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"The cost of finding a new ounce of gold on the property remains at $10"

The PEA outlines an openpit mine for the gold camp with preproduction capex of US$380 million, an after-tax NPV (5% discount) of $367 million and an IRR of 25% with a 2.8-year payback.

It estimates an average annual production over the initial 10 years of the 11-year mine-life of 188,500 ounces, at an all-in sustaining cost of $595/oz over the life of mine.

Kingston commences major drilling program at 2.8Moz Misima Gold Project

Kingston commences major drilling program at 2.8Moz…

Southern Silver keeps hitting goals

Southern Silver keeps hitting goals

Alt sees new fizz in Bottle Creek

Alt sees new fizz in Bottle Creek

Metals X powers up

Metals X powers up

Country Investment Profile - Greenland

Country Investment Profile – Greenland

MICROMINE to issue latest version of 3D modelling  mine planning software

MICROMINE to issue latest version of 3D modelling …

Valor Resources identifies significant high grade mineralisation at surface

Valor Resources identifies significant high grade mineralisation…

Capricorn moves fast to launch

Capricorn moves fast to launch

Cardinal advances Namdini

Cardinal advances Namdini

Zinc project galvanises White Rock

Zinc project galvanises White Rock

President and CEO Phillip Walford said the results demonstrated a very robust, low cost operation was possible.

He said the project also had further potential, including additional openpit resources at the Sprite deposit and bog extension area and the underground resource at the Marathon deposit, that was not drilled sufficiently to include in a mine plan.

“The cost of finding a new ounce of gold on the property remains at $10 per new ounce so our exploration program continues to be highly cost-effective,” he said.

Earlier this month, Marathon updated its Valentine Lake resource which comprises four deposits – Marathon, Leprechaun, Victory and Sprite – but Sprite was excluded from mine development plans until further drilling increased its resource.

The company has said it expected to progress towards development and was planning metallurgical testwork, further drilling and work on approvals, subject to financing.

It had C$4.1 million (US$3.2 million) in cash and equivalents at the end of March.

Marathon shares, which hit a 52-week low of C85c at the end of April, closed down 1c on Friday to $1.03, valuing it at $150.5 million.

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Exclusive: GE nears deal to merge transportation unit with Wabtec

(Reuters) – General Electric Co (GE.N) is nearing a deal to merge its transportation business, which manufactures train engines, with Wabtec Corp (WAB.N), a U.S. maker of equipment for the rail industry, two people familiar with the matter said on Sunday.

FILE PHOTO: The logo of General Electric Co. is pictured at the Global Operations Center in San Pedro Garza Garcia, neighbouring Monterrey, Mexico, May 12, 2017. REUTERS/Daniel Becerril

A deal valuing the combined business at more than $20 billion could be announced as early as this week, the sources said, asking not to be identified because the negotiations are confidential.

It would be the biggest deal thus far to be inked by GE Chief Executive Officer John Flannery, who took over last August with a mandate to slash costs and boost the U.S. industrial conglomerate’s plummeting stock price.

There is always a possibility that the deal talks, which center on using a tax-efficient structure called a Reverse Morris Trust, could collapse at the last minute, the sources cautioned.

GE and Wabtec did not immediately respond to requests for comment.

Flannery told GE’s annual shareholder meeting last month that the company is “keenly aware of the pain” caused by its poor performance and dividend cut last year. Executives are trying to turn around the ailing power and oil and gas businesses, he told shareholders, adding that there is evidence of “green shoots” of improvement.

GE has taken several actions to prune its portfolio over the years, shedding plastics, NBCUniversal and most of its GE Capital business. It also combined its oilfield services business with Baker Hughes (BHGE.N).

GE’s transportation business, which generated revenue of $4.7 billion, manufactures freight and passenger trains, marine diesel engines and mining equipment, among other products.

Wabtec, which has a market capitalization of $9.2 billion, manufactures equipment for locomotives, freight cars, and passenger transit vehicles.

Following a board of director shake-up, Flannery has pledged to cut $2 billion in cost for 2018 and to slash the company’s once-coveted dividend in half.

