Filo (TSX:FIL,OTCQX:FLMMF) shareholders have approved the acquisition of the company by BHP Investments Canada, a subsidiary of BHP (ASX:BHP,LSE:BHP,NYSE:BHP), and Lundin Mining (TSX:LUN,OTC Pink:LUNMF).

The approval, announced on September 26, follows a special meeting of shareholders.

The agreement will see BHP and Lundin Mining form a 50/50 joint venture that will include the Filo del Sol project, owned by Filo, and Lundin Mining’s Josemaria project. Both are located in Argentina near the Chilean border.

“Our copper-gold-silver exploration success at Filo has been unmatched since spinning the company out in 2016, and now is the right moment to hand the project off to its next stewards to maximize the potential of this remarkable discovery,” Filo President and CEO Jamie Beck said in a July press release when the transaction was announced.

The acquisition was overwhelmingly approved by Filo shareholders, with 99.99 percent voting in favor.

The arrangement is subject to various closing conditions, including regulatory approvals and a final order from the Ontario Superior Court of Justice, which is scheduled for October 2. If approved, the deal is expected to close in Q1 2025.

Filo shareholders will receive information on how to exchange their shares through a letter of transmittal, which will be mailed to registered shareholders and made available online.

Under the terms announced in July, BHP and Lundin Mining have agreed to pay Filo shareholders C$33 per share, either in cash or in a combination of cash and Lundin Mining shares. Total cash consideration will be capped at C$2.767 billion, while share consideration will be limited to 92.1 million Lundin Mining shares.

Filo, BHP and Lundin Mining have also entered into a subscription agreement for a private placement, where each purchasing party will subscribe for 3.48 million Filo shares at C$33 each, raising approximately C$115 million.

The integration of Filo del Sol and Josemaria is anticipated to strengthen BHP and Lundin Mining’s positions in the copper-gold sector and expand their operational footprint in Argentina.

The deal also benefits from recently passed Argentina legislation that supports projects entering the development phase.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

The Québec-based Port of Montreal, a critical hub for Canadian trade, is facing another labor strike that threatens to disrupt industries reliant on the movement of essential goods.

Longshore workers at the Viau and Maisonneuve Termont terminals initiated a three day strike early on Monday (September 30) morning, halting operations. The terminals handle over 40 percent of the port’s container traffic.

The strike, involving around 350 dockworkers, follows a contract dispute between the Maritime Employers Association (MEA) and the union representing the workers, which is affiliated with the Canadian Union of Public Employees.

One of the main grievances of the striking workers is the issue of unpredictable work schedules, and they have made demands for better conditions and higher wages. The MEA has expressed disappointment over the lack of resolution, which persists despite mediation efforts and an emergency hearing before the Canada Industrial Relations Board.

The work stoppage at the Port of Montreal is expected to continue until Thursday (October 3), but there is no guarantee that further strikes won’t occur if negotiations remain unresolved.

The mining industry in particular is feeling the impact of these disruptions. Montreal serves as a key gateway for the export and import of various minerals, metals and raw materials such as iron ore, nickel and gypsum.

These materials are essential for manufacturing processes and are transported to smelters and refineries in the region.

The current strike marks third job action taken at the port since 2020.

“Canada cannot afford another strike at any port across the country. The federal government should make ports an essential service, so they remain operational at all times. Small businesses and their employees should not be subjected to the uncertainty of strikes and lockouts in the nation’s supply chain infrastructure,” said Jasmin Guenette, vice president national affairs at the Canadian Federation of Independent Business (CFIB).

In 2020, Montreal port workers were on the picket line for 12 days, which impacted 115,000 shipping containers.

At the time, a statement from the Mining Association of Canada (MAC) underscored the impact of the work stoppage and its potential to undermine Canada’s position as a reliable trading partner.

‘Mining is a leading customer at the Port of Montreal. With supply chains already under strain, this stoppage is another hit to the industry’s ability to move vital materials efficiently,’ said Pierre Gratton, the MAC’s president and CEO.

He echoed this sentiment in August when faced with a short-lived rail strike in Canada.

‘Over the last several years, Canada has witnessed an unprecedented level of disruption in its supply chain through labour actions by railway and port workers, the pandemic, and civil disruption in the form of random and sporadic rail blockades,’ he said. ‘The reliability and reputation of Canada’s supply chain continues to deteriorate.’

Gratton further emphasized the importance of a stable supply chain to support industries critical to Canada’s economic recovery and the global shift toward green technologies, such as electric vehicles and renewable energy infrastructure.

In a broader context, uncertainty in Canada’s supply chains may deter investment at a time when the sector needs capital to meet rising global demand for minerals and critical metals. The CFIB notes that the strike’s impact could have ripple effects on small- and medium-sized enterprises that depend on imports and exports moving through the port.

“Small businesses and their employees should not be subjected to the uncertainty of strikes and lockouts in the nation’s supply chain infrastructure,” said Guenette in the CFIB’s statement.

