MP Materials Corp.’s Strategic Move
In a decisive maneuver, MP Materials Corp. announced a significant increase in its private offering, now standing at a substantial $650 million in 3.00% convertible notes due in 2030. Qualified institutional buyers have the opportunity to partake, with initial purchasers holding the option to procure up to an additional $97.5 million within 13 days. This bolstered offering, up from the initial $500 million, is slated to conclude on March 7, 2024.
Cleveland-Cliffs Inc.’s Bold Step
Cleveland-Cliffs Inc. is following suit, amplifying its offering from $750 million to a noteworthy $825 million of senior unsecured guaranteed notes due in 2032. Issued at par, the notes bear annual interest rates of 7%, with closure anticipated on March 18, 2024. The company’s intent is to utilize the raised capital and existing liquidity to repurchase all of its 6.75% Senior Secured Notes due in 2026.
Austin Gold’s Productive Drilling Program
Meanwhile, Austin Gold wrapped up its initial diamond drilling stint at the Stockade Mountain Project in Malheur County, Oregon. Marking the completion of three holes totaling 2,435.9 feet, the final hole reached a depth of 736.7 feet. Core samples are presently undergoing testing at an assay lab, with initial findings indicating notable gold grades, including a peak of 8.19 g/t (grams per ton) gold over four feet. With a reverse circulation drilling program on the horizon for summer, Austin is well-equipped for forthcoming exploration initiatives. Results from the ongoing assays are slated for release in four to six weeks.
On another note, Loop Capital analyst Chris Kapsch recently downgraded Compass Minerals Intl. from Buy to Hold, coupled with a reduction in the price target from $29 to $26. Additionally, Golden Minerals Company mourns the loss of board member W. Durand Eppler.