GE’s stock has lost about half its value in the last year, and the company has been working with activist hedge fund Trian Fund Management LP, which sits on its board of directors, to turn the business around.

A Reverse Morris Trust transaction allows a company to avoid a big tax bill by spinning off a unit that it wants to divest and simultaneously merging it with another company.

Reporting by Harry Brumpton and Greg Roumeliotis in New York; Editing by Lisa Shumaker

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Australia’s Santos gets final sweetened $10.8 billion bid from Harbour Energy

(Reuters) – U.S.-based Harbour Energy made a final offer of $10.8 billion for Australia’s Santos Ltd (STO.AX) on Monday, hiking its bid for a fifth time in nine months after a steep rise in oil prices and potentially deterring any rival bids.

FILE PHOTO: The logo of Australian oil and gas producer Santos Ltd is pictured at their Sydney office February 15, 2016. REUTERS/Jason Reed/File photo

Shares in the oil and gas producer rose on the back of the sweetened bid but remained below the offer price amid uncertainty over whether the government would approve what would be the biggest takeover of an Australian resources company.

“You’ve got to think the new bump is going to make it more likely the board will approve it…But there are risks,” said Andy Forster, senior investment officer at Argo Investments, a top 10 shareholder in Santos.

Analysts have said the government might raise concerns that a takeover could dent gas supply on Australia’s east coast and could even raise questions about foreign companies not paying enough tax in Australia.

A succesful bid would give Harbour access to a recently revived company with a low cost of gas production and stakes in liquefied natural gas (LNG) in the Asia-Pacific, where demand is soaring.

Harbour’s latest offer, raised twice over the past five days, is equivalent to A$6.95 a share at an exchange rate of 75 U.S. cents to 1 Australian dollar, and is at an 11-percent premium to the last close of Santos shares on Friday.

“The new higher bids underline Harbour’s desire to receive the board recommendation it needs and in our view staves off any ambitions from an interloper,” Royal Bank of Canada analysts said in a note on Monday.

Argo’s Forster said the prospect of receiving a special dividend with Australian tax credits attached as part of the bid was attractive. The special dividend would take the total bid value for local investors to around A$7.15 a share.

The latest proposal, up 4.6 percent from an earlier offer, is conditional on Santos increasing its hedging of oil-linked production in 2018 and 2019, Santos and Harbour said.

Harbour said the offer price would be increased slightly to a U.S. dollar amount equivalent to A$7.00 per share if Santos agreed to hedge 30 percent of oil-linked production in 2020, too.

“Harbour’s 21 May 2018 proposal is ‘best and final’ and will not be further increased prior to entering into a Scheme Implementation Deed,” Harbour said in an emailed statement.

The requirement for Adelaide-based Santos to lock in more of its oil-linked contracts at today’s higher oil prices will help protect cash flows needed to pay down debt.

Harbour wants Santos to line up the hedges as the Australian company can do it more cheaply than Harbour can, a person close to the transaction said.

“This additional hedging is not required to support Harbour’s financing, but rather enables us to reduce transaction costs and increase the offer price,” Harbour said.

Oil prices LCOc1 have risen about 17 percent since Santos received Harbour’s $4.98 per share offer in April. [O/R]

Independent directors of Santos will consider the revised Harbour proposal, the company said.

Reporting by Sonali Paul; additional reporting by Chris Thomas in Bengaluru; editing by Richard Pullin

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China praises positive steps in U.S. trade row, says didn’t give in

BEIJING (Reuters) – Chinese state media on Monday praised a significant dialing back of trade tension with the United States, saying China had stood its ground and the two countries had huge potential for win-win business cooperation.

FILE PHOTO: Containers are seen at the Yangshan Deep Water Port in Shanghai, China April 24, 2018. REUTERS/Aly Song

A trade war is “on hold” after the world’s largest economies agreed to drop their tariff threats while they work on a wider trade agreement, U.S. Treasury Secretary Steven Mnuchin said on Sunday.

The previous day, Beijing and Washington said they would keep talking about measures under which China would import more energy and agricultural commodities from the United States to narrow the $335 billion annual U.S. goods and services trade deficit with China.

