Chapter 331: Gold Company
Inside the meeting hall, everyone was puzzled. Carroll had been enthusiastically discussing the specifics of the gold-mining project with attendees, yet suddenly he had left the stage. Such behavior not only confused the crowd but also offended those with shorter tempers.
The attendees included representatives from over a dozen Australian gold-mining companies, alongside international mining giants like BHP Billiton and Rio Tinto. Even executives from Newmont Goldcorp and Barrick Gold, the two largest gold producers in the world, were present.
Everyone was captivated by the discovery of a significant gold deposit with an average grade of 11 grams per tonne. The potential for profitable mining was enormous.
In particular, Newmont and Barrick had long competed to be the world's leading gold producer, exchanging positions at the top multiple times over the years. During the 1990s, Barrick Gold had the upper hand, but Newmont's strategic acquisitions in 2000 and 2002 boosted their annual gold output to around eight million ounces, surpassing Barrick and claiming the throne.
Barrick Gold, naturally dissatisfied with second place, continuously sought new acquisitions or exploration opportunities to boost their gold output. A large-scale, high-grade, easily extractable gold deposit like the Tropicana project was exactly the kind of opportunity they desired.
Mark, CEO of Barrick Gold, had come personally to discuss investment, or even a full acquisition. Initially confident, he now realized the competition was fierce.
"What's going on?" Mark repeatedly asked his team, who were equally bewildered.
Lumble Resources had been completely unknown before this announcement, leaving everyone unfamiliar with its internal affairs.
Just as murmurs of confusion and impatience spread among the attendees, Carroll re-entered the hall through a side door, quickly returning to the podium.
He tapped lightly on the microphone twice, cleared his throat, and regained the crowd's attention. "Thank you all once again for making the time to attend today's presentation and investment briefing for Lumble Resources' gold exploration project."
Everyone quickly settled back into their seats, curious as to what had occurred during Carroll's brief absence. Clearly, he had returned to announce something important.
As anticipated, Carroll appeared slightly conflicted, yet he declared decisively, "At this point, I must clarify something about our company's shareholding structure. Seventy percent of our equity is currently owned by company employees, with myself holding the largest individual share. The remaining 30% is held by a Chinese company named Li Tang Shengshi Holdings, our initial investor."
Li Tang Shengshi Holdings?
A Chinese company?
Immediately, the audience erupted in heated discussion. Miles and Viduka, who had frequent dealings with Li Tang before, exchanged astonished glances, their expressions turning to disbelief.
Viduka turned to Miles incredulously, "Him again?"
Miles, equally puzzled, said, "He came to Western Australia for iron ore. How did he end up investing in Lumble Resources?"
"No wonder he attended today's event. Earlier, when I spoke to Li Tang, I found it odd. Not only was he present, but also that pretty young woman rumored to be his lover," Viduka mused.
Despite these speculations, neither man could quite grasp how Li Tang, a foreigner, had suddenly linked himself to a virtually unknown enterprise like Lumble Resources. Could Li Tang truly possess such deep insights into Australia's mineral resources?
As Rio Tinto's Exploration Director, Viduka prided himself on his extensive knowledge of Australian mineral resources. Yet, evidently, Li Tang had surpassed him in at least one area.
Miles turned, puzzled, "Carroll approached me previously about investing in the Tropicana gold exploration. Did he talk to you?"
"Yes, Carroll mentioned it to me as well. I even discussed the project with Alba. Honestly, the area indeed has some gold potential, but their claims were on the outskirts of traditional exploration zones. Initially, I wasn't optimistic," admitted Viduka.
"Clearly, Carroll also approached Li Tang, leading to Li's eventual investment," Miles reasoned.
"Li Tang consistently demonstrates his remarkable exploration abilities and keen investment insight worldwide," Viduka added with a sigh. "We really missed out on the Tropicana gold project. Clearly, Li Tang sees opportunities we do not."
