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Trump Invokes Wartime Powers to Boost US Critical Minerals Production

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US President Donald Trump has signed an executive order invoking the Defense Production Act to accelerate domestic production of critical minerals, aiming to reduce reliance on foreign sources — particularly China.

The order, signed on March 20, identifies mineral production as a national security imperative and authorizes the Department of Defense, in coordination with the International Development Finance Corporation, to facilitate financing, permitting and investment support for mining and processing essential minerals.

It also directs the Department of the Interior to expedite permits and prioritize mining operations on federal land.

‘Our national and economic security are now acutely threatened by our reliance upon hostile foreign powers’ mineral production,’ the order states. ‘It is imperative for our national security that the United States take immediate action to facilitate domestic mineral production to the maximum possible extent.’

The Defense Production Act, a Cold War-era law originally enacted in 1950, grants the government the authority to direct private industry toward national security objectives. In recent years, the law has been used to ramp up production of defense materials, medical supplies and renewable energy components.

Trump’s use of the act signals a strong shift toward prioritizing domestic resource extraction to counteract China’s dominance in the supply chain and dependence on other nations.

US reliance on foreign minerals

Despite possessing significant reserves, the US remains heavily dependent on mineral imports.

According to the US Geological Survey, the country imports at least 15 critical minerals in large quantities, with 70 percent of America’s rare earths coming from China.

The US also relies on imports for nearly 50 percent of its lithium, 90 percent of its gallium and nearly 100 percent of its graphite, all essential for defense applications and the growing electric vehicle industry.

The move to boost domestic production comes amid growing concerns over China’s tightening export controls.

Beijing has recently begun restricting shipments of germanium, gallium and antimony — materials that are vital for semiconductors and defense systems. In response, US policymakers have pushed for strategic stockpiles and expanded domestic production to reduce vulnerability.

Mixed market response to executive order

Industry leaders have applauded the order, calling it a necessary step toward securing a stable supply chain.

Some US mining companies have also issued statements in support of the executive order.

Ucore Rare Metals (TSXV:UCU,OTCQX:UURAF), which is currently working with the Department of Defense on rare earth elements processing technology, called the order a move that ‘underscores the urgent need to establish robust, domestic rare earth processing capabilities’ in a recent press release.

CEO Pat Ryan noted that the Trump administration’s efforts align with Ucore’s plans to commercialize its refining technology, which would help reduce the country’s dependence on Chinese processing facilities.

Similarly, American Tungsten (CSE:TUNG,OTCQB:DEMRF) praised the initiative, citing the need for an independent tungsten supply chain. ‘This Executive Order is a clear endorsement for America’s mining industry. We believe our tungsten project, the IMA Mine, is a core example of why critical mineral production in the U.S. must be prioritized and addressed without delay,’ commented CEO Murray Nye in a statement.

However, environmental groups have criticized the order, warning that it could weaken safeguards meant to protect public lands from excessive mining activity. ‘Yet again, President Trump is trying to ignore the law and dictate that our national public lands be handed over to private companies for extraction and profit above all else,’ Bloomberg quotes Rachael Hamby, policy director at the Center for Western Priorities, as saying.

Many environmental advocates prefer stronger regulations, and have long warned that increased mining activity, particularly on federal lands, could lead to pollution, habitat destruction and water contamination.

The order directs federal agencies to produce a list of US mines that could be quickly approved, and to assess which federal lands, including those managed by the Pentagon, could be used for mineral processing.

It also mandates the creation of a centralized forum for buyers and sellers in the critical minerals industry.

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

This post appeared first on investingnews.com

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Funding the Energy Transition: The Role of Public and Private Finance in Building Supply Chains

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The energy transition demands substantial funding as participants look to build out infrastructure and supply chains, but experts say new solutions are emerging to help navigate this landscape.

During the ‘Financing the Energy Transition’ panel at the Benchmark Summit, participants discussed the role of government and public sector investment, as well as the outlook for Canada’s electric vehicle (EV) supply chain.

Moderated by Adam Webb, head of battery raw materials at Benchmark Mineral Intelligence, the discussion at the Toronto-based event opened with a snapshot of Canada’s EV battery supply chain buildout.

Daanish Hussein, senior manager of grants and direct funding at BDO Canada, highlighted the downstream, midstream and upstream development happening in Ontario and Québec.

