ASX
Release

Perth,
16 September, 2019

Titan Minerals Intends to Acquire Core Gold

Titan Minerals Intends to Acquire Core Gold

HIGHLIGHTS

  • Intends to make formal offer to acquire 100% of Canadian-based, Ecuador-focussed Core Gold Inc. (TSXV: CGLD)

  • Compelling strategic rationale for merger, to create an emerging Latin American focused gold explorer, developer and producer, with a large portfolio in Ecuador and Peru, as well as a substantially stronger balance sheet

  • Offer to include 2.5 fully paid ordinary shares of Titan for each Core Gold common share held, valuing Core Gold shares at CAD$0.422 – a 164% premium to the Core Gold closing price on 13 September 2019

  • This intended offer is on improved terms than the previous plan of arrangement proposal

  • Titan has acquired all of Core Gold’s secured debt in the principal amount of US$2.5 million in order to ensure the long term success of the Core Gold assets

Titan Minerals Limited (the "Company" or "Titan") (ASX: TTM) intends to make a formal offer (the "Offer") to purchase all of the issued and outstanding common shares of Core Gold Inc. (“Core Gold”) (TSXV: CGLD) that Titan does not own, including any common shares that become issued and outstanding upon the exercise of any Core Gold convertible securities prior to the expiry of the Offer (collectively, the “Core Gold Shares”), which if successfully completed would create an emerging Latin American focused gold explorer, developer and producer, with a large portfolio in Ecuador and Peru, as well as a substantially stronger balance sheet.

The consideration to be offered by Titan for each Core Gold Share will be 2.5 fully paid ordinary shares of Titan (the “Titan Shares”), representing the equivalent of CAD$0.422 per Core Gold share. This represents a compelling premium of 164% over the closing price of Core Gold Shares on 13 September, 2019 (the last day prior to the public disclosure of Titan's intention to pursue a combination with Core Gold), and a 160% premium over the volume weighted average price ("VWAP") for Core Gold Shares for the last 20 trading days ended 13 September 2019.

Commenting on the compelling strategic rationale of the proposed Offer Laurence Marsland, Managing Director of Titan, said:

“Titan intends to make this Offer as we strongly believe the enlarged group will draw on the best physical and human resources of both Titan and Core Gold to create an emerging Latin American focused gold explorer, developer and producer, with a large portfolio in Ecuador and Peru, as well as a substantially stronger balance sheet. We believe that the financial and strategic rationale for a combination with Core Gold is compelling, and that the transaction is in the best interests of both Titan Minerals and Core Gold shareholders.

We look forward to formally initiating our bid and anticipate launching our offer within the next two weeks.”

For the full release, please visit Titan’s website.

For further information please contact:

Investors
Laurence Marsland,
Managing Director Titan Minerals
E: info@titanminerals.com.au T: +61 8 6555 2950

Financial Advisers
Peter Bacchus Bacchus Capital Advisers
E: peter.bacchus@bacchuscapital.co.uk T: +44 (0) 203 848 1641

Chris Johannsen
Bacchus Capital Advisers
E: chris.johannsen@bacchuscapital.co.uk T: +44 (0) 203 848 1644

Media
David Tasker
Chapter One Advisors
E: dtasker@chapteroneadvisors.com.au T: +61 433 112 936

 

 

RNS
Release

London,
15 July, 2019
 

Statement Regarding Section 232 Decision on U.S. Uranium Imports

Yellow Cake plc (“Yellow Cake” or the “Company”)

Statement re: Section 232 Decision on U.S. Uranium Imports

Yellow Cake, a specialist company operating in the uranium sector with a view to holding physical uranium (“U3O8”) for the long term, notes the decision by President Donald Trump to implement no new trade restrictions on uranium imports into the United States following the Section 232 investigation into the matter.

As part of the decision not to introduce new trade restrictions, the President also announced the establishment of a United States Nuclear Fuel Working Group. The Working Group will report back to the President within 90 days, and will examine the current state of US domestic nuclear fuel production to reinvigorate the entire nuclear fuel supply chain, consistent with United States national security and non-proliferation goals.

Andre Liebenberg, CEO of Yellow Cake, said:
"The Section 232 investigation has created an 18 month period of uncertainty which has severely restricted activity in the uranium market. We view the decision that no new trade restrictions will be implemented at this stage as positive, and likely to support a return to more normal levels of activity. We note the creation of a new Working Group which will look at the full nuclear fuel supply chain in the US and report back on its findings.  We therefore expect a more measured return to market activity in the near term and remain highly confident in the long term price outlook for uranium, and therefore in the Yellow Cake investment model.”

Link to Yellow Cake plc Website

 

 

RNS
Release

Perth and Toronto,
5 July, 2019
 

Desert Lion Energy Obtains Final Order Approving Plan of Arrangement

Desert Lion Energy Obtains Final Order Approving Plan of Arrangement

Lepidico Ltd (ASX:LPD) (“Lepidico” or “Company”) is pleased to advise that that Desert Lion Energy Inc. (TSXV: DLI) ("Desert Lion Energy") has obtained a final order from the Ontario Superior Court of Justice (Commercial List) approving a statutory plan of arrangement (the “Arrangement”) under the Business Corporations Act (Ontario) pursuant to which a wholly owned subsidiary of Lepidico will acquire all of the outstanding common shares of Desert Lion Energy (the “Common Shares”).

Pursuant to the Arrangement, holders of Common Shares will receive 5.4 Lepidico shares for each Common Share held. Receipt of the final order follows the annual and special meeting of Desert Lion Energy holders of Common Shares held on Thursday, June 27, 2019 in Toronto, Canada, at which shareholders overwhelmingly approved the Arrangement.

The closing of the Arrangement remains subject to the satisfaction of various administrative conditions. It is expected that the Arrangement will be completed on or about July 10, 2019.

Management teams for Lepidico and Desert Lion Energy plan to travel to Namibia to ensure a smooth transition and commence exploration activities immediately following the closing. (Link to the full announcement)

 

 

RNS
Release

London,
21 June, 2019
 

Yellow Cake Notice of Annual General Meeting and Publication of 2019 Annual Report

Yellow Cake plc (“Yellow Cake” or the “Company”)

Notice of Annual General Meeting and Publication of 2019 Annual Report

Yellow Cake, a specialist company operating in the uranium sector with a view to holding physical uranium (“U3O8”) for the long term, is pleased to announce the publication of its 2019 Annual Report, Notice of the 2019 Annual General Meeting (the “AGM Notice”) and Form of Proxy for the 2019 Annual General Meeting on the Company’s website www.yellowcakeplc.com.

