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"All that is needed"?
I recall the completion of the necessary financing first being announced in 2013. Or was that the previous bunch of clowns? It gets hard to keep track.
In any case it looks like this bunch might get their chance.
Woulfe Announces Termination of Almonty Letter Agreement
Press Release: BUSINESS CONTRACTS – 4 hours ago
https://ca.finance.yahoo.com/news/woulfe-announces-termination-almonty-letter-140000116.html
Almonty Industries Inc (AII.V)
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 17, 2015) - Woulfe Mining Corp. ("Woulfe" or the "Company") (WOF.V)(OZ4.F) -
Woulfe Mining Corp. announces that, further to its press release dated January 27, 2015, the board of directors of the Company has unanimously determined to terminate the letter agreement dated January 20, 2015 between the Company and Almonty Industries Inc. ("Almonty") and the proposed merger transactions contemplated thereunder. The $150,000 bridge loan provided by Almonty will become due on April 30, 2015.
Woulfe also announces with regret that Mr. David Constable has resigned as a Director and as Chairman of the Board of Directors of the Company for health reasons. His presence will be missed and the Company wishes to acknowledge Mr. Constable's immeasurable contributions and high moral standing that he brought to the Board of Woulfe.
On Behalf of the Board of Directors
Woulfe Mining Corp.
Michel Gaucher, CEO and Director
About Woulfe Mining Corp.
Woulfe Mining Corp., through its wholly-owned subsidiary, Sangdong Mining Corporation, is dedicated to developing the Sangdong tungsten-molybdenum mine which was historically one of the largest tungsten mines in the world and one of the few long-life, high-grade tungsten deposits located outside of China. Woulfe Mining Corp. is listed on the Canadian Stock Exchange.
Forward-Looking Information: This news release includes certain information that may be deemed "forward-looking information". Forward-looking information can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. All information in this release, other than information of historical facts, including, without limitation, the timing of the feasibility study update, the potential of the Sangdong project, engineering and mine planning, general future plans and objectives for the Sangdong project are forward-looking information that involve various risks and uncertainties. Although the Company believes that the expectations expressed in such forward-looking information are based on reasonable assumptions, such expectations are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking information. Forward-looking information is based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from the forward-looking information include changes in project parameters as plans continue to be refined, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, delays in receiving government approvals, and other risks detailed herein and from time to time in the filings made by the Company with securities regulatory authorities in Canada. Mineral exploration and development of mines is an inherently risky business. Accordingly, actual events may differ materially from those projected in the forward-looking information. For more information on the Company and the risks and challenges of our business, investors should review our annual filings which are available at www.sedar.com. Readers are cautioned not to place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Contact:
Woulfe Mining Corp.
Mark Gelmon
CFO
+1 (604) 684-6264
mark.gelmon@woulfemining.com
I don't see the mine ever beginning production with the current bunch of clowns in charge.
I don't see why.The current management has completed the feasibilty study,has all the required permits in place,all that is needed is to fund and complete the construction the Sandong Mine Project.
I don't see the mine ever beginning production with the current bunch of clowns in charge.
For those who are interested, here's a new analyst report on AII from Edison, which is honest enough to declare in big letters that AII is a client of theirs. I have found that in spite of profiling their clients, these Edison reports are generally full of useful information, though I take the opinions with a grain of salt.
http://www.edisoninvestmentresearch.com/research/report/almonty-industries4
It might require a free membership to download.
LC
I don't think agreeing to an C.08 merger offer in exchange for a more efficient management should be considered a satisfactory arrangement,for WOF shareholders.I don't even see why an explanation is needed,to see why this is offer is not good for WOF shareholders,all anyone needs to do is take a good look at WOF's potential,given all the information already known about the mine,and the Tungsten market.
To be fair, there would be one other benefit for WOF holders; a management that actually makes plans and manages to carry through on them fairly well, instead of the clown show we'd have to put up with at WOF the last few years, achieving nothing while collecting their fat salaries and benefits.
BTW, I bought my first shares for $2.24 apiece back in 1997 when the company was still known as Oriental Minerals.
LC
Here the problem as I see it.The merger,as far as we(WOF shareholders)know,only includes a C.08 offer,now if that is accepted,and in the future,because of some unforeseeable circumstances,the new company has problems,in turn the share price declines,we(WOF shareholders)may suffer huge losses,because,we already sold our shares to Almonty at a fire sale price.As it stands today,accepting that offer is a financial blunder,to say the least.What I noticed first thing was,the lack of any other beneifts to WOF shareholders,other than a bridge loan,and the timing....after all the necessary steps needed to begin construction(including final feasibility study)an offer appears,immediately!Put it all together,and something stinks.
I finally got a chance to look in depth at Almonty. It turns out I was familiar with several of the principals of the company due to the fact I used to own shares of PMI (Primary Metals).
Although I am pissed at Dundee 's self-serving ability to be on both ends of the deal, I am in favour of it going through, pending what happens with raising the money to get Sangdong into operation. if that doesn't result into too much dilution, the share count will remain at a reasonably low level. It is interesting to note that DRAG now owns 32% of AII pre-merger, if they choose to convert the debentures.
LC
That is correct,I don't trust "advisers".
Tungsten merger to get ‘ball rolling’ on industry consolidation
9th February 2015 By: Henry Lazenby
http://www.miningweekly.com/article/tungsten-merger-to-get-ball-rolling-on-industry-consolidation-2015-02-09
Almonty Industries Inc (AII.V)
TORONTO (miningweekly.com) – A proposed merger between Almonty Industries and Woulfe Mining announced late last month was not only expected to create a new tungsten-producing major but was also seen as the catalyst of the industry's long-awaited consolidation.
Principal and mining strategist at New York-based economic think-tank Hallgarten & Company Christopher Ecclestone on Monday said in a note to clients that, while the proposed deal came as a surprise, the mining space had been in need of a “tungsten champion” for some time.
He noted that a series of one-mine/one-country tungsten plays had "come to grief" as a result of their monofocus and failure to look beyond the mine-life of their main assets.
In 2013, Almonty made a move on Spain-focused Ormonde Mining, but was blocked. However, the company regrouped and added an asset in Australia. With the latest proposed deal, it was looking to add short-term production in South Korea, by acquiring Woulfe’s stalled Shandong tungsten project.
Almonty’s main assets were the Los Santos tungsten mine, producing 1 100 t/y of tungsten trioxide, and the Wolfram Camp tungsten and molybdenum mine, in Queensland Australia, which produced 700 t of tungsten trioxide in 2013. It was also working towards commissioning the Valtreixal tin/tungsten mine, in north-western Spain, with expected production in 2017.
The Sangdong project was, before its closure in 1992, the world's leading producer of tungsten for 40 years. Low metal prices, not the exhaustion of resources, led to the mine's premature closure, Ecclestone pointed out.
The historical production rate averaged 600 000 t/y, mainly from the 6-m-thick Main Vein.
A scoping study by Woulfe had indicated that the property had more than 40 years' of mine life remaining, while drilling conducted by Kores from 1980 to 1987 discovered a deep molybdenum deposit below the remaining tungsten skarn resources.
Woulfe had also recently completed a derisking review of its final 2012 feasibility study, compiled by Tetratech. The projected capital expenditures had been halved to $74.4-million by right-sizing the project.
Ecclestone noted that China had restricted tungsten exports in recent years, either owing to a desire to stockpile material for its own future use, or a sign that heavy over-exploitation in recent decades had left the country in a vulnerable supply situation.
However, the tungsten price had shown itself to be highly volatile in recent years. If it fell below $250/t, investment dried up and some mines became uneconomic.
