RE:Crazy theory??Lumina merging into Western Copper
POSTED BY: NORTHERN MINER STAFF SEPTEMBER 18, 2006
Vancouver – Latest in a series of industry consolidations sees Lumina Resources (LUR-T, LUMNF-O) merging into Western Copper (WRN-T, WCPCF-O) in an all share deal.
The pair of copper-focused juniors have agreed to combine whereby Western Silver will issue one common share for each Lumina share outstanding. The planned transaction, valued at about $26 million, represents a 63% premium on Lumina’s 20-day trading average based on both company’s September 15th closing price.
Officers and directors of Lumina, representing a 29.5% shareholding interest, have entered into a lockup and support agreement with Western Copper. Additionally, Lumina chairman Ross Beaty will join Western Copper’s board and sit as co-chairman along with its president and CEO Dale Corman.
Lumina Resources, formed in mid-2005 from the restructuring of Lumina Copper that was split into four companies based on geographic land holdings, brings three projects to the table: Hushamu in British Columbia, the Redstone in the western Northwest Territories and the Casino deposit in the Yukon.
The Hushamu porphyry copper-gold-molybdenum project sits within the northern Vancouver Island Copper Belt that also hosts the now closed open pit Island Copper mine operated by BHP Billiton (BHP-N) predecessor company BHP-Utah Mines from 1971-to-1994. Hushamu hosts a measured and indicated resource of 231 million tonnes averaging 0.28% copper and 0.3 gram gold per tonne plus another 53 million tonnes of inferred resource at similar grades. Additionally, drilling in 2005 intersected a wide zone of higher-grade gold mineralization (1 gram gold over 95 metres) in the NW Expo area of the project.
The Redstone copper-silver project, discovered in the early 1960s, has an inferred resource of 34 million tonnes grading 3.9% copper and 9 grams silver per tonne, using a 3% copper cut-off grade.
At Casino, a 2004 technical study reviewed 964 million tonnes of 0.22% copper, 0.24 gram gold and 0.02% molybdenum in the porphyry deposit.
Western Copper was formed in May 2006 as a spin-off company from Western Silver, which was acquired by Glamis Gold (GLG-T, GLG-N). It holds the Carmacks oxide copper project in the Yukon and Sierra Almoloya property in Mexico.
Historical estimates at Carmacks indicate an open-pit mineable reserve of 13.3 million tonnes grading 0.97% copper (non-NI43-101 compliant). In addition to drilling focused on building resources, Western Copper expects to have a feasibility study completed by early-2007. Permitting and development plans are also underway for the deposit with production anticipated to commence in 2008.
The Sierra Almoloya project, under option to Queenston Mining (QMI-T, QNMNF-O), is situated in the Central Mexican Silver Belt within a prospective area for polymetallic carbonate replacement deposits.
The combined companies will enjoy a strong treasury of almost $40 million and a property portfolio with a significant copper and gold resource inventory.
Lumina shares gained about 40% on the news to trade at the $1.00-level on strong volume of more than one-half million shares. Shares of Western Copper slipped about 6% to the $1.10-level.
Ross Beaty leaves Western Copper board
22nd September 2009
TORONTO (miningweekly.com) – Vancouver-based Western Copper has appointed Robert Byford to its board of directors, and announced on Tuesday that director and co-chairperson of the company Ross Beaty has resigned from his positions.
Beaty, who has founded several successful mining companies, joined Western Copper's board in 2006, when it acquired Lumina Resources. He was previously chairperson of Lumina.
He has resigned to focus on his new geothermal company, Magma Energy, Beaty said in a statement.
Beaty and Byford were two primary seed investors of Western Copper.
“I would like to thank Mr. Beaty for his valued contribution to the Company and I am pleased that Mr. Byford has agreed to serve on the Western Copper Board of Directors,” said Dale Corman, President & CEO. “His valuable expertise will be a great asset to the Board of Directors.”
Mr. Byford is a former partner of KPMG LLP and Senior Vice-President and Director of KPMG Corporate Finance Inc.
The Company acknowledges Mr. Beaty’s contribution in guiding the company since its merger with Lumina Resources in November 2006 and wishes him success in his future endeavors.