“If you look at the last four years, just looking at Ontario, we’ve secured over C$45 billion in this industry,” he said, adding that Ontario’s strategy has initially been focused on downstream growth.

“Whereas in Québec, I think what you’ve seen is a bigger focus on the midstream and upstream,” added Hussein.

Moving forward, he expects both provinces to prioritize midstream and upstream expansion.

“We want to make sure that Canada has the breadth and depth to get supply chain security, but also it’s an economic development imperative to develop the north, and there’s a lot of private and public sector support for this,” he noted.

Federal support for Canada’s mining industry

During the Prospectors & Developers Association of Canada (PDAC) convention, which coincided with the Benchmark Summit, Jonathan Wilkinson, Canada’s minister of energy and natural resources, made several announcements aimed at supporting the country’s exploration, mining and development sectors.

The first was an extension to the Mineral Exploration Tax Credit (METC) until March 31, 2027.

The 15 percent METC aims to support junior exploration, mining and mineral processing companies, providing an estimated C$110 million to drive exploration investment.

Wilkinson also announced a second round of funding under Canada’s Critical Minerals Infrastructure Fund. It will offer up to C$500 million for energy and transportation projects to boost the mining sector.

Last year’s round approved over 31 projects with C$300 million pending final review.

Hussein noted that these types of funding initiatives are imperative to encourage northern development.

Will US tariffs derail Canadian growth?

Despite focusing largely on Canada, the panel could not escape talks of US tariffs.

While acknowledging the uncertainty that the tariff threat presents, Hussein explained that the EV supply chain project pipeline in Québec and Ontario is robust and financially strong.

He pointed to Linamar’s (TSX:LNR,OTC Pink:LINAF) C$1 billion investment in six Ontario automotive technology sites, announced in January, as an example. The Ontario-based global auto parts manufacturer is also receiving support from the provincial (C$100 million) and federal (C$169.4 million) governments.

“So yes, there is reason for trepidation, but I think there’s a lot of compelling reasons to be optimistic,” said Hussein.

Battery metals investors must rejig expectations

Webb next asked where investors are currently finding value.

Arun Viswanathan, senior equity analyst for chemicals and packaging at RBC (TSX:RY,NYSE:RY), told the audience that investors are currently grappling with three issues.

“First off, they’re a little bit anchored to the recent peak as a potential possibility as to how high they think prices can go, and there isn’t really support for investors to get to that level,” he said.

In addition to unrealistic expectations about metals prices returning to peaks seen in late 2021 and early 2022, Viswanathan pointed to apprehension in EV sales growth in the EU and North America.

“Investors are also struggling with the idea that (in) North America and Europe, EV demand is very weak, and that demand has coincided with this downturn in pricing,” Viswanathan said.

“Even though 80 percent of the supply chain in lithium is in China, 99 percent of LFP capacity production is there, people actually do think that the North American and European markets do matter to drive pricing.”

A lack of transparency was the final factor impacting investor sentiment Viswanathan underscored.

“The third thing I would mention is opacity in the market,” he said. “And when you think about what is actually observable in China and elsewhere, I think investors struggle with data.”

He suggests that investors often “hone in” on inventory numbers, which do not always paint a complete picture.

Viswanathan went on to say that the lithium industry was once seen as a high-growth sector, but major producers are now scaling back their forecasts. For example, Albemarle (NYSE:ALB), has reduced its expected production growth from double digits to low single digits for 2025 and possibly 2026.

With a significant surplus in the market, there’s little immediate catalyst for change. Many investors remain focused on the short term, limiting interest in long-term opportunities despite potential value over the next decade.

“I think in general, investors are optimistic on the long-term story. But even though prices have come down significantly, I don’t know if we’re at value stages yet,” he said.

Does ESG matter for financing?

From there, the discussion shifted to the importance of ESG credentials in financing projects.

Weighing in on the topic, Shelley Gilberg, markets leader of managed accounts at PwC, noted that it “depends on whose money you are taking’ and said alternative forms of financing are emerging.

“You’re starting to see the emergence of much more purpose capital that understands what they’re investing in. They’re prepared to potentially take a slightly lower rate of return in exchange for the thematic investing that they’re doing.”

Gilberg highlighted the Canada Growth Fund’s recent equity stake in the Nouveau Monde Graphite (TSXV:NOU,NYSE:NGM) as part of the shift in financing strategies. Announced in December, the C$57 million investment aligns with the Canada Growth Fund’s goal of supporting national critical minerals development.

