TODAY'S DISCOVERY, TOMORROW'S FUTURE
Creating shareholder wealth by advancing gold projects through the exploration and mine development cycle.
Message: Major buyers..
With the markets going south a little more every day ,situation change and buyers from yesterday are sellers today..
Barrick gold is flush with cash and looking for gold properties and I assumed that we would be in barrick's gun sights...Today I am not so sure...
Teck is in a cash strapped position after their big buy out of Fording Coal on a mis timed purchase just before this slump and have to raise cash..Tech and Barrick are 50-50% on Hemlo gold fields and Tech is looking to sell it's position in Hemlo to raise cash...Will Barrick go for the other 50% ...OR will they go for Kodiak...???
They all ready know how much gold to expect out of Hemlo but at this point don't know about KXL..How much will they get if they buy chunks of KXL..say the Golden Mile..??
So much is changing and many questions have to be answered and plans and arrangements have to be solidified before we (Our management) can make command decisions on how best to enhance share holder value...
Has this Teck scenario knocked Barrick off as a suitor for KXL's attention..??
Here is the news release from Teck..and I can see more and more why we are not getting news releases of plans and and future sale of the company at this point ..because of the flux and uncertainty in the current market...it is better to go on drilling with a reduced staff..conserve cash and hold for better times..which may be a year or two away..
Or inflation kicks in and gold goes through the roof..which will be a year from now..
Teck may sell gold assets to reduce debt
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By: Liezel Hill
Published on 12th November 2008
Updated 4 hours ago
TORONTO (miningweekly.com) – Diversified miner Teck Cominco will consider selling its gold portfolio to raise cash for paying down its heavy debtload, after the firm bought Fording Canadian Coal Trust last month.
Minority interests owned in other projects and firms could also be on the chopping block, according to a presentation posted on the company's website.
Teck arranged for $9,8-billion in debt to fund the Fording transaction, comprising a $4-billion, three-year amortising term, which requires 11 quarterly instalments beginning in April next year, and a $5,8-billion 364-day bridge loan.
The company expects to have achieved a “substantial” reduction in the bridge debt by mid-2009, according to the document, which senior VP for corporate development Ron Vance is to present at an event in New York on Wednesday.
The firm's gold assets include a 40% interest in Sumitomo's Pogo mine, in Alaska, and a 50% interest in the Hemlo operations, in northwestern Ontario, which it owns with Toronto-based Barrick Gold.
In a response to "market rumours" on Tuesday, Teck reiterated that it was not planning an equity financing to pay down the debt.
Besides potential asset sales, the firm will pay down a large portion of the bridge loan from operating cash flow and a cash tax refund of about $1-billion expected from the Canadian government in the first half of 2009.
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