Mali Seizes Barrick Mine: Arbitration Proceeds
Contributed Opinion

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Barrick Mining Corp. (ABX:TSX; B:NYSE) saw its Loulo-Gounkoto mine in Mali placed under government administration by a local court, effectively seizing the mine, the latest chapter in a long-running dispute, which has seen the government confiscate gold stockpiles and imprison high-ranking Barrick employees (who remain in jail).

Despite this, the company said it is still committed to talking with the government to reach a settlement. It also noted that its arbitration against the government before the International Centre for Settlement of Investment Disputes is going ahead. Although the judge placed the mine under what was described as "provisional" administration for a 6-month period, it is unclear when a resolution will be reached, and the return of the mine to Barrick has just been pushed further away.

A former health minister was named to be in charge of the mine. It is unlikely at this point that the mine will restart under Barrick's ownership any time this year, while the current mining license for Loulo expires in February; the permit for Gounkoto runs for another 17 years. In any negotiated settlement, Barrick will likely have to concede a lot, while an arbitration may take up to six years.

Before the dispute, Loulo accounted for about 8% of the company's NAV, and move or its recent earnings.

Though Barrick remains undervalued, particularly on an asset basis, and there is very little value for Mali in Barrick's stock price right now, we are holding, given the heightened geopolitical risk in Pakistan right now

Franco Suspends Arbitration To Help Cobre Panama Talks

Franco-Nevada Corp. (FNV:TSX; FNV:NYSE) has suspended its recently filed arbitration against Panama over the Cobre Panama mine, which we view as a good-faith move to help discussions between the government and mine owner First Quantum.

Franco holds a stream over the suspended mine.

There have been small steps taken by the government recently towards restarting discussions, though the government warned that a restart of the mine was still some way in the future.

Hold.

Orogen: Vote Now, in Favor

Orogen Royalties Inc. (OGN:TSXV; OGNRF:OTCQX) announced that leading proxy advisory firm Institutional Shareholder Services has recommended voting in favor of the proposed arrangement with Triple Flag.

We also urge you to vote in favor and to opt for Triple Flag shares.

As we have discussed before, because Triple Flag has placed a 50% aggregate maximum of shares, you will likely receive some cash even if you elect to receive all shares. The deadline for proxies to be received is Wednesday morning. With the shares trading at a discount to the value of Triple Flag shares and the Orogen spin-out, they can still be purchased.

TOP BUYS this week, in addition to the above, include Altius Minerals Corp. (ALS:TSX) and Lara Exploration Ltd. (LRA:TSX.V).

LAST OPPORTUNITY to sign up for the Rule Resource Symposium, July 7 to 11, in Boca Raton, a can't-miss event for the resource investor. The exceptional line-up of speakers includes Sean Roosen, Robert Quartermain, David Stockman, Randy Smallwood, and Doug Silver, with Robert Friedland via video. My talk: "Sherlock Holmes and the Case of the Missing Gold Investor." Register now to avoid disappointment, as it will likely sell out soon.