Under the terms of the letter of intent announced on January 27, Almonty would acquire all of the outstanding common shares of Woulfe at a price of C$0.08 a share. The price represented a 22.7% premium on Woulfe’s 30-day volume weighted average price for the period ending January 26.
Upon completion of the merger, Woulfe's shareholders would own about 41% to 48% of the merged entity.
Completing the merger was subject to a due diligence process by both companies, which was expected to be completed within the next month.
The Sangdong project contained a combined compliant measured and indicated resource of 3.81-million tonnes, grading 0.56% tungsten trioxide for 2.12-million tonnes of contained tungsten trioxide. The inferred category contained 11.28-million tonnes, grading 0.64% tungsten trioxide, for 7.18-million tonnes of tungsten trioxide.
Ecclestone noted that despite the Sangdong project not being a “plug-and-play” project, significant advancements in permitting, development and equipment purchases had already been made by Woulfe, which was the reason why Almonty was paying a high price in dilution to gain control of the project.
Israeli group IMC also held an option to buy a 25%-ownership interest in Sangdong for $35-million.
“The long awaited consolidation is happening but, alas, it’s only one company initiating the process. If the current deal plays out to plan then we would expect maybe one or two more mines to be rolled in and we should not discount the possibility that Almonty will circle back to get its teeth into Ormonde at some point,” Ecclestone said.
That's pretty vague. It sounded like you don't trust the guy who wrote that report.
Me, I don't trust anyone in the market, and among the ones I trust the least are Dundee, who are stage-managing this whole thing so they can get a slice at both ends.
LC
Back it up?I can't,on a message board.I could tell you about my experience,but what good is that,as far as anyone knows,I could be making up a story.I will say this,I have been trading securities since the 1980's,and have had relationships with people familiar with Wall Street.....for what it's worth.
You can't make a statement like that without backing up your opinion. Dish please.
Is Cramer still around? I thought he would had died of an aneurysm suffered while spouting his nonsense years ago. One look at his circus of a show was good enough for me.
LC
I would put as much faith in this report as I would in asking Cramer for his opinion.
Hallgarten & Co on merger
http://www.mining.com/wp-content/uploads/2015/02/Woulfe_merger_Feb15.pdf
LC
I haven't had a good look at Almonty yet. Will try to remember to answer once I have.
That's the serious answer. The smartass one is that of course there will be lots of dilution; these are junior mining companies after all.
LC
LC: what are the chances of dilution once merged?
Dundee is financial advisor for Almonty in the merger... 8 cent valuation reflects a 22% premium...Dundee knows best. Public domain getting fleeced in this deal for sure.
I didn't see that coming.
I have looked at Almonty a few times and thought it was a pretty well run company.
Now to do some serious DD...
LC
Almonty Industries and Woulfe Mining Announce Proposed Merger to Create the Leading Tungsten Producer Outside of China
TORONTO and VANCOUVER, Jan. 27, 2015 /CNW/ - Almonty Industries Inc. ("Almonty") (TSXV:AII) and Woulfe Mining Corp. ("Woulfe") (CSE:WOF) are pleased to announce that they have entered into a non-binding letter of intent (the "LOI") to combine the businesses of the two companies (the "Merger") and create the leading tungsten company outside of China. The combined business ("MergeCo") will have two producing tungsten assets located in Spain and Australia, pre-construction assets in South Korea and Spain, and serve as an attractive platform for further accretive growth and consolidation in the global tungsten sector. Completion of the Merger is subject to completion of due diligence process by both companies, expected to be completed within the next 30 days, and the satisfaction of certain conditions discussed below.
Under the terms of the Merger, Almonty would acquire all of the outstanding common shares of Woulfe at a fixed price of C$0.08 per share to be satisfied by each Woulfe share being exchanged for a fraction of an Almonty common share with such fractional Almonty common share having a fair market value on the effective date of the Proposed Transaction of C$0.08 (the "Almonty Consideration"), which fair market value will be determined based on the Almonty volume weighted average trading price for the five trading days ending on the third trading day prior to the effective date of the Proposed Transaction (the "Almonty VWAP"). Notwithstanding the foregoing, in no event shall the Almonty Consideration be greater than 0.1231 of one Almonty common share (C$0.65 Almonty VWAP) or less than 0.0942 of one Almonty common share (C$0.85 Almonty VWAP).
The C$0.08 fixed price represents a 22.7% premium to Woulfe's 30-day volume weighted average price ("VWAP") for the period ending January 26, 2015. Upon completion of the Merger, Woulfe shareholders will own approximately 41% to 48% of MergeCo, depending on the Almonty VWAP.
Woulfe's principal asset is the 100%-owned Sangdong Tungsten/Molybdenum Project ("Sangdong") located in South Korea, located 187km southeast of Seoul (subject to a third party which may purchase a 25%-ownership interest in Sangdong for US$35 million). The property is comprised of 12 Mining Rights with an aggregate area of 3,173 hectares. Woulfe recently completed a de-risking review of its final Feasibility Study report based on, the Tetratech 2012 feasibility report, on the Sangdong mine.
Almonty's principal assets are the Los Santos tungsten mine, producing 1,100 tonnes/year of WO3, and the Wolfram Camp tungsten and molybdenum mine in Queensland Australia, which produced 700 tonnes of WO3 in 2013. In addition, Almonty is working towards the commissioning of the Valtreixal tin/tungsten mine in north western Spain with anticipated production in 2017.
Lewis Black, President and CEO of Almonty, commented "This transaction represents the opportunity to combine one of the world's most promising undeveloped tungsten asset with our significant portfolio of producing assets, to create a truly global tungsten powerhouse. Almonty has already established itself as a leading producer of tungsten outside of China and premier consolidator of global tungsten assets. With the addition of Woulfe's flagship Sangdong mine, we are confident about the combined team's ability to unlock significant value from our collective assets for our combined shareholders."
Commenting on the transaction, Michel Gaucher, President and CEO of Woulfe, said "By combining Woulfe and Almonty, we are creating the premier tungsten producer outside of China. The complementary expertise of Almonty's and Woulfe's highly experienced technical teams combined with an enhanced access to capital through the merger, will potentially advance the Sangdong project to production on an accelerated timeline. We believe this new company will provide investors with an ideal way to gain broader exposure to the tungsten sector."