The official China Daily said everyone could heave a sigh of relief at the ratcheting down of the rhetoric, and cited China’s chief negotiator, Vice Premier Liu He, as saying the talks had proved to be “positive, pragmatic, constructive and productive”.

“Despite all the pressure, China didn’t ‘fold,’ as U.S. President Donald Trump observed. Instead, it stood firm and continually expressed its willingness to talk,” the English-language newspaper said in an editorial.

“That the U.S. finally shared this willingness, means the two sides have successfully averted the head-on confrontation that at one point seemed inevitable”, it said.

During an initial round of talks this month in Beijing, the United States demanded that China reduce its trade surplus by $200 billion. No dollar figure was cited in the countries’ joint statement on Saturday.

The ruling Communist Party’s People’s Daily said that in the energy and agriculture sectors the two countries had obvious synergies, with the United States having the capacity to satisfy the massive Chinese market.

“The ballast stone of Sino-U.S. ties are an equal and mutually beneficial trade and business relationship. Its essence is win-win cooperation,” it said.

But China was not being forced to increase imports as a way to ward off the trade tensions or because the country had submitted to outside pressure, the newspaper said in a commentary.

China will naturally need to import more to satisfy demand from its increasingly affluent consumers, the newspaper wrote.

“Trade wars have no winners,” it added in the commentary, published under the pen name “Zhong Sheng”, meaning “Voice of China”, used to give the paper’s view on foreign policy issues.

However, some people in U.S. business groups, who had been pushing for tougher U.S. policies to pressure China to reform market barriers, expressed frustration and disappointment, saying it would be hard for the administration to rebuild momentum to take on Chinese industrial policies.

James Zimmerman, a Beijing-based lawyer and a former chairman of the American Chamber of Commerce in China, said the Trump administration’s move to walk back its threatened trade actions was premature, and a “lost opportunity” for American companies, workers and consumers.

“The Chinese are in a state of quiet glee knowing that Trump’s trade team backed off on sanctions without getting any real and meaningful concessions out of Beijing,” Zimmerman said.

Reporting by Ben Blanchard and Michael Martina; Editing by Darren Schuettler, Robert Birsel

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Golden Queen eyes future potential at Soledad

Highlights from the latest results included 5 feet at 0.197 ounces per tonne gold and 0.6opt silver, or 1.52m at 5.58g/t gold and 17g/t silver.

The company said the results from nine holes had successfully intersected and verified existing shallow mineralised zones in and around the currently mined East Pit; plus intersected deeper mineralised zones and potentially identified new zones.

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Kin lays the foundations for Growth

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“Further interpretive work is required to determine if this ‘new’ mineralisation is volumetrically significant, or if it represents a local phenomenon,” the company said.

Golden Queen expected the work on the updated resource model for the East Pit and adjacent areas to be completed this month.

Golden Queen’s 50%-owned subsidiary that holds the mine reported production of 6,579oz of gold and 58,024oz of silver from Soledad for the March quarter.

The mine, which started production two years ago, produced a total of 3,035oz of gold in April.

Golden Queen had $18.2 million in cash at the end of March.

Shares in the company were trading around C68c a year ago but fell to 15.5c in February. They have gained 4.88% year-to-date and gained half-a-cent on Friday to close at 21.5c, capitalising it at $64.5 million.

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Stocks rally after Mnuchin says Sino-U.S. trade war ‘on hold’

TOKYO (Reuters) – Stocks rose on Monday as U.S. Treasury Secretary Steven Mnuchin declared the U.S. trade war with China “on hold” following an agreement to drop their tariff threats that had roiled global markets this year.

FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 18, 2018. REUTERS/Brendan McDermid

U.S. SP mini futures ESc1 rose 0.60 percent in Asian trade on Monday.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS advanced 0.55 percent in early trade, led by strong gains in greater China. Hong Kong’s Hang Seng .HSI was up 1.0 percent, Taiwanese shares .TWII 1.1 percent and mainland shares .CSI300 0.4 percent.

Japan’s Nikkei .N225 gained 0.4 percent.