"He must possess some kind of magic," Miles said half-jokingly. "Consider the Talego copper-gold deposit and the Pebble project—two of the world's largest undeveloped copper-gold deposits. Li Tang was involved in both, proving his almost magical touch."
"Perhaps the media was right—he might have two heads," Viduka joked grimly.
Their back-and-forth revealed their shock. Under everyone's noses, Li Tang had snatched yet another high-quality gold asset, one everyone else had overlooked.
Carroll waited until the murmuring subsided, then resumed speaking, "When Li Tang Shengshi Holdings initially invested, our agreement included their preferential right for subsequent funding rounds. Therefore, of the thirty million Australian dollars sought in this round, half—fifteen million—has already been committed by Li Tang Shengshi Holdings."
With that, Carroll abruptly ended his announcement and left the stage.
This revelation significantly dampened many investors' enthusiasm. Initially, the investors viewed a thirty-million-dollar investment for 30% equity as too modest. Many companies believed acquiring a majority stake or full ownership was the ideal path, giving them control to maximize the project's profitability after further exploration.
However, as Carroll's announcement clarified, not only was half the equity still held by Carroll and company employees, but a significant portion was also now controlled by the mysterious Chinese investor. Acquiring full control would now require negotiations with both Carroll and Li Tang, doubling the complexity.
Immediately, complaints arose:
"Why didn't you say this earlier?"
"If you truly wanted partners, you should have been transparent. Your secrecy makes us question your intentions and the actual use of raised funds!"
"We'd only consider investing if we gain majority ownership and operational control."
"You valued Lumble Resources at one hundred million Australian dollars—far too high. Demanding this price based on a few drill holes is absurd!"
"With Chinese investors involved, the equity structure is surely unhealthy! What do Chinese know about investing and management? If the gold deposit truly proves significant, they'll obstruct development."
Such sentiments revealed their frustration. The current ownership structure had upended initial investment plans. If Carroll alone had retained control, many investors envisioned gradually increasing their stakes and eventually gaining control themselves. But with Li Tang Shengshi Holdings having substantial influence, this plan became much harder.
Everyone knew Li Tang Shengshi Holdings. The real owner behind Lianying Mining was enormously wealthy, with Lianying Mining itself approaching a market valuation of billions. Satisfying such an investor to relinquish control of Tropicana seemed nearly impossible.
Realizing this, Viduka shook his head, openly lamenting, "This project just became uninteresting."
"It seems you genuinely dislike Li Tang," Miles remarked, similarly frustrated.
"He's an incredibly difficult adversary. Once he grabs a hold of something, he never lets go," Viduka said, recalling his bitter experiences in Mongolia. "Li Tang is ruthless and greedy."
"Perhaps as exploration continues, the deposit might turn out smaller than expected. That happens quite often: initial finds look great, but no large deposit ever materializes," Miles suggested hopefully.
"Maybe you're right," Viduka agreed reluctantly, though he felt uneasy. The Tropicana project had already confirmed strong gold mineralization through five drill holes. Each one had shown excellent results—not merely preliminary signs, but concrete evidence of gold.
Carroll's next steps involved detailed drilling along the ancient riverbed to define the deposit's full extent. Miles of ancient riverbeds filled with gold suggested an undeniably significant deposit.
Instinct told Viduka that this exploration would undoubtedly yield success. But wrestling control away from Li Tang? Practically impossible.
Despite his envy, Viduka accepted reality. Indeed, many investors, like him, quickly lost interest. Investing fifteen million Australian dollars for only 15% equity no longer aligned with their expectations or strategic goals.
Thus, one by one, many investors quietly withdrew.
Several people actively approached Carroll, eager to learn more details and scheduling private discussions for later.
...