TRANSACTION RATIONALE
Creation of the "go-to" global tungsten producer outside of China
Almonty's Los Santos Tungsten Mine in Spain is a fully operational, profitable mine
Scale-up of tungsten production currently underway at recently acquired Wolfram Camp mine in Australia
Almonty announced a special cash dividend of $0.0272 per share in August 2014 (intends to declare on an annual basis)
Leverage off Almonty's and Woulfe's disciplined and focused management and technical teams with a proven ability and track record of acquiring, operating and enhancing tungsten assets, and of designing and planning complex mining solutions and processing facilities
Almonty acquired Portugal-based Panasqueira in 2005 and successfully refurbished operations and increased the mine life; sold the mine in 2008 at 20x earnings for a 30x return
Ongoing operational enhancement and turn around at Los Santos Mine over the past ~36 months including improving recoveries by 40%, decreasing costs by 25% and increasing contained tungsten by ~25%
The Woulfe team de-risked Sangdong's Tetratech 2012 Feasibility Study in record time and at a highly reduced costs from those initially budgeted and announced in 2013
Geographical diversification of resources with robust pipeline of near-term production and longer-term development assets
Acquired Wolfram Camp (Australia) in September 2014
Updated feasibility study at Sangdong (S. Korea) in Q1 2015
Updated resource at Valtreixal Project (Spain) in October 2014
Potential for significant cost savings and synergies with additional potential for other operating efficiencies
Enhanced capital markets presence including increased analyst coverage, trading liquidity and broader institutional base
Greater critical mass capable of financing at a lower cost of capital
The combined entity will be an attractive platform for further accretive growth and consolidation in global tungsten sector
BENEFITS TO ALMONTY SHAREHOLDERS
Increased resource diversification and access to a large tungsten deposit in Sangdong
Management and technical team proven to be capable of achieving asset's maximum potential, from construction, to start up and operations
Accretive on a EV / Resource basis
In-line with management's "roll-up" strategy to reach critical mass and dictate WO3 pricing and/or become a highly attractive acquisition target
BENEFITS TO WOULFE SHAREHOLDERS
Resource diversification geographically with access to two producing assets and one late-stage development asset
Significant premium on a 30-day VWAP basis
Management team additions with extensive tungsten operational and turnaround expertise
Immediate capital injection and increased access to project financing for accelerated build out of Sangdong
MANAGEMENT AND BOARD
MergeCo's management and board will reflect the collective strengths of both companies, having years of experience of direct tungsten experience across the globe. It is anticipated that the executive management of MergeCo will be led by a team managing Almonty's assets with the addition of key Woulfe executive team members, who will continue to manage and operate the South Korean operations. Discussions regarding MergeCo's Board of Directors are currently underway.
SUMMARY OF THE TRANSACTION
It is anticipated that the Merger will be completed by way of a plan of arrangement, resulting in Woulfe becoming a wholly-owned subsidiary of Almonty at closing.
Based on the current common shares outstanding of both Almonty and Woulfe, Woulfe shareholders will own approximately 41% to 48% of the shares of MergeCo upon completion of the Merger and Almonty will own approximately 59% to 52% of the common shares of MergeCo. Based on 30-day VWAP closing on January 26, 2015, the C$0.08 fixed price represents a 22.7% premium to Woulfe shareholders.
Following completion of the Merger, outstanding options, warrants and debt convertible to acquire common shares of Woulfe will be exercisable to acquire common shares of Almonty on the basis of the above common share exchange ratio.
The transaction is subject to completion of due diligence, the execution of a definitive agreement reflecting the terms set out in the LOI, and the approval of the Woulfe shareholders requiring a favourable vote of 66 2/3% of the votes cast at a meeting to be held as soon as practicable following execution of the definitive agreement, in addition to other customary closing conditions, including receipt of court and all regulatory and stock exchange approvals. Woulfe has also agreed to non-solicitation restrictions, including Almonty's right to match any superior proposals, and a break fee equal to 3.75% of equity value payable to Almonty under certain circumstances.
Certain members of management, directors and key shareholders of Woulfe, including Dundee Corp., have expressed their willingness to enter into support agreements to, among other things, vote their common shares in favour of the matters relating to the Merger.
Subject to the execution of the definitive agreement and satisfaction of all closing conditions, the Merger is expected to be completed in April 2015.
BRIDGE LOAN
Almonty has today provided Woulfe with a C$150,000 unsecured bridge loan, and up to a further C$150,000 unsecured bridge loan will be made available upon the execution of the definitive agreement (the "Bridge Loan") which will be used for basic working capital needs. The Bridge Loan will mature on the earlier of April 30, 2015 or closing of the Merger, subject to extension with the agreement of Almonty, will bear an interest rate of 12% per annum payable at maturity and will rank pari passu with Dundee Corporation's existing unsecured convertible debt of Woulfe.
ADVISORS AND LEGAL COUNSEL
Dundee Capital Markets is acting as financial advisor to Almonty and Wildeboer Dellelce LLP is acting as legal counsel to Almonty and its Board of Directors.
Woulfe has retained, for its due diligence of the Almonty assets and operations, the services of Micon International UK. A fairness opinion will be provided to Woulfe's Special Committee and Board by a yet to be chosen expert. Armstrong Simpson is acting as legal counsel to Woulfe and its Board of Directors.
ADDITIONAL INFORMATION
Additional information about Almonty Industries Inc. and Woulfe Mining Corp. is available by visiting Almonty's website at www.almonty.com or Woulfe's website at www.woulfemining.com or under their profiles on SEDAR at www.sedar.com.
This announcement is for informational purposes only and does not constitute an offer to purchase, a solicitation of an offer to sell shares or a solicitation of a proxy.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" as such term is defined in applicable Canadian securities laws (together referred to herein as "forward-looking statements"). Except for statements of historical fact relating to Almonty or Woulfe, information contained herein constitutes forward-looking statements. Forward-looking statements are characterized by words such as "plan," "expect", "budget", "target", "project", "intend," "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements in this news release include, but are not limited to, statements relating to completion of the combination of Almonty and Woulfe and the expected timing of completion, statements regarding the cash balance of MergeCo at closing, statements regarding the expected benefits to Almonty shareholders and Woulfe shareholders of the proposed transaction. Forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include (i) that Almonty and Woulfe will complete the proposed transaction described herein, (ii) political developments, whether generally or in respect of the mining industry specifically, in Spain, Australia and South Korea, not consistent with Almonty and Woulfe's current expectations, (iii) Almonty's and Woulfe's expectations in connection with the projects discussed herein being met, (iv) the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating metal prices and currency exchange rates, (v) the value that MergeCo will realize from its portfolio of advanced resource equity positions, (vi) changes in project parameters as plans continue to be refined,(vii) the continued employment of key Almonty and Woulfe employees, as well as those risk factors discussed or referred to in Almonty's and Woulfe's respective annual Management's Discussion and Analysis and Almonty's Annual Information Form for their respective most recently completed year ends filed with the applicable securities regulatory authorities and available at www.sedar.com. Although Almonty and Woulfe have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended.
There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Neither Almonty nor Woulfe undertakes any obligation to update forward-looking statements if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding Almonty's and Woulfe's expected financial and operational performance and results as at and for the periods ended on the dates presented in their respective plans and objectives and may not be appropriate for other purposes.
Information herein with respect to Almonty has been provided by management of Almonty, and information herein with respect to Woulfe has been provided by management of Woulfe, and neither Almonty nor Woulfe assumes any responsibility or liability with respect to the other party's information set out herein or any obligation to update such information, except as require by applicable securities laws.
SOURCE Almonty Industries Inc.
For further information: Almonty Industries Inc., Lewis Black, President & CEO, Tel: (647) 438-9766, www.almonty.com; Woulfe Mining Corp., Michel Gaucher, President & CEO, Tel: (604) 684-6264, www.woulfemining.com
NEWS...Almonte Industries and Wolfe Mining to Merge
Did you actually read the news release??
They sneakily used a 5% discount to inflate the NPV when an 8% discount rate is the norm. And they reported the IRR as pre-tax, which makes it a meaningless number because of course they will be paying tax. Even pre-tax it is not all that great; you want the IRR to be at least 25% post-tax, preferably at least 30%.
The good news is that they have cut the capex significantly. IMC is smart enough not to get flim-flammed by the bogus number in the PR; they'll be getting the real ones. Let's hope those real numbers are good enough for them to sign an off-take contract to replace the financing that never closes.
We picked the wrong wolf. WLF.AX will be starting production from their tin/tungsten mine in England in a few months after getting started way after Woulfe.
LC
Good news!! Update to the feasibility study....NPV 7 times current marketcap
Woulfe Announces Completion of the Final Update to the Feasibilty Study
http://finance.yahoo.com/news/woulfe-announces-completion-final-feasibilty-220000035.html
One huge warning flag; they only report a pre-tax IRR, which is meaningless unless you live in a tax-free world. And 26% would be just barely acceptable post-tax. It's good to see the capex is way down, but I don't expect IFC to want to go ahead with the financing based on these numbers. Hope I am wrong...