Mnuchin and U.S. President Donald Trump’s top economic adviser, Larry Kudlow, said the agreement reached by Chinese and American negotiators on Saturday set up a framework for addressing trade imbalances in the future.

“The weekend talk appears to have made progress. While they still need to work out details of a wider trade deal, it is positive for markets that they struck a truce,” said Hirokazu Kabeya, chief global strategist at Daiwa Securities.

As safe-haven demand for debt fell, U.S. bond prices were under pressure, keeping their yields not far from last week’s peaks.

The 10-year Treasuries yield stood at 3.065 percent US10YT=RR, near a seven-year high of 3.128 percent hit on Friday.

“Recent data suggests the U.S. economy is very strong, hardly slowing down in Jan-Mar. The world economy slowed in that quarter but it appears to be rebounding. And recent rises in oil prices are likely to lift inflation expectations further,” said Tomoaki Shishido, senior fixed income analyst at Nomura Securities.

“We expect more selling until the next Fed’s meeting in June,” he said.

In the currency market, higher U.S. yields helped to strengthen the dollar against a wide range of currencies.

The euro dipped 0.1 percent to $1.1756 EUR=, hovering above Friday’s five-month low of $1.1750.

The common currency was also hit after two anti-establishment parties pledged to increase spending in a deal to form a new coalition government.

The dollar maintained an uptrend against the yen, rising 0.20 percent to fetch 110.97 yen, JPY=, close to Friday’s four-month high of 111.085.

Oil prices held firm near 3-1/2-year highs also on easing trade tensions between the world’s two biggest economies.

The market is keeping an eye on Venezuela, where President Nicolas Maduro appeared to be set for re-election, an outcome that could trigger additional sanctions from the United States and more censure from the European Union and Latin America.

Oil prices have been supported by plummeting Venezuelan production, in addition to a solid global demand and supply concerns stemming from tensions in the Middle East.

U.S. crude futures rose 0.8 percent to CLc1 $71.83 per barrel, near last week’s 3 1/2-year high of $72.30 while Brent crude futures LCOc1 notched up 0.8 percent to $79.10 per barrel. It had risen to $80.50 last week, its highest since November 2014.

Reporting by Hideyuki Sano; Editing by Eric Meijer Shri Navaratnam

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U.S. underscores importance of concluding new NAFTA deal

MEXICO CITY (Reuters) – U.S. Deputy Secretary of State John Sullivan underscored the importance of concluding a new NAFTA trade deal in talks on Sunday with Mexican Foreign Minister Luis Videgaray on the sidelines of the G-20 foreign ministers meeting in Buenos Aires.

FILE PHOTO: The flags of Canada, Mexico and the U.S. are seen on a lectern before a joint news conference on the closing of the seventh round of NAFTA talks in Mexico City, Mexico, March 5, 2018. REUTERS/Edgard Garrido/File Photo

Sullivan and Videgaray discussed “continued cooperation on managing a shared border and the importance of working together to disrupt transnational criminal organizations,” State Department spokesperson Heather Nauert said in a statement.

“The Deputy also emphasized the importance of concluding a NAFTA deal,” said Nauert.

Canada, the United States and Mexico are renegotiating the North American Free Trade Agreement (NAFTA).

Talks to reach a deal on reworking the 24-year-old accord have intensified in recent weeks, pressed by U.S. congressional deadlines and a common will to reach an agreement before Mexico’s July 1 presidential election.

U.S. Treasury Secretary Steven Mnuchin said on Sunday that President Donald Trump is focused on getting a good NAFTA deal, whether it is passed by the current or future U.S. Congress. He said Trump is not focused on specific deadlines.

Reporting by Anthony Esposito; Editing by Sandra Maler

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Don’t neglect to pay the middleman: How Shell and Eni ended up on trial

LONDON (Reuters) – Seven years ago, two middlemen launched civil lawsuits to seek payment for helping arrange a $1.3 billion oil deal in Nigeria.