The Company’s 2019 Annual General Meeting will be held at Pomme d’Or Hotel, Liberation Square, St Helier, Jersey, JE1 3UF, Channel Islands on Wednesday 17 July 2019 at 10:30am.

A hard copy version of the AGM Notice and the Form of Proxy will be sent to those shareholders who have elected to continue to receive paper communications. Shareholders who have not elected to continue to receive paper communications will be sent a notification of the availability of the AGM Notice on the Company’s website by post or, where they have elected, by email.

 

 

RNS
Release

Perth and Toronto,
7 May, 2019
 

Lepidico and Desert Lion to Merge

Lepidico and Desert Lion to Merge to Create a Global Leader in the Development of Lithium Chemicals from Lepidolite

Lepidico 1 for 9 Entitlements Offer to Fund Business Integration, New Development and Growth Opportunities

Lepidico Limited (ASX: LPD) (“Lepidico”) and Desert Lion Energy Inc. (TSXV: DLI) (“Desert Lion”) today announced they have entered into a definitive arrangement agreement (the “Arrangement Agreement”) whereby Lepidico will acquire all of the outstanding common shares of Desert Lion for 5.4 Lepidico ordinary shares for every 1 Desert Lion share (The “Transaction”). The Transaction will create a vertically integrated lithium development company from mine to chemical conversion plant by combining Lepidico’s leading proprietary lithium processing technologies with Desert Lion’s lepidolite Mineral Resources and extensive exploration package.

The agreed exchange ratio represents a premium of either 38% based on the closing price of Lepidico and Desert Lion shares on 3 May 2019 or 39% based on the 10 trading day volume weighted average price of the shares. Directors and officers of Desert Lion representing 17% of Desert Lion’s shares on issue have entered into voting and support agreements to vote in favour of the Transaction.

Transaction Highlights

  • The Transaction will combine two companies with highly complementary assets to create an integrated lithium business which has:

    • Lepidico’s innovative L-Max®, LOH-MaxTM and S-MaxTM proprietary process technologies and ore offtake arrangement with Mota Ceramic Solutions (“MCS”) from the operational Alvarrões lepidolite mine in Portugal. Mineral Resources – Indicated 2.60Mt @ 0.87% Li2O & Inferred 3.27Mt @ 0.87% Li2O;

    • Desert Lion’s lepidolite deposits in Namibia and partially developed lepidolite concentrator. Mineral Resources – Indicated 3.0Mt @ 0.63% Li2O & Inferred 5.8Mt @ 0.53% Li2O;

    • Lepidico’s pilot plant with L-Max® and S-MaxTM capability, which is in the commissioning phase, and the Phase 1 Plant Project, at the advanced stages of feasibility study which contemplates output capacity of 5,000tpa lithium hydroxide;

    • Battery grade lithium carbonate of 99.8% purity produced from Desert Lion lepidolite mineralisation in L-Max® amenability trial; and

    • Desert Lion’s non-binding offtake agreement for lithium hydroxide with chemicals and materials multination corporation BASF SE.

  • Lepidico will also undertake a 1 for 9 pro-rata renounceable Entitlements Offer at an issue price of $0.029 to raise up to $10.8 million for business integration, new development and growth opportunities, with one (1) free attaching option, for every two (2) new shares issued under the offer. The Entitlements Offer is scheduled to close on 29 May 2019.

  • The merged company will be called Lepidico Ltd and will continue to be headquartered in Perth, Australia. No changes to Lepidico's Board of Directors are planned.

Advisers

Bacchus Capital Advisers Ltd is acting as Lepidico's exclusive financial adviser, and Stikeman Elliott LLP and Steinepreis Paganin are acting as Lepidico's legal advisers.

INFOR Financial Inc. is acting as Desert Lion's exclusive financial adviser, and Fasken Martineau DuMoulin LLP is acting as Desert Lion's legal adviser.

Full Release

 

 

RNS
Release

London,
12 April, 2019
 


Result of Placing of 12 million new ordinary shares in Yellow Cake plc

Yellow Cake plc (“Yellow Cake” or the “Company”)

Result of Placing of 12 million new ordinary shares in Yellow Cake plc

Yellow Cake plc (AIM: YCA), founded and established by Bacchus Capital to be a specialist company operating in the uranium sector with a view to holding physical uranium for the long-term, is pleased to announce that 12,000,000 new Ordinary Shares (the "Placing Shares") have been placed with existing and new institutional investors at a price of £2.15 per share (approximately US$2.81) (the “Placing Price”) via an accelerated bookbuild (the "Placing"). Due to strong investor demand, the Company agreed with the Joint Bookrunners to increase the size of the Placing to £25.9 million (approximately US$33.9 million) from the £22.9 million (approximately US$30.0 million) originally proposed. The Placing was conducted utilising the Company’s existing share authorities. The Placing Price represents a discount of 4.0% to the Company’s Net Asset Value (“NAV”) on 31 March 2019.

As part of the Placing, certain of the Company’s directors have subscribed for 39,086 new Ordinary Shares at the Placing Price.

The Placing has raised gross proceeds of approximately £25.9 million (approximately US$33.9 million) before expenses and represents approximately 14 per cent of the issued ordinary share capital of the Company following completion of the Placing.

Andre Liebenberg, Chief Executive Office of Yellow Cake, commented:

"We welcome the support from both our existing and new shareholders to enable us to increase the size of our fundraising, and consequentially to now purchase 1.175 mmlb of uranium at the firm price of US$25.88 per pound. The recent pullback in the uranium price has provided us with an excellent window to add to our uranium inventory at an attractive price. We are very confident in the long term fundamentals of the uranium market, where a combination of constrained supply, the run-off of long term contracts and growing demand outlook means we remain confident on the outlook for the uranium price.”

Application has been made for the Placing Shares to be admitted to trading on the AIM market of the London Stock Exchange plc (“AIM”) ("Admission"). It is expected that Admission will become effective at commencement of trading on 16 April 2019 and settlement is expected to take place on the same date on a T+2 basis.

