11-04-2015, 09:00 AM
A couple of hours ago, nearly 6% of AXG was traded on the TSX, 630,000 shares from a total of over 10mill, at C 2.5c, valuing the company at C$264,000 odd.
Doesn't look like the market is too impressed with the deal being discussed.
18-04-2015, 08:58 PM
Aorere Resources has a page showing the press releases from CRP, AOR and AXG around 1st April.
There have not been any great changes in the share prices of these companies, well not upwards, anyway, since. I like to read between the lines a bit, this is a new habit that I've picked up after having been delivered a few lessons.
AOR will need to hand over $200,000 in cash, which they'll come up with by selling one or more assets. Then they'll also provide $800,000 "worth" of AOR shares to AXG, for the GENZL company assets. I'm fairly sure AXG owes quite a bit more than $200k at the moment, which means they'll sell these shares on market to realise cash, or they'll try and palm off most of the shares in lieu of payment. The last time someone exchanged GEL shares for debts over on the TSX, it caused a major crash in the price. Since AOR is only worth just north of $1.2mill on paper at the moment, guess what will happen to the shareprice. This could all happen around about August 2015, if all goes as they want it to.
It seems to me that all this is being driven by both Simon Henderson and Chris Castle being prepared to take a punt that the Waihi West permit will contain mineable gold, or it being the most likely positive result from all of the current AOR investments. As long as neither of them have to stump up any real initial cash, of course.
It will be the investors in AOR who will need to handle the share dilution and capital raising afterwards, if they have to pay for 40% of the drilling costs, assuming that goes ahead. There was no market frenzy from the Correnso find nearby a few short years ago, as that was all quietly contained within Newmont's offices. They could probably run a few news releases over drilling in Waihi West, or as much as Newmont lets them do.
But this all seems a lot of mucking about, when Newmont could just take over the whole permit and WKP for a sensible amount, let AXG sort out its horrible debts, and then maybe AXG could help CRP with a reverse takeover, only this time AXG would have a bit more of an interest in the final concern.
Note: this leaves AOR out of the picture. But as Chris Castle said, this whole deal is being set up to help CRP. Yeah right.
26-04-2015, 08:59 PM
Here's a part of the Eastender update from Newmont posted on GoldFM by 8th April.
Kit Wilson was asked:
The Waihi Central School is directly opposite the main offices of Newmont, and while Newmont have the permit under their building 100%, AXG has a share in 40767 going down Moresby Ave around there. What the questioner referred to was probably the changes for the school if the West Layback was proceeded with. Newmont would have extended the reach of the Martha pit right beside the school, following some known veins from the pit. In view of Correnso, they've changed their ideas since then, they're keener on underground mining at depth. Savage Road joins Moresby Ave just north of there, and heads roughly northwards.
*Is more information available about exploration permit 40767? What has been found? What does the joint venture refer to? People are saying it’s well known that plenty of gold is there because there was a proposal to move Waihi Central School and change the road. It would be good if we can get some clarification.*Kit Wilson said there's not much he can say other than Newmont is drilling from Trio out towards the West into that permit area. The permit is owned by Antipodes Gold and Newmont is paying for the drilling. They have had one hit and Kit Wilson said it's like fishing, they have had one nibble, so there is nothing to clarify in terms of that.
There is one drill rig on the surface north of Savage Road at the moment and Kit Wilson said they are having a look around to see if there is something they should be taking a closer look at before they leave. Newmont is drilling underground because it is less of a hassle. "As soon as we find something, people will know."
Here's what they were talking about in 2007.
Permit 40767 is notched out roughly where those veins come through, Newmont has that immediate area already.
AXG will have to produce the last quarter and annual report by 30th April, or earlier.
Last edited by elZorro; 26-04-2015 at 09:57 PM.
30-04-2015, 01:31 PM
The end of year report is out, will have a look at this later. The big news for today is OGC's offer for the Newmont Waihi assets, at $101mill. They have played this very quietly. I did get the impression that Newmont have better areas elsewhere, and OGC said they were looking for acquisitions in low labour countries. It could be that the latest find in Waihi West helped galvanise an offer, but note the scale of the offer, $280 an ounce for known reserves at the end of an existing tunnel. That's fairly cheap I'd have thought. Good news for the labour force in Waihi, as OGC are talking 10-20 years out, long enough to find some more underground resources.
