Antofagasta to stay put on dividend policy but will return cash to shareholders

Agnico Eagle Mines (TSE:AEM) announced on Monday that it had acquired Grayd Resources (CVE:GYD) for $275 million. Grayd is a junior exploration and development company with gold and silver projects in Mexico. Agnico said the offer price of $2.80 per Grayd share represents a premium of 65.7% to the volume weighted average price of Grayd shares on the TSX Venture Exchange for the 20-day period ended September 16, 2011.

Research firm Metals Economics Group reports gold continues to be top exploration target accounting for more than 50% of global exploration of non-ferrous metals for the second consecutive year in 2011. Latin America is set continue to be the industry's favorite regional exploration destination in 2011, while Canada will remain the top overall country. Copper will account for roughly a fifth of 2011 nonferrous exploration budgets that is expected to exceed US$17 billion for expenditures related to precious and base metals, diamonds, uranium, and some industrial minerals. It represents an increase of about 50% from the 2010 total and a new all time high.

Speaking in Arequipa at Peru's premier mining conference industry executives said on Friday a drive by Peru's leftist president to raise mining royalties should not derail multibillion-dollar investments, but added that the viability of smaller, less efficient operations will be affected. Peru's Buenaventura and US-based Newmont said their $4.8 billion Conga mine, the most expensive mine in Peru's history, was on track to come on line in 2014 while others including Barrick Gold, Xstrata, Anglo American and Gold Fields reiterated their commitment to the country.

Gold Fields, the world's fourth-largest gold producer, aims to produce one-million ounces of the precious metal per year in South America by 2015, the company's regional chief said on Wednesday.

Peru's leftist government presented a bill to Congress on Wednesday that aims to increase mining taxes to fund anti-poverty projects.

Barrick Gold (TSX:ABX) will spend half a billion dollars to expand two of its mines in Peru, Bloomberg reports. Toronto-based Barrick, the world's largest gold miner, says it will invest $$550 million to expand operations at its Alto Chicama and Pierina mines by 2013. Quoting the company's country manager Darrell Wagner, Bloomberg states that the investment will serve to extend the minelives of both mines by four years, with production dropping as reserves are depleted:

The cost of borrowing for Brazil's Vale has risen to record highs relative to competitors BHP Billiton and Rio Tinto, as the Brazilian government looks to reap more in mining taxes amid surging metals prices, Bloomberg is reporting: The world’s largest iron-ore mining company’s dollar bonds due in 2019 yielded 4.22 percent, a record 152 basis points more than similar-maturity bonds from higher-rated BHP. The yield gap has swelled 61 basis points, or 0.61 percentage point, this year. The spread over Rio Tinto Group bonds reached 84 basis points yesterday after averaging 51 points in the first seven months of 2011.

Vista Gold (AMEX:VGZ) had no comment on why its share price jumped on Monday. Shares were up from $3.70 on Friday to $4.41 by the end of Monday, a 19% gain. "Vista Gold Corp. ("Vista" or the "Company") (TSX & NYSE Amex Equities: VGZ) announced today that as a result of unusual market activity in the Company's common shares on September 12, 2011, the NYSE Amex contacted the Company in accordance with the NYSE Amex's usual practice and requested that the Company issue a public statement regarding the unusual market activity. The Company states that its policy is not to comment on unusual market activity," said the company in a news release.

COLORADO SPRINGS, CO--(Marketwire - Sep 13, 2011) - Gold Resource Corporation (NYSE Amex: GORO) extends high-grade Arista deposit mineralization outside of the deposit's previously drilled mineralized envelope including 7.6 meters of 9.92 grams per tonne (0.32 oz/tonne) gold and 129 grams per tonne (4.15 oz/tonne) silver. In addition, confirmation drill returns include 5 meters of 20.28 grams per tonne (.65 oz/tonne) gold and 559 grams per tonne (17 oz/tonne) silver. Gold Resource Corporation is a low-cost gold producer with operations in southern Mexico. The Company has returned over $24.6 million to shareholders in monthly dividends since declaring commercial production July 1, 2010.