Surge Exploration (TSX‐V: SUR) announced on Wednesday that its board of directors approved a strategic reorganization of the company’s assets that would spin off its interests in the “Hedge Hog” and “Mineral Mountain” exploration projects, both copper/gold projects in British Columbia, Canada.
The exploration projects form a newly incorporated subsidiary, CuGold Corp. Surge will continue to hold its interest in its cobalt projects in both Chile and Ontario, and its lithium brine project in Chile.
Under the terms of the spin-out, shareholders of Surge would exchange their existing common shares of Surge for the same number of new common shares of Surge and common shares of CuGold. There will be no change in shareholders’ holdings in Surge as a result of the spin-out.
The company stated that the net proceeds of the financing will be used to fund the working capital of CuGold, the negotiation of potential joint venture opportunities, exploration projects and potential future acquisitions.
Gold giant Barrick (TSX:ABX)(NYSE:GOLD) said Monday that while it continues to engage with the Zambian government and community stakeholders about a mutually-beneficial way forward for its Lumwana copper mine, it would consider selling the operation given the “challenging conditions” it’s facing.
The negative effects of trade disputes on global growth this year will push down demand for base metals and steel-making commodities, while the economic uncertainty will drive gold prices higher, CIBC says.
The copper price came under renewed pressure on Monday after headline figures showed a slowdown in the Chinese economy to annual rates of growth not seen in nearly three decades.
Oyu Tolgoi is expected to produce 125,000 to 155,000 tonnes of copper and 180,000 to 220,000 ounces of gold in concentrates this year, Turquoise Hill Resources (TSX: TRQ; NYSE: TRQ) reports.
Following a mapping and prospecting campaign in conjunction with a grid-based soil sampling program and follow-up rock channel sampling, Carube Copper (TSXV: CUC) reported the discovery of high-grade copper-silver mineralization at its Main Ridge Project in Jamaica.
A worsening of the ongoing economic slowdown in China, consumer of about half the world’s commodities, is the single biggest challenge mining and metals companies face this year, a new survey of senior executives shows.