Morning Briefing: Teck Rejects Unsolicited Acquisition Bid from Glencore

Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.

Today is Monday April 3rd.

Last week gold was unchanged for the week. After a couple attempts to break above $2,000 per ounce, the Mining Stock Journal concluded that the price management team will make an aggressive effort to cap the gold price at $2,000 by taking advantage of gold's technically overbought condition per the RSI and MACD. Silver, on the other hand, rose 73 cents, or 3.4% for the week. While both attempts to break out over $24 per ounce were swatted down by the banks, which is evidenced by the jump in the silver short position of the Comex banks per the Commitment of Traders report, the Mining Stock Journal is of the opinion that the task of managing the price of silver will be more formidable than that of gold. This is because silver is in demand both for its industrial uses - notably the green revolution applications - as well as for its monetary metal, fiat-currency hedge purposes. That said, the Mining Stock Journal is expecting a period of consolidation and two-way price volatility after the near-parabolic move in the precious metals sector during March. 

The mining stocks rose 1.7% last week, likely on the basis of the strong move in silver. But, as with gold, the Mining Stock Journal would not be surprised if the miners endure a short period of high two-way volatility. That said, the newsletter added that it believes the Fed will crank-up the printing press before mid-summer, given that it has already plugged its money printer into the power source. As such, the mining stocks will be considerably higher between now and Labor Day Weekend.

We will get to the news from the miners and explorers in a moment, but first a word about today’s sponsor.

This episode of Mining Stock Daily is brought to you by…Fireweed Metals.

Fireweed Metals is advancing 3 different projects within the Yukon and Northwest Territories, including the flagship Macmillan Pass Project, a large zinc-lead-silver deposit and the Mactung Project, one of the largest and highest-grade tungsten deposits in the world. Fireweed plans to advance these projects through exploration, resource definition, metallurgy, engineering, economic studies and collaboration with indigenous people on the path to production. For more information please visit fireweedmetals.com.

And here’s what you need to know this morning….

Teck Resources received and rejected an all-share acquisition proposal from Glencore.  “The Glencore proposal would expose Teck shareholders to a large thermal coal business, an oil trading business and significant jurisdictional risk, all of which would negatively impact the value potential of Teck’s business, is contrary to our ESG commitments and would transfer significant value to Glencore at the expense of Teck shareholders,” said Teck. The unsolicited proposal contemplates an all-share acquisition of Teck by Glencore offering 7.78 Glencore shares for each Teck Class B subordinate voting share and 12.73 Glencore shares for each Teck Class A common share, which represented a 20% premium for both on the date of the offer. The proposal includes an intention to proceed with the demerger of the thermal and metallurgical coal as well as the ferro-alloy operations into a new publicly traded company. The remaining company would include Glencore’s and Teck’s base metals operations as well as Glencore’s oil and other commodity trading business. Meanwhile Teck’s Quebrada Blanca 2 (QB2) project has just produced its first copper concentrate. News release

Arizona Sonoran Copper received the Mined Land Reclamation Permit from the Arizona State Mine Inspector’s Office for the Cactus copper project in Arizona. The MLRP is the primary financial assurance document requiring the operator to bond for the full reclamation of the property after mining operations have concluded. The MLRP is a state-level permitting process that governs mine sites and ensures measures will be taken to achieve stability and safety, consistent with post-mining land use objectives specified in the reclamation plan. Arizona Sonoran Copper Company (TSX:ASCU | OTCQX:ASCUF) news release

Perpetua Resources said the U.S. Forest Service published an updated permitting schedule for its Stibnite Gold Project in Idaho showing it is on track for a Final EIS and Draft Record of Decision by year-end 2023. The SDEIS comment period ended in January, and the company’s mine plan was identified as the preferred alternative. The Forest Service’s timeline for the remaining steps includes a Final Record of Decision in early 2024. Perpetua has received U.S. Department of Defense funding under the Defense Production Act of up to $24.8 million, with the first reimbursement received earlier this year. Perpetua Resources TSX PPTA News release

Heliostar Metals provided a detailed plan for the re-scoping of the Ana Paula gold deposit. The company says this re-scope will target an improved financial outcome through an increase in the reserves and resources of the project and incorporation of underground mining and simplification of the mill flowsheet. The re-scoping will be focused on the High-Grade Panel at the core of the Ana Paula Deposit and is anticipated to be completed over the next six months with an updated resource late in 2023. The company says the re-scoping work will include up to 3,600m of drilling to commence this month with first drill results expected by the end of May and to continue into Q3. Historic drill results from Ana Paula highlighted in the press release this morning included 231m of 7.5 g/t gold, 120.8m of 11.2 g/t and 81.1m of 14.5 g/t. Heliostar Metals trades on the TSXV with HStr and on the OTCQX with HSTXF. News Release

Tribeca Resources Corporation announced results from two 250m step-out drill holes, adding 500m of additional strike length for a total of 1km to its Gaby target at the La Higuera iron oxide copper-gold (IOCG) project, in the Coquimbo region of Chile. Highlights included 264m @ 0.31% copper & 0.06 g/t gold, including 44m @ 0.52% copper & 0.10 g/t gold in hole 7. Tribeca Resources Corporation (TSXV: TRBC)  news release

FPX Nickel announced it has entered into a Global Generative Exploration Alliance withJapan Organization for Metals and Energy Security, or JGOMEC. The purpose of the Generative Alliance, which will be solely funded by JOGMEC, is to carry out worldwide mineral exploration activities for the identification and acquisition of high-quality properties which are prospective for the same style of awaruite nickel mineralization as contained at the Company's flagship Baptiste Nickel Project in central British Columbia. JOGMEC will solely fund the Generative Alliance's exploration activities over the next two years while FPX will be the initial operator and while earning a fee for their work. FPX trades on the TSXV with FPX and on the OTCQB with FPOCF. News Release

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