtonnes at between 23 and 33 cpht) from 290m to 775m in depth.

The reader is cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. In addition, the potential quantity and grade of any exploration target is conceptual in nature, and it is uncertain if further exploration will result in it being delineated as a mineral resource.

About the Renard Diamond Project

The Renard Diamond Project is located approximately 250 km north of the Cree community of Mistissini and 350 km north of the communities of Chibougamau and Chapais in the James Bay region of North-Central Québec. In November 2011, Stornoway released the results of a Feasibility Study for Renard that highlighted the potential of the project to become a significant producer of high value rough diamonds over a long mine life. NI 43-101 compliant Probable Mineral Reserves stand at 18.0 million carats, with a further 17.5 million carats classified as Inferred Mineral Resources, and 23.5 to 48.5 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at C$802 million, with a life of mine operating cost of C$54.71/tonne giving a 68% operating margin over an initial 11 year mine life. Production start-up is scheduled for 2015. In March 2012 Stornoway entered into the Mecheshoo Agreement with the Cree Nation of Mistissini and the Grand Council of the Crees (Eeyou Itschee) in respect to the Renard Diamond Project, and joined Chibougamau and Chapais in a Declaration of Partnership in July 2012. Readers are referred to the technical report dated December 29, 2011 for further details and assumptions relating to the project.

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From: Rob J237/24/2012 7:53:41 AM
   of 4690
 
Red Eagle Mining (RD.V) Intercepts 11.4 Metres at 16.04 Grams Gold Per Tonne at Santa Rosa

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 24, 2012) -Red Eagle Mining Corporation (TSX VENTURE:RD)(OTCQX:RDEMF) is pleased to announce additional assay results received from the 24 hole, 5,400m phase two core drill program at the San Ramon gold system located within the Santa Rosa gold project in Colombia. The additional results show strong gold mineralisation over significant intervals, with the most significant intercept being in hole SR-060 of 11.4 metres at 16.04 grams gold per tonne, including 2.0 metres at 30.73 grams gold per tonne and 3.5 metres at 29.29 grams gold per tonne. Hole SR-060 was collared 180 metres to the west of hole SR-053 which intercepted 7.0 metres at 41.53 grams gold per tonne (news release dated July 9, 2012: redeaglemining.com and 480 metres to the west of hole SR-042 which intercepted 6.0 metres at 31.85 grams gold per tonne (news release dated June 13, 2012: ). However, encouragingly, hole SR-060 intercepted high grade mineralisation at a slightly shallower depth (approximately 130-140 metres) which will significantly enhance open pit evaluations.
Table 1 - San Ramon Drill Intercepts
Hole ID From
(m)
To
(m)
Interval
(m)
Au
(g/t)
SR-056 65.5 66.0 0.5 1.01
128.5 147.1 18.6 1.52
incl. 145.1 147.1 2.0 7.61
SR-057 64.2 75.8 11.6 2.87
89.4 91.4 2.0 1.77
SR-058 106.7 107.7 1.0 5.91
125.1 133.0 7.9 2.21
incl. 131.1 131.6 0.5 17.80
SR-059 274.9 284.6 9.7 0.79
SR-060 143.3 154.7 11.4 16.04
incl. 143.3 145.3 2.0 30.73
incl. 151.2 154.7 3.5 29.29
197.3 205.5 8.2 2.29
incl. 204.5 205.5 1.0 15.10
217.5 218.5 1.0 3.43
SR-061 93.0 96.0 3.0 0.88
180.0 187.5 7.5 1.75
incl. 185.1 185.6 0.5 20.70
195.5 196.2 0.7 3.70
Table 1 summarizes the latest significant (+0.20 g/t) uncut gold intercepts from phase two core drill holes SR-056 to SR-061 (see Figure 1 - Drill Hole Plan: redeaglemining.com and Figure 2 - Long Section: redeaglemining.com. True widths are estimated to be 70-90% of the intercepts and vertical depths are estimated to be 70-90% of the drilled depths reported below. Internal dilution within intercepts is limited to the inclusion of runs of no more than 6m below cut-off. For pictures of the drill core see Red Eagle's photostream on flickr (http://www.flickr.com/photos/redeaglemining/sets/). Assays have now been received for 20 holes with assays pending on 4 holes (SR-062 to SR-065) from phase two and 14 holes (SR-066 to SR-079) from phase 3.

"Our phase two drilling at San Ramon continues to deliver outstanding results. The significant increase in grade is encouraging as we move forward to resource and mining (open pit and underground) evaluations," comments Ian Slater, Chief Executive Officer. "Drilling and metallurgical results will be released when received on a regular basis. We are also looking forward to commencing environmental base line studies shortly and completing an initial NI 43-101 resource report by the end of 2012."

