One of the most significant deals of the report period was the agreement to merge WMC Resources‘ Canadian subsidiary WMC International with Canadian junior gold explorer Comaplex Minerals.
Comaplex will pay US$6.75 million and issue 5.2 million shares to WMC Resources, which will then own 15% of Comaplex. Comaplex will wind up taking control of 100% of WMC’s Canadian exploration properties, including WMC’s 56% interest in the Meliadine West gold property in Nunavut Territory. Next, Comaplex will have discussions with Cumberland Resources, which owns the remaining 22% of Meliadine West and 50% of Meliadine East, to attempt to advance development of the two properties. WMC ended the period up 16 at US$11.67 in New York while Comaplex was off a nickel to C$2 in Toronto.
Among the majors, Anglo American swapped its 11.5% stake in South African gold miner Avgold for 6.96 million newly minted ordinary shares of Harmony Gold Mining, or 3.8% of the company. Two months ago, Harmony and African Rainbow Minerals Gold jointly acquired a 34.5% stake in Anglovaal Mining, which has a 42.5% stake in Avgold. Avgold operates the Target mine in the Free State, which at full production is expected to produce 350,000 gold oz. gold per year at a cash cost below US$180 per oz. Anglo was up 7 to US$15.91 over the period while Harmony sank $1.23 to US$11.62.
Anglo rival Rio Tinto jumped $3.26 to US$81.76 as it launched legal action to dispute a A$500-million tax assessment from the Australian Taxation Office.
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