Top Stories for March 5, 2024:
1. MP Materials Corp. MP revealed a boost in their private offering to $650 million in 3.00% convertible notes due in 2030, catering to qualified institutional buyers. The initial purchasers have the option to acquire up to an additional $97.5 million within 13 days.
The offering, initially set at $500 million, is slated to conclude on March 7, 2024.
Besides, the company partook in capped call transactions to elevate the conversion premium to 100%, bought back 12.3 million shares for around $191.6 million, and utilized approximately $358.4 million of the proceeds to repurchase $400 million of its 2026 convertible notes.
2. Cleveland-Cliffs Inc. CLF decided to scale up its prior $750 million offering to $825 million of senior unsecured guaranteed notes due in 2032.
The notes will be issued at par and carry annual interest rates of 7%, with the offering expected to wrap up on March 18, 2024.
The company plans to utilize the proceeds and existing liquidity to repurchase all of its 6.75% Senior Secured Notes due in 2026.
3. Austin Gold AUST successfully completed the initial diamond drilling program at its Stockade Mountain Project in Malheur County, Oregon, penetrating three holes totaling 2,435.9 feet. The final hole’s depth reached 736.7 feet.
Core samples are currently undergoing testing at an assay lab, with preliminary results displaying promising gold grades, including a peak of 8.19 g/t (grams per ton) gold over four feet.
Austin is gearing up for a reverse circulation drilling program in the coming summer and is financially prepared for upcoming exploration endeavors. Results from the ongoing assays are expected within four to six weeks.
4. Loop Capital analyst Chris Kapsch revised his position on Compass Minerals Intl. CMP from Buy to Hold, reducing the price target from $29 to $26.
5. Golden Minerals Company AUMN conveyed the unfortunate news of the passing of one of its board members, W. Durand Eppler.
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