SAN FRANCISCO, UNITED STATES —
Airbnb on Monday announced it was taking a billion U.S. dollars in new investment to endure and, it hopes, thrive in a travel world transformed by the coronavirus pandemic.
Silver Lake and Sixth Street Partners will invest the money into the home-sharing platform in the form of debt and equity, according to Airbnb.
“While the current environment is clearly a difficult one for the hospitality industry, the desire to travel and have authentic experiences is fundamental and enduring,” Silver Lake managing partner Egon Durban said in a release.
“Airbnb’s diverse, global, and resilient business model is particularly well suited to prosper as the world inevitably recovers and we all get back out to experience it.”
The fresh resources will enable the San Francisco-based company to invest in its community of “hosts” as well as local experiences provided along with stays in homes, according to Airbnb co-founder and chief Brian Chesky.
Airbnb said it will focus particularly on long-term stays, from students needing housing to remote workers, building on a rising demand the platform has seen as people self-isolate during the pandemic.
Terms of the investment include putting $5 million into a Superhost Relief Fund for established, highly-rated hosts who need help with rent or mortgage payments due to the coronavirus’s devastating effects.
Airbnb employees started the fund with a million dollars, and the two co-founders contributed another $9 million, according to the company.
Airbnb is also helping hosts with financial losses after guests cancelled travel plans.
Cardinal Debt Purchased by Ghana Infrastructure Investment Fund From Sprott – GlobeNewswire
TORONTO, June 05, 2020 (GLOBE NEWSWIRE) — Cardinal Resources Limited (ASX / TSX : CDV) (“Cardinal” or “the Company”) is pleased to announce that the senior secured credit facility (as amended in February 2020 and March 2020) (“Facility”) has been assigned from Sprott Private Resource Lending (Collector), L.P. (“Sprott”) to the Ghana Infrastructure Investment Fund (“GIIF”), a Ghana Government owned infrastructure investment vehicle. The Company has been informed that completion of the acquisition by GIIF occurred on 4 June 2020.
As a result of the acquisition, Cardinal’s senior debt facility provider is now GIIF.
The balance of the Facility is approximately US$23.8 million (following a US$0.4 million repayment of the debt to Sprott prior to the transaction) and Cardinal has also been provided with further funding (from previously restricted cash) totaling an additional US$3.1 million which now forms part of Cardinal’s working capital. As part of the transaction, Cardinal has agreed to amend and restate the Facility under Ghanaian law.
Solomon Asamoah, CEO of the Ghana Infrastructure Investment Fund stated:
“As one of Africa’s largest and most significant new gold discoveries, we at GIIF are very pleased to be able to enter into this very important transaction which ensures increased Ghanaian participation, through our capacity as a Sovereign owned fund.
“As stated many times by our President, H.E. Nana Akufo Addo, we believe it is very important that there is increased paid participation in all sectors of the domestic economy by Ghanaians, including the mining sector. GIIF is looking to play an important role by supporting both feeder and spin-off industries made possible by the increased economic activity and accompanying new infrastructure arising from the mining operation. The development of this large-scale gold mine is very important to Ghana as it will assist in bringing much needed jobs to the Upper East Region of Northern Ghana.”
Archie Koimtsidis, CEO and Managing Director of Cardinal stated:
“On behalf of the Board of Cardinal Resources, we would like to thank GIIF and their entire team. The Company is very impressed with the GIIF organisation, especially the range of Ghanaian infrastructure projects that the organisation has managed to complete in such a short timeframe. It has been a pleasure working with GIIF since Q4 – 2019 to reach this point and we are very pleased that the Board of GIIF has approved this initial investment with its acquisition of the entire Sprott debt facility.
“This investment clearly demonstrates to all investors that Ghana is “Open for Business” as per The President, H.E. Nana Akufo Addo’s speech at the 2019 Mining Indaba Conference in Cape Town, where he eloquently articulated the importance of Ghanaian paid financial participation into Ghanaian projects for the benefit of all its citizens long into the future.
“Cardinal is confident that GIIF will be a valuable stakeholder in the development of its 5.1* Moz Gold Mine in the Upper East Region of Ghana, West Africa and we would also like to take this opportunity to thank the Sprott Lending team for the sale of the debt facility to GIIF.”
*The Namdini Project has a published gold Ore Reserve of 5.1 Moz (138.6 Mt @ 1.13 g/t Au; 0.5 g/t cut-off), inclusive of 0.4 Moz Proved (7.4 Mt @ 1.31 g/t Au; 0.5 g/t cut-off) and 4.7 Moz Probable (131.2 Mt @ 1.12 g/t Au; 0.5 g/t cut-off).