The San Ramon structure trends east-west, dips 60°-70° to the north, extends over 1,800m, is up to 60m in width and is exposed at surface. Wide-spaced discovery drilling intercepts from phase one averaged approximately 1.2 g/t Au to a vertical depth of over 250m. The mineralisation extends to surface where channel sampling has also averaged approximately 1 g/t Au. The 2012 work program for San Ramon includes the phase two core drill program (24 holes totaling 5,400m), a phase three core drill program in the near surface oxides over the entire known gold mineralisation which commenced in June (14 holes totaling 1,035m completed to date out of a 5,000m programme), preparation of a NI 43-101 resource and a preliminary metallurgical test work programme.

Table 2 - Drill Hole Specifications
Hole Easting Northing Elevation
(m)
Azimuth Dip EOH
(m)
SR-056 856804 1223264 2475 180 -75 216
SR-057 856583 1223279 2465 180 -45 111
SR-058 856583 1223279 2465 180 -75 194
SR-059 857232 1223325 2486 180 -75 321
SR-060 857313 1223269 2510 180 -90 235
SR-061 856965 1223269 2538 175 -75 214
Quality Control and Assurance (QC/QA)

All drill samples were collected with diamond core drill rigs using approximately one metre sample intervals and following standard industry practice. Acme Analytical Laboratories prepped and screened samples in Medellin, Colombia and assayed samples in Santiago, Chile. Gold values were determined by fire assay of a 30g charge with an AA finish, or if over 10 g/t Au, were re-assayed and completed with a gravimetric finish. QC/QA included the insertion and continual monitoring of standards and blanks into 10% of the sample stream batches, along with check assays conducted at alternate accredited laboratories.

The scientific and technical information contained in this news release has been reviewed and approved by Michael Johnson P.Geo., who is a "Qualified Person" as defined under National Instrument 43-101.

About Red Eagle Mining

Red Eagle Mining Corporation is a well-financed gold exploration and development company with an experienced exploration and management team. Red Eagle Mining is currently exploring two gold properties in Colombia, Santa Rosa and Pavo Real. Santa Rosa is an intrusive hosted structurally-controlled quartz stockwork system within the prolific Cretaceous Antioquia Batholith. Gold mining within the Santa Rosa project pre-dates the 16th century when an estimated 30 million tonnes were mined. Santa Rosa is located 70km north of Medellin near the town of Santa Rosa de Osos in a region characterized by gently rolling hills and excellent infrastructure. Santa Rosa is also located 50km west of AngloGold Ashanti's Gramalote gold deposit (2.5 millionounce M&I resource grading 0.8 g/t Au) and 60km east of Continental Gold's Buritica gold deposit (630,000 ounce M&I resource grading 17.8 g/t Au). Pavo Real is an extensive project within the Mid-Cauca gold belt containing both a sedimentary hosted gold system and a 15km long copper/gold/silver skarn formation hosting significant high grade brownfield mines. For further information on Red Eagle Mining please refer to our website www.redeaglemining.com.

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From: PaperPerson7/25/2012 8:50:56 AM
   of 4690
 
Anybody know anything about this deposit? Will there be permitting problems???

Spanish Mountain Updates Main Zone Resource Estimate
Tuesday, July 24, 2012 2:33 PM

Spanish mountain Gold Ltd. (TSX:SPA) updated its gold and silver resource estimates in the Main Zone at its wholly owned Spanish Mountain Gold Project, located in central British Columbia. Measured and indicated gold ounces now stand at 2.54 million ounces of gold and 2.95 million ounces of silver while inferred gold ounces now total 2.32 million ounces gold and 3.18 million ounces silver, the company says. “The company will now focus completely on the timely completion of a pre-feasibility study for this zone," says Brian Groves, president and chief executive officer of Spanish Mountain. The updated resource was based on all drill data, including data from 24,000 meters of in-fill drilling program completed by the company within the Main Zone during the first half of 2012, the company says. Spanish Mountain is a Canadian-based exploration company focused on its flagship Spanish Mountain project.