Gilberg went on to suggest that companies seeking financing have to pay attention to a multitude of factors, including boardroom dynamics, shareholder activism and industry partnerships.

In today’s geopolitical climate, some market expectations conflict — some US buyers reject ESG commitments, while European buyers demand them, leaving Canadian firms navigating a middle ground.

“I think the most difficult thing for every company right now — this isn’t unique to mining — is how do you line up customer sentiment around this stuff with investor sentiment?” she said. “And I can tell you, it’s difficult.”

Ultimately, Gilberg explained that these are strategic business decisions, not just ESG concerns.

Although the landscape is rough, companies that are able to mesh customer needs with investor concerns are likely to benefit from what Gilberg described as a “reset” of the sustainability and ESG lens.

‘I think the greatest risk and the greatest opportunity right now for mining companies comes from aligning the customers you’re going to serve with the investors whose money you’re using,” she said. “That has to be the magic.”

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

This post appeared first on investingnews.com

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Oscar-winning Palestinian director of ‘No Other Land’ assaulted by Israeli settlers in the West Bank

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The Palestinian co-director of Oscar-winning film “No Other Land” Hamdan Ballal was beaten up by Israeli settlers in the occupied West Bank and taken away by Israeli soldiers, his colleagues and eyewitnesses said.

Outside Ballal’s home was a group of Israeli settlers, some of whom were throwing stones. Israeli police and military were also outside the home and Israeli soldiers were firing at anyone who tried to get close, he said.

Yuval Abraham, another co-director of the film, who is Israeli, said Ballal had sustained injuries to his head and abdomen in the attack and had not been heard from since. Abraham did not witness the incident himself.

Five American activists from the Center for Jewish Nonviolence (CJNV) who were also at the scene said they too had been assaulted by Israeli settlers. They said more than a dozen settlers had attacked the village, wielding batons, knives and at least one assault rifle, following a dispute involving an Israeli settler who was shepherding near a Palestinian home.

Jenna, an activist who asked to remain anonymous for fear of retaliation, said she and her colleagues were attacked by around 20 masked settlers when they approached Susya that night. Her group did not witness Ballal’s arrest.

Josh Kimelman, who was in the same group, said Israeli soldiers witnessed the incident but did nothing to prevent it.

Earlier this month, Ballal, Adra and Abraham had all stood alongside each other to accept the Oscar for best documentary. The joint Israeli-Palestinian team’s film recounts the eviction of Palestinians from their homes in the occupied West Bank.

Ballal had documented his interactions with settlers, including threats of violence from a settler who claimed God had given him Ballal’s land.

Ballal said he called the police but to no avail.

“No Other Land” documents the continued demolition by Israeli authorities of Masafer Yatta, a collection of villages in the Hebron mountains of the West Bank where Adra lives with his family. The documentary highlights the Israeli government’s efforts to evict the villagers by force, with viewers seeing the local playground being torn down, the killing of Adra’s brother by Israeli soldiers, and other attacks by Jewish settlers while the community tries to survive.

The film also explores the human connection between Adra and Abraham.

This post appeared first on cnn.com

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Lawyers ask El Salvador’s Supreme Court to evaluate legality of detention of Venezuelans deported by the US

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A team of lawyers representing the families of 30 Venezuelans sent by the United States to a mega prison in El Salvador asked the Salvadoran Supreme Court of Justice on Monday to evaluate the legality of their detention.

One of the attorneys, Jaime Ortega, said they were hired by the government of Venezuelan President Nicolás Maduro to file an appeal before the Constitutional Chamber of the Salvadoran Supreme Court, which would also apply to the rest of the 238 Venezuelans deported on the orders of US President Donald Trump.

“We are asking the court to review their legal status and issue a ruling. If their detention is illegal, it should immediately order their release,” Ortega told reporters.

Salvadoran President Nayib Bukele said last week that the US sent 238 alleged members of the Tren de Aragua criminal organization, though he didn’t identify them or provide evidence for that claim. El Salvador agreed to take them in and lock them up at its Terrorism Confinement Center (Cecot), considered the largest prison in Latin America. US authorities have acknowledged that not all deportees had criminal records.

The Trump administration said 137 of those migrants were deported under the Alien Enemies Act. Use of the act, previously used only in wartime, under these circumstances is currently under judicial scrutiny in the US.