A Feasibility Study released in Q4 -2019 demonstrated that Cardinal’s flagship Namdini Gold Project in Ghana’s Northern District has the potential to be a low capital cost, high-margin development opportunity at a US$1,350 per ounce gold price.
The material commercial terms of the Facility (below) remain unchanged or are otherwise more favourable for Cardinal, as set out below:
- 24-month repayment term (the Sprott arrangements had a maturity date of 1 March 2021)
- Interest rate of 7.75% + the greater of 3 months LIBOR or 1% per annum
- Early repayment flexibility is continued and as per the arrangements with Sprott, a 5% redemption premium applies to all future repayments of the Facility
- Secured against the assets of Cardinal and its wholly owned subsidiaries in Ghana
- Upon a change of control of Cardinal, GIIF may require repayment of the Facility (under the prior Sprott arrangements, immediate repayment was required in such circumstances)
Please refer to the Company’s announcements of 16 March 2020 and 30 March 2020 in relation to the approach from Nord Gold.
The Company continues to work with the Special Purpose Committee and its advisors, Maxit Capital LP (Nth America), Hartleys Limited (Australia), BMO Capital Markets and Cannacord Genuity, to review all strategic alternatives.
Cardinal Resources Limited (ASX/TSX: CDV) is a West African gold‐focused exploration and development Company that holds interests in tenements within Ghana, West Africa.
The Company is focused on the development of the Namdini Gold Project and released its Feasibility Study on 28 October 2019.
The Company announced completion of the Feasibility Study (FS), which was released 28 October 2019. The technical report on the FS, prepared in accordance with NI 43‐101 of the Canadian Securities Administrators, was issued on SEDAR at www.sedar.com on 28 November 2019.
Cardinal confirms that it is not aware of any new information or data that materially affects the information included in its announcement of the Ore Reserve of 15 October 2019, and included in the Company’s completed Feasibility dated 28 October 2019. All material assumptions and technical parameters underpinning this estimate continue to apply and have not materially changed.
Authorised for release by the Board of Cardinal Resources Limited.
|For further information contact:|
|Archie Koimtsidis||Alec Rowlands|
|CEO / MD||IR / Corp Dev|
|Cardinal Resources Limited||Cardinal Resources Limited|
|P: +61 8 6558 0573||P: +1 647 256 1922|
Competent / Qualified Person Statement
The scientific and technical information in this announcement that relates to Exploration Results, Mineral Resources and Ore Reserves at the Namdini Gold Project has been reviewed and approved by Mr. Richard Bray, a Registered Professional Geologist with the Australian Institute of Geoscientists and Mr. Ekow Taylor, a Chartered Professional Geologist with the Australasian Institute of Mining and Metallurgy. Mr. Bray and Mr. Taylor have more than five years’ experience relevant to the styles of mineralisation and type of deposits under consideration and to the activity which is being undertaken to qualify as a Competent Person, as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” and as a Qualified Person for the purposes of NI43‐101. Mr. Bray and Mr. Taylor are full‐time employees of Cardinal and hold equity securities in the Company.
For further information regarding the Namdini Gold Project please see Feasibility Study (FS) for the Namdini Gold Project, titled “Namdini Gold Project Feasibility Study 43-101 Report” by David Gordon, FAusIMM, Daryl Evans, FAusIMM, Nicolas Johnson, MAIG MPRm and Glenn Turnbull, FIMMM, MAusIMM, which was released on October 28, 2019. The technical report on the Feasibility Study, pursuant to NI 43-101 of the Canadian Securities Administrators, was issued on SEDAR at www.sedar.com” www.sedar.com on November 28, 2019.
This ASX / TSX press release has been prepared by Cardinal Resources Limited (ABN: 56 147 325 620) (“Cardinal” or “the Company”). Neither the ASX or the TSX, nor their regulation service providers accept responsibility for the adequacy or accuracy of this press release.
This press release contains summary information about Cardinal, its subsidiaries and their activities, which is current as at the date of this press release. The information in this press release is of a general nature and does not purport to be complete nor does it contain all the information, which a prospective investor may require in evaluating a possible investment in Cardinal.
By its very nature exploration for minerals is a high‐risk business and is not suitable for certain investors. Cardinal’s securities are speculative. Potential investors should consult their stockbroker or financial advisor. There are a number of risks, both specific to Cardinal and of a general nature which may affect the future operating and financial performance of Cardinal and the value of an investment in Cardinal including but not limited to economic conditions, stock market fluctuations, gold price movements, regional infrastructure constraints, timing of approvals from relevant authorities, regulatory risks, operational risks and reliance on key personnel and foreign currency fluctuations.
