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Goldcorp $GG Said to Hire Bank of Nova Scotia to Sell Mexican Los Filos Mine

Goldcorp $GG Said to Hire Bank of Nova Scotia to Sell Mexican Los Filos Mine

Reuters reported. Goldcorp engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. The company primarily explores for gold, silver, lead, zinc, and copper. Its principal mining properties include the Red Lake, Porcupine, Musselwhite, and Éléonore mines in Canada; the Peñasquito and Los Filos mines in Mexico; the Marlin mine in Guatemala; the Cerro Negro and Alumbrera mines in Argentina; and the Pueblo Viejo mine in the Dominican Republic. The company was founded in 1954 and is headquartered in Vancouver, Canada. Chief executive David Garofalo told Reuters in late July that Goldcorp was looking at offloading the Mexican mine, as well as weighing options for its Alumbrera mine in Argentina and the Marlin mine in Guatemala. Considered by Goldcorp as a non-core asset, Los Filos is a “smaller scale” mine that lacks economies of scale, he added. Garofalo would not speculate on a sales value for any of the assets but said Goldcorp would be happy to be paid in part in the shares of the acquirer, as happened in 2010 when it sold its Escobal silver deposit to Tahoe Resources Inc. (NYSE: TAHO). Goldcorp acquired a 40 percent stake in Tahoe through that deal. It later sold its stake for around $1 billion. “We like supporting new generation producers like that and we’d be happy to do something like that with any of these assets,” Garofalo told Reuters. The Los Filos operation consists of two open-pit mines – Los Filos and El Bermejal – and one underground mine. The open-pit operation began commercial production in January 2008. Los Filos has proven and probable gold reserves of 1.46 million ounces and 10.55 million ounces of silver, the company reported. Gold production at Los Filos in 2015 totaled 272,900 ounces. During 2015, Los Filos commenced a study to perform a detailed assessment of its operating options, including the update of the block model with additional drill data. The study was completed in the fourth quarter of 2015 and the findings were incorporated into an updated Los Filos life of mine plan. “As a result of these findings and the change in long-term metal price assumptions, recoverable ounces and the associated future after-tax cash flows decreased which resulted in a reduction of the estimated recoverable value of Los Filos and a shortened mine life,” Goldcorp said. Its net asset value was estimated at $617 million in an August RBC Capital Markets report. The mine is now operating under a revised, shorter mine life plan that targets higher grades of gold. Canadian gold miner Torex Gold Resources Inc is seen as a logical buyer because it has a mine about 41 kilometers (25 miles) from Los Filos, the sources said. Several other Canadian and global players with mines in Mexico could also take a look, the sources added. With Torex ramping up its own Guerrero mine, it’s unclear how keen the company is to double down in the region, which has had social and crime issues and the occasional shutdown. “As neighbors with potential synergies, it is almost incumbent upon us to look. We will do so to find out if we should be interested,” Torex CEO Fred Stanford said. Other Canadian gold miners with a presence in Mexico include Yamana Gold, Agnico Eagle Mines, New Gold , Argonaut Gold Inc, Alamos Gold Inc, Timmins Gold Corp, McEwen Mining and Primero Mining Corp. Los Filos gold production is estimated at 328,000 ounces this year and 404,000 ounces in 2017. It is expected to slip to 166,000 ounces in 2020, its final year of operation, RBC analysts have forecast, according to Reuters.]]>

Top Industrial Auctioneer Ritchie Bros $RBA to Acquire VC-Backed IronPlanet for $759M

Top Industrial Auctioneer Ritchie Bros $RBA to Acquire VC-Backed IronPlanet for $759M

