The Mining Industry Steadily Evolves
Top stories for March 5, 2024:
1. MP Materials Corp. revealed intentions for a private offering of $650 million in 3.00% convertible notes due in 2030 to qualified institutional buyers, allowing initial purchasers the option to acquire up to an additional $97.5 million within 13 days.
This announcement follows a report on Monday whereby the offering amount was escalated from $500 million and is scheduled to conclude on March 7, 2024.
Moreover, the organization strategically engaged in capped call transactions to heighten the conversion premium to 100%, repurchasing 12.3 million shares valued at around $191.6 million and allocated roughly $358.4 million from the proceeds to buy back $400 million of its 2026 convertible notes.
2. Cleveland-Cliffs Inc. decided to magnify its prior $750 million offering to $825 million of senior unsecured guaranteed notes due in 2032.
Notably, the notes are set to be issued at face value and hold annual interest rates of 7%, with the conclusion of the offering slated for March 18, 2024.
The company is resolute in utilizing the proceeds alongside current liquidity to redeem all of its 6.75% Senior Secured Notes due in 2026.
3. Austin Gold successfully wrapped up the initial diamond drilling program at its Stockade Mountain Project in Malheur County, Oregon, completing three holes spanning a total of 2,435.9 feet. The deepest hole reached 736.7 feet.
Subsequently, core samples are presently with an assay lab for testing, with preliminary findings showcasing substantial gold grades, including a peak of 8.19 g/t (grams per ton) gold across four feet.
Austin is gearing up for a reverse circulation drilling program in the coming summer, backed by sufficient funding for the ensuing exploration endeavors. Outcomes from the ongoing assays are anticipated within four to six weeks.
4. Loop Capital analyst Chris Kapsch revised his stance on Compass Minerals Intl. from Buy to Hold, simultaneously lowering the price target from $29 to $26.
5. Golden Minerals Company communicated the unfortunate passing of board member W. Durand Eppler.
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