What will this mean for AXG? OCG have deep pockets just like Newmont, so the $1mill AOR is talking about ($200k cash), might not be enough to stave off OGC taking AXG's share out of the picture in Waihi West, long before shares have to change hands. I don't think AXG has any kind of a relationship with OGC, there was certainly something with Newmont. GEL had that big permit right beside Macraes mine in Otago, but had to drop it before anything was done about it (nothing that was reported).
Again, this is a big surprise.
30-04-2015, 01:48 PM
I had a quick look at the annual report. Uninspiring, as I'd thought it would be. The auditors didn't feel that they could pass an opinion on the books, not enough questions answered. No funds raised, but the directors did see fit to stump up $10,000 each (all in, lads!) for which they'll receive shares. One of the Drybread/Gunclub/McAdies landowners has sued for $300k damages to his property, in December 2014. We hear about this now? Typical.
Another comment towards the rear of the MDA:
Can a publicly listed company go belly-up? $400k odd has been dropped off the overdue debt loading somehow, maybe some creditors have written their debts off. No detail about if Newmont/OGC can just take over the JV permit shares in exchange for payment.
On 1 April 2015, the Company announced an intention to restructure the Company by means of two transactions, being the sale of the Company's gold assets and a change of business by means of a Reverse Takeover of a phosphate company. The planning of these transactions is at an early stage and subject to a number of conditions. There is no certainty that these transactions will be concluded. Company.
The failure to conclude these transactions could result in the collapse and/or bankruptcy of the
Last edited by elZorro; 01-05-2015 at 06:58 AM.
01-05-2015, 07:13 AM
NZ Resources story for today, mentions AXG at the bottom. I think the reporter got the 30% a bit wrong, on paper AXG owns 50% of Waihi West permit for the moment, and 35% of WKP. But Newmont, and then OGC, hold first right of refusal to allow AXG to transfer these assets to AOR.
OGC say they'll spend about $5mill p.a. on exploration including near-pit veins (like those at Waihi West). I don't think that sort of spending would stretch to much WKP work, it must be on the back-burner in their current plans. But miners do seem to change their minds often.
AXG shares untouched overnight, OGC shares held about even, bigger than normal volume.
Mind you, the official Newmont story is that the net smelter royalty applies to a recent discovery north of the current Waihi operations. The amount of gold (300,000oz) also lines up with the 43-101 report on WKP for about the same, defined within the few closely spaced drills. It would defray some of Newmont's costs there. Note: OGC say the permit is in fact Waihi North, wholly Newmont owned at the moment, probably exploration drilled into, from the Martha pit. No detail.
1/5/2015 — Gold
OceanaGold to acquire Newmont’s Waihi operations
By Simon Hartley
New Zealand’s premier gold miner OceanaGold Corporation (ASX, NZX & TSX: OGC) plans to purchase its only hard rock gold mining competitor in New Zealand – the North Island operations of Newmont Mining Corporation at Waihi at the base of the Coromandel Peninsula.
The agreement is for OceanaGold to purchase the Waihi leases for $US101 million ($NZ132.3 M) which may prove to be a lifeline for OceanaGold’s operations to continue at Macraes for several years.
The combined operations will this year employ about 1,000 staff in NZ, with overall gold production next calendar year potentially well beyond 400,000 ounces; including OceanaGold’s Philippines contributions.
In the face of rising costs and gold price volatility, OceanaGold recently shed almost 300 staff and contracting jobs from Macraes in Otago, and at Reefton on the West Coast, as part of a $100 M efficiency drive following the gold price nosedive.
OceanaGold’s chief executive Mick Wilkes said Waihi represented a unique opportunity to acquire a high-quality asset which had demonstrated an ability to repeatedly extend its mine life in the past 27 years “in what is still a very prospective, high-quality goldfield.”
“We've long believed that Waihi represents a strong strategic fit within OceanaGold. We're excited about the prospect of acquiring it and welcoming its experienced workforce to our team,” he said.
Wilkes said there would be several synergies from the acquisition, including underground mine management, expertise and experience, equipment and procurement from suppliers.
The purchase is subject to gaining regulatory approvals and will be paid for from a mix of cash reserves and drawing down of existing debt facilities - the acquisition to contribute to OceanaGold's balance sheet from July 1.
The Frasers underground mine in East Otago recently got a mine life reprieve, being extended out to 2016 and the open pit operations may also yet be extended beyond 2017, but a cloud still hangs over Reefton operations.
When asked, Wilkes said the Waihi acquisition would not offset the planned mothballing of the Reefton open pit operations, at the end of 2015.
Each mine in OceanaGold's expanding portfolio had to justify its production costs, Wilkes noting he “didn't expect any significant long term recovery,'' in the price of gold, which has undermined Reefton's viability for the past two years.