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From: PaperPerson7/26/2012 1:26:26 AM
   of 4690
 
Comstock Metals' Yukon Gold Discovery 3.74 grams per tonne gold over 75 metres

July 25, 2012
Highlights

3.74 grams/tonne gold (g/t Au) over the entire 75 m length of QVTR12-06
0.85 g/t Au over 45 m in QVTR12-03 205 m along strike of QVTR12-06
mineralization consists of quartz veins, stockwork, silicification and weak brecciation, accompanied by minor pyrite
a minimum 265 m strike extent for the gold-bearing structure–Northeasterly (070°-075°) gold trend is consistent with other deposit(s) in the district
in comparison, initial trench results of Kinross Gold Corporation’s White Gold deposit, 15 km to the south of the QV, returned 1.3 g/t Au over 37.5 m from the Golden Saddle zone; initial trench results from the Coffee Project of Kaminak Gold Corporation included 2.3 g/t Au over 21.0 m and 11.45 g/t Au over 5.0 m


July 25, 2012, Vancouver, BC – Comstock Metals Ltd. (TSX-V:CSL) (the "Company") is pleased to announce initial results from its trenching programme on the QV Project located in the heart of the White Gold district, Yukon Territory. Results for three out of six trenches on the QV Grid have been received; the balance are pending. The six trenches were excavated by Talus Exploration Inc. of Dawson City, using a Candig mini-excavator.

The discovery trench, QVTR12-06, assays 3.74 g/t Au over 75 m (entire length of the trench), with a maximum grade of 7.31 g/t Au over 5 m and a minimum grade of 1.41 g/t Au over 5 m. The gold mineralization is open on all sides of QVTR12-06.

For more details on the 2012 Trenching program, please refer to the following link:
comstock-metals.com

Sampling was completed by GroundTruth Exploration Inc., also of Dawson City, under the direction of Jean Pautler, P.Geo.

About Comstock Metals Ltd.

Comstock has optioned 494 claims covering 10,374 hectares (25,634 acres) within the prolific White Gold District in the Yukon Territory about 70 kilometres south of Dawson City. The claims were optioned from Shawn Ryan, a Yukon-based prospector responsible for the discovery of two of the prominent gold discoveries in the White Gold district: Kinross Gold’s 1.5 million ounce Golden Saddle deposit and Kaminak Gold’s Coffee projects. The Company has completed two soil-sampling programs on the QV property with encouraging results.

The Company is also earning a 75% interest on the Corona project by an option agreement from Golden Goliath Resources (GNG). Comstock’s Corona Gold-Silver project is located in the prolific Sierra Madre Occidentale in Chihuahua, Mexico, and the Company completed a drill program in the spring of 2012. The drill program discovered two new zones of gold and silver mineralization. Please visit the Company’s website at comstock-metals.com for the details. Previous reverse circulation drilling identified both bulk tonnage and high-grade vein type gold/silver targets, some of which the Company plans to diamond-drill.
For the Corona Gold Silver Project location please visit the following link: comstock-metals.com

To learn more please visit the Company’s website at: www.comstock-metals.com

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From: PaperPerson7/26/2012 8:19:27 AM
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Gold steadies above $1,600 per ounce as euro, stocks softenThu Jul 26, 2012 3:38pm IST

By Jan Harvey

LONDON (Reuters) - Gold prices steadied above $1,600 an ounce on Thursday, taking a breather after posting their biggest one-day rise since late June the previous day, as a dip in the euro versus the dollar and a weaker tone to stocks took the heat out of its rally.

The metal benefited on Wednesday from gains in the euro on speculation the euro zone's bailout fund could be given access to central bank money, and as weak U.S. data prompted fresh talk that more monetary easing could emerge later this year.

It rallied 1.5 percent, its strongest one-day performance in nearly four weeks, but failed to maintain those gains on Thursday as downbeat corporate earnings weighed on European shares, and the euro eased on persistent worries about the possibility of Spain applying for a full bailout. .EU

"Yesterday's move above $1,600 an ounce was driven by more positive sentiment towards gold on the back of growing anticipation for QE," BNP Paribas analyst Anne-Laure Tremblay said.

"Short term, the gold price remains however vulnerable to a retracement, particularly in a context of high uncertainty in the euro zone."

Spot gold was at $1,603.34 an ounce at 0946 GMT against $1,603.88 late on Wednesday, while U.S. gold futures for August delivery were down $5.80 an ounce at $1,602.30.

Gold priced in euros outperformed, rising 0.2 percent to 1,321.74 euros an ounce, close to a five-month high.

Gold options expiry takes place on Comex later in the day, with the bulk of call options -- which give the holder the right, but not the obligation, to buy -- at $1,600.

Speculation the Federal Reserve will unleash another round of monetary easing this year has been the chief support to gold prices in recent months, after a spate of lackluster U.S. data.

Such a move would maintain pressure on long-term interest rates, keeping the opportunity cost of holding gold at rock bottom, and would likely weigh on the dollar, stoking demand for the metal as an alternative store of value.