LC
Another competitor pulling even farther ahead
Wolf secures power for UK tungsten project
6th January 2015 By: Esmarie Swanepoel
http://www.miningweekly.com/article/wolf-secures-power-for-uk-tungsten-project-2015-01-06
WOLF MINERALS (WLFE.L)
PERTH (miningweekly.com) – ASX-listed Wolf Minerals has secured a power supplier for its Drakelands openpit tungsten/tin project, which forms part of the greater Hemerdon project in England.
The junior on Tuesday told shareholders that DONG Energy had been awarded the contract to supply grid power to the Drakelands mine, following a tender process.
Under the terms of the contract, DONG would supply a projected 82 GWh to the operation, for a three-year period.
“As we continue to build the mine and processing plant at Drakelands, it is very pleasing to be able to lock in a power contract at rates similar to those used in the definitive feasibility study, which will contribute to Wolf being a low-cost producer of tungsten,” said Wolf MD Russell Clark.
The £123.2-million project would include a three-million-tonne-a-year processing plant and associated infrastructure. The project was expected to produce about 3 500 t/y of tungsten concentrate and 450 t/y of tin concentrate.
Production was expected to start in mid-2015.
Have you noticed that the managements (CEO replaced?) last year and after some dark period they had put out several news in a short time period.
They have been following thru what they put on the news so far.
Like to believe they continue to do so in 2015.
I believe you are probably correct on the good entry point, except for the fact that Woulfe has many no longer trusting them. I bought and sold this position one time and did fine on it. I will probably buy it again, knowing I will have to hold it longer term. Some of these companies seem to either not realize when they are destroying trust, or simply do not care.
Woulfe Drills High Grade Tungsten Across Wide Intercepts
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 19, 2014) - Woulfe Mining Corp. ("Woulfe" or the "Company") (CSE:WOF)(FRANKFURT:OZ4) announces results from eight diamond drill holes of its Phase 6 Exploration Drilling Programme on the Hangingwall Deposit ("HW") at the Sangdong Tungsten Project located in the Republic of Korea.
The results of the first eight diamond drill holes of the Phase 6 HW Deposit drilling programme, with assays performed by SGS in Australia, are as follows:
Hole ID SGS Assays 2014 AMC Resource Model
Depth (m) True Width (m) WO3 (%) WO 3 (%) True Width (m) Depth (m)
WSDD0459 66.0~116.0 19.9 0.56 0.76 28.7 0.0~72.0
WSDD0478 18.0~40.0 19.4 0.87 0.73 19.8 0.0~22.5
WSDD0488 0.0~121.0 43.4 0.52 0.75 29.8 0.0~83.0
WSDD0460 22.0~94.2 26.8 0.94 0.80 30.4 0.0~82.0
WSDD0479 8.5~25.0 15.6 0.54 0.65 21.7 0.0~23.0
WSDD0489 0.0~79.0 30.2 0.55 0.62 30.2 0.0~79.0
WSDD0480 6.0~10.0 3.7 0.41 0.84 4.6 7.0~12.0
WSDD0042 12.0~88.0 24.8 0.77 0.71 25.2 11.0~88.0
Average 23.0 0.66 0.72 23.8
This infill drilling on 20 metre centres confirmed the predicted NI 43-101 inferred resource estimate from the AMC Consultants Pty. Ltd.'s 2014 geology block model. Grade and thicknesses have approximately a 92% and 97%, respectively, correlation between the drilling and the AMC block model within the same boundaries.
This extremely close correlation of resource estimates from infill drilling and predicted results from the block model are relatively rare. With these initial results, Woulfe's confidence is significantly increased that AMC's NI 43-101 Inferred Resources are as stated to date and the current and future drilling will upgrade them to the indicated resource category.
The eight diamond drill holes confirmed a well-defined resource of 419,000 tonnes at a grade of 0.66% WO3 in the HW Deposit.
These extremely encouraging results from the Phase 6 Drilling Programme are from drilling in one area of AMC's approximately 11 million tonnes of Inferred Resources. Woulfe will only re-assess the conversion rate of Inferred Resources to potentially mineable resources when a number of areas within the Inferred Resources have been drill tested and correlated to the AMC 2014 block model.
Until new reserves, potentially mineable resources or other project related metrics are announced, Woulfe will continue to rely on the financial returns predicted in the December 17, 2014 press release.
On Behalf of the Board of Directors
Woulfe Mining Corp.
Michel Gaucher, CEO and Director
Read more at http://www.stockhouse.com/companies/bullboard/c.wof/woulfe-mining-corp#mXTaz7xVxDOiaYMl.99
Plenty of time has passed to accumulate from my last post (11/14/2014) stating to BUY NOW, if you plan to slowly add to or start a new position. Good entry point here in my opinion.
Please do your own due diligence before adding and starting a position here.
Good luck
Woulfe's Sangdong phase 1 NPV at $121-million (U.S.)
2014-12-17 09:39 ET - News Release
Mr. Michel Gaucher reports
WOULFE MINING CORP.: SANGDONG PROJECT UPDATE
Woulfe Mining Corp. is providing a shareholder update on the Sangdong tungsten project in the Republic of Korea.
(1) Results of the latest financial model update are: Phase 1(i) Mining Plan Options for -1 to Taebaek Levels (Using 65% WO3 Concentrate Price of $US 15,000 per tonne) Annual Mill Feed Production Rate 633,000 TPY 792,000 TPY Annual Revenue WO3 Concentrate(ii) $US 46.6 million $US 58.3 million EBITDA - Annual $US 23.6 million $US 30.1 million EBITDA/ Share $CDN 0.075 $CDN 0.095 Pre-tax IRR 36% 39% NPV @ 8% Discount Rate $US 114 million $US 121 million All figures above are 75% of total project values and attributable to Woulfe after the transaction with IMC. Reserves Included in Phase 1 6.4 million tonnes grading 0.49% WO3 Annual Production Rate 633,000 tonnes 792,000 tonnes WO3 Processing Plant Recovery Rate 85% 85% Annual WO3 Concentrate Production 4,139 tonnes 5,178 tonnes Pre-Production Capital Expenditures $US73.4 $US78.4 million(iii) million(iii) Mine Life 10 years 8 years (i) 3 levels out of 20 levels in Phase 1. (ii) No Apt downstream minority revenue participation should have been included since February 2012. (iii)Capex using all new equipment, including processing equipment from China and includes a 15% Contingency.
The financial analysis uses part of the 2012 TetraTech reserves.
Woulfe Mining Corp. received the TetraTech Inc. Feasibility Study for the Sangdong Project in mid-2012. Review of the TetraTech study in 2013 by significant shareholder, Dundee Corporation, has been followed, starting in May 2014, by de-risking critical elements of the project involving:
-- Additional 7,200 metres of Definition Drilling & 470 geotechnically logged holes. -- Phase 1 Mining detailed resource model by AMC Consultants Pty. Ltd. -- September 2014. -- Highly detailed mining plan using targeted and selective mining methods -- November 2014. -- Substantially reduced capital expenditures from $US151 million to $US73.4 million and $US78.4 million, for the 633,000 and 792,000 tonnes per year options, respectively, in processing plant and mining development.
Update
Phase 4 and 5 drilling programs totalling approximately 7,200 metres of diamond drilling increased the mineral resources confidence. This infill drilling was on 20 metres centres instead of on the previous 40 metre centres.
