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Ring of Fire News – December 8, 2012

  • Cliffs raising $500M on the market ….  “Cliffs Natural Resources Inc. announced today that it has priced its registered public offering of $500 million 3.95% Senior Notes due January 2018 (the “Senior Notes”). Cliffs expects to close the offering on Dec.13, 2012, subject to customary closing conditions. The net proceeds from the issuance of the Senior Notes are expected to be used to repay Cliffs’ Private Placement Senior Notes due in 2013 and 2015, as well as for general corporate purposes ….”  Sourcemore
  • …. while S&P rates Cliffs’ performance ….  “Standard & Poor’s Ratings Services said today that it assigned its ‘BBB-‘ issue-level rating to Cliffs Natural Resources Inc.’s  proposed senior unsecured notes due 2018. The company is issuing the notes under its shelf registration for well-known and seasoned issuers filed on March 10, 2010.  The notes will be senior unsecured obligations and will rank equally with all of Cliffs’ existing and future senior unsecured indebtedness. The company  intends to use the proceeds from this offering to repay a portion of its existing debts, including its $270 million and $55 million private placement notes due 2013 and 2015, respectively, as well as for general corporate purposes including repayment of amounts outstanding under its term loan due 2016 and revolving credit facility due 2017. As of Sept. 30, 2012, $922.1 million was outstanding under the term loan, and $250.0 million was outstanding under the revolving credit facility The ‘BBB-‘ corporate credit rating and negative outlook on Cliffs reflect the combination of what we consider to be the company’s “satisfactory” business risk and “intermediate” financial risk profiles ….”  Source
  • …. And the company takes on a new director  “…. On December 3, 2012, the Board of Directors (“ Board ”) of Cliffs Natural Resources Inc. (the “ Company ”) elected Timothy W. Sullivan to the Board effective as of January 14, 2013. The Board has determined that Mr. Sullivan has no material relationship with the Company (directly or as a partner, shareholder or officer of an organization that has a relationship with the Company) and is independent within the Company’s director independence standards, which are consistent with the New York Stock Exchange’s director independence standards as currently in effect. Effective July 1, 2013, Mr. Sullivan will become a member of the Audit Committee ….”  Sourcemore
  • Some First Nations still wrestling with how to deal with mining, Ring of Fire in their backyards  “…. even with industry becoming more prevalent in resident’s daily life, (Webequie Chief Cornelius) Wabasse said people remain confused.  “They don’t know how to react to the development. They want to know more so that they have a base to make decisions on to how to adapt.”  His community signed a co-operation agreement with the Ontario government last June, a document that Wabasse said demonstrates “good faith” toward becoming a true partner in development on their traditional territory.“We’re starting to realize there’s going to be spinoffs with whatever’s happening out there with exploration agreements. We may put a clause (on companies) to employ our people to explore in our territory and to use whatever services we have in the community.”  With a 90 per cent unemployment rate and more than than half of its population under the age of 25, “young people are starting to realize there are going to be opportunities and they have to start thinking about education and moving forward,” said Wabasse.  “We’re trying to think what does mining encompass, what does it bring? Then we’ll be able to work out a plan on how we’re going to be part of the process.” “  Source
  • (Not exactly Ring of Fire, but….) Controversial mining CEO no longer mining CEO  “Solid Gold Resources has announced management changes that will result in the replacement of its controversial CEO Darryl Stretch.  “On an interim basis, Alan Myers, a director and the Chief Financial Officer of Solid Gold, has accepted the board’s request that he serve as interim CEO of Solid Gold while the board works towards finding a permanent solution,” the company said in a Monday release.  For the past year, Solid Gold has been embroiled in a high-profile legal dispute with Wahgoshig First Nation over the company’s exploration activities in the Lake Abitibi area. This fall, Solid Gold was granted leave to appeal an injunction that halted its drilling program near the First Nation community last January. A hearing on the appeal is scheduled for next month.  The dispute boiled over at last month’s exploration and geoscience symposium in Sudbury when Stretch delivered a presentation that pitched Solid Gold’s position to an audience of mining people, government officials and First Nation representatives. In it, he described First Nations as “hostile third-party governments” and castigated the government’s handling of its mining laws and Ontario’s constitutionally mandated consultation duties.  First Nations and their organizations reacted with anger and disappointment, characterizing the presentation as a racist attack on their Aboriginal and treaty rights ….”  Source (In Support of Mining blog) – Company news release

More open source information (excerpts from information monitored 9 Nov-7 Dec 12 (PDF) here. All information shared here in accordance with the Fair Dealing provisions (§29) of the Copyright Act. The blog is not responsible for the accuracy of the source material, and inclusion of material doesn’t mean endorsement.

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