All operations at Waihi were expected to continue as “business as usual,” with its gold continuing to be smelted into rough “dore” bars, for export and minting.
Wilkes said a review of operations would take place after the June, with expectations the workforce would be unchanged and capital expenditure, such as that on developing the underground Correnso mine, would be financially backed by OceanaGold.
Exploration spending above and below ground would continue at Waihi, at around $5 M per annum, which would include gold veins near the old, at present closed, Martha pit.
Wilkes had set a “cut off” selling price of about $US1,250/oz for New Zealand operations in March, and said yesterday that this rule of thumb was unchanged. However, he believed Waihi's overall cost of production could reduce overall NZ operation costs in the future.
Newmont operating subsidiary Newmont Waihi Gold has a staff of 340 from operations that were acquired early in 2002 when the American gold giant acquired Australia’s then biggest gold miner Normandy Mining Ltd, beating South Africa’s AngloGold Ashanti to the punch.
Soon after that acquisition, Newmont courted at least two Canadian junior gold miners interested in buying the Waihi operation, considered by some Newmont executives then as too small to retain.
However, Newmont had a change of mind and retained the operations and invested strongly in maintaining the community relations that Normandy had fostered in Waihi.
The flagship remained the Martha open cut mine which had been developed in 1988 over the historic Martha underground workings which had closed in the early 1950s. Newmont Waihi Gold went on to develop the Favona and Trio underground mines and, with these now closed, is developing the Correnso underground mine from near the Martha pit, which suffered a wall slip recently and has been temporarily closed.
Waihi has been producing up to 100,000 oz of gold and about three times more silver through in 2014 output was reportedly about 131,500 oz gold and 482,000 oz silver.
The acquisition may queer the pitch for struggling junior explorer Antipodes Gold Ltd (TSX-V & NZAX: AXG) which has two joint ventures with Newmont in the Waihi district and is planning to undergo a restructuring linked to Aorere Resources Ltd (NZX: AOR).
The plan is for Antipodes to undertake a reverse takeover of AOR associated company Chatham Rock Phosphate Ltd (NZAX: CRP) and an attraction for that company is that the Antipodes link (nominally to change its name to Antipodes Phosphate) would provide a Toronto venture exchange listing.
Antipodes plans to sell its Waihi assets – 30% of Waihi West near the Correnso development and the WPK joint venture prospect further away where a large epithermal system has been outlined by Newmont to Aorere.
Antipodes still owes for some of the recent exploration commitments to Newmont which would have a first right of refusal should Antipodes change its colours. That then brings OceanaGold into the corporate chess game.
- additional reporting by Ross Louthean
*Simon Hartley is senior business reporter and assistant chief reporter for the Otago Daily Times.
Maybe OGC is having a think about WKP longer term.
AXG's MD&A for end of 2014. https://www.nzx.com/files/attachments/212120.pdf
See the financial report and the auditor's statements: I don't think they are impressed with the hoops AOR and CRP would need to go though to make the deal work. Maybe AXG is destined to be in the CRaPor.
Last edited by elZorro; 07-05-2015 at 06:42 AM.
25-05-2015, 07:37 AM
There has been a bit of work on the Antipodes website too: the annual report has been posted to the financial page.
25/5/2015 — Gold
Antipodes advances deal with Chatham Rock
By Ross Louthean
A formal loan agreement between troubled gold explorer Antipodes Gold Ltd (TSX-V & NZAX: ASG) and Chatham Rock Phosphate Ltd (NZAX: CRP) has progressed.
Subject to approval of shareholders of both companies and regulatory authorities, the companies plan a corporate merry-go-round.
Under this agreement, CRP will make an interest-free, unsecured loan to Antipodes for it to meet its share of the transaction costs, and to cover interim general expenditure.
Antipodes was now preparing to lodge relevant initial documents with the TSX Venture Exchange (TSX-V). The dual listed company plans to sell its New Zealand subsidiary, containing its business assets, to Aorere Resources Ltd (NZX: AOR) – a company associated with Chatham Rock Phosphate.
Antipodes is a partner with Newmont Mining Corporation’s subsidiary Newmont Waihi Gold in the Waihi West and WKP gold prospecting joint ventures in the Waihi district.
While Newmont Waihi Gold has a pre-emptive rights relating to these joint ventures there is a new chapter to this exercise as OceanaGold Corporation (TSX, ASX & NZX: OGC) is advancing the purchase of the Newmont Waihi Gold mining assets at Waihi.