The Placing is conditional upon, inter alia, Admission becoming effective and the Placing Agreement not being terminated in accordance with its terms.

Following Admission of all of the Placing Shares, the total number of shares of the Company in issue will be 88,215,716. Yellow Cake currently holds no shares as treasury shares and therefore, following Admission, the total number of voting shares in the Company will be 88,215,716.

Directors' and PDMR participation in the Placing

The following Directors participated in the Placing. Further details are set out in the Appendix to this announcement:

Name Existing Number of Placing Resultant shareholding Resultant shareholding
shareholding Shares acquired on Admission on Admission (%)
Andre Liebenberg 37,674 35,533 73,207 0.1%
Alexander Downer 26,372 3,553 29,925 0.0%

Other than where defined, capitalised terms used in this announcement have the meanings given to them in the Announcement released by the Company at 4.45 p.m. yesterday afternoon.

Numis Securities Limited ("Numis Securities"), Joh. Berenberg, Gossler & Co. KG, London Branch ("Berenberg") and Cantor Fitzgerald & Co. (“Cantor”) acted as Joint Bookrunners (Numis Securities, Berenberg and Cantor, together being the “Joint Bookrunners”). Bacchus Capital Advisers acted as Financial Adviser.

ENQUIRIES:

Yellow Cake plc
Andre Liebenberg, CEO, Carole Whittall, CFO
Tel: +44 (0) 153 488 5200

Joint Bookrunner, Nominated Adviser and Joint Broker: Numis Securities
John Prior, Matthew Hasson, James Black, Paul Gillam
Tel: +44 (0) 207 260 1000

Joint Bookrunner and Joint Broker: Berenberg
Matthew Armitt, Mark Whitmore, Detlir Elezi
Tel: +44 (0) 203 207 7800

Joint Bookrunner: Cantor
Graham Moylan, James Mazur
Tel: +001 416 350 3671

Financial Adviser: Bacchus Capital Advisers
Peter Bacchus, Shea O’Callaghan
Tel: +44 (0) 203 848 1640

Media & Investors: Powerscourt
Peter Ogden, Niall Walsh
Tel: +44 (0) 779 3 85 8211

Yellow Cake plc’s registered office is located at: 3rd Floor, Liberation House, Castle Street, St Helier, Jersey, Channel Islands JE1 1BL.

 

 

Press Release

London,
29 November, 2018
 

Bacchus Capital marks first anniversary with “Small Cap Deal of the Year” for IPO of Yellow Cake at London Mines & Money Awards 2018

Bacchus Capital marks First Anniversary with “Small Cap Deal of the Year” for IPO of Yellow Cake at the London Mines & Money Awards 2018

London, 29th November 2018: Bacchus Capital Advisers, the independent investment and merchant bank specialising in public market M&A, announces that the IPO of its uranium investment vehicle, Yellow Cake PLC, was awarded “Deal of the Year” in the prestigious London Mines & Money Awards 2018. 

Yellow Cake was created by Bacchus Capital to provide investors direct exposure to the anticipated structural improvement in the price of uranium, through the acquisition and storage of physical uranium in specialist facilities around the world. 

Bacchus Capital believes that uranium is structurally underpriced: it established Yellow Cake to offer investors the opportunity to participate in the anticipated realignment as the spot market moves into potential deficit. Bacchus Capital successfully negotiated a long-term partnership and purchasing contract with Kazatomprom, the world’s largest and lowest-cost producer of uranium, which itself has now listed on the London Stock Exchange.

The IPO of Yellow Cake was commended by the Mines & Money panel for its clear and compelling investment thesis, it’s simple and effective strategy and its strong performance subsequent to listing. Since its IPO in July, Yellow Cake’s share price has increased strongly by over 20% to stand at 244p today versus a listing price of 200p. 

Bacchus Capital was established in mid-2017 by Peter Bacchus, former Global Head of Mining and Metals Investment Banking at Morgan Stanley, in order to bring traditional investment banking values of independence, objectivity and trust to an expanded client base, which includes some of the largest and leading companies in the natural resources sector, alongside some of the industry’s most interesting and innovative growth companies. His co-founders are Paul Cahill, former Group Head of Business Development at Anglo American plc; Chris Johannsen, previously a founder of Australian boutique advisory firm Gryphon Partners; and former Morgan Stanley banker, Richard Allan.

Peter Bacchus said:

“This award is a fantastic endorsement of the thesis underlying the creation of Yellow Cake, and the highly effective execution of its IPO. Prior to the establishment of Yellow Cake, uranium as a commodity had limited market support and understanding, especially in the London market. This deal exemplifies our approach - Bacchus Capital is a team that finds creative answers to help build great companies. The past 18 months have been outstanding. We have a talented and growing team and look forward to 2019 with enthusiasm.” 

 

 

News

London,
23 October, 2018
 

From: African Mining Intelligence

Bacchus Capital leads the way in mining mergers and acquisitions

Bacchus Capital Leads the Way in Mining Mergers and Acquisitions

Founded by the former Head of Mining & Metals at Morgan Stanley, Bacchus Capital’s portfolio of African clients has been going from strength to strength.

To find partners to both invest and operate its Ghanaian gold mining project Gbane, Australian junior Cassius Mining recently sought the advice of Bacchus Capital Advisers.
Registered in London in 2016, this financial consultancy firm is well-versed in mergers and acquisitions with specific knowledge of and experience in the African mining sector.
Bacchus Capital boss, Peter Bacchus, previously was the Global Head of Mining & Metals at Morgan Stanley and European Head of Investment Banking at Jefferies. His clients included First Quantum Minerals and Rio Tinto. Today, Bacchus is a board member of South African gold producer Gold Fields and Kenmare Resources, operator of the Moma titanium mine in Mozambique.
Bacchus Capital has no less than three managing directors, all of whom were mining sector bankers: Richard Allan, who also previously worked for Morgan Stanley and Jefferies as well as Citigroup; Chris Johannsen, a former executive at Standard Chartered bank; and Paul Cahill, previously Head of Business Development at Anglo American.