Like the mining industry, many small businesses are pressing the federal government to declare ports an essential service, a move that would keep them operational during labor disputes.

With growing calls for intervention, federal authorities may be prompted to take more decisive action in preventing further economic fallout from labor disruptions at Canadian ports. However, as labor negotiations continue, the mining sector and other industries remain at the mercy of potential delays.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

Hydration solutions company The Hydration Pharmaceuticals Company Limited (ASX: HPC) (“Hydralyte US” or “the Company”) refers to its announcement released pre-open on 2 October 2024 regarding entry into an Intellectual Property Sales Agreement (the ‘Agreement’) and related documents with Prestige Consumer Healthcare Inc. and associated subsidiaries.

Hydralyte US is pleased to announce that the Agreement has completed and the sale proceeds of approximately US$9.45m (A$13.7m) have been received.

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Major miner BHP (ASX:BHP,NYSE:BHP,LSE:BHP) projects that global copper demand will increase by around 70 percent by 2050, driven by growing requirements for the red metal across global industries.

In a recent report, the company says it expects demand to rise from 31 million metric tons annually today to over 50 million metric tons in 2050. The upsurge is attributed to several converging trends: traditional economic growth, the ongoing global energy transition and the expansion of digital infrastructure.

At the same time, a significant supply gap is emerging that could challenge the industry in the coming decades.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

Alderan Resources Limited (ASX: AL8) (Alderan or the Company) is pleased to advise that its Stage 1 drilling programme at the New Years copper prospect in the Cactus copper-gold (Cu-Au) district in Utah, USA has intersected high grade copper mineralisation based on visual inspection and pXRF readings on the drill core. Spot pXRF readings reach grades of 45.5% copper between 14.0-14.2m down hole NY2024-DDH2 with the average of three separate readings over this interval being 23.2% copper (see Figure 2). This sits within a 30m interval from 10.8m downhole which contains high pXRF copper grades (see Appendix 3).

HIGHLIGHTS

Two holes intersected high grade copper mineralisation in Alderan’s Stage 1 drilling programme at New Years copper prospect in the Cactus copper-gold district, Utah.Hole NY2024-DDH2 intersected copper mineralisation from 10-40m down hole with averaged pXRF drill core assay intervals up to 23.2% copper. A second 2m zone of mineralisation at 72m downhole has spot pXRF grades up to 28.0% copper.Hole NY2024-DDH3 has intersected visible oxide copper mineralisation from surface to a depth of 99m downhole – pXRF assaying in progress.Copper mineralisation occurs in tourmaline breccia, the same rock that hosts the neighbouring historical Cactus copper-gold deposit which mined 2.0% copper ore.The preliminary logging and pXRF readings suggest that the drill holes may have significantly extended the mineralised zones reported in historical holes NY-6 and NY-2 which intersected 13.7m @ 2.32% Cu within 19.8m @ 1.67% Cu from 22.9m downhole and 10.7m @ 1.52% Cu within 27.4m @ 0.85% Cu from surface respectively.Alderan is now completing permitting for a follow-up drilling programme at New Years.

Cautionary Note: Visual estimates and pXRF readings described in this release and detailed in Appendix 3 should not be considered a proxy or substitute for laboratory analyses. Laboratory assays are required to determine representative grades and mineralisation intervals reported from geological logging and pXRF readings. Visual estimates also potentially provide no information regarding impurities or deleterious physical properties relevant to valuations. Drill core from this programme is being sampled for laboratory analysis at ALS laboratories and results will be reported as soon as they become available.

The Stage 1 drilling at New Years is a three hole (319m) programme aimed at verifying copper mineralisation intersected in historical holes drilled in 1964 and 2002 plus identifying geological controls on mineralisation.1 Stage 2 drilling, which will be dependent on the final Stage 1 results, will focus on extending the mineralisation intersected in Stage 1 and testing geophysical targets. Sampling for lab analysis and detailed geological logging of the holes is still in progress and final design of Stage 2 drill sites is underway. Archaeological inspections required for permitting the proposed Stage 2 drill sites is also underway.

Managing Director of Alderan, Scott Caithness, commented:

“The visual estimates and pXRF spot readings on the core from the second and third holes drilled in the New Years programme are very exciting with both indicating that near surface potentially high grades of copper mineralisation have been intersected. There is also clear evidence that copper rich sulphide mineralisation occurs deeper in the breccia pipe.

“The 30m copper mineralised intersection in Alderan’s hole NY2024-DDH2 from 10m downhole appears to broadly correlate and extend the historical hole NY-6 intersection which was 13.7m @ 2.32% Cu within 19.8m @ 1.67% Cu from 22.9m downhole. Although pXRF assays are not yet available, based on visuals hole NY2024-DDH3 appears to have intersected copper mineralisation to a depth of around 99m from surface – much deeper than historical hole NY-2.

“The Stage 1 drilling programme has been completed with detailed geological logging of the core and sampling for lab analysis now underway. Work has also commenced on final design and permitting for follow-up drilling”

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