So, it becomes a question as to whether the pre-emptive right also moves to OceanaGold. Certainly, Newmont Waihi Gold was patient with cash-tight Antipodes in meeting its financial commitments for drilling on the two joint ventures.
“Unable to raise capital for development of these assets, AXG’s financial position has demanded a restructure to realise the current value of its business assets and remaining company structure,” CRP said late last week.
Should the Waihi joint venture assets be transferred to Aorere, then Antipodes, now a listed shell, would propose undertaking a reverse takeover of CRP by offering new shares to CRP shareholders, winch includes Aorere.
This, CRP said, would leave Antipodes current shareholders with a residual stake in the post-transaction company.
Under the blueprint the Antipodes company may be rebranded Antipodes Phosphate Ltd as it would hold the Chatham Rise seabed phosphate project - recently having its mining consent rejected by the Environmental Protection Authority - and also seabed phosphate deposits off the Namibian coast.
The fact a loan has been made at all, implies there is real value in the TSX listing, perhaps not as a junior gold explorer at the moment, but undersea resources could become increasingly interesting to Canadian investors.
Now the big question is, what value is likely to be involved in the WKP and Waihi West permits, and what are OGC intending to do on this front?
07-06-2015, 10:19 AM
The Antipodes Gold website now has the first quarter report to March 31st. I had a quick look, nothing major seems to have changed except Newmont has now technically earned into 60% of Waihi West, as provided under the current agreement. Meanwhile OGC is going for it with the takeover of Newmont's assets at Waihi, holding the economic benefit from 1st July 2015, and looking to formally complete sometime in the third quarter, which is fast approaching.
Last edited by elZorro; 07-06-2015 at 10:30 AM.
24-06-2015, 07:32 AM
From NZResources: Aorere is still hoping that Newmont won't exercise their pre-emptive rights over WKP or Waihi West permits, but OGC has been implying already that they are part of the deal at Waihi.
24/6/2015 — Gold
Aorere awaits Newmont on pre-emptive rights issue
Shareholders in Aorere Resources Ltd (NZX: AOR) have been told that directors are awaiting to see if Newmont Corporation will use its pre-emptive right on two joint ventures it holds in the Waihi region of the North Island.
Aorere has just released its 2015 annual report in which managing director Chris Castle said that it had made an offer to acquire the two Waihi project interests Antipodes Gold Ltd (TVX-V & NZAX: AXG) holds with Newmont.
Castle said in the report that Newmont was yet to advise whether or not these rights would be exercised.
A corporate roundabout being planned by Aoerere and associated company Chatham Rock Phosphate Ltd (NZAX: CRP) is for Aorere to buy Antipodes interest in the Waihi West and WKP joint ventures it holds with Newmont and for Antipodes to be involved in a reverse takeover of Chatham Rock and to be renamed Antipodes Phosphate.
CRP currently holds the Chatham Rise seabed phosphate project which had its resource consents rejected recently by the NZ Environmental Protection Authority (EPA) and also seabed phosphate permits in Namibia.
Chris Castle said that if Newmont does not exercise a pre-emptive right on Antipodes two Waihi district permits then Aorere “will hold interests in two very interesting, strategically located exploration tenements within shouting distance of the existing mining operation.
“While there will be associated work programme commitments we believe that these should be able to be financed by further equity raises,” he added.
One other interesting piece in this chess game is the fact that OceanaGold Corporation (TSX, ASX & NZX: OGC) has now confirmed it will be taking over Newmont’s Waihi operations and that will include the two exploration joint ventures.
In his report in the annual report, Aorere chairman Dene Biddlecombe said that originally it was hoped this would be a year of investment opportunities for the company.
The company is a major shareholder in Chatham Rock Phosphate but that company’s share price was eroded first by an EPA staff negative report and then by the EPA later rejecting the Chatham Rise resource consents.
He said the impact these had on CRP’s share price significantly reduced the net tangible assets position of Aorere at March 31.
Biddlecombe said the company was also disappointed with the company’s other major investments in Mosman Oil and Gas Ltd (AIM: MSMN).
“Some upside in this investment remains but the current conditions for a petroleum exploration company anywhere in the world are very difficult,” he said.
Aorere’s other investments have mostly remained stable in the past 12 months with Asian Mineral Resources (TSX: AMR) becoming profitable with development of its Ban Phuc nickel project in Vietnam.
Biddlecombe said that should the Antipodes deals go through then the CRP vehicle would have dual listing in Toronto.
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