"The Tropicana gold mine is indeed as promising as reported in the media, with great potential to become a large-scale gold deposit estimated at over two million tonnes," said Viduka, who had returned to Rio Tinto's headquarters in Perth. He stood before Alba, the CEO, succinctly summarizing the findings from today's meeting. "Carroll confirmed this personally, and provided us with details far more extensive than what the media has reported."
"Is it worth pursuing?" Alba asked with interest.
Viduka nodded, "Originally a placer gold deposit, Tropicana has evolved into a sedimentary-type deposit. The orebody follows an ancient riverbed, with shallow burial depth, high gold grade, and substantial potential reserves. If further exploration confirms the scale, it will become a very easy-to-develop gold asset."
"Excellent!" Alba's face brightened at the news.
Rio Tinto had been vigorously diversifying its portfolio, and gold mining was one of its major areas for expansion. Acquiring such a promising asset would significantly advance the company's growth. Moreover, Alba knew BHP Billiton was currently preoccupied with a major acquisition and thus unlikely to compete aggressively here, giving Rio Tinto a distinct advantage in securing an investment or even acquiring Lumble Resources.
However, after describing the project's benefits, Viduka voiced his reservations, "They are offering only 30% equity for a thirty-million Australian dollar investment. Clearly, the valuation is too high, and the equity stake insufficient."
"We can negotiate with Carroll. Whatever amount he demands, we can afford," Alba confidently stated. He was convinced every deal had a price. With sufficient financial incentive, anyone would capitulate. After all, other than BHP Billiton, who in Australia could match Rio Tinto's financial strength?
Viduka shook his head, "Unfortunately, things aren't that simple."
"Besides the employee-held shares led by Carroll, Li Tang currently holds a 30% stake in Lumble Resources. And with the latest funding round, Li Tang's holdings will further increase, as he has preferential subscription rights."
"Li Tang?" Alba repeated incredulously, pausing to swallow hard. "How could a junior exploration company involve someone like Li Tang? Are you certain he's the man behind Lianying Mining?"
"I'm certain it's him," Viduka nodded firmly. "I saw him clearly at the event today, along with that beautiful CEO from Lianying Mining."
Alba's previously enthusiastic expression quickly cooled, and he leaned back on the sofa, clasping his head in disbelief. Why did this Chinese entrepreneur appear everywhere?
"I believe we should drop this project," Viduka advised, knowing Li Tang's fierce reputation as someone who, once he grasped a project, never let go—like an eagle clutching its prey.
"It feels humiliating that our own country's promising gold asset has been snatched by outsiders," Alba admitted with frustration. But he quickly reconciled himself with the reality; obtaining a still-exploratory gold asset from Li Tang would be nearly impossible.
"Forget it," Alba finally sighed, waving dismissively. "Let's keep our focus on our iron ore mines. Production at our mines is ramping up to full capacity, and many sites face potential resource depletion. We must invest resources in exploration around existing mines and deeper layers. Keep an eye on this."
"I'll handle it," Viduka promised, taking his instructions.
...
The event attendees were industry insiders, familiar with Lianying Mining and its mysterious backer. However, few had ever seen Li Tang personally.
Viduka and Miles recognized Li Tang, but having learned that Li Tang held significant shares in Lumble Resources, both quickly lost interest in the project and left early, as gold was not their core business anyway.
Mark, CEO of Barrick Gold, did not know Li Tang personally but had connected with him privately through Carroll, who arranged a meeting after getting approval from Alice.
At the time Carroll's call came, Li Tang and Alice were already dining in a Chinese restaurant. Away from home, no matter where he traveled, Li Tang always found hometown cuisine most authentic and comforting.
They had already started eating when Carroll called, and by the time Carroll arrived with Mark, they had finished. Still, to show respect, Li Tang asked the restaurant to clear the table and ordered fresh dishes to entertain the guests.
"You're the famous Li, the mysterious man behind Lianying Mining?" Mark exclaimed upon seeing Li Tang clearly. "Just as the news says, you're very young, with sharp eyes like an eagle!"
