Mining: Merger & Acquisition Assignments

IBK Capital acted as financial advisor to Augustine Ventures Inc. to advance the Wawa gold project which resulted in Red Pine Exploration Inc. taking over Augustine Ventures for approximately $13 million in an all stock transaction after completing about $2 million of exploration work on the project. While the Red Pine acquisition consolidates the Wawa project it also results in a very talented exploration team to advance the project. The Wawa gold project contains resources of 1,088,000 ounces of gold grading 1.71 grams per tonne gold.

IBK Capital acted as financial advisor to PC Gold Inc. to evaluate strategic alternatives to maximize shareholder value culminating in the takeover of PC Gold by First Mining Finance Corp. in an all share transaction valued at $10,003,200.  PC Gold’s main asset is the Pickle Crow gold property in northwestern Ontario, Canada which contains a gold resource of 1.3 million ounces of gold at an average gold grade of 3.9 grams per tonne.  First Mining Finance Corp. was founded by its Chairman Keith Neumeyer, a co-founder of First Quantum Minerals, one of the world’s largest copper producers, and the founder, President and CEO of First Majestic Silver, one of the world’s largest primary silver producers.

IBK Capital was retained by Noront Resources Ltd. to sell its interest in the Windfall Lake gold project in Quebec.  The project was successfully sold to Eagle Hill Exploration Corporation for $5 million and 25 million shares of Eagle Hill.

IBK Capital was also retained by Noront Resources Ltd. as its financial advisor to evaluate strategic alternatives to maximize shareholder value in the wake of Noront’s nickel, copper, platinum and palladium discovery at McFaulds Lake in Northern Ontario.

IBK Capital acted as financial advisor to Spider Resources Inc. Spider was taken over by Cliffs Natural Resources Inc. for approximately $125 million, mainly for its “Big Daddy” chromite property in the Ring of Fire.

IBK Capital acted as financial advisor to Roxmark Mines Limited to evaluate strategic alternatives to maximize shareholder value. Roxmark Mines has an attractive set of gold assets in the Beardmore-Geraldton region of Northern Ontario, including the Leitch mine which produced at over one ounce per ton gold in the 1960’s, the past producing Northern Empire Mine along with a permitted 200 ton per day mill, and a 30% carried interest on Premier Gold’s Hardrock project.

IBK Capital was retained by Sutter Gold Mining Inc. as its financial advisor to evaluate strategic alternatives, including the sale of the company to a third party, or the merger of the company with a strategic partner.

IBK Capital was retained by Zaruma Resources Inc. to assist Zaruma in going public in Canada.  As a private European company with international mineral properties, Zaruma was seeking a listing on the TSX through a reverse take-over of a TSX-listed shell (“RTO”).  IBK Capital assisted Zaruma in its negotiations and the completion of the RTO.  IBK Capital subsequently raised $1 million for Zaruma.

IBK Capital acted as the financial advisor to Lyon Lake Mines Ltd. in the acquisition of the Cerro Crucitas Project located in Northern Costa Rica from Placer Dome Inc.  IBK Capital also acted as financial advisor to Lyon Lake Mines in the arrangement with Palmer Resources Ltd. under which Lyon Lake acquired all of the issued and outstanding common shares of Palmer.  Palmer’s working capital of $6 million was available to Lyon Lake for the acquisition and development of the Cerro Crucitas Project.

IBK Capital was hired by Mallon Resources Corporation to advise on maximizing shareholder value of their holding in Laguna Gold Company.  An auction was held and a transaction closed in December 1997.

IBK Capital was retained by Maude Lake Gold Mines Limited to advise on maximizing shareholder value.  An auction was held and Maude Lake was acquired by McWatters Mining Inc. in September 1996.

IBK Capital was retained by Nova-Cogesco Resources Inc. to advise on acquiring control of Equity Reserve Corp.  IBK Capital assisted Nova-Cogesco in structuring, pricing and negotiating the purchase of a 19.5% equity interest in Equity Reserve Corp.

Equity Reserve Corp. subsequently retained IBK Capital to act as financial advisor in connection with a tender offer to exchange the common shares of Equity Reserve and the options issued by Putco Holdings II Limited for new preferred shares of Equity Reserve.  This tender offer was valued at $27.7 million.  IBK Capital formed and managed a soliciting dealer group for the purposes of soliciting acceptance of the tender offer.  This group included members of the Toronto Stock Exchange and members of the Investment Dealers Association of Canada.

IBK Capital was also retained by Birkenshaw & Company Ltd. to advise on the acquisition of a portfolio of investments in shares of junior mining companies held by Homestake Mining Company.  The market value of the portfolio was approximately $10.7 million.

IBK Capital acted as financial advisor to Falconbridge Gold Corporation in its purchase of the Bell Creek Mine from Canamax Resources Inc.  This transaction provided Falconbridge Gold Corporation with operating synergies and, at the same time, enabled Canamax Resources Inc. to eliminate its bank debt of $13 million and return to a solid financial condition.

The management of Hemlo Gold Mines Inc. retained IBK Capital to advise on the purchase of all of Noranda Inc.‘s gold assets. IBK Capital worked closely with Hemlo’s management to assess the value of the gold assets and the effects of the proposed transaction on Hemlo’s operations, financial status and market perception. This transaction was valued at approximately $80 million.

Falconbridge Limited retained IBK Capital to advise on the sale of some of its gold assets to its subsidiary, Falconbridge Gold Corporation.  IBK Capital proposed a restructuring of the announced deal to address various concerns about the transaction raised by certain minority shareholders of Falconbridge Gold. Falconbridge Limited adopted IBK Capital’s recommendations and amended its proposal to Falconbridge Gold accordingly. This transaction, valued at approximately $11 million, was overwhelmingly approved by the minority shareholders of Falconbridge Gold Corporation at the company’s annual and special meeting of shareholders.

Rio Algom Limited retained IBK Capital to advise on the sale of its 27% interest in St. Philips Resources Inc.  St. Philips owned a 40% joint venture interest in the South Kemess copper-gold property located in north central British Columbia. The South Kemess is currently being developed by Northgate Minerals Corporation.