GOLDBUGS AMEX Goldbugs Index (GOLD)

[basserdan]

South32 Reallocates Arizona Mining Investment to Silver Bull Resources

The deal South32 has made with Silver Bull is vastly misunderstood by the market as indicated by the muted response from Silver Bull's stock price. (TSXV: SVB; OTCQB: SVBL)

Here is an analysis of history of South32 Investment in Zinc/Silver in US/Mexico along same geological fault structures. South32 actually terminated a forward purchase agreement 3 weeks before it turned around and then made the large bet on Silver Bull.

Timeline:
April 18, 2017 - South32 drops $200 million bid for Peabody Energy’s coal mine in Australia
http://www.mining.com/south32-drops-200-million-plan-to-buy-peabody-coal-mine/

May 1, 2017 - South32 buys 45 million shares (15% stake) @ C$2.45/share in Arizona Mining for C$ 110 million
http://www.marketwired.com/press-release/arizona-mining-announces-c110-million-private-placement-with-south32-tsx-az-2212941.htm
http://www.mining.com/south32-buys-stake-canadas-arizona-mining-81-million/

September 14, 2017 - South32 Enters Forward Contract for 15 million shares (4.9%) of Arizona Mining in Open Market over next 12 months
https://www.arizonamining.com/news/index.php?content_id=438

December 7, 2017 - South32 Exercises Top-Up Right for 1.4 million shares at C$3.14 for C$4.5 million Under Forward Agreement
https://www.arizonamining.com/news/index.php?content_id=438

Under this Agreement South32 Ultimately would buy 5.9 million shares of Arizona Mining at an average of C$3.44 for a Total consideration of C$20.4 million
Taking its ownership to 17%.
https://www.newswire.ca/news-releases/south32-announces-termination-of-forward-agreement-in-respect-of-arizona-mining-682378811.html

May 11, 2018 - South32 Announces Termination of Forward Agreement with Arizona Mining
https://www.newswire.ca/news-releases/south32-announces-termination-of-forward-agreement-in-respect-of-arizona-mining-682378811.html

June 4, 2018 - South32 Enters Option Agreement for a 70/30 Joint Venture with Silver Bull Resources
https://globenewswire.com/news-release/2018/06/04/1516131/0/en/Silver-Bull-Grants-an-Option-Entitling-South32-to-Form-a-70-30-Joint-Venture-in-the-Sierra-Mojada-Project-for-an-Aggregate-Investment-of-US-100-Million.html

Essentially, South32 redirected its investment capital earmarked for Arizona Mining to Silver Bull Resources. Quite the big deal.

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=141528261