Li Tang laughed lightly, "Does the news really describe me that way?"
Typically, the reports he saw portrayed him negatively, often depicting him almost like a mythical villain. Compliments were rare.
Mark smiled warmly, "I know a journalist named Erwin from the Canada Post; he told me a great deal about you and described your appearance."
As hot dishes arrived, Mark inhaled deeply, praising genuinely, "Smells wonderful!"
"Please, enjoy," Li Tang gestured politely, though he had no intention to eat more himself.
Mark did not hesitate. Picking up the chopsticks awkwardly, he struggled at first but soon managed to eat heartily. After a few bites, he introduced himself properly, "I'm Mark, CEO of Barrick Gold. We have projects here in Australia and were inspecting our sites when I heard about Tropicana, so I decided to take a look personally."
Li Tang glanced at the slightly nervous Carroll and smiled warmly, "Tropicana gold mine is a project we are cooperating on with Carroll."
Carroll, unable to use chopsticks properly, abandoned his failed attempts to pick up food and instead explained to Li Tang why he'd brought Mark along: "I've already discussed with Mark. Barrick Gold wants to invest in our company. Given their financial strength and technical capabilities, they could significantly help us develop the mine."
Li Tang nodded briefly, "You've agreed to accept Mark's investment?"
"I am open to it," Carroll confirmed frankly. Even with Mark present, he openly expressed his opinion, "I believe this would be a win-win cooperation. Of course, Alice, as a director, also has a say."
Alice looked to Li Tang, realizing the final decision rested with her. Seeing Li Tang was clearly deferring to her, she turned to Mark, who was still enthusiastically eating, "Mr. Mark, besides money, what else can Barrick Gold offer us?"
"I love these big chunks of meat!" Mark praised the food once more, then cleaned his mouth and hands with a napkin before responding seriously, "We can offer everything you need, especially our expertise in gold mining."
"Are you comfortable investing only fifteen million Australian dollars for just 15% equity?" Alice asked pointedly, intentionally challenging Mark.
Mark replied with ease, "The current thirty-million-dollar fundraising round is merely for exploration. After the exploration phase, once reserves are confirmed, the mine's actual development will require substantial funding. For a two-million-tonne gold deposit at Fraser Ridge, I estimate total investments between five hundred million and one billion Australian dollars."
"You truly understand gold mining," Alice admitted.
"Gold mining is far more complex than iron ore," Mark explained confidently. "Being precious metal and essentially money itself, gold mining comes with unique regulatory requirements. Without expertise in obtaining approvals, you'll face significant problems. Thankfully, at Barrick Gold, managing every aspect of gold mine development is our specialty."
"Then what exactly are you here for?" Alice pressed directly.
Mark chuckled, "Just to establish relations, as we'll soon be fellow shareholders in Lumble Resources. Of course, if you're willing to sell your shares to us, we'd be glad to purchase them—perhaps even at a premium above your current valuation of one hundred million Australian dollars."
Alice glanced toward Li Tang, who remained expressionless, staring blankly elsewhere.
"We don't intend to sell," she firmly replied, confidently adding, "In fact, our intentions align with yours. We'd also prefer to acquire full ownership of Lumble Resources."
Mark laughed openly, "Seems we have the same idea. Unfortunately, Carroll isn't willing to relinquish control, and we also need his expertise and management team. A three-way partnership may be our best option."
He quickly understood their stance. Clearly, it wasn't realistic to buy their shares now. Anyone could see Tropicana's enormous potential; once fully explored, the company's valuation would likely skyrocket. Selling shares at this stage, unless urgently short of cash, made no sense.
Mark continued enjoying his meal, relaxed and unbothered. Before departing, he added warmly, "Thank you for your hospitality. If you ever plan on investing in Canada, feel free to visit us—Barrick Gold's headquarters are in Toronto."
Li Tang smiled politely, nodding, "We'll certainly come to visit!"
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