 

 

RNS
Release

London,
5 July, 2018
 

Yellow Cake plc
Admission to AIM and First Day of Dealings

Yellow Cake plc
("Yellow Cake" or the "Company")

 MAJOR INITIATIVE IN URANIUM COMMODITY LAUNCHED BY BACCHUS CAPITAL

Admission to trading on AIM and First Day of Dealings

Yellow Cake, a specialist company operating in the uranium sector with a view to hold long term physical uranium ( "U3O8"), is pleased to announce that its ordinary shares  have today been admitted to trading on the AIM market of the London Stock Exchange under the ticker YCA ("Admission") and ISIN JE00BF50RG45.

Yellow Cake was created and incorporated by Bacchus Capital Advisers ("Bacchus Capital") to offer shareholders exposure to the uranium price, without the risks associated with investment in companies that explore for, develop, mine or otherwise process uranium. Additionally, the Company intends to use its expertise in order to exploit a range of expected opportunities connected with owning U3O8; including the trading of U3O8, optimisation of logistics associated with the trading of U3O8, generating revenue from the lending of U3O8, and uranium-based financing initiatives such as commodity streaming and royalties.

Admission details:

  • In conjunction with the Admission, the Company has successfully raised gross proceeds of approximately £151 million (c. US$200 million) through an oversubscribed placing and subscription of approximately 76 million ordinary shares (the "Offering" together with the Admission, the "IPO") with the placing taking place at a price of 200 pence per share (the "Issue Price").

  • On Admission, the Company will have 76.2 million ordinary shares in issue.

  • The Company will utilise the proceeds of the IPO to purchase approximately 8.1 million pounds of U3O8 at a price of US$21.01 per pound under its contract with Kazatomprom (the "Contract Purchase Price"), one of the world's largest, and, understood to be, one of the lowest cost producers of uranium. This acquisition represents one quarter of Kazatomprom's annual production (2016 marketed production, prior to Kazatomprom's recently announced production cuts as reported by the World Nuclear Association) and approximately 5% of 2016 global marketed production.

  • Yellow Cake is pleased to note that the spot price is approximately US$22.55 per pound, and is approximately 7.5% higher than the Contract Purchase price, as reported by the Ux Consulting Company, LLC ("UxC") on 25 June 2018.

  • In addition to establishing Yellow Cake, Bacchus Capital acted as IPO adviser. Numis Securities Limited ("Numis") is acting as Nominated Adviser and Joint Broker to the Company in respect of the IPO. Joh. Berenberg, Gossler & Co. KG, London Branch ("Berenberg") is acting as Joint Broker to the Company in respect of the IPO. Olivetree Financial Limited and Scott Harris UK Ltd acted as Selling Agents

Andre Liebenberg, CEO of Yellow Cake, said:

"We are delighted  with the outcome of this offering and the strong support from investors for Yellow Cake. Due to an exceptional set of circumstances, uranium is one of the few commodities yet to recover from the recent commodities bear market and we believe that uranium is currently fundamentally and structurally mispriced.

Yellow Cake's long-term supply contract with Kazatomprom has allowed us to secure a highly significant and strategic position in physical uranium, at a competitive price, and to offer that exposure to a potential resurgence in the uranium price to investors, while avoiding direct exposure to exploration, development, mining and processing risk.

I would like to welcome our new shareholders to Yellow Cake."

Peter Bacchus, Chairman & Chief Executive of Bacchus Capital, said:

"The highly successful initial public offering of Yellow Cake demonstrates the depth and breadth of interest emerging in uranium as a commodity, and reflects the U.K. market's continued strong support for the natural resources sector where an opportunity presented is on-theme, clearly articulated and compelling in nature. 

Andre and his highly credentialed team will be outstanding stewards of the business and I wish them every success."

ENQUIRIES:

Yellow Cake plc
Andre Liebenberg, CEO, Carole Whittall, CFO
Tel: +44 (0) 153 488 5200

IPO Advisers: Bacchus Capital Advisers Limited
Peter Bacchus, Richard Allan, Paul Cahill, Shea O'Callaghan
Tel: +44 (0) 203 848 1640

Nominated Adviser and Joint Broker: Numis Securities Limited
John Prior, Matthew Hasson, James Black, Paul Gillam, Alamgir Ahmed, Henry Slater, 
Tel: +44 (0) 207 260 1000

Joint Broker: Berenberg
Matthew Armitt, Sara MacGrath, Charlotte Sutcliffe, Marie-Agnes Stolberg, 
Tel: +44 (0) 203 207 7800

Investor Relations: Powerscourt
Peter Ogden, Niall Walsh, 
Tel: +44 (0) 779 3 85 8211

 

 

RNS
Release

London,
28 June, 2018
 

Yellow Cake Prices US$200M Fundraising and Applies for Admission to Trading on AIM

Yellow Cake plc
("Yellow Cake" or the "Company")

 YELLOW CAKE PRICES US$200 MILLION FUNDRAISING
AND APPLIES FOR ADMISSION TO TRADING ON AIM

Yellow Cake, a specialist company operating in the uranium sector, created to purchase and hold U3O8, today announces that it has raised approximately US$200 million by way of a Placing and Subscriptions from institutional and professional investors.

The Company will shortly apply for Admission of its shares to trading on AIM and dealings are expected to commence at 8.00 a.m. on Thursday 5 July 2018 under the ticker YCA.

The Company's ISIN number is JE00BF50RG45 and its SEDOL is BF50RG4.

Full details of the Placing and Admission are included in the Admission Document, which will be available on the Company's website (www.yellowcakeplc.com) today. The full terms and conditions of the Placing are set out in the Admission Document. Defined terms used in this announcement shall have the meanings ascribed in the Admission Document.

ENQUIRIES:

Yellow Cake plc
Andre Liebenberg, CEO
Carole Whittall, CFO
Tel: +44 (0) 153 488 5200

IPO Advisers: Bacchus Capital Advisers Limited
Peter Bacchus, Richard Allan, Paul Cahill, Shea O'Callaghan
Tel: +44 (0) 203 848 1640

Nominated Adviser, Joint Broker and Joint Bookrunner: Numis Securities Limited
John Prior, Matthew Hasson, Paul Gillam, James Black, Alamgir Ahmed, Henry Slater
Tel: +44 (0) 207 260 1000

Joint Broker and Joint Bookrunner: Berenberg
Matthew Armitt, Sara MacGrath, Charlotte Sutcliffe, Marie-Agnes Stolberg
Tel: +44 (0) 203 207 7800

Selling Agent: Olivetree Financial Ltd
Mark Kelly
Tel: +44 (0) 203 201 1000

Selling Agent: Scott Harris UK Ltd
Tim Benton, Jamie Blewitt, Ahmed Jibrill
Tel: +44 (0) 207 653 0030

Investor Relations: Powerscourt
Peter Ogden, Niall Walsh
Tel: +44 (0) 207 250 1446

 

 

News

6 June, 2018
 

From: The Times
By: Emily Gosden

Uranium firm hopes to sell like hot cakes

Investors in London are being tapped for up to $200 million by a new company in a bet on a recovery in the price of uranium.

