A $110 Million Gold Stream on Caldas Gold
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is June 22nd.
Gold jumped as much as $25 on Friday and silver soared as much as 50 cents, as Central Banks globally - led by the Fed - have made it clear that they will continue to print money in an effort to keep the financial system from collapsing. The Mining Stock Journal noted that the technical and fundamental conditions supporting a big move higher could not be more ideal. This also means that the mining stocks could be on the cusp of a move similar to the move that occurred from November 2008 to mid-2011. In that context, the GDX ETF closed just above its 50 day moving average and the RSI and MACD momentum indicators suggest the potential for a raging bull move in the mining stocks. The gold/silver ratio dropped on Friday and appears to be headed lower, which would further reinforce the bullish animal spirits that are engulfing the precious metals and mining stocks.
We’ll get to the news out of the miners and explorers here in just a quick moment, but first a quick mention of today’s sponsor.
This episode of Mining Stock Daily is brought to you by… Integra Resources.
Integra Resources trades on the TSX-V under ITR and the OTCQX under IRRZF. Integra Resource is advancing its past producing DeLamar Gold-Silver project in SW Idaho through aggressive drilling and exploration. The latest Resources Estimate released earlier this summer showed approximately 4 million Gold equivalent ounces in the measured and indicated category.The maiden PEA for the project established a net present value of C$473-million and an IRR of 43%. The management of Integra successfully sold its previous brownfields project for C$590 million in summer 2017. Read more about the company and its successful management team at integraresources.com.
And here’s what you need to know this morning …
Caldas Gold announced today it has signed a non-binding term sheet to receive total cash consideration of US$110 million pursuant to a Precious Metals Purchase Agreement to be entered into with Wheaton Precious Metals. Upon entering into the Precious Metals Stream, WPMI will purchase 6.5% of