The TetraTech calculated Probable Reserve of 13.3 million tonnes at a grade of 0.425 % WO3 was for the entire deposit (for all 20 levels). In addition TetraTech included Inferred Resources in the HW Zone of 23.1 million tonnes at a grade of 0.66% WO3. A new NI 43-101 compliant resource block model and resource estimate for a section of the deposit above -3 level, was prepared to Feasibility Study accuracy for purposes of NI 43-101 by AMC Mining Consultants Pty. Ltd. of Australia ("AMC"). This was completed during the 3rd Quarter of 2014 and included Phases 4 and 5 drilling results. AMC's resource estimate included 3.81 million tonnes at a grade of 0.56% WO3 Measured and Indicated Resources & Inferred Resources in the HW Zone of 7.93 million tonnes at a grade of 0.68% WO3 (using a 0.40% WO3 cutoff grade).
During October, 2014, Woulfe commenced drilling the HW Zone above -1 level in a Phase 6 drilling program. The drilling by Woulfe so far has outlined Indicated Resources of 419,000 tonnes at a grade of 0.95% WO3 (using a 0.35% WO3 cutoff grade) undiluted, representing 6% of the total volume associated with the Inferred Resources above -3 level. The drill tested contained metal content therefore is substantially higher than predicted. Drilling continues with the aim of converting a further 3 million tonnes of Inferred Resources, above -3 level, to the Indicated Resources category, by early 2015.
Rock mechanics and stope design analysis data was substantially increased by undertaking oriented core drilling and increasing geotechnical logging of drill holes. Turner Mining and Geotechnical Pty. Ltd. of Australia, retained originally by TetraTech, completed the rock mechanics analysis to Feasibility Study accuracy for purposes of NI 43-101. Rock mass data from less than 30 drillholes was increased to data from over 500 drillholes and included in excess of 40,000 measurements.
The TetraTech high volume bulk mining method was necessarily reviewed. Based on the AMC resource model, the mining method was fundamentally changed to adapt to the variable nature of the mineralization envelopes. The new mining model and associated operating costs estimated to Feasibility Study accuracy, for purposes of NI 43-101, were completed by Services Miniers PRB Inc. of Val d'Or, Canada ("PRB") and A-Z Mining Professionals Limited of Thunder Bay, Canada.
The TetraTech processing plant flowsheet included the key use of a Chinese proprietary collector, of unknown composition, and whose supply would not be guaranteed. To eliminate this concern, an alternative collector was tested and found to provide better results than the Chinese product. Commissioned by Woulfe, this work was supervised by Mr. Rod Elvish, metallurgist, of Australia, who had previously been retained by TetraTech for Feasibility Study metallurgical testwork and process flowsheet design. The reduced mining rate and de-risking of capital expenditures indicated a significantly smaller (50%) processing plant would be optimal. Bumigeme Inc. of Montreal, Canada has just completed a Preliminary Economic Assessment accuracy design and cost estimates on the processing plant, based on the Chinese 20 tonne pilot plant test flowsheet. Woulfe also revisited the use of gravity separation to reduce the mill feed portion sent to flotation. Testwork just completed at SGS Lakefield in Canada confirmed the use of flotation on all mill feed for WO3 recovery. The processing plant flowsheet is similar to that proposed by TetraTech, using flotation to produce a 65% WO3 concentrate.
Environmental studies and approvals have been completed. Permits required for the present state of project advancement have been awarded.
Combining the AMC updated resource estimate and the mining study by PRB identifies reserves of approximately 6.4 million tonnes at a grade of 0.49% WO3. An updated project financial model including the reserves and potentially mineable resources was developed to ensure project viability continues.
An updated Feasibility Study will be completed by Woulfe's consultants during the 1st Quarter of 2015. The main outstanding components requiring completion to the amended NI 43-101 Feasibility Study accuracy are:
-- Processing plant engineering and cost estimates -- A detailed Hydrogeology study
The Feasibility Study team consists of: A-Z Mining Professionals Limited Study management, financial analysis & report preparation AMC Consultants Pty. Ltd. Geology and resources Rod Elvish Metallurgy Services Miniers PRB Ltd. Mining Turner Mining & Geotechnical Pty. Ltd. Geotechnical Bumigeme Inc. Processing
The completed Feasibility Study will, based on a positive study, be followed immediately by project financing and construction.
Malcolm Buck, P. Eng. of A-Z Mining Professionals Limited, a "Qualified Person" under National Instrument 43-101, supervised preparation of the information that forms the basis of the written disclosure in this news release.
(2) The IMC $US 10 million loan, due December 15, 2014, has been extended to September 15, 2015, on the condition that the minority interest of Woulfe in a downstream APT operation be cancelled. There was no assurance of a revenue stream to Woulfe as a minority participant and 100% leveraged participant in this operation.
We seek Safe Harbor.
© 2014 Canjex Publishing Ltd. All rights reserved.
Read more at http://www.stockhouse.com/companies/bullboard/c.wof/woulfe-mining-corp#VwafyQuIwVkqv8K8.99
Woulfe Mining Extends IMC Loan
Press Release: STOCK/OTHER MARKET NEWS – 1 hour 46 minutes ago
https://ca.finance.yahoo.com/news/woulfe-mining-extends-imc-loan-143000334.html
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 15, 2014) - Woulfe Mining Corp. ("Woulfe" or the "Company") (WOF.V)(OZ4.F) announces that it has reached an agreement with its strategic partner, International Metal working Companies B.V. ("IMC") to extend the term of the existing CAD$ 10 million loan from December 15, 2014 to September 15, 2015. This extension will allow Woulfe to complete the advanced, amended feasibility study and to complete the ongoing Phase VI drilling program on the wide, high grade, Hangingwall Deposit.
As a reminder of the original terms of the loan, please refer to news releases dated February 28, 2012 and March 4, 2013. The original CAD$5 million loan agreement was executed on February 28, 2012 and amended and restated to a CAD$10 million bridge loan announced on March 4, 2013. Today's amended and restated agreement not only extends the term bridge loan for nine months, but also cancels the minority interest (45%) of Woulfe in the downstream Ammonia Paratungstate ("APT") operation and related capex. The cancellation of the APT commitment decreases Woulfe's overall capex requirements and there was no assurance of a revenue stream to Woulfe as a minority, leveraged participant in the APT operation.
Other conditions of the original and amended and restated (See news releases dated February 28, 2012 and March 4, 2013) agreements remain in place, including, subject to the terms and conditions of the agreements, IMC acquiring a 25% interest in Sangdong Mining Corporation (Woulfe's 100-owned subsidiary) "(Sangdong") for total consideration of CAD$35 million (less current loan balance and related interest) and an offtake agreement related to Sangdong's tungsten concentrate production.
On Behalf of the Board of Directors
Woulfe Mining Corp.
Michel Gaucher, CEO and Director
About Woulfe Mining Corp.
Woulfe Mining Corp., through its wholly-owned subsidiary, Sangdong Mining Corporation, is dedicated to developing the Sangdong tungsten-molybdenum mine which was historically one of the largest tungsten mines in the world and one of the few long-life, high-grade tungsten deposits located outside of China. Woulfe Mining Corp. is listed on the Canadian Stock Exchange.
This Press Release contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about strategic plans, including future operations, future work programs, capital expenditures, capital structure, discovery and production of minerals, metal prices and currency exchange rates, timing of geological reports and corporate and technical objectives. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks inherent to the mining industry, adverse economic and market developments and the risks identified in Woulfe Mining Corp.'s annual information form under the heading "Risk Factors". There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. Woulfe Mining Corp. disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
Contact:
Woulfe Mining Corp.