Caterpillar said it plans to pursue strategic alternatives, including a possible divestiture for its room and pillar products, which serve a segment of underground soft rock mining customers, as part of a larger restructuring and cost reduction plan. “IronPlanet joining forces with Ritchie Bros. will allow the combined company to deliver a multi-channel marketplace that will provide a full range of equipment asset management and disposition solutions,” said Gregory J. Owens, chairman and chief executive of IronPlanet, who agreed to join the combined company’s executive committee upon closing. Ritchie Bros. said it has secured employment agreements with IronPlanet key executives. Collectively, Ritchie Bros. and IronPlanet (on a pro forma basis) sold more than $3 billion of assets through online transactions during the 12 months trailing June 30, 2016 – ranking the combined business among the world’s top 50 B2B e-commerce companies, based on value sold, according to Ritchie Bros. Ritchie Bros. intends to finance the transaction through a combination of cash on hand and new debt, and has bridge financing commitments from Goldman Sachs Bank USA subject to customary terms and conditions to facilitate the transaction close. Following the deal closing and the required financing, Ritchie Bros. is expected to have a net debt to EBITDA ratio of no more than 3.0x, it says. The deal was approved by the boards of directors of both companies and is expected to close by the first half of 2017, subject to regulatory clearances and other customary closing conditions. Goldman, Sachs & Co. is serving as financial advisor to Ritchie Bros. and Skadden, Arps, Slate, Meagher & Flom LLP and Dechert LLP are serving as legal advisors. J.P. Morgan Securities LLC is serving as financial advisor to IronPlanet and Orrick, Herrington & Sutcliffe LLP is serving as legal advisor. The Ritchie Brothers – How They Started And Prospered Over Six Decades Ritchie Bros. Auctioneers was established in Kelowna, B.C., Canada. The three Ritchie brothers – Ken, John and Dave Ritchie – took over the OK Used Furniture Store from their father in 1955. They entered the auction business in 1958 when they needed CA$2,000 to pay a bank debt on short notice. A friend suggested they conduct an auction to get rid of some surplus inventory from the furniture store. They conducted their first auction at the Scout Hall in Kelowna in 1958 and discovered a new way of doing business. Starting with that first auction at the Scout Hall, Ritchie Bros. maintained a strict policy of conducting unreserved auctions – meaning there were no minimum bids and no reserve prices. The brothers also established a policy of not allowing bid-ins or buybacks by the sellers. The brothers began conducting auctions more regularly and in 1958 incorporated Ritchie Bros. Auction Galleries Ltd. to formalize their new business. Ritchie Bros. began selling used equipment in the 1960s. In 1963 Dave Ritchie moved to Vancouver, B.C. and rented an auction site on S.E. Marine Drive. He set up the company’s first equipment auction in Vancouver shortly after. The Ritchie brothers conducted their first major unreserved industrial auction in Radium Hot Springs, British Columbia on June 7, 1963. They sold CA$663,000 of equipment in one day – by far the largest auction in the company’s history. The success of the Radium Hot Springs auction convinced the brothers that they could make more money auctioning used equipment than selling furniture, so they sold their furniture store in Kelowna and went into the auction business full-time. Photo: Ritchie Bros. Auction Site. Average auction sites are 60 acres in size and feature offices, an auction theatre and equipment refurbishing facilities, with over a dozen full-time employees and dozens more part-time staff during auction weeks.]]>

Japan's APA Hotel in $160M Takeover of 41 Canadian-US Okabe, Coast Hotels

Japan's APA Hotel in $160M Takeover of 41 Canadian-US Okabe, Coast Hotels

Okabe North America owns five hotels in western Canada. Coast Hotels & Resorts, headquartered in Vancouver, British Columbia, has properties throughout British Columbia, Alberta, Northwest Territories, the Yukon, Alaska, California, Hawaii, Oregon and Washington. Coast Hotels has 36 properties in North America, including the Coast Coal Harbour Hotel in Vancouver and ski-in/ski-out Coast Blackcomb Suites in Whistler, British Columbia; the Benson historic landmark in Portland, Oregon; Coast International Inn in Anchorage, Alaska; and Waimea Plantation Cottages in Hawaii. The APA Group was founded by Toshio Motoya in 1971. APA, which stands for Always Pleasant Amenity, operates a chain of 347 hotels and resorts in Japan. In 2015, APA Group reportedly had revenues of more than $750 million and profits of more than $230 million, a 30 percent profit margin unheard of in the industry, according to Motoya. Through a concept called “New Urban Style,” APA Hotel is said to have become the number one hotel brand in Japan. Designed to reduce carbon emissions by one-third of typical urban hotels, APA Hotel continues to expand rapidly in Japan, with projects in the pipeline such as a 2,400 guest room hotel in Yokohama. Motoya’s wife Fumiko Motoya, president of the hotel chain, “is one of the best-known faces of corporate Japan, according to Japan Times, with her image appearing on billboards displayed prominently near major train stations around the country. “It is her face that has made the (previously) relatively unknown hotel chain a household name, known even to schoolgirls,” JP added. Her debut over two decades ago in a full-page newspaper ad, featuring her picture with the underline, “I am a president,” shocked the public. “If I were as beautiful as Cleopatra, people would not have paid that much attention,” Fumiko Motoya said. [caption id="attachment_433208" align="aligncenter" width="1024"]APA_Hotel_Fumiko Motoya Fumiko Motoya, President of APA Hotel.[/caption] Okabe is a leading manufacturer of building hardware such as scaffolding frames, construction structural materials and civil engineering products, which comprise its core business. The company was founded in 1917 and is headquartered in Tokyo, Japan. Okabe is working on “the development of new markets and fields, taking into account the forecast for stagnation in demand in construction after the Tokyo Olympics and Paralympics, which are slated to be held in 2020,” the company aid. Okabe “has decided to sell off the hotel business, which it has been operating since acquiring the business in 1988, to APA Hotel International Inc., with the aim of further promoting the selection and concentration of management resources,” including long term value improvement measures “such as stepping up efforts for corporate acquisition and domestic and overseas capital investment,” it added. Launch of APA Hotel Franchise in US, Opening of APA Hotel Woodbridge The move comes a less than two months after APA Hotel Franchise LLC, based in Delaware, opened its first US-based property, the 200-room APA Hotel Woodbridge at Metropark, in Iselin, N.J. (formerly the Hilton Woodbridge Hotel), after completing the first phase of the property’s renovation plans. The June 22, 2016 grand opening celebration was attended by Toshio Motoya, founder and CEO of APA Hotel & Resorts, Jason Cheng, CEO of APA Group’s joint venture partner, Friendwell Group, and Woodbridge Township mayor John McCormac. APA Group plans to grow its presence in the United States rapidly “to 100 properties by 2020,” Motoya said. “APA set the trend in Asia and Japan for the creation of new urban-style hotels with core values steeped in high quality, high functionality and environment-friendly amenities.” In November 2015, APA Hotel formed a joint venture partnership with New Jersey-based Friendwell Group, to introduce and develop the APA Hotel franchise in the US, starting with the APA Hotel Woodbridge (formerly the Hilton Woodbridge Hotel), which is owned by Friendwell Group of Companies. Friendwell Group, founded and owned by the Cheng family originating from Taiwan, owns and manages a diversified real estate portfolio of shopping centers, office buildings and hotels with over 4,000 rooms in the US, primarily in central New Jersey. Its hotel brands include Hilton, IHG (InterContinental Hotels Group) and Wyndham Hotels & Resorts. “APA Hotel will diversify into multiple tiers in the US, focusing on the upper midscale and upscale markets,” said Jason Cheng. “APA Hotel’s plan is to focus on providing superior management support to the franchisees and making use of the renowned Japanese service culture.” Photo: APA Hotel Woodbridge Opening.]]>

