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Continental Gold hits bonanza grades at Buritica

With a major exploration drilling programme underway at its Buriticá gold project in Antioquia, Colombia, Continental Gold (CN:CNL) has started reporting assays and they haven’t disappointed.

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Japan’s Fujifilm to take over Xerox in $6.1 billion deal, create joint venture

(Reuters) – Japan’s Fujifilm Holdings is set to take over Xerox Corp in a $6.1 billion deal, combining the U.S. company into their existing joint venture to gain scale and cut costs amid declining demand for office printing.

The acquisition announced on Wednesday comes as Xerox has been under pressure to find new sources of growth as it struggles to reinvent its legacy business amid waning demand for office printing. Fujifilm is also trying to streamline its copier business with a larger focus on document solutions services.

Consolidation of RD, procurement and other operations would enable Fuji Xerox to deliver at least $1.7 billion in total cost savings by 2022, the two companies said.

Fujifilm now owns 75 percent of Fuji Xerox, the joint venture going back more than 50 years ago which sells photocopying products and services in the Asia-Pacific region.

The two companies said that Fuji Xerox will buy back that stake from Fujifilm for around $6.1 billion, using bank debt. Fujifilm will use those proceeds to purchase 50.1 percent of new Xerox shares. Plans were for the deal to be completed around July-August, they added.

The combined company will keep the Fuji Xerox name and become a subsidiary of Fujifilm, with dual headquarters in the United States and Japan, and listed in New York. It will be led by Xerox CEO Jeff Jacobson, while Fujifilm CEO Shigetaka Komori will serve as chairman.

The joint venture accounts for nearly half of Fujifilm’s sales and operating profit.

Both companies have struggled with slow sales of photocopy products, as businesses increasingly go paperless. Fujifilm on Wednesday reported a 29.4 percent drop in operating profit at its document solutions operations, which includes Fuji Xerox, for the third quarter, underperforming its imaging and information segments. Overall, the company reported a 3.4 percent increase in operating profit for the quarter.

Xerox reported a net loss from continuing operations of $196 million in the fourth quarter, mainly due to a one-off $400 million charge as it sought to take advantage of changes to U.S. tax law but also reflecting the steady decline in office printing.

“This has been a speedy decision, but I believe it’s a creative one,” Fujifilm CEO Komori told reporters at a briefing. “The new structure will leverage the strengths of our three companies.”

As part of its own restructuring, Fujifilm said it was cutting 10,000 jobs at Fuji Xerox, more than a fifth of its workforce at the joint venture, in the Asia Pacific region.

Sluggish performance at Xerox had prompted investors to call on the U.S. company, which had owned 25 percent of the joint venture, to explore strategic options.

Xerox has been targeted by activist investor Carl Icahn and shareholder Darwin Deason, who joined forces last week to push Xerox to explore strategic options, oust its “old guard”, including its CEO, and negotiate better terms for its decades-long deal with Fujifilm. Icahn is Xerox’s biggest shareholder, with a 9.72 percent stake.

Xerox’s CEO said the combined company would gain an increased edge in new technologies, along with higher revenues and cost synergies, while Xerox shareholders would also benefit from a $2.5 billion special cash dividend resulting from the deal.

“This transaction…offers substantial upside for shareholders of the combined companies, including current shareholders of Xerox and Fujifilm Holdings, who will own shares in a more competitive company that has enhanced opportunities for long-term growth and margin expansion,” Jacobson said in a pre-recorded video message.

The takeover deal comes less than a year after Fujifilm admitted improper accounting standards at Fuji Xerox, but Komori said that Xerox’s strong governance standards could be beneficial to the new company.

Fujifilm shares fell 8.3 percent on Wednesday ahead of its announcement of job cuts but after the Journal report about a deal with Xerox. Xerox shares ended down 0.5 percent on Tuesday.

Additional reporting by Minami Funakoshi in Tokyo, Diptendu Lahiri, Muvija M and Ismail Shakil in Bengaluru; Editing by Sandra Maler, Muralikumar Anantharaman and Jacqueline Wong

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Orca ups Block 14 resource

Orca Gold (CN:ORG) has had a big week, upping its estimate for Block 14 and announcing promising drill results at the Morondo project in Côte d’Ivoire, discovered by the team in its former guise as Red Back Mining.

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Denison Mines adds pounds at Wheeler River

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Ecuador mining minister resigns

With president Lenin Moreno increasingly breaking with former president Raphael Correa, for who Cordova was also mining minister, sources told Mining Journal Cordova was asked to resign for political reasons. His replacement has not been named.

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T3 PFS just the start for MOD Resources

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Centamin to pay out 100% of 2017 FCF

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Metal Tiger backflips on Kingsgate holding

‘You haven’t have seen the last of us!’

Metal Tiger has sold its remaining 5% stake in the Chatree gold mine-owner, and its website ‘’ has gone offline.

Ironbark set to open a new zinc basin for hungry smelters

Ironbark set to open a new zinc basin for hungry smelters…

Doe Run Peru's Productive Units are on the Public Auction Block

Doe Run Peru’s Productive Units are on the Public Auction…

The pure play cobalt vehicle

The pure play cobalt vehicle

A new Dynasty

A new Dynasty

The London-listed company, which has its own Thai projects, had tried to boot Kingsgate founder Ross Smyth-Kirk and several others off the board this month but did not get the votes needed.

McNeilly said last week, when Metal Tiger sold off 6.6 million shares, it was not a sign his company would abandon Kingsgate.

“[The sell-off] does not, however, mean we are going away,” he said.

“We still retain more than 5% of Kingsgate and will be watching the board closely to see if they deliver on what they have promised.”

Now, McNeilly has said Metal Tiger sold the remaining stake for A$3.4 million (US$2.75 million) to “materially increase the cash balance”. 

Kingsgate, meanwhile, made a series of interesting claims in its December quarter results.

It said a December 22 statement from the Thai Department of Primary Industry and Mines that outlined how Kingsgate had made life difficult for itself was an “alleged press release” despite being posted on the ministry’s website.

The company also said Metal Tiger’s Chatree strategy “only became clear in the lead up to the general meeting”.

“They were to negotiate a deal with the Thai government to reopen Chatree without necessarily obtaining any compensation for the significant losses suffered by Kingsgate as a result of the mine’s unlawful closure,” the quarterly report said.

McNeilly told Mining Journal, in November, Kingsgate had failed by not reaching an agreement with the Thai government and, in a December 5, statement the company outlined that approach.

“The simple fact is the reopening of Chatree, despite the cost and challenges involved, is a more valuable proposition to Kingsgate than the pursuit of expensive, potentially lengthy arbitration proceedings where success is uncertain,” Metal Tiger said.

Kingsgate’s results showed it spent $6.1 million in the quarter and $23.3 million in the year, with total cash down to $9.7 million as of December 31. 

Kingsgate shares were up 4.8% to A$0.32 per share after the sale. 

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Avocet extends Inata sale deadline again

“The real home run… comes when a… gold deposit is located, developed and mined”

Gold and Silver

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