Nick Smith
1-415-595-0865
Woulfe Mining Corp.
Administration Office
+1 604 684 6264 Extn 2
+1 604 684 6242
I just finished reading through the latest quarterlies. There was no substantial news we haven;t heard already, and the share count continues to balloon, now up to 423M FD, as management continues to concentrate on decreasing the value of the shareholding of retail investors for their own benefit.
Drop dead date for the IMC financing will be here before we know it. My prediction is an extension, allowing the insiders to get themselves more cheap shares.
LC
SPARK you are back! Did you take profits like told you to at .38? Because it was prudent too? as I posted a few years back?... Good to see up you here. Link back to post.
"Ah an expert" ;)
We could touch the 1's, but there is obvious accumulation going on at these levels... 1's will be harder to get....It will pop soon... Be ready
Think we've found the bottom? Any new news?
And yet another competitor leaving WOF in their dust after starting way behind...
Premier African Minerals to kick start low cost tungsten production in 2015
By Jamie Ashcroft October 28 2014, 7:16am
http://www.proactiveinvestors.co.uk/companies/news/73702/premier-african-minerals-to-kick-start-low-cost-tungsten-production-in-2015-73702.html
PREMIER AFR MIN (PREM.L)
Premier African Minerals (LON:PREM) told investors it expects tungsten production at its RHA project to begin during the second quarter of 2015.
The RHA tungsten project in Zimbabwe will start as an early-stage low capital open-pit operation, the company said.
Revenues generated from this start-up open pit will subsequently finance the development of a more substantial underground mining operation, it added.
The company also expects the project’s economics will support a full debt financing that is currently under negotiation.
“We are in advanced stage negotiations with off-take partners and debt providers and we look forward to updating shareholders in due course,” said chief executive George Roach.
In-house modelling of the low capital start up mine predicts project capex of just US$4.8mln, which would enable 18 months of production with net revenue estimated at US$35.6mln.
It estimates net operating costs of US$12.15mln and pre-tax cash flow of US$18.3mln.
The initial project is given a net present value (NPV10) of US$15.8mln, and a 286% internal rate of return (IRR).
The assessment assumed a tungsten price of US$288.6 per tonne.
Another competitor that have left Woulfe in their dust doing well.
W Resources passes major milestone with latest tungsten shipment
By Ian Lyall October 22 2014, 3:00pm
http://www.proactiveinvestors.co.uk/companies/news/73510/update-w-resources-passes-major-milestone-with-latest-tungsten-shipment-73510.html
W RESOURCES (WRES.L)
W Resources (LON:WRES) shares surged over 18% as it revealed it had passed a “major milestone” in shipping 39 tonnes of tungsten concentrate in October from its La Parrilla tailings operation in Spain.
Four shipments were made in the month generating €470,000 of revenues and demand remains strong for its low impurity product, the company said in a wide-ranging operations update.
“La Parrilla tailings production continues to improve on all dimensions and we are systematically reducing power costs and improving feed systems with tin production planned for the New Year,” said chairman Michael Masterman.
Total output since the plant’s completion now stands at 66 tonnes.
Later this month it will be hooked into the local electricity grid, making for cheaper production, while the new feed equipment will be installed during the next planned shutdown.
W Resources also said it is looking to produce its first tin concentrate in the New Year. This will help enhance revenue generation.
City broker Northland rates the shares a 'buy' and analyst Dr Ryan Long noted that production during September had been 21 tonnes of concentrate - ahead of his expectations of 12 tonnes. Production during October is expected to reach 25 tonnes, in line with the broker's expectations.
The higher production than expected in September has led the broker to increase its production forecast for the year to 115t from 100t but it has maintained its price target.
"W Resources continues to look undervalued and we maintain our BUY rating and price target of 1.5p per share."
The early production from the tailings for W is merely the starter course.
The larger opportunity lies with the La Parrilla mine and Régua, in Portugal, which have tungsten grades and target production rates many times larger than the tailings operation.
"That's where we see the very significant larger production and profit growth coming from," said Masterman, speaking to Proactive Investors.
On the timing of these assets' development, he said La Parilla was probably ahead of Régua .
"We are looking at getting approvals for the fast-track mine in 2015 and we think we'll be able to execute development of that quickly into 2016."
As reported previously, the fast track mine at La Parrilla will be in an area adjacent to the current pit, utilising existing tailings and power, water and road infrastructure.
Also today, the company said it also plans exploration drilling in 2015 on the “exceptional” Tarouca target, 20km south of Régua.
Finally, it said an update on the Portalgere copper-gold project in Portugal will be given once the latest trenching results have been received.
That is good news. I do plan to be back in by the end of 2014.
Woulfe Mining Announces a Revised Mineral Resource Estimate for its Sangdong Tungsten Project
09:30 EDT Wednesday, October 15, 2014
http://www.theglobeandmail.com//globe-investor/news-sources/?date=20141015%20&archive=ccnm&slug=201410150972963001#dashboard/follows/
Woulfe's competition will not stand a chance against this dream team.
I presume that is meant as a joke. Many of their competitors have already begun production over the last year or two and most of the rest will already be in production long before Woulfe is, even assuming they do eventually manage to complete the IMC financing..
What a boondoggle this has been!
LC
Operational Management at Woulfe Mining Corp.
Mr. Sang Bum Lee
Position: President of Sangdong Mining Corporation
Mr. Lee has over 30 years of experience in the non-ferrous metals (zinc, lead and precious metals) industry gained in Korea, Australia, Europe and the United States in various technical roles that include project engineering, construction project management, and business and technology improvements, as well as general management.
Since completion of his bachelor of engineering (major: metallurgical engineering) at the Korea University in South Korea, Mr. Lee has enjoyed a successful career spanning 30 years with Korea Zinc Co. Ltd., a South Korean company which supplies approximately 10 per cent of the world's demand of zinc metal products and also one of the largest non-ferrous metals producer in the world. Mr. Lee held various positions ranging from process engineering, plant construction, production management and commercial management to, most recently, managing director and chief executive officer of Sun Metals Corp. Pty. Ltd., a wholly owned Australian subsidiary of Korea Zinc.
http://www.woulfemining.com/s/Management.asp
Additional Woulfe Mining Contact Information
Note: If you're calling from northeastern U.S. or Canada there's a 13 hour time zone difference in South Korea.
TO ALL MEMBERS OF THIS MESSAGE BOARD WHO OWN SHARES OF WOULFE MINING:
If you are trying to call/email the Toronto or Vancouver numbers/addresses for Woulfe and are getting nowhere.
Please call the Sangdong Mining Corporation from Canada or USA at the following phone number: 011-82-33-378-2001, they SPEAK ENGLISH VERY WELL.
If anyone feels left in the dark regarding the current status of the company.
Feel free to call anytime during South Korea working business hours Monday through Friday. There is a 13 hour time zone difference so you may need to call late in the evening. Ask for Mr. Sang Bum Lee or the Assistant Manager.
GLTA longs.
Cheers!