Yellow Cake said yesterday that its intention was to float and to use the proceeds to buy a $170 million stockpile of the radioactive metal.

It said that uranium, used to make fuel for nuclear power stations, was "fundamentally and structurally mispriced in the current market" and that a looming supply crunch would push up prices.

The company takes its name from the industry term for concentrated uranium, which is stored in barrels in a yellow powder form. It is backed by Bacchus Capital Advisers, a finance house set up by several senior investment bankers led by Peter Bacchus, a former Jefferies and Morgan Stanley banker known for working on City megadeals.

Yellow Cake's initial public offering on the junior Alternative Investment Market will offer investors direct exposure to the price through the purchase of a sizeable slice of global production.

Uranium was trading at more than $70 a pound before the Fukushima nuclear disaster in Japan in 2011, which resulted in some countries turning their back on nuclear power and a collapse in forecast uranium demand. It is trading now at about $23, with 75 per cent of global production thought to be loss-making. This has stifled investment in new mining operations. However, countries such as China are increasing investment in nuclear power, prompting forecasters to predict an increase in demand for uranium.

Yellow Cake has agreed to buy 8.1 million pounds of physical uranium from Kazatomprom , the Kazakh company that is the world's largest producer, at a 7.7 per cent discount to the market price. The volume equates to about 5 per cent of global production, based on 2016 data.

It plans to store a stockpile of about 10,000 drums in Canada and has a long-term supply contract enabling it to buy an additional $100 million of uranium a year for nine years.

Andre Liebenberg, chief executive, said: "Yellow Cake will offer exposure to investors looking to capitalise on the expected resurgence in the uranium price, while avoiding direct exposure to exploration, development, mining and processing risk."

The company said it would "generate value through the ownership of physical uranium together with a range of activities and opportunities ... such as the trading of uranium, optimisation of logistics associated with the trading of uranium, generating revenue from the lending of physical uranium and uranium-based financing initiatives such as commodity streaming and royalties".

Shares in Yellow Cake are expected to be admitted to trading next month.

 

 

News

5 June, 2018
 

From: FT
By: Neil Hume

Yellow Cake heads for London listing to bet on uranium ‘mispricing’

A vehicle planning to make a big bet on the price of nuclear fuel uranium has announced plans to float on the London Stock Exchange.

Named after the raw form of the commodity, Yellow Cake is seeking to raise between $150m to $200m from investors, which it will use to buy 8.1m pounds of the radioactive material, according to people familiar with its plans.

The vehicle has already struck a deal with Kazatomprom , the world’s largest uranium producer, to buy up to $170m of the metal at a 7.7 per cent discount to the current spot price.

In addition, it has an option to purchase a further $100m of uranium each year from the company for the next nine years.

Uranium is one of the few commodities that failed to benefit from a broad-based rally in the sector even though several big producers, including Kazatomprom have announced plans to lower output in an attempt to bring the market back into balance.

The Fukushima nuclear disaster in 2011 slashed projections for demand for the fuel. That caused uranium prices to fall by almost 60 per cent from a record high of more than $70 a pound. Today the metal is trading at $22.75.

By purchasing a quarter of Kazatomprom ’s annual output — or 5 per cent of global marketed production — Yellow Cake is hoping to tighten the market, which it claims is “structurally mispriced”. It also believes nuclear power will play a key part in the green energy revolution.

“Due to an exceptional confluence of events, uranium is one of the few commodities yet to recover from the recent commodities bear market. We believe that uranium is fundamentally and structurally mispriced in the current market, and on a historical basis,” said Yellow Cake chief executive Andre Liebenberg.

“Yellow Cake will offer exposure to investors looking to capitalise on the expected resurgence in the uranium price, while avoiding direct exposure to exploration, development, mining and processing risk,” he added.

Its shares will be listed on the junior AIM market with admission slated for early next month. Yellow Cake’s chairman is Lord St John of Bletso and one its non-executive directors is Alexander Downer, Australia’s High Commissioner to the UK.

Yellow Cake was founded by Peter Bacchus, a former natural resources investment banker. His management company 308 Services will be the buying agent for Yellow Cake. It will also manage and store its uranium and in return will receive a fee.

Numis Securities and Berenberg are joint bookrunners to the flotation.

 

 

News

4 June, 2018
 

From: Daily Telegraph
By: Jon Yeomans

City veteran to lead float of Yellow Cake with expectations of uranium price rebound

A FORMER investment banker is leading the flotation of a new company that plans to buy up and store huge quantities of uranium in anticipation of a jump in its value.

Peter Bacchus, previously of Jefferies and Morgan Stanley, is masterminding the initial public offering of Yellow Cake, which is seeking to raise between $160m (£120m) and $200m that it will use to buy 8.1m pounds of the radioactive metal, used in nuclear reactors. It is understood that Yellow Cake - so named for the yellowy tint of powdered uranium - has struck a supply deal with Kazatomprom, the world's largest producer of uranium, to buy around $170m worth of the metal at a 7pc discount to the current spot price of around $22 a pound.

The deal means that Yellow Cake will snap up almost a quarter of Kazatomprom's annual output in one swoop, taking an estimated 5pc of global supply off the market.

Mr Bacchus' pitch to investors is that uranium is "structurally mispriced" and set for a huge rebound in value once big nuclear power plants realise they need to secure new supply.

Yellow Cake will store its Kazakhstan-bought uranium in facilities in Canada operated by listed giant Cameco.

It plans to sit on the material until such time as the price recovers enough to justify a sale of its stockpile, or even seek a buyer for the whole business.

The company is likely to announce a float on London's AIM later this week. It could be one of the largest fundraising on the junior market in years, and is expected to have a free float of 99pc, with management holding the balance, giving it a market cap of up to £250m.