The lawyers in El Salvador said that if this is an immigration matter, they hope the Salvadoran Supreme Court will order that the Venezuelans be sent back to their countries.

The judges have no set deadline to resolve the appeal.

Juan Pappier, Americas Deputy Director of Human Rights Watch, cautioned that it was “unrealistic” to expect the court to go against the Bukele administration.

“I understand (the families’) desperation and I think they should use whatever avenue they can find available,” Pappier said.

Pappier argued that these types of deportations violate UN principles that forbid countries from transferring individuals to a place “where they can risk facing torture and other grave human rights violations.”

The National Commission on Human Rights and Freedom of Expression, a Salvadoran government agency, said families of Venezuelan deportees held in Cecot could petition the Salvadoran government for their release.

“We will process each case and carry out the corresponding verifications,” presidential commissioner Andrés Guzmán said.

This post appeared first on cnn.com

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A court orders the dissolution of the Unification Church in Japan

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A court ordered the dissolution of the Unification Church in Japan, upholding a government request for a revocation spurred by the investigation into the 2022 assassination of former Prime Minister Shinzo Abe.

The Tokyo District Court’s revocation of the church’s legal status means it will lose its tax-exempt privilege and must liquidate its assets. However, the church can still appeal the decision to higher courts.

The order follows a request by Japan’s Education Ministry in 2023 to dissolve the influential South Korea-based sect, citing manipulative fundraising and recruitment tactics that sowed fear among followers and harmed their families.

The Japanese branch of the church had criticized the request as a serious threat to religious freedom and the human rights of its followers.

The investigation into the 2022 assassination of Abe revealed decades of cozy ties between the South Korea-based church and Japan’s governing Liberal Democratic Party. The church obtained legal status as a religious organization in Japan in 1968 amid an anti-communist movement supported by Abe’s grandfather, former Prime Minister Nobusuke Kishi.

The man accused of killing Abe resented the church and blamed it for his family’s financial troubles.

The church, which officially calls itself the Family Federation for World Peace and Unification, is the first religious group to face a revocation order under Japan’s civil code. Two earlier case involved criminal charges – the Aum Shinrikyo doomsday cult, which carried out a sarin nerve gas attack on the Tokyo subway system, and Myokakuji group, whose executives were convicted of fraud.

Japan has in place hurdles for restraining religious activities due to lessons from the prewar and wartime oppression of freedom of religion and thought.

This post appeared first on cnn.com

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A comedian told a joke about a politician. Now he’s under police investigation

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A prominent Indian comedian is standing by his right to make jokes after an angry mob attacked a comedy club where he had made an onstage jibe at a right-wing politician.

Kunal Kamra, known for his quips about popular culture and politics, is under investigation for alleged defamation by police in the western state of Maharashtra after he told a joke about the state’s Deputy Chief Minister Eknath Shinde. The case is the latest to underscore the country’s declining freedoms and the sensitivities of India’s right-wing politicians, some of whom have called for the artist’s arrest.

A video of the skit, posted to Kamra’s YouTube channel Sunday, shows the comedian apparently taking a jibe at Shinde. In the video, Kamra does not explicitly name the politician but, in a song, refers to a “gaddar,” or “traitor” – taken to be a reference to Shinde’s leadership of a rebellion in 2022 that caused the state’s previous government to collapse.

The joke sparked a furious backlash within Shinde’s Hindu supremacist Shiv Sena political party. An angry mob later descended upon The Habitat comedy venue where Kamra had performed in Mumbai. A video of the incident shows dozens of men – some wearing scarves with the Shiv Sena logo – smashing chairs and ripping the venue’s interior apart.

Shiv Sena spokesperson Krishna Hegde said Kamra’s words “insulted” the people of Maharashtra. “Mumbai police should take Kunal Kamra into custody, arrest him, lock him up behind bars and open a case against him,” he said in a video statement.

Another party lawmaker, Naresh Mhaske, warned that Kamra would be unable to walk in public.

“Let alone Maharashtra, you won’t be able to roam around in all of India,” he said in a video statement.

Kamra has said he will not apologize for his comments and, in a post on X, criticized the “inability to take a joke at the expense of a powerful public figure.”

“As far as I know, it is not against the law to poke fun at our leaders and the circus that is our political system,” he wrote. “I don’t fear this mob and I will not be hiding under my bed waiting for this to die down.”