Woulfe Mining Shareholder Communications
Nick Smith
Mobile phone +1 (415) 595-0865
IMC ~ International Metalworking Companies
IMC International Metalworking Companies B.V. (Iscar Metalworking Cos. or the IMC group of companies) is one of the world's largest companies for metalworking products. As part of Berkshire Hathaway, IMC operates Iscar, TaeguTec, Tungaloy, Ingersoll and more in over 50 countries. IMC member companies have secured management control over themselves. Today, IMC has 140 subsidiaries in 65 countries.
http://en.wikipedia.org/wiki/International_Metalworking_Companies
Good info. Hope it gets the plant up and working,
Dundee Sustainable Technologies Inc. Obtains 96.1% Gold Recovery from Concentrate
Noteworthy information regarding this new technology that Dundee Sustainable Technology has developed. Perhaps this is why Mr. Goodman is heavily invested in gold because he knows how important this new technology is. The new tech could be used on Woulfe's Muguk gold mine in South Korea in order to obtain an extremely high gold recovery percentage rate. Dundee is helping Woulfe's tungsten project proceed so it can achieve maximum efficiency when the tungsten mine goes into full scale production. Plus IMC is still in negotiations with Woulfe Mining to finalize the strategic agreement. Woulfe's competition will not stand a chance against this dream team. Ned Goodman's Dundee Corporation, Warren Buffett's company IMC (International Metalworking Companies) and Korea Zinc are some of the big names supporting the Woulfe Mining tungsten project.
http://www.stockhouse.com/news/press-releases/2014/09/11/dundee-sustainable-technologies-inc-obtains-96-1-gold-recovery-from-concentrate
International Metalworking Companies
IMC International Metalworking Companies B.V. (Iscar Metalworking Cos. or the IMC group of companies) is one of the world's largest companies for metalworking products. As part of Berkshire Hathaway, IMC operates Iscar, TaeguTec, Tungaloy, Ingersoll and more in over 50 countries. IMC member companies have secured management control over themselves. Today, IMC has 140 subsidiaries in 65 countries.
http://en.wikipedia.org/wiki/International_Metalworking_Companies
Read more about WFEMF at:
http://www.stockhouse.com/companies/bullboard/c.wof/woulfe-mining-corp
And to think Woulfe was once leading this race. Now I would put them in 10th or 11th and fading fast. Thanks, management!
Wolf Minerals is “head of the pack” says finnCap
By Jamie Ashcroft September 18 2014, 12:13pm
http://www.proactiveinvestors.co.uk/companies/news/72369/wolf-minerals-is-head-of-the-pack-says-finncap-72369.html
WOLF MINERALS (WLFE.L)
Wolf Minerals (LON:WLFE) has leapt to the head of the pack and is a ‘buy’, according to City broker finnCap, which has begun coverage of the British mine developer.
The group’s Hemerdon tungsten mine, located in Devon, is host to the world’s fourth largest resource in the world and when it comes online in the second half of next year it will be the UK’s first new mine opening for 33 years.
Crucially, in terms of its strategic significance, the project will be just one of a few large tungsten mines outside of China.
Hemerdon is predicted to be producing 345,000 tonnes of tungsten product per year, which would generate annual metal sales revenues of around US$100mln – based on an anticipated sales price of 284 per tonne.
Agreements are already in place to sell 80% of the mine’s output.
Having brought Hemerdon to the cusp of production, in the view of finnCap’s Mark Heyhoe Wolf now leads the pack of tungsten mine developers - though his valuation suggests the share price has some catching up to do.
FinnCap initiates its coverage of Wolf with a ‘buy’ recommendation and a 24p price target, which implies some 50% upside from the current price of 16.25p
“Having secured finance and started construction of the UK’s first new mine in 33 years, Wolf has leapt ahead of the pack of tungsten developers. It will be one of the very few tungsten mines outside China,” the analyst said.
“At Hemerdon the project itself is relatively straightforward, with good logistics and a forecast operating cost of US$109/mtu that is directly competitive with the Chinese production cost.
“The outlook for Tungsten is very positive, with demand forecast to outstrip supply and push APT prices to US$480/mtu in 2016 as Hemerdon enters production.
“There is also substantial upside to our base case valuation, with converting more of the current resource to reserve, steeping the pit walls and increasing the plant availability all being particularly low hanging fruit.”
Chinese government to tighten control of tungsten mining
BEIJING (Metal-Pages) 19-Sep-14. Players in the Chinese tungsten market are expecting to see effective government policies next year after...
http://www.metal-pages.com/news/story/82647/chinese-government-to-tighten-control-of-tungsten-mining/
Smit Röntgen Takes on Tungsten and 3D Printing
http://tungsteninvestingnews.com/5183-smit-rontgen-3d-printing-tungsten.html
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Woulfe Mining Corp (QX) (WFEMF) and TSX:WOF
http://ca.reuters.com/article/businessNews/idCATRE7725KC20110803
Woulfe Mining sees sparkle of minor metal tungsten
Wed Aug 3, 2011 2:29pm EDT Print This Article | Single Page[-] Text [+] By Julie Gordon
TORONTO (Reuters) - Woulfe Mining WOF.V has fast-tracked plans to bring the Sangdong tungsten mine back into production, as it looks to capitalize on higher prices driven by a Chinese clampdown on exports of the minor metal.
The company is modernizing the South Korea mine, which was shut down in 1992 due to falling metal prices, and plans to start building a new process plant on site this year, chief executive Brian Wesson told Reuters.
The push to get the mine back online comes as China, which produces 80 percent of the world's tungsten, has cracked down on exports, sending prices up 90 percent in the last year.
"The issue at the moment is the grades are dropping -- they've taken all the good stuff," Wesson said of China's tungsten mines. "So the cost of production is increasing."
China's domestic demand for tungsten, used in auto manufacture and in hard metals for mining and drilling, is rising, and that has reduced the supply available for export.
This has sent the price of APT (ammonium paratungstate), a processed form of tungsten, up to $460 per unit, or $46,000 a tonne, from $240 per unit a year ago, leaving customers like Korea's TaeguTec Ltd and Japan's Mitsubishi Corporation (8058.T: Quote) scrambling for new suppliers.
Wesson said Woulfe plans to start up production by late 2012 at Sangdong, which is just up the road from a TaeguTec facility. The project will produce some 4,000 tonnes of APT annually, along with molybdenum.
Modernizing the mine and building the plant to process tungsten into APT will cost about $135 million, but annual revenues from APT alone could
"We're looking to get a very favorable off-take agreement with somebody," he said. "That's likely Korean, but you never know. Obviously it comes down to the best value for the company."
GOLDEN OPPORTUNITY
With the tungsten mine well on its way to development, Wesson said Woulfe will be able to focus more attention on its Muguk project, once Korea's largest producing gold mine.
The Muguk mine shut down in the late 90s, when the gold price slipped below $400 an ounce. With the spot gold near a record high over $1,660 an ounce, Woulfe has started drilling to better define the historical resource.
"We know gold is there," said Wesson. "We just need to understand it under modern terms."
Eventually Woulfe will likely spin off the gold project into a new company.
But a spin-off is still some time away, said Wesson, who is busy trying to get Sangdong online as soon as possible.
The company recently got permits to build a new adit for the mine, which will allow it to take bulk samples for the pilot plant, and to use larger modern mining equipment.
The next step will be a prefeasibility study next month, followed by a feasibility study before the end of the year.
----------------------------------------------------------
mining fact sheet
Key Projects
SANGDONG
Tungsten/Molybdenum•Most advanced of Woulfe's projects
•Provided WO3 to world markets for over 40 years, now reopening
•Historically one of the world's largest tungsten mines
•Korean passion for this project
•Significant increase in APT pricing over the last year due to high demand and unmined supply of WO3
•Fast tracked for early production due to high demand for WO3
•Examining the unmined hanging wall zone which the Company plans to mine first
•Resource estimate for Upper Section includes Indicated Resources of 5,968,000 tonnes with an average grade of 0.42% WO3 and 0.04% MoS2;and Inferred Resources of 18,572,000 tonnes with an average grade of 0.45% WO3 and 0.05% MoS2.