Except for statutory liability which cannot be excluded and subject to applicable law, each of Cardinal’s officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in this press release and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this Announcement or any error or omission here from. Except as required by applicable law, the Company is under no obligation to update any person regarding any inaccuracy, omission or change in information in this press release or any other information made available to a person nor any obligation to furnish the person with any further information. Recipients of this press release should make their own independent assessment and determination as to the Company’s prospects, its business, assets and liabilities as well as the matters covered in this press release.
Certain statements contained in this press release, including information as to the future financial or operating performance of Cardinal and its projects may also include statements which are ‘forward‐looking statements’ that may include, amongst other things, statements regarding targets, anticipated timing of the feasibility study (FS) on the Namdini project, estimates and assumptions in respect of mineral resources and anticipated grades and recovery rates, production and prices, recovery costs and results, capital expenditures and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. These ‘forward – looking statements’ are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Cardinal, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies and involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward‐looking statements.
Cardinal disclaims any intent or obligation to update publicly or release any revisions to any forward‐looking statements, whether as a result of new information, future events, circumstances or results or otherwise after today’s date or to reflect the occurrence of unanticipated events, other than required by the Corporations Act and ASX and TSX Listing Rules. The words ‘believe’, ‘expect’, ‘anticipate’, ‘indicate’, ‘contemplate’, ‘target’, ‘plan’, ‘intends’, ‘continue’, ‘budget’, ‘estimate’, ‘may’, ‘will’, ‘schedule’ and similar expressions identify forward‐looking statements.
All forward‐looking statements made in this press release are qualified by the foregoing cautionary statements. Investors are cautioned that forward‐looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward‐looking statements due to the inherent uncertainty therein.
Australia to Toughen Foreign Investment Laws Amid China Spat – Yahoo Canada Finance
(Bloomberg) — Australia will implement a tough new screening regime on foreign investors seeking to buy sensitive assets, as it bids to bolster national security amid a diplomatic row with China.
Telecommunications, energy, technology and defense-manufacturing companies will be included in the zero-dollar threshold for screening. The changes, intended to be legislated this year and enforced from Jan. 1, will include a new national security test and give the treasurer last-resort powers to force asset sales.
The changes could have implications on Australia’s relationship with its largest trading partner China, which have soured this year after Prime Minister Scott Morrison led calls for an independent probe on the origins of the coronavirus in Wuhan.
Beijing responded with verbal attacks on the conservative government, saying it was doing the bidding of key ally the U.S., while new tariffs on Australian barley and a ban on beef from four meatworks have raised fears in Canberra that the Chinese government is using “economic coercion” in retaliation.
Asked by a reporter in Canberra on Friday whether the changes will create new tensions with China, Morrison said: “I don’t believe why it should. Countries make decisions on their own interests for their own rules and we respect the rules and interests of other countries.”
Australia isn’t alone in ramping up its foreign investment screening — in recent years, economies including the U.S., Japan and the European Union have toughened their own laws to protect national security. The new announcement comes a day after Morrison signed a crucial defense agreement with Indian Prime Minister Narendra Modi and upgraded ties to a Comprehensive Strategic Partnership, as both nations navigate fraught relations with China.
“We have to be on our guard against China purchasing critical infrastructure and investing in our vital industries, so it makes sense for the government to extend and deepen its oversight of foreign investment,” said Malcolm Davis, a senior analyst at the Australian Strategic Policy Institute in Canberra. “China will probably take umbrage but it needs to understand that Australia makes these decisions in its own interests.”
The U.S. remains Australia’s largest source of approved investment from overseas, comprising A$58.2 billion ($40.4 billion) — or 25% of the total — in the year ending June 2019. China comprised 5.7% of the total, valued at A$13.1 billion.
Under Australia’s current rules, state-owned enterprises already have zero-dollar screening threshold while most private investments under A$275 million, often for large land holdings, are waved through. The monetary thresholds have meant some investments that have raised national-security concerns have escaped screening.
Chinese purchases of agricultural land, including iconic properties such as the Cubbie Station in Queensland and the Van Diemen’s Land dairy in Tasmania, have proved particularly contentious in Australia.
Call in Powers
“The reforms will ensure that our foreign investment regime is able to respond to emerging risks and global developments,” Treasurer Josh Frydenberg said, labeling the changes the most significant in the area since 1975. The government will spend an additional A$54 million to bolster compliance and monitoring, he said.