HSBC analyst Jim Steel said that gold may take its next cue from second-quarter U.S. GDP data on Friday, with the bank flagging up expectations for a growth rate of 1.1 percent.

"If the growth rate... is nearer to 1.0 percent... the FOMC may move closer to a decision to provide even more monetary stimulus in the weeks and months ahead," he said in a note.

"Gold has shown itself sensitive to monetary policy announcements this year and any indication of further easing would buoy gold prices."

SELLING IN ASIA

A rally in gold prices prompted some selling in Asia's physical gold market, but market participants feared the price rise would lose momentum as policy uncertainty keeps sentiment brittle.

The world's largest gold-backed exchange-traded fund, which issues securities backed by physical precious metal, reported a 2.1 metric ton outflow on Wednesday. The fund saw its biggest weekly outflow of physical metal this year last week.

Among other precious metals, silver was down 0.1 percent at $27.30 an ounce, while spot platinum was up 0.4 percent at $1,396.99 an ounce and spot palladium was up 0.1 percent at $562.49 an ounce.

Platinum miner Lonmin ( LMI.L) said on Thursday it had slashed spending plans up to 2014 in order to preserve cash, as it warned poor demand and weak prices battering the sector could persist for longer than expected.

South African platinum miners have been hit this year by a combination of rising costs, labor unrest and weak metals prices. However, analysts say it will be tough for them to cut production in a country where unemployment is rife and mining unions hold great sway.

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From: Rob J237/26/2012 2:39:00 PM
   of 4690
 
Laurentian Goldfields Signs $1,500,000 Strategic Exploration Alliance Agreement With Antofagasta Minerals

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 26, 2012) -Laurentian Goldfields Ltd. (TSX VENTURE:LGF) ("Laurentian") is pleased to announce it has signed a US$1,500,000, two year strategic exploration alliance (the "Alliance") with Antofagasta Minerals S.A., a wholly owned subsidiary of Antofagasta plc ("Antofagasta") for generative copper exploration in southern Quebec, Canada. The Alliance will utilize Laurentian's extensive technical and exploration expertise as a project generator to identify copper properties for acquisition in specific target areas of Quebec. Exploration work will be guided through the establishment of a joint Technical Committee with Laurentian acting as Operator.

"We are very excited to partner with Antofagasta and begin exploration work in Quebec," states Darin Labrenz, P.Geo., President and CEO of Laurentian. "Antofagasta is one of the world's largest copper producers, with a proven track record of exploration and development of copper deposits around the world. The Alliance is a solid endorsement of Laurentian's exploration team and technical expertise, and will expose Laurentian shareholders to numerous discovery and development opportunities in Quebec."

Copper exploration and/or development opportunities acquired by the Alliance will become Designated Properties, and will have a deemed interest of 51% and 49% for Antofagasta and Laurentian respectively. Antofagasta can increase its interest in any Designated Property to 65% by completing US$5,000,000 in exploration over four years and thereafter electing to form a Joint Venture with a one-time cash payment of US$1,000,000 to Laurentian.

In the event that Antofagasta declines to exercise its option to earn 65% in a Designated Property, the interest will remain at 51% and 49% for Antofagasta and Laurentian respectively, with Laurentian maintaining control and management of the project.

The strategic exploration alliance is focused primarily on copper. If a property is declined as a Designated Property, Laurentian is free to advance that property on its own terms outside of the Alliance, with no further obligation to Antofagasta.

About Laurentian Goldfields Ltd.

Laurentian is a team of highly skilled exploration professionals focused on the acquisition, exploration and development of high quality gold properties in Canada. The Company advances its prospective projects through the use of its internal technical team, extensive network of exploration industry specialists and by engaging the financial support of major mining companies through exploration alliances and joint venture agreements. Laurentian is committed to increasing shareholder value through the identification and acquisition of new exploration opportunities and the advancement and growth of its current portfolio of projects

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From: PaperPerson7/28/2012 9:27:07 AM
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U.S. Silver Corp says evaluating Hecla's C$110.7 mln hostile bidJULY 26 | Thu Jul 26, 2012 7:48am EDT

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July 26 (Reuters) - U.S. Silver Corp, which has agreed to be bought by RX Gold & Silver Inc, said it was evaluating a hostile offer from Hecla Mining Co.

Hecla on Wednesday made an all-cash offer of C$110.7 million ($108.59 million) for U.S. Silver. Hecla said its C$1.80-per-share offer was better than the "imputed offer price" of C$1.41 under the RX Proposal.

"The combination agreement between U.S. Silver and RX Gold will remain in effect unless terminated by either party in accordance with its terms," U.S. Silver said in a statement on Thursday.


