MP Materials, Cleveland-Cliffs Increase Offerings; Austin Gold Finishes Initial Drilling Program And More: Tuesday's Top Mining Stories

Top Stories for March 5, 2024:
1. MP Materials Corp. MP announced a private offering of $650 million in 3.00% convertible notes due in 2030 to qualified institutional buyers, with an option for initial purchasers to buy up to an additional $97.5 million within 13 days.

The offering reported on Monday was increased from $500 million, and is set to close on March 7, 2024.

Additionally, the company engaged in capped call transactions to raise the conversion premium to 100%, repurchased 12.3 million shares for about $191.6 million and used roughly $358.4 million of the proceeds to buy back $400 million of its 2026 convertible notes.

2. Cleveland-Cliffs Inc. CLF is also upsizing its $750 million offering reported Monday to $825 million of senior unsecured guaranteed notes due in 2032.

The notes will be issued at par and bear annual interest rates of 7%, with the offering expected to close on March 18, 2024.

The company still intends to use the proceeds and current liquidity on hand to repurchase all of its 6.75% Senior Secured Notes due in 2026.

3. Austin Gold AUST finished the initial diamond drilling program at its Stockade Mountain Project in Malheur County, Oregon, drilling three holes totaling 2,435.9 feet. The final hole reached a depth of 736.7 feet.

Core samples are now with an assay lab for testing, but early results show significant gold grades, including a high of 8.19 g/t (grams per ton) gold over four feet.

Austin plans a reverse circulation drilling program for the summer and is fully funded for upcoming exploration activities. Results from the current assays are expected in four to six weeks.

4. Loop Capital analyst Chris Kapsch downgraded Compass Minerals Intl. CMP from Buy to Hold, and lowered his price target from $29 to $26.

5. Golden Minerals Company AUMN announced the passing of one of its board members, W. Durand Eppler.

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