Mr Bacchus is best known in the industry for helping Rio Tinto defend against a takeover approach by BHP Billiton a decade ago. He set up Bacchus Capital, an advisory firm, a year ago, and will become a director on the Yellow Cake board.

It is understood that Lord St John of Bletso is lined up to be chairman of the venture while Alexander Downer, former foreign secretary of Australia, will be a non-executive director.

Uranium prices slumped after the Fukushima disaster in Japan in 2011 and have remained in the doldrums ever since despite a recent push by China to commission more nuclear power stations.

Prices on the open market are so low that it is thought that around 50pc of global uranium production is lossmaking.

As a result, many uranium producers are closing mines, leading to a tightening of supply.

But while most industry observers expect the price to rebound, opinion differs over the timing of any recovery.

Although Yellow Cake's business model is a new one to London investors, Toronto-listed UPC has a similar strategy, offering shareholders the chance to benefit from a rise in the uranium price.

 

 

News

Perth,
March, 2018
 

From: Australian Resources & Investment
Volume 12, No. 1
By: Barry Fitzgerald

 

Antipa talks hotspots, strategies and game changers for 2018

As it was, the Paterson Province became something of a hotspot last year, with Antipa in the thick of things. Junior companies, in general, were more active in the province, buoyed by improved commodity prices and greater investor recognition that testing the region’s potential for another big deposit – it is home to Newcrest’s Telfer (32,000 ounces of gold and one million tonnes of copper) and Metal X’s Nifty copper mine (two million tonnes of copper) – was still in its infancy.

Then excitement levels grew when mining giant Rio Tinto increased its footprint in the region by lodging tenement applications covering almost 6000 square kilometres of ground adjacent to its big-spending Citadel joint venture ground with Antipa.
Adding to the upbeat mood was Newcrest’s decision to spend $93 million to extend the life of its Telfer gold-copper mine, an important infrastructure support base in the region. It was against that backdrop that Antipa made major headway last year, both on the exploration front, and in advancing its development opportunities in the Province. Work on both fronts, to Antipa’s own account, and in the $60-million Citadel joint venture with Rio, steps up again in 2018.

To ensure full market recognition of the value of its Paterson presence, Antipa recently signed up Bacchus Capital as a strategic and financial adviser. Bacchus will also assist in fielding the increase in inquiries to Antipa from ‘various interested parties’, which followed Rio’s move to increase its presence in the province, Newcrest’s commitment to Telfer, and Antipa’s release of a maiden resource estimate for its wholly owned North Telfer project. ‘We thought there could be some action in the province in terms of mergers and acquisitions, or farm-ins,’ says Antipa Executive Chairman, Stephen Power. ‘We want to be prepared for that and ensure we aren’t caught on the hop. We also want to make the most of it.’

Although yet to be fully reflected in Antipa’s market valuation, the November 2017 release of the maiden resource for the North Telfer project was something of a game changer for Antipa in that it put the company on the pathway to becoming a producer.
The resource estimate covered the Minyari and WACA deposits, 40 kilometres north of Telfer. The total Indicated and Inferred resource estimate was 11 million tonnes grading two grams per tonne of gold, 0.234 per cent copper and 380 parts per million of cobalt for 723,000 ounces of gold, 26,000 tonnes of copper and 4,000 tonnes of high-value cobalt. Antipa sees the resource estimate as very much the start of the story.

In the second half of 2017, it carried out an aircore drilling program that extended the strike length of Minyari and WACA, as well as refining other targets. The results of the program will essentially guide the ongoing exploration at Minyari and WACA in 2018.
‘It’s all about getting more ounces on the board so we can take it forward and get ourselves into a production scenario,’ Power says.

The opening months of 2018 will also see forward drilling plans revealed for the exciting Tim’s Dome prospect (35 kilometres south-west of Minyari-WACA), and the Chicken Ranch prospect (25 kilometres south-east of Minyari-WACA).  Results from an aircore drilling program conducted at Tim’s Dome in the second half of last year confirmed the prospect’s outstanding exploration potential. ‘Because of their proximity we have the ability to work up several decent sized deposits,’ Power says. ‘Tim’s Dome is something that we are particularly interested in because it sits on the same structure as Telfer. You can actually see Telfer from Tim’s Dome, they’re that close'. Significant gold mineralisation from near surface extends over a strike length of four kilometres.

Gold mineralisation at Chicken Ranch – 15 kilometres from Telfer – has been identified along three kilometres of strike. Meanwhile, Rio has the next two years to fund another $5.5 million in exploration on the Citadel joint venture ground with Antipa, to earn an initial 51 per cent stake under the $60 million farm-in arrangement, which could take it to a 75 per cent interest.

 

 

ASX Release

Sydney,
22 February, 2018

 

Bacchus Capital Retained as Strategic and Financial Adviser to Cassius Mining Limited

Bacchus Capital Retained as Strategic and Financial Adviser

Cassius Mining Ltd ("Cassius" or "Company") (ASX:CMD) is pleased to announce that it has engaged Bacchus Capital Advisers Limited ("Bacchus Capital") to act as its Strategic and Financial Adviser.

Whilst the Cassius Board is committed to evaluating every opportunity to pursue the company's development plans for the Gbane Project (pronounced Bah-nee), a gold exploration project in the Upper East Region of Ghana, in its own right, the Cassius land position and exploration activities have begun to capture significant industry and market attention. The appointment of Bacchus Capital will enable the Board and management to consider and evaluate interest from various interested parties, as well as to consider other opportunities in the region, in order to deliver the best outcome for our shareholders.

Bacchus Capital's principal focus will be to assist the Company's Board and management in connection with its corporate strategy and development plans regarding the Gbane Project. The Gbane Project is located along strike from, and shares its licence boundary with, Cardinal Resources Limited's Namdini Project and is directly adjacent to the established gold producing Shaanxi Gold Mine.

Bacchus Capital's Managing Director and Co-Founder, Paul Cahill commented:

"Cassius' land position in the Upper East Region of Ghana, in which several gold exploration and mining companies are active, makes Cassius one of Africa's most exciting and under-appreciated exploration and development companies.  Our decision to act as the Company's Strategic and Financial Adviser is based on our strong belief in the Cassius team and the Company's potential to deliver significant value to its shareholders."