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From: PaperPerson7/29/2012 1:22:45 PM
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Acquisition Speculation Increases in the Junior Gold Mining Industry After Yamana's Purchase

finance.yahoo.com

Five Star Equities Provides Stock Research on Kinross Gold and AuRico Gold
Press Release: Five Star Equities – Tue, Jul 17, 2012 8:20 AM EDT

K.TO 8.54 +0.05

NEW YORK, NY--(Marketwire -07/17/12)- Junior Miners have been hit hard in 2012 as gold prices have struggled to gain any upward momentum in 2012. The Market Vectors Junior Gold Miners ETF (GDXJ) has fallen over 25 percent year-to-date. The industry has been a hotbed of acquisition speculation in recent weeks after Yamana Gold announced it had acquired Extorre Gold Mines Ltd. for $414 million, or $4.26 a share (a 68% premium). Five Star Equities examines the outlook for companies in the Gold Industry and provides equity research on Kinross Gold Corporation (KGC) (K.TO) and AuRico Gold Inc. (AUQ) (AUQ.TO).
Access to the full company reports can be found at:
www.FiveStarEquities.com/KGC

www.FiveStarEquities.com/AUQ

Junior miners with quality mining projects have been attractive targets for major gold companies in 2012, as many juniors have seen share prices plummet due to poor market conditions. While Yamana Gold did pay a 68 percent premium, shares of Extorre were trading as high as $15 last July. Yamana had been
"Part of it was market conditions, and part of it is the coincidence that we completed our due diligence and came to the conclusion that there was value in the asset and value in the purchase," Yamana chief executive Peter Marrone said in an interview.
Five Star Equities releases regular market updates on the Gold Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.FiveStarEquities.com and get exclusive access to our numerous stock reports and industry newsletters.
Kinross Gold recently announced that it has completed the sale of its 50 percent interest in the Crixás (Serra Grande) gold mine in Brazil to an affiliate of AngloGold Ashanti for gross cash proceeds of US$220 million. The company is scheduled to release its financial statements and operating results for the second quarter of 2012 on Wednesday, August 8, 2012, after market close. Shares of Kinross are down over 27 percent year-to-date.
Endeavour Silver Corp. and AuRico Gold recently announced that they have completed the acquisition by Endeavour of 100% interests in AuRico Gold's El Cubo silver-gold mine in Guanajuato State, Mexico and the Guadalupe y Calvo silver-gold exploration project in Chihuahua State, Mexico. Shares of AuRico Gold have fallen over 12 percent in the last three months.

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To: PaperPerson who wrote (4644)7/30/2012 10:17:59 PM
From: PaperPerson
   of 4690
 
UPDATE 2-U.S. Silver asks shareholders to reject Hecla's hostile bid
Tue Jul 31, 2012 6:09am IST

* U.S. Silver needs two-thirds of shares voted to OK deal with RX Gold

* U.S. Silver says open to negotiations with Hecla

July 30 (Reuters) - U.S. Silver Corp urged shareholders to reject Hecla Mining Co's hostile bid, calling it inadequate and highly opportunistic, and asked them to vote in favor of an earlier offer by RX Gold & Silver Inc .

Hecla last week made an all-cash offer of C$110.7 million ($110.07 million) for U.S. Silver, a month after the Canadian company agreed to be bought by RX Gold.

U.S. Silver requires two-thirds of the shares voting at the shareholder meeting to approve its deal with RX Gold, Chief Executive Gordon Pridham told Reuters.

"At this stage in the game about 82 percent of the shares voted are voting in favor of our transaction with RX Gold," Pridham said.

U.S. Silver shareholders have the right to withdraw or amend their vote ahead of the August 7 shareholder meeting.

Pridham, however, has kept the door open for potential negotiations with Hecla if the company were to return with a revised offer.

"At C$1.80 per share we don't think the Hecla offer is of interest to us. Were they to come back and want to have discussions at a different price level or on some different basis and consideration, of course we would have a look at that."

Hecla last week said its offer was superior to the "imputed offer price" of C$1.41 under the RX proposal.

Hecla, in a separate statement on Monday, urged U.S. Silver shareholders to vote against the RX Gold transaction.

"If your board won't protect your right to evaluate the all-cash offer from Hecla ...,it is time to take matters into your own hands," Hecla Chief Executive Phillips Baker said.

Hecla shares closed down 0.6 percent at $4.62 on the New York Stock Exchange. RX Gold shares rose 1.9 percent to 27.5 Canadian cents on the Toronto Venture Exchange.

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