“I have enjoyed my time with Western Copper and intend to step down to focus my time on my new geothermal company, Magma Energy Corp. but I will be available to serve as an advisor to assist where I can to enable Western Copper to advance its prospects and opportunities” said Ross Beaty. “I look forward to remaining a shareholder of Western Copper for many years in order to gain exposure to all its projects and plans as they mature in the coming years.”
Note: Ross Beaty is still a high net worth investor today
Current high net investors include, but are not limited to:
Ross Beaty, President of Pan American Silver, Billionaire, Philanthropist
James Simon, Billionaire, Mathematical Genius, Philanthropist
Robert Byford
Dave Williams
Others
Ross Beaty leaves Western Copper board
22nd September 2009
TORONTO (miningweekly.com) – Vancouver-based Western Copper has appointed Robert Byford to its board of directors, and announced on Tuesday that director and co-chairperson of the company Ross Beaty has resigned from his positions.
Beaty, who has founded several successful mining companies, joined Western Copper's board in 2006, when it acquired Lumina Resources. He was previously chairperson of Lumina.
BY: TRISH SAYWELL JULY 23, 2014 VOLUME 100 NUMBER 24 JUL 28 - AUG 3, 2014
Shares of Kaminak Gold (TSXV: KAM; US-OTC: KMKGF) surged nearly 33% to $1.05 after the company announced that Ross Beaty and Zebra Holdings (the trust of the late Adolf H. Lundin) are to become significant shareholders.
Beaty and Zebra Holdings and Investments S.a.r.l. Luxembourg have each agreed to make a $6.8-million investment in Kaminak through non-brokered private placements for a total investment of $13.5 million.
Once completed, each of the purchasers will own 9.98% of Kaminak’s outstanding shares on a partly diluted basis, assuming warrants are exercised.
Beaty and Zebra Holdings will each buy 8.45 million units at 80¢ per unit. Each unit will consist of a share and half a warrant. A full warrant allows the holder to buy another share for $1.20 within a year.
The investments will bring Kaminak’s total cash position to $26.5 million — enough to undertake a bankable feasibility study of its flagship Coffee gold project in the Yukon and advance the project towards a production decision.
“The bulk of the funds will be used for undertaking a bankable feasibility study, pending board approval,” Tony Reda, Kaminak’s vice-president of corporate development, confirmed in an email. “No formal decision has been made yet to proceed to feasibility. However, this was the missing piece of the puzzle. Right now, we are in the middle of a [phase-one] exploration program, and contingent upon results, we may deploy more capital towards exploration.”
In early June, Kaminak completed a preliminary economic assessment of the Coffee project that outlines an 11-year, open-pit and heap-leach project that would produce an average of 167,000 oz. gold a year over the life-of-mine at an all-in sustaining cash cost of US$688 per oz. gold.
The PEA estimates that at US$1,250 per oz. gold and a 5% discount rate, the Coffee project has a $330-million post-tax net present value and a 26.2% post-tax internal rate of return.
Initial capital costs including a 15% contingency are pegged at $305 million, with a 1.8-year pre-tax payback and two years post-tax.
David Sadowski of Raymond James in Vancouver said the Beaty and Zebra Holding investments are an important “stamp of approval,” and recommends that investors increase their positions in Kaminak “on a strong vote of confidence from two mining-savvy investors.”
The mining analyst writes in a research note that “Ross Beaty and Zebra Holdings are active long-term investors with track records in the mining industry. We view their investments as both a vote of confidence in the Coffee project and Kaminak’s management team, as well as a potential first step towards additional financial support in the future.”
Sadowski has a $1.90-per-share target price and notes that this year’s $5.5-million exploration program is ongoing at Coffee, and expects initial drill results from Macchiato, Cappuccino and other targets in the third quarter.
He also expects a feasibility study to be completed late next year and a two-year permitting process, with production starting as early as 2019.
At press time 3.2 million shares changed hands on the news, sending Kaminak’s share price to a 52-week high.
Over the last year, Kaminak’s shares have traded in a range of 45.5¢ to $1.05.