Some opposition politicians in Maharashtra have rallied to Kamra’s defense in light of the political storm. Shinde’s former political ally Aditya Thackeray said: “Only an insecure coward would react to a song by someone.”

The Habitat said it was “shocked, worried and extremely broken by the vandalism,” and would be temporarily shutting down the comedy club.

“We have never been involved in the content performed by any artist but the recent events have made us rethink about how we get blamed and targeted,” it said on Instagram, adding that the venue would be closed “till we figure out the best way to provide a platform for free expression without putting ourselves and our property in jeopardy.”

Growing intolerance

This isn’t Kamra’s first run in with the law.

In December 2020, the Supreme Court held him in contempt of court for allegedly disparaging the judiciary and judges in his social media posts. In one Twitter post, he criticized the court’s handling of a case involving a right-wing commentator.

Freedom of speech is enshrined in India’s democratic constitution, but comedians in the world’s largest democracy have previously faced the wrath of angry politicians for their jokes.

In November 2021, right-wing politicians called for comedian Vir Das’ arrest after he gave a powerful monologue addressing the country’s rape crisis and then-year-long farmer’s protest.

At the time, Ashutosh Dubey, a legal adviser to India’s ruling Bharatiya Janata Party, accused Das of “defaming” India and filed a complaint with the police over his “inflammatory” comments.

Das has not been formally charged with any crime and continues to perform. But others who have faced similar situations have had their livelihoods upended.

Kamra, meanwhile, said the new investigation into his comments “does not change the nature of his right” to make fun of politicians.

This post appeared first on cnn.com

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World’s longest-serving death row prisoner awarded $1.4 million after acquittal – that’s $85 for each day

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A Japanese man who spent more than 40 years on death row until he was acquitted last year has been awarded $1.4 million in compensation, a court said on Tuesday – roughly $85 for each day he was wrongfully convicted.

Former professional boxer Iwao Hakamada, 89, was sentenced to death in 1968 for a quadruple murder despite repeatedly alleging that the police had fabricated evidence against him.

Once the world’s longest-serving death row inmate, he was acquitted after a DNA test showed that the bloodstained clothing which was used to convict him was planted long after the murders, according to Japanese public broadcaster NHK.

His legal representative Hideyo Ogawa described the compensation as the “highest amount” ever handed out for a wrongful conviction in Japan, but said it could never make up for what Hakamada had suffered.

“I think the state (government) has made a mistake that cannot be atoned for with 200 million yen,” the lawyer said, according to NHK.

Hakamata retired as a professional boxer in 1961 and got a job at a soybean processing plant in Shizuoka, central Japan.

Five years later he was arrested by police after his boss, his boss’ wife and their two children were found stabbed to death in their home.

Hakamata initially admitted to the charges against him, but later changed his plea, accusing police of forcing him to confess by beating and threatening him.

He was sentenced to death in a 2-1 decision by judges in 1968.

The one dissenting judge stepped down from the bar six months later, demoralized by his inability to stop the sentencing.

Hakamata, who has maintained his innocence ever since, would go on to spend more than half his life waiting to be hanged.

New evidence led to his release in 2014 pending a retrial, which acquitted him last year.

His case brought global scrutiny to Japan’s criminal justice system, where conviction rates stand at 99%, according to the Ministry of Justice website, and fueled calls to abolish the death penalty in the country.

Hakamata was “living in his own world,” she said.

“Sometimes he smiles happily, but that’s when he’s in his delusion… We have not even discussed the trial with Iwao because of his inability to recognize reality.”

This post appeared first on cnn.com

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Transformational Acquisition of the High-Grade Elizabeth Hill Silver Project

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Errawarra Resources Ltd (ASX: ERW) (Errawarra or the Company) is delighted to announce that it has entered binding agreements (refer Acquisition Terms) pursuant to which the Company has acquired 70% of the historical Elizabeth Hill Silver Project (“Project” or “Elizabeth Hill”), 70% of the silver rights to the Pinderi Hills Project tenement package and 70% of the ownership of 3 tenements or tenement applications surrounding the silver project. This collective tenement package totalling 180km2 is in the Tier 1 mining jurisdiction of the Pilbara, Western Australia (Figure 2 – Project Location).