Cassius Chief Executive Officer, James Arkoudis, said:

"Cassius is very fortunate to be able to work with Bacchus Capital, whose Partners have very significant experience and an impressive track record in providing strategic and financial advice over several decades. The Bacchus Capital team has been actively involved in establishing some of the world's most successful mining companies from the very earliest stages and has played a key role in many of the mining industry's most significant transactions. We believe that their focus on building long term relationships, together with the depth of their investor and industry relationships, will provide significant benefits for our shareholders."

As part of the terms of engagement of Bacchus Capital, and in accordance with ASX Listing Rule 3.10.3, the Company advises that Bacchus Capital (or its nominee) will be immediately issued 3 million unlisted options at an exercise prices that is 1.4 times the VWAP of Cassius ordinary shares for the 30 trading days prior to the date upon which Bacchus Capital was retained as Cassius' Strategic and Financial Adviser.  Such options will be exercisable until 15 December 2020.

 

 

Media Release

Perth,
17 January, 2018

From: MiningNews
By: Michael Quinn

 

Antipa Makes Key Strategic Appointment

ANTIPA Minerals’ appointment of corporate advisory Bacchus Capital represents a potentially very interesting development in 2018 for the greenfields explorer that holds a major position in the Paterson Province.

The connection with Bacchus followed the London-based firm’s successful work with ASX-listed Lepidico, which has enjoyed a stellar rise in the market in recent months after warding off a takeover attempt by Lithium Australia and attracting investment from lithium producer Galaxy Resources.

Lepidico’s board features Gary Johnson and Mark Rodda, both of whom are on Antipa’s board.

Antipa has been having good success on the ground in the Paterson in recent years, including attracting Rio Tinto into a major joint venture.

However the success hasn’t translated into much market attention.

Chairman Stephen Power told MNN that a common line of questioning by investors for the company during marketing last year in North America was ‘what’s wrong’ given the junior’s recent market capitalisation of little more than A$20 million.

Enter Bacchus, now mandated to “act as strategic and financial advisor”.

Bacchus enters the fray with Rio active in the region both with Antipa and in its own right – and with the issues Rio has at Grasberg and in Mongolia, making a big copper find in Australia would arguably be more welcome than normal – and with Newcrest recently committing $93 million to cut back the pit at Telfer and extend the life of the open cut to 2023.

And there’s Metals X which has recently entered the region with big ambitions at Nifty and elsewhere on its ground, plus the Kintyre uranium asset and Newcrest’s little promoted (but said to be promising) O’Callaghans tungsten find. 

Bacchus’ has got its gig with Antipa underway by making comparisons between Telfer and the Carlin Trend in the USA.

“The Telfer deposit within the Paterson has remarkable similarities to the Carlin Trend deposits of Nevada, USA where similar structures to Telfer have, since the original Carlin discovery in 1961, continued to produce very large deposits commonly exceeding 15 million ounces,” Bacchus said.

Antipa and another keen junior explorer in the region, Encounter Resources, will be hoping such sentiments start resonating with investors.

Shares in Antipa were up 9% to 2.4c in late trade, capitalising the company at $28 million.

 

 
2017.11.23 - Year End Piece v.5.jpg
 

 

ASX
Release

Perth, 
10 October, 2017

 

Lepidico Secures Strategic Alliance with Galaxy Resources

Lepidico secures strategic alliance with Galaxy Resources

  • Galaxy agrees to subscribe A$2.9 million for 12% private placement of Lepidico Shares

  • Lepidico to offer shareholders an opportunity to participate on the same terms through a renounceable entitlement offer partially underwritten by Lead Manager, CPS Capital Group offered on a one for six basis at $0.01 per share, to raise up to approximately A$4 million

  • Total gross proceeds of up to A$7.0 million to fund Phase 1 L-Max® Feasibility Study through to final investment decision and further advance Lepidico’s resource development and exploration activities

Lepidico Ltd (ASX:LPD) (“Lepidico” or “Company”) is pleased to advise that Galaxy Resources Limited (ASX:GXY) (“Galaxy”) has agreed to subscribe for a 12% strategic shareholding in Lepidico via a private placement at 1 cent per share. Galaxy will acquire approximately 292 million shares in Lepidico for gross proceeds of A$2.9 million. The Company is also offering shareholders the opportunity to invest alongside Galaxy on the same financial terms, through a 1-for-6 stapled renounceable entitlement offer (“Entitlement Offer”) offered at $0.01 per share to raise up to approximately A$4 million. The Entitlement Offer is partially underwritten by CPS Capital Group Pty Ltd (“CPS”) to A$2 million.

Galaxy will be a strategic shareholder in Lepidico, with a 12% interest in the Company following the completion of a private placement of 291,750,910 Shares at 1 cent per share.

Demonstrating Galaxy’s support of Lepidico’s business strategy and the L-Max® technology, Galaxy intends to take up all its rights in the Entitlement Offer, and will nominate a representative to the Lepidico board.

The strategic alliance with Galaxy is based on a shared vision for the significant global opportunity provided by the commercialisation of Lepidico’s L-Max® technology. With its strong industry contacts and relationships in the lithium industry, Galaxy will be assisting Lepidico with future business and growth opportunities, evaluating potential synergies with their Mt Cattlin mine and James Bay projects, as well as accessing additional mica feedstock sources able to be treated by L-Max®.

In finalising its strategic investment in Lepidico, Anthony Tse, Managing Director and Chief Executive Officer of Galaxy, commented: "We are pleased to support Lepidico as it looks to expedite the commercialisation of its LMax® technology, both financially as well as offering the benefit of our technical capabilities, industry contacts and market expertise. Our alliance with Lepidico will provide us with the capability to also potentially evaluate significant mica feedstocks in future. L-Max® is an exciting technology and we look forward to leveraging it to unlock value, in order to capitalise on the ongoing growth opportunities in the lithium sector.”

The Entitlement Offer is partially underwritten by Lead Manager CPS to $2 million. Galaxy has agreed to take up its full entitlement and sub-underwrite up to $1 million in Entitlements not taken up. In addition, Bacchus Capital Advisers Ltd, Lepidico’s financial adviser, has advised its intention to take up its rights under the Entitlement Offer in full.

 

 

ASX Release

Perth,
25 July, 2017

 

Bacchus Capital Retained as Corporate Adviser to Lepidico

Bacchus Capital Retained as Corporate Adviser

Lepidico Ltd (ASX: LPD) (“Lepidico” or “Company”) is pleased to announce that it has retained Bacchus Capital Advisers Limited (“Bacchus Capital”) as its Corporate and Financial Adviser. 
 