@Sotheby's $BID London Auction Fails to Sell $70M Lesedi La Rona $LUC Diamond

@Sotheby's $BID London Auction Fails to Sell $70M Lesedi La Rona $LUC Diamond

Lucara Diamond Corp. (TSX: LUC)(OMX: LUC) at the Karowe mine in Botswana, its key asset. Lucara is a diamond exploration and mining company operating in southern Africa. The company was founded in 2004 and is headquartered in Vancouver, British Columbia, Canada. Lucara is a member of the Lundin Group of Companies. The Vancouver-based Lundin Group is an internationally recognized group of publicly-traded, natural resource companies founded in 1971 by Adolf H. Lundin and led by sons Lukas H. Lundin and Ian H. Lundin. 40 years ago the group began with oil and gas exploration in the Middle East. Today the Lundin Group operates in 25 countries around the world and in virtually every commodity. Well over $3 billion in financing has been raised to develop Lundin Group projects. The 11 companies operated by the Lundins are actively engaged in the exploration, development and production of oil and gas, gold, copper, cobalt, zinc, lead, silver, nickel, diamonds, uranium, iodine, sulphate and nitrate. “This historic diamond recovery puts Lucara and the Karowe mine amongst a select number of truly exceptional diamond producers,” commented Lucara’s president and CEO, William Lamb. “The significance of the recovery of a gem quality stone larger than 1,000 carats, the largest for more than a century and the continued recovery of high quality stones from the south lobe, cannot be overstated.” The last time such a momentous rough diamond was discovered dates back to 1905, when the 3,106.75-carat rough Cullinan Diamond was discovered at the Cullinan Mine near Pretoria, South Africa. Presented to King Edward VII two years later, it was subsequently cut, yielding nine polished diamonds of superb quality. One of them, the 530.20-carat Great Star of Africa, became the largest top-quality polished diamond in existence and was set into Queen Elizabeth II’s sceptre. The other eight all became part of the Crown Jewels of Great Britain. After holding the title of largest D colour diamond for nearly a century, the Great Star of Africa may soon have to relinquish it, as independent reports indicate that the Lesedi La Rona – although weighing less than the Cullinan in the rough – may have the potential to yield the new largest top-quality diamond that has ever been cut and polished. And if and when, the time eventually comes to cut this spectacular rarity, a full complement of truly diamantine nerves will be required, experts say. For while the art and craft of diamond-cutting has radically improved since the Cullinan was cut, it is still through human ingenuity that the full beauty and light of a gem is revealed. Certainly, the laser scanning, plotting and precision-cutting used today were unimaginable a century ago, and our scientific understanding of the diamond’s optical properties has deepened. But the complex process of cutting diamonds remains intuitive, demanding experience and expertise as well as the ability to look into the heart of the stone; a generally high-stakes profession, it becomes especially charged in cases such as this one. According to independent reports accompanying the Lesedi La Rona, the craftsman to whom the task of cleaving this stone befalls has the opportunity to cut what may potentially be the world’s largest top-quality diamond. Only time will reveal the gems the Lesedi La Rona will yield. For the moment, all we know is that its sale tonight failed to come to fruition.]]>