After the changes, the treasurer will have power to “call in” an investment before, during or after an acquisition for review if it raises national security risks and has not captured by the “sensitive national security businesses” definition.
“Technology has been evolving and our geopolitical climate has become more complex,” Frydenberg told reporters on Friday. “In fact, the world over, governments are seeing foreign investment being used for strategic objectives, not purely commercial ones.”
While the treasurer will have the power order disposal of approved foreign investments where national security risks emerge post-approval, the last-resort power will not be retrospective.
As treasurer in 2016, Morrison ordered the Foreign Investment Review Board to step up scrutiny of foreign investment in state-owned infrastructure after a strategic port in Darwin used by the U.S. military was leased to a Chinese company. The prime minister on Friday ruled out the possibility of that sale, which at the time escaped the regulator’s scrutiny as it was managed by the Northern Territory government, being revoked.
Sandy Mak, partner and head of corporate at Corrs Chambers Westgarth, said she looked forward to seeing whether details in the draft legislation due for release next month would make a fundamental difference to existing rules, and which sectors would be classified.
“The government’s objective here is protect sensitive assets and you’d hope when the legislation comes out it will achieves that without stymieing investment in the types of sectors and businesses that need it most,” Mak said. “Anything oil and gas related for energy independence, anything telecommunications related, and anything defense related is definitely going to be top of their list,” she said, while data-related investments may also be targeted.
Before Australia’s calls for a probe into the origins of the coronavirus, its diplomatic ties with Beijing were already under stress. The government cited Beijing’s “meddling” into national affairs as a catalyst for its anti-foreign interference laws passed in 2018, the same year it banned Huawei Technologies Ltd. from helping build its 5G network.
FIRB Chairman David Irvine welcomed the new screening package, saying it “appropriately addresses increasing risks to the national interest whilst ensuring Australia remains welcoming and open to foreign investment.”
(Updates with Morrison comment on China in 5th paragraph.)
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Australia shakes up foreign investment laws for national security – TheChronicleHerald.ca
By Kirsty Needham and Melanie Burton
SYDNEY (Reuters) – Australia announced the biggest shakeup of its foreign investment rules in almost half a century on Friday, including additional powers to force the divestment of a business if it creates a national security risk.
Citing the need to balance economic and national security, Treasurer Josh Frydenberg said all foreign investors will face greater scrutiny when bidding for sensitive assets, regardless of the size of the deal and whether the buyer is private or state-owned.
“Technology has been evolving and our geopolitical climate has become more complex,” Frydenberg said in Canberra. “In fact, the world over, governments are seeing foreign investment being used for strategic objectives not purely commercial ones.”
In one major change, the Treasurer will be given a last-resort power to vary or to impose conditions on a deal or force a divestment. A Treasury document said the power would not retrospective.
Frydenberg did not provide full details of which business sectors would be targeted under the changes, which will be made public in the next few weeks, but he did give some indication of areas of interest.
The definition of a national security business would likely cover telecommunication companies, energy and utilities businesses, the defence supply chain, and businesses that collect, store and own data deemed critical to Australia’s national security and defence, he said.
The changes, the biggest overhaul of foreign investment policy since the current framework was established in 1975, will effectively make permanent a temporary tightening of foreign investment regulations announced in March to prevent fire sales of distressed assets during the coronavirus crisis.
Under current laws, most private investments under A$275 million ($190.8 million) are not screened, while the threshold is A$1.2 billion for companies from countries such as China which have free trade agreements with Australia. The threshold is zero for state-owned enterprises.
Frydenberg did not single out China, or any other country, when announcing the overhaul but the Chinese government has in the past raised concerns with Australia about changes to foreign investment rules.
Chinese companies have been major investors in Australian resources, agriculture and property.
Public disquiet over the sale of the Port of Darwin in 2016 to Chinese company Landbridge prompted a rule change to require approval from the country’s Foreign Investment Review Board (FIRB) for critical infrastructure deals.
China dropped from second to fifth in the list of countries providing the largest sources of approved foreign investment in Australia for 2018-2019. The United States was first, followed by Canada, Singapore and Japan in 2018-2019. Chinese investment fell by almost 50% to $13.1 billion ($8.4 billion) in 2019.
The government plans to release a draft of the new rules by July for industry consultation before they are implemented on Jan. 1, 2021.
($1 = 1.4395 Australian dollars)
(Reporting by Kirsty Needham and Melanie Burton, additional reporting by Renju Jose; Editing by Stephen Coates and Jane Wardell)
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