Mining: Valuations & Fairness Opinions

IBK Capital acted as financial advisor to PC Gold Inc. during the takeover of the company by First Mining Finance Corp. in an all share transaction valued at $10,003,200.  In addition to its financial advisory role, IBK Capital Corp. provided a fairness opinion in connection with this takeover to the Special Strategic Committee (SSC) of  PC Gold Inc.  At the close of the transaction, PC Gold shareholders received a 255% share price premium based on the TSX-V 30 day volume weighted average price (VWAP) of PC Gold Inc. for the period ending August 31, 2015.

IBK Capital provided a fairness opinion to the Independent committee of Philex Gold Inc.with respect to the purchase of its outstanding common shares by its majority shareholder. Philex Gold Inc. had a part ownership of gold properties in the Philippines.

IBK Capital provided a valuation to Dianor Resources Inc. on a royalty and minority interests on certain of its Canadian diamond exploration properties. The valuation was used by the company to assist it in its acquisition negotiations with the owners of the minority interests and the royalty.

IBK Capital provided a fairness opinion to Pelangio Mines Inc. with respect to the sale of its Detour Lake property to Detour Gold Corporation, a member of the Hunter Dickinson Inc. Group of Companies. This transaction was valued at $85 million and converted Pelangio’s interest in the Detour Lake property from a direct project interest into an indirect interest through approximately 49.5% equity ownership in Detour Gold Corporation, a TSX listed company since January 2007. The Detour Lake property updated its resource estimate in 2009. With a cut-off grade of 0.6 grams per tonne, the Detour Lake property has 17,263,000 ounces of Measured and Indicated gold (NI 43-101 compliant) at a grade of 1.2 grams per tonne.

IBK Capital provided a fairness opinion to Redaurum Limited with respect to the reverse take-over of Redaurum by Remick Investments Limited with significant holdings in the United States and South Africa.

IBK Capital provided a fairness opinion to Western Quebec Mines Inc. in connection with its acquisition of Valmag Inc., a private company.

IBK Capital provided a valuation of Pan African Resources Corporation and a fairness opinion to the minority shareholders of Pan African in connection with the Plan of Arrangement of Pan African with Golden Star Resources Ltd.

IBK Capital prepared a valuation of the BLM Service Group, Inc. for the management of William Resources, Inc. in connection with the possible spin-off of this division.

IBK Capital prepared a valuation for the management of Golden Rule Resources Ltd. and Waddy Lake Resources Inc. in connection with a proposed business arrangement.  As Golden Rule is the controlling shareholder of Waddy Lake, and the two companies have certain members of management in common, the companies retained IBK Capital to provide an independent analysis of the structure and the financial terms of the proposed business arrangement.

IBK Capital provided a fairness opinion to CMP Resources Ltd. in connection with its amalgamation with Plexus Resources Corporation and 1021105 Ontario Corp. to form Kinross Gold Corporation.  Kinross is a senior gold producer which is growing rapidly through acquisitions in the gold industry.

IBK Capital provided a valuation of NorthWest Gold Corp. and Northgate Exploration Limited, and a fairness opinion to the minority shareholders of NorthWest Gold Corp. in connection with the Plan of Arrangement of NorthWest Gold Corp. and Northgate Exploration Limited.

IBK Capital provided a fairness opinion to New Lintex Minerals Ltd. in connection with its merger with Willow Creek Coal, a private company which owns a promising high-quality coal deposit in British Columbia.

Rembrandt Gold Mines Ltd. retained IBK Capital to provide a fairness opinion in connection with its proposed Plan of Arrangement with Canarc Resource Corp. and Suntac Minerals Corporation to create an emerging mining company with promising mineral assets.  The fairness opinion was carried out in accordance with the requirements of Ontario Securities Commission Policy Statement 9.1.

Subsequent to the completion of this assignment, the structure of the proposed transaction was changed, and IBK Capital provided a second fairness opinion to Rembrandt Gold Mines Ltd. in connection with a take-over bid made by Canarc Resource Corp.

IBK Capital provided a fairness opinion to Consolidated Brinco Limited in connection with the merger with Hillsborough Resources Limited and HRL Coal Inc.  This merger created a new company with a stronger financial condition and significant mine operating and marketing experience.

New Kelore Mines Limited retained IBK Capital to deliver a fairness opinion with respect to its merger with Pan Orvana Resources, now known as Orvana Minerals Corp.  IBK Capital advised the board of directors of New Kelore as to the value of Pan Orvana, a private company with extensive mining exploration properties across North America and an excellent management team, and recommended the appropriate share exchange ratio for the merger.

Uranium Resources, Inc. retained IBK Capital to provide financial advice and a fairness opinion to the board of directors of the company with regard to the proposed sale of the company to Rio Algom Mining Corp. for approximately US $43 million. Characteristic of IBK Capital’s team oriented approach, it mobilised a group of professionals to perform on-site due diligence and meet with company management and operating personnel, as well as legal and auditing professionals.  At the heart of the assignment was an assessment of uranium industry conditions and analyses of the current financial and operating condition of the company along with its future prospects.  The fairness opinion was delivered to the company’s board of directors for inclusion in their required regulatory filing with the United States Securities and Exchange Commission.

IBK Capital provided a valuation and fairness opinion for each of Golden North Resource Corporation and Thorco Resources Inc., in connection with a three-way merger between these two companies and Doelcam Mining Corporation to create Caledonia Mining Corporation.  This assignment included the valuation of mining assets located both within and outside North America and the comprehensive assessment of the holding company’s structure. This transaction was valued at approximately $21 million.