FILE PHOTO: The logo of oil company Eni is pictured at San Donato Milanese near Milan February 5, 2013. REUTERS/Stefano Rellandini/File Photo

Now, nine current and former executives or contractors from Italy’s Eni(ENI.MI) and British-Dutch giant Royal Dutch Shell (RDSa.L), including ENI Chief Executive Claudio Descalzi, have been accused by Italian prosecutors of paying bribes to secure the license to explore a large offshore oilfield in 2011.

If found guilty, the individuals on trial face possible jail terms for bribery. All deny wrongdoing, as do Shell and Eni.

The criminal trial will proceed in Milan on June 20 after a short initial hearing on May 14.

Some of the key issues in the trial came to light during the two separate civil suits filed by a Nigerian, Emeka Obi, and a former Russian diplomat, Ednan Agaev, a Reuters review of court filings shows.

Both men said they were owed millions of dollars by a Nigerian company, Malabu Oil and Gas, for arranging meetings with Shell and Eni.

The judge in Obi’s case upheld evidence that Obi arranged meetings between former Nigerian oil minister Dan Etete, who was convicted of money laundering in an unrelated case in France in 2007, and representatives of Eni, and that he negotiated on Etete’s behalf with Shell.

In addition, documents produced in Agaev’s case showed that when Eni and Shell paid for the license, they deposited more than $1 billion into a Nigerian government escrow account in London but most of the money later ended up with Malabu, which was controlled by Etete, the judge said.

The judges found that, in a conflict of interests, Etete had a stake in Malabu and was also oil minister when the Nigerian government awarded the company the license to explore the field in 1998, a decision that was reversed in 2001, reinstated in 2006 and later challenged by Shell.

FILE PHOTO: Logo of Shell is seen at the 20th Middle East Oil Gas Show and Conference (MOES 2017) in Manama, Bahrain, March 7, 2017. REUTERS/Hamad I Mohammed/File Photo

These details helped Italian prosecutors put together their case, industry insiders say.

Etete denies charges of bribery for channeling money from the deal to Nigerian politicians. He and his lawyers did not respond to requests for comment by phone and email.

Shell said by email that if improper payments are shown to have taken place, they were not made with Shell’s “knowledge, authorization or on its behalf.” It said it believes the judges will find there is “no case” against Shell or its ex-employees.

Eni said by email that it could not comment on the case. It has previously said it concluded the deal with the Nigerian government without the involvement of intermediaries and that it had no commercial agreement with Malabu.


Eni and Shell said they were unable to confirm who owned Malabu when they acquired Oil Prospecting Licence (OPL) 245.

But in her decision on Obi’s civil case in London in July 2013, Lady Justice Elizabeth Gloster upheld Etete’s control of Malabu, court records show. Basing her decision on testimony and documents, she said Etete had a stake in Malabu when it was awarded OPL 245 in 1998 and had been “the principal beneficial owner” since later that year.

She said Obi had meetings with Shell representatives before the OPL 245 deal, though she did not say how many, and that he frequently met officials from Eni.

On one occasion, Etete, Descalzi, Obi and Agaev sat together in a Milan restaurant at a dinner for the “the main personalities” to meet and assess the seriousness of their intentions, she said.

She said Obi should be awarded at least $100 million for his work as a “dealmaker”, the court records show.

Agaev launched arbitration to seek a $65 million fee from Malabu for his work as a go-between and eventually reached an out-of-court settlement, details of which were not disclosed.

While the arbitration was under way, he asked a court in New York to freeze a Nigerian government account in London that held $74 million, most of it due to be transferred to Malabu.

The court said it had no authority to freeze the money but reviewed documents showing Eni and Shell had deposited just over $1 billion into the account as payment for OPL 245 in May 2011.

A further $208 million was released from escrow as a “signature bonus” for the government, court records show.

Around $800 million was transferred to Malabu in August 2011 and the rest was frozen pending the civil cases.

Agaev declined to comment about his civil case or the Milan trial. Obi could not be reached for comment and attorneys who have represented him declined to pass on his contact details.

Eni and Shell said their payments were above board as they went directly to the Nigerian government. JP Morgan Chase, which ran the escrow account, has denied negligence.

Editing by Timothy Heritage

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Mine asset management improvement limits change with data: OEM

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