Nickel Takeovers

Attached is a interesting Article regarding Takeovers and forecast of nickel and associated demand, note that also the below is a DSO operation. I would suspect Axiom will now extend the oppies in play atm, and dont shoot the messanger but i expect a decision a lot sooner than the end of the month..... word is SI is that things just got interesting. no wonder RM is putting defence mechanisms in place, bring on the EGM to vote in this resolution and lets move forward with this project...... to holders who own oppies (wish i had some) wish you guys the best, Ryan has looked after you guys when you put you neck on the line and extended the oppies i dont see why axiom wont do it now......Saying that i PERSONALLY dont believe we will need 2.





Nickel Mining Takeovers Abound in the Philippines as Global Ferronickel Acquires Palawan Nickel Mine

By Conee Orsal on August 26, 2015
Tags: Amur Minerals, Amur Minerals Corporation, Global Ferronickel acquire Palawan Nickel Mine, nickel, nickel in the Philippines, Philippine mining
0
Global Ferronickel Holdings, Inc. (FNI), the Philippines’ third largest nickel producer, announced on Friday its acquisition of Southern Palawan Nickel Ventures Inc., which owns at least 90 percent of Ipilan Nickel Corporation, a company engaged in nickel mining in Brookes Point, Palawan. The P2.29 billion acquisition is expected to double the company’s annual production capacity, making it the second largest producer of nickel direct shipping ore in the Philippines after Nickel Asia Corp.

Global Ferronickel Holdings, Inc. (FNI), the Philippines’ third largest nickel producer, announced on Friday its acquisition of Southern Palawan Nickel Ventures Inc., which owns at least 90 percent of Ipilan Nickel Corporation, a company engaged in nickel mining in Brookes Point, Palawan.​

“This new acquisition forms part of our growth strategy to minimize production downtime throughout the year,” said FNI president Dante Bravo. “The company is very much on track with its plans to become a leader in nickel production in the country.”
FNI currently operates two open-pit deposit sites in Cagdianao, Claver in Surigao del Norte. However, these mines only operate from April to October, so the 2,800-hectare Ipilan mine will be tapped to supply output from November to July. Mine operations may commence next year.

FNI currently operates two open-pit deposit sites in Cagdianao, Claver in Surigao del Norte.​

Good prospects despite nickel prices
The depressed and volatile nickel prices have affected the earnings of several nickel mining companies in the country. “The sluggish price movements, particularly for base metals, were due to weaker demand, most especially from China,” the Mines and Geosciences Bureau said in a report.
However, FNI remains optimistic that the nickel prices will rise towards the end of the year in the hopes that the demand from Chinese steelmakers will soon rise. The company is even considering the possibility of putting up a smelting business to take advantage of the big steel demand in the Philippines.
Indeed, the mergers and acquisitions climate does not seem to be affected, as the takeover comes on the heels of the news that Nickel Asia has also expanded its mining area with the acquisition of Geogen Corporation. Geogen owns the Isabela Nickel Project, which covers a total area of 2,392 hectares. Nickel Asia will pay the purchased 240 million shares in cash at P2.02 per share, but it will also pay P209.2 million for the assignment of the advances, for a total of P694 million.

According to Peter Cook, chief executive of Perth-based gold, tin, and nickel miner Metals X, his company’s recent acquisitions were taking advantage of opportunistic growth options, as many distressed assets are suffering from weak metal prices. “It’s pretty typical of Metals X approach to buying things. There’s a lot of people suffering a lot of stress out there,” he said.​

In the international scene, Australian nickel miner Sirius Resources also expects a planned takeover by diversified miner Independence Group as part of a $1.8 billion acquisition deal in September. Shares of the company rose in 2012 when it discovered the high-grade Nova nickel and copper deposit in the Fraser Range. Sirius CEO Mark Bennett has also reiterated that the low nickel prices will not affect the takeover, saying that “there are no clauses in the deal that make it fall over.”
According to Peter Cook, chief executive of Perth-based gold, tin, and nickel miner Metals X, his company’s recent acquisitions were taking advantage of opportunistic growth options, as many distressed assets are suffering from weak metal prices. “It’s pretty typical of Metals X approach to buying things. There’s a lot of people suffering a lot of stress out there,” he said.
Hence, small cap nickel companies are often seen as potential acquisition targets during these times, especially those that exhibit a huge potential for long-term growth. One of them is Russia’s Amur Minerals Corporation (AIM: AMC), which recently received its production license for its Kun-Manie nickel copper sulphide project, touted as one of the top 20 largest nickel deposits in the world. With Amur Minerals‘ impressive no-debt record and more than 500 percent increase in share price over the last 12 months, the company remains to be within the line of vision of bigger nickel miners looking to acquire assets.