Bacchus Capital’s principal focus will be to help conclude a strategic funding and lithium chemical offtake arrangement for Lepidico’s Phase 1 L-Max® Plant Project.  The Project is currently the subject of a Feasibility Study, the scope of which was announced to the ASX on 27 February 2017.  
 
Whilst the Lepidico Board is committed to pursuing the Company’s development plans in its own right, Lepidico has received considerable interest in its activities from a range of lithium industry and battery market participants.  The appointment of Bacchus Capital, working alongside the management team, will enable the Company to engage with these parties globally to deliver the best outcome for shareholders.  
 
Bacchus Capital advised Lepidico in relation to its recent successful hostile takeover defence and under the terms of this engagement has elected to receive the majority of its fee in Lepidico shares.     
 
Bacchus Capital’s Chairman and Chief Executive, Peter Bacchus commented, “We were very pleased to help successfully safeguard Lepidico’s independence from the recent unsolicited takeover offer.  Our decision to act in this capacity was based on our strong belief in the Lepidico team and the Company’s long-term strategy, and we look forward to continuing our relationship as both Corporate Adviser and as Shareholder.” 
 
Lepidico’s Managing Director, Joe Walsh said, “Bacchus Capital has an unrivalled reputation and track record in strategic and tactical M&A and corporate advisory services that spans several decades with some of the world’s largest and most successful mining companies globally. This, coupled with its depth of international industry relationships makes for a winning combination for Lepidico.  Bacchus Capital’s equity interest in Lepidico demonstrates its belief and commitment to the Company’s strategy and I welcome Bacchus Capital as a shareholder.” 

 

 

News

London,
15 March, 2017

 

From: Street Talk
By: Sarah Thompson; Anthony Macdonald;
Joyce Moullakis

High-Profile Resources Banker Peter Bacchus Joins Lepidico Defence, Starts Boutique

The hostile takeover tussle for lithium technology company Lepidico, by Western Australia rival Lithium Australia, just got more interesting.
    
Street Talk understands Lepidico, developer of the innovative LMax technology, has stepped up its defence of the all-scrip offer by luring heavyweight banker Peter Bacchus into its camp.
    
Bacchus was Jefferies Group's global head of metals and mining and co-head of European investment banking until last year and also had stints at Morgan Stanley and Citigroup. He is best known for defending mining giants, including Rio Tinto and WMC.

So, what brings Bacchus to Lepidico? He is said to be a strong believer in the LMax technology, which could revolutionise lithium supply to global battery manufacturers, crucial to the electric car industry and energy storage.

Bacchus is also on the board of Australia's largest lithium miner, Galaxy Resources, and will know a thing or two about industry players and the market dynamics for one of the world's lightest metals.

Interestingly, he's just started his own London-based advisory firm, Bacchus Capital Advisers, joining the ranks of former bankers forging into the independent corporate finance and merger advice platform.  
    
Sources said Bacchus would be joined at his new firm by Paul Cahill, former group head of business development at Anglo American, Chris Johannsen, a founder of Australian advisory firm Gryphon Partners (subsequently acquired by Standard Chartered), and former Morgan Stanley banker, Richard Allan. They are all co-founders and partners in the boutique. 
    
The lithium sector has been in focus in the past 12 months due to expectations of burgeoning demand. A recent report by the IW Cologne economic institute noted global demand for lithium was expected to soar in coming years as motorists and fleet managers switch to electric-powered vehicles, adding demand for the light metal, also used in mobile phones and the ceramic industry.

 

 

Press Release

London,
6 March, 2017

 

Karr McCurdy, former Chief Executive of Behre Dolbear, to join Bacchus Capital Advisers

 

Karr McCurdy has joined the Senior Advisory Board of M&A investment bank, Bacchus Capital Advisers. 

Mr McCurdy previously served as the Chief Executive Officer of Behre Dolbear, the World’s leading independent global mineral advisory and technical consultancy, and in this capacity led assignments across 50 countries annually, specialising in providing technical and strategic analysis for natural resource companies, financial institutions, governments and international agencies.  Prior to this Mr McCurdy held senior managerial roles at Standard Chartered Bank and Citigroup, where he built international, sector focused banking and advisory practices.

Peter Bacchus, Chairman & Chief Executive of Bacchus Capital Advisers, commented;

“Karr has over 35 years of geologic and project development experience, combined with a background in executive management, finance and technical advisory.  He has completed more than 200 transactions valued in excess of $100bn, and personally visited hundreds of mines and down-stream operations. As a geologist, he discovered and developed the Pueblo Viejo gold mine in the Dominican Republic.  I am delighted to welcome him to our team.”

Mr McCurdy, who is based in Denver, Colorado, holds an MBA from the Thunderbird School of Global Management, and a BSc Geological Studies from the University of Michigan.  He is a partner with Rock Elm Capital Management, a private investment firm supporting the global natural resource industry, and is a search and rescue officer for the Central Arizona Mountain Rescue Association.

 

 

Press Release

London,
12 December, 2016

 

Leading Team of Global Investment Bankers Reunited to form New M&A and Merchant Banking Platform...

Peter Bacchus, former Global Head of Mining and Metals Investment Banking at Morgan Stanley, has reunited with a number of senior former colleagues and clients, to form Bacchus Capital Advisers. The new firm will be an independent merchant banking platform specialising in public market M&A.

Bacchus will be joined by Paul Cahill, former Group Head of Business Development at Anglo American, Chris Johannsen, a founder of Australian boutique advisory firm Gryphon Partners (subsequently acquired by Standard Chartered), and former Morgan Stanley banker, Richard Allan as co-founders and partners. The team will also include former RBC Head of European Investment Banking, Patrick Meier and John Munro, previously Chief Executive of Rand Uranium.

Bacchus, a 25-year investment banking veteran with a career spanning the UK, US, Australia and Asia, is best known for his work in the natural resources sector, in particular leading the high profile bid defence at global mining icon Rio Tinto following the hostile approach from BHP Billiton, the largest ever public offer in the global resources sector, and WMC Resources, in its defence against Xstrata.

Bacchus Capital Advisers will initially comprise a twelve person professional team, headquartered in Central London, and with representation in Asia, the United States and Australia.