MUGUK
Gold•Korea's largest gold mine until 1990
•Formerly owned by Korea Zinc, the newest partner in Woulfe Mining Corp.
•Initial assays from the No. 7 vein have shown promising results
•A 3D digital model of the Muguk mine workings has been completed
•Woulfe is updating the extensive database comprising final survey of underground workings prior to closure, face grades, drill data, ore extraction data and process data
•Woulfe is preparing an NI 43-101-compliant resource estimate for the main mineralized structures
Major Shareholders
(Over 10%)•Colonial First State
Common Wealth Bank of Australia
•Korea Zinc Co. Ltd.
Woulfe Mining Philosophy
Woulfe Mining is a Canadian-based resource company. Woulfe's vision is to develop high quality projects that can be brought into production quickly and at low cost, creating value for its shareholders. To achieve this, we are focusing on properties with known mineralization, and established infrastructure located in mining-friendly nations. Woulfe Mining values the environment, the health and safety of our workers, and the cultural diversity and rights of our neighboring communities, enabling us to build strong relationships with governments and non-government organizations of the countries in which we operate.
Moving Forward
•Currently drilling under former mine for the quickest way to become cash positive in production
•Mine plan is focused on extracting 1.2 million tonnes over 10 years which would recoup all capital expenses as per scoping study within 2 years
•Final permitting to be completed in July, 2011
•Full feasibility study by Wardrop underway
•Preparing definitive mine design
•Finalizing funding and construction design
Woulfe Mining Mitigating Your Risk
Financing•$11 million in the bank, $5 million options and warrants
•A2 credit rating scored by Moody's
•Suggested $40 million in equity into Woulfe subsidiaries by Korea Zinc
•Residual financing of approx $75 million by Korea Zinc upon completion of feasibility study
Technical•40 prior years of tungsten, molybdenum and bismuth production
•Installation of known technology by local experts
•Established infrastructure and access to energy source
•Tungsten, molybdenum, gold, bismuth, uranium, zinc and lead are all growth metals
Licensing•Mine development license approved June 2010
•Small mine footprint and old mine site is country owned
•Final mine and process development will be submitted to state and country authorities for construction approval
Country•Federal, Provincial and Community support of the project
•Strong rule of law
•Stable government
•20% tax, 10 years tax losses, 5 years tax exemptions, no royalties/export tax
video woulfe's sangdong project
http://ca.finance.yahoo.com/video/managingandleadership-22350852/woulfe-mining-27309539.html#crsl=%252Fvideo%252Fmanagingandleadership-22350852%252Fwoulfe-mining-27309539.html
Woulfe Fast-Tracks Tungsten and Gold in South Korea
By Greg Klein
He's not so much having it both ways as hedging it both ways-gold against a bear market and tungsten against a bull. That helps explain Woulfe Mining CEO/President Brian Wesson's excitement about his company's two South Korea properties, the Sangdong Tungsten-Molybdenum Project and the Muguk Gold-Silver Project.
"If you look at tungsten and gold, they're based on totally different fundamentals," he says. "If the world tanks, our company's got gold. If the world keeps going as it is, we've got both. If the world comes right, tungsten will climb because it runs the GDP."
It lacks gold's illustrious image, but tungsten is employed to render other metals tougher and more resistant to heat, such as the drill bits used in mining. It's also used to create hard-metal alloys, lamp filaments, electrical and electronic contacts and in chemical applications such as pigments, paints and lubricants.
"I think it's about to have its day because without tungsten you can't make anything," Wesson says. "It's very strategic, and it was outperforming gold until America was downgraded. I think gold is just ticking past tungsten at the moment." Sangdong had been in production until 1992, when it was shuttered by falling prices.
About 85% of world tungsten supply comes from China, which has slashed exports and now imports the stuff itself. Meanwhile, demand increases elsewhere. It's usually traded in the form of ammonium paratungstate (APT), whose spot price shot from $261 per metric ton unit in October 2010 to a high of $465 last July, Wesson says. He expects the price to hit $475 next year.
Yet Sangdong's April 2010 PEA based its numbers on a price of $250 per mtu. The study projected a 3.4-year payback on a CAPEX of $289.3 million, a 26.4% internal rate of return, a $462 million net present value (at an 8% discount rate) and a 40-year mine life.
Not only has APT's spot price risen dramatically since then, but so has Sangdong's resource. Its July 2011 43-101 estimated 5.97 million tonnes grading 0.42% WO3 (tungsten oxide powder) and 0.4% MoS2 (molybdenum disulfide) indicated and 18.57 million tonnes grading 0.45% WO3 and 0.05% MoS2 inferred. Drilling continues.
"Grades have gone up 30% on the new resource," Wesson points out. "The average Chinese grade is 0.2. Our grade is twice the average Chinese grade and four times some of the little projects around the world."
The company has skipped the prefeasibility stage. "Feasibility is what we really need because that's what the market wants," Wesson says. "Prefeasibility is a bit like scoping-it's another nice document, isn't it?"
In July the company announced a radically reduced CAPEX, dropping from $289.3 million to $135 million for a bulk underground drift and fill mining operation. The saving means reducing plant capacity from 2.4 million tonnes to 1.2 million tonnes a year.
And with construction beginning before feasibility's finished, patience isn't obviously a Woulfe virtue. "The document will hit the market in probably January," Wesson says. "But we'll start putting concrete on the ground before the end of the year. We bought the crusher; it's actually on a ship on the way to the site." Production's slated for late 2012.
Why the hurry? Wesson explains, "Now that the price of tungsten has almost doubled, there's a lot of interest in getting this thing going."
Feasibility is what we really need because that's what the market wants. Prefeasibility is a bit like scoping-it's another nice document, isn't it? -Brian Wesson
Which should, in turn, help finance Woulfe's Muguk Gold-Silver Project. Another past-producing mine, Muguk has a 1994 non-43-101 resource of 620,000 gold ounces and 3.3 million silver ounces.
Again, things are moving quickly. "What's very significant about Muguk is it was mined all those years at an average cutoff grade of 10 grams," Wesson says. "At today's price you can run that mine at about two grams. It closed in 1997, but the law in Korea requires you to do a full survey of the mine before you close. So we've got a detailed survey that allowed us to do this very accurate 3D model, and we've just appointed [AMC Consultants] to do our 43-101 resource," which is due in about six weeks.
Production, he says, could be as little as a year away. "We know we got gold in the ground; we know its free milling; we know there's no metallurgical risk. We have no doubt that the project would be economic. I would say with Muguk our next step is to get underground. It all depends on the market. If the markets are very good, and we could list off part of it and get equity, we would probably just open Muguk.
"Everybody's looking at risk-country risk, commodity risk and timing," Wesson continues. "In Korea we have security of title, a good legal system, stable country, the world's eleventh-biggest economy. Both our commodities are very strong and both of them at different sides of the market. Our tungsten grades are twice as high as China's. Our gold grade is substantially higher. That puts us in the low-production cutoff. We went around and found these projects mostly to find something that could give a return to shareholders."
Woulfe also has three early-stage projects in South Korea: the Ogchon Uranium Project, the Yeonwha Lead-Zinc Property and the Chongyang Mine, a former tungsten producer.
Woulfe has no debt, $5 million in cash and another $5 million in warrants due in December, Wesson says. At press time the company had 268.5 million shares trading at $0.215 for a market cap of $57.7 million. As of July, major shareholders included Colonial Bank of Australia with 13.8% and Korea Zinc Co Ltd with 12.5%
http://resourceclips.com/2011/09/14/full-feas-ahead/
www.woulfemining.com
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