HIGHLIGHTS:

  • Transformational acquisition of the high-grade Elizabeth Hill Silver Project in the West Pilbara mining region of Western Australia
  • Acquisition agreed in conjunction with a $3 million placement to existing shareholders and new investors including major fund investors
  • Historical production of 1.2Moz Ag from 16kt ore (~2,194 g/t Ag head grade)1 over only 1 year of operation
  • Elizabeth Hill mining operations ceased in 2000 due to declining silver prices (~USD $5/oz)2
  • Requisite geology and structure present, with the Project located on a major ultramafic complex with multiple high grade silver drill intercepts including3:
    • 11.7 m @ 5,371 g/t Ag from 13m (21EHDD003)
    • 24 m @ 1,228 g/t Ag from 64m (AMEHRC009)
    • 43 m @ 370 g/t Ag from 0m (22AMC001); and
    • 24.8m @ 915 g/t Ag from 2m (21EHDD001)
  • Errawarra becomes the first explorer to consolidate the Elizabeth Hill Mine and the surrounding land package of 180km2, which covers additional highly prospective underexplored areas for silver mineralisation
  • Experienced precious metals geologist Mr. Robert Mosig has joined the board to assist in fast-tracking forward development and exploration activities at Elizabeth Hill
  • Highly respected ERM Consultants led by Mr Ian Stockton have already commenced analysis of the Elizabeth Hill geological setting including comparisons with analogous projects globally to assist in target generation
  • Project located on a granted mining lease (ML) and all the required exploration/drilling approvals are in place to fast track immediate drilling post site visit and target prioritisation

The Elizabeth Hill Project acquisition is conditional upon meeting the condition precedent and obtaining the relevant approvals, amongst others, Errawarra entering into separate joint venture agreements with Alien Metals Limited (Alien) (AIM: UFO) and GreenTech Metals Limited (GreenTech).

This transformational acquisition ensures that the Company is now underpinned by a high-grade historical producing silver asset, with significant resource growth potential and future low-cost operational opportunities in a Tier 1 global mining jurisdiction.

Chairman Thomas Reddicliffe commented:

“This is an exceptional opportunity for our shareholders, and we are fortunate to have secured an interest in the Elizabeth Hill Silver Project and extensions. This will enhance our existing exploration projects in the same region of Western Australia with the addition of an interest in a high-grade past producing silver asset with growth potential not previously tested.”

“The combination of existing high-grade silver intercepts signify growth potential and compelling exploration prospectivity at both near mine and regional targets. With Elizabeth Hill being located on an approved mining lease, this presents an opportunity for the Company to fast-track drilling and, if successful, mining supported by a buoyant silver market driven by strong investor demand and global issues.”

“We look forward to immediately getting work underway with regular news in the near future”.

Click here for the full ASX Release

This post appeared first on investingnews.com

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Kaiser to acquire the Henty Gold Mine, becoming a multi-asset Australian gold producer

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Kaiser Reef Limited (‘Kaiser’ or ‘the Company’) is pleased to announce that it has entered into a definitive agreement (the “Agreement”) with Catalyst Metals Limited (ASX:CYL) (“Catalyst”) to acquire the Henty Gold Mine and associated Tasmanian exploration tenements (“Henty Gold Mine” or “Henty”).

KEY HIGHLIGHTS

  • Proven production asset with a cumulative production history of 1.4Moz at 8.9g/t Au1 and a track record of replacing mined ounces. Gold produced in the December Quarter totalled 6,594oz, produced at an AISC of A$2,631/oz2
  • JORC compliant Mineral Resource of 4.1Mt @ 3.4g/t Au for 449kozs of contained gold and Ore Reserve of 1.2Mt @ 4.0g/t Au for 154kozs
  • Highly attractive acquisition metric of less than A$1,200 per production ounce4 based on total upfront consideration of A$31.6 million, comprising A$15.0 million cash and 118.6 million shares issued to Catalyst, equivalent to a 19.99% shareholding
  • Acquisition immediately transforms Kaiser into a +30kozpa5, multi-asset gold producer with a clear pathway to grow to a 50kozpa production target
  • Kaiser and Catalyst agree an option to form a strategic partnership in the Victorian Goldfields around the Maldon gold processing plant, including an option to expand the processing plant, supporting both Kaiser’s and Catalyst’s Victorian ambitions
  • A further A$10 million of funding secured with Auramet International Inc, consisting of a A$8 million senior secured gold loan and a A$2 million unsecured gold prepayment facility ensuring a strong working capital position

TRANSACTION SUMMARY

Kaiser Reef Ltd (ASX:KAU) (“Kaiser” or the “Company”) is pleased to announce that it has entered into a definitive agreement (the “Agreement”) with Catalyst Metals Limited (ASX:CYL) (“Catalyst”) pursuant to which Kaiser will acquire the Henty Gold Mine and associated Tasmanian exploration tenements (“Henty Gold Mine” or “Henty”) for:

  • A$15.0 million upfront consideration;
  • A$16.6 million in shares issued to Catalyst (Catalyst to emerge as a 19.99% shareholder);
  • deferred payments of 50 ounces per month to Catalyst, capped at 3,000 ounces and commencing 6 months from Completion (“Deferred Consideration”);
  • 0.5% NSR royalty on gold produced from the Darwin Target Zone area;
  • Kaiser to reimburse Catalyst A$3.9 million in Environmental Bond Payments to Mineral Resources Tasmania in 12 monthly instalments; and
  • an option agreement through which Catalyst may enter into a joint venture with Kaiser in relation to the Maldon processing plant.

together the (“Transaction”).

STRATEGIC RATIONALE

  • Established production platform: The Henty Gold Mine is an established gold production platform, with historical production of 1.4Moz @ 8.9g/t. Since acquiring Henty in 2021, Catalyst has made significant operational improvements and investments at Henty, including drill platforms, drilling, tailings, underground fleet and people.
  • 5-year mine plan: Work to date has culminated in establishing a robust 5-year mine plan underpinned by a current Ore Reserves of 1.2Mt @ 4.0g/t for 154koz. There is significant scope to extent mine life based on the current Mineral Resource of 4.1Mt @ 3.4g/t Au for 449koz along with the considerable opportunities for near-mine exploration and development success.
  • Significant infrastructure: There is significant infrastructure in place at the Henty Gold Mine including a 300ktpa CIL processing plant, surface & underground workshops, administration complex, access to hydro generated grid power and refreshed tailings storage capacity.
  • Implement and build on operational capacity: Key Kaiser executives have significant experience in the optimisation of similar assets to Henty achieved through a combination of operational improvement and targeted exploration investment. The support from Catalyst as a 19.99% strategic shareholder, along with the addition of the Henty site operating team, a stable & skilled local workforce of +150 employees, will further strengthen the Kaiser team.
  • Flagship asset: With the Henty Gold Mine as its flagship asset, the Kaiser team will provide dedicated focus to continue the significant work completed by Catalyst and further drive operational improvements at Henty.

Kaiser’s Managing Director, Jonathan Downes said:

“We are excited to significantly expand Kaiser’s production base, exploration opportunities and enter into a strategic partnership with Catalyst in Victoria. We look forward to welcoming the Henty team into Kaiser and growing the business together.

“Catalyst has done a great job building a profitable operation at Henty over the last 4 years, with clear production and mine life visibility, plus some great exploration targets. Kaiser will continue to re-invest into Henty and build on what Catalyst has already achieved. We are very pleased to have Catalyst’s continued involvement and exposure to the upside at Henty, both as Kaiser’s major shareholder and through their board representation.

“The option for Kaiser and Catalyst to enter into a 50/50 JV partnership at the Maldon processing plant gives both parties a clear pathway that supports their Victorian ambitions. A Joint Venture can unlock the benefits that would come with plant expansion and increased operational scale, and we look forward to working with Catalyst as JV partners if they execute the option.

“I’m also pleased that Brad Valiukas will be taking a full-time role with Kaiser as Director – Operations. Brad has a wealth of experience in underground mining and helping to grow companies such as Mincor Resources, to their peak period operating 8 mines, and Northern Star, bedding in assets from Newmont, Barrick and Sumitomo. Brad has been instrumental in the changes we have made over the last few months at A1, accelerating the capital development to get below historic workings and setting A1 up to deliver going forward.

“The addition of Henty to our portfolio, alongside A1 in Victoria, positions Kaiser as a >30,000oz old producer and targeting 50,000 ounces of gold production per annum in the short term. Each of the gold projects provides expansion and exploration opportunities and collectively positions Kaiser for a market re-rating in line with our peers. The value metrics of Kaiser are compelling with three gold mines (one on care and maintenance) and two gold processing plants – all held with an enterprise value of A$67 million.”

Click here for the full ASX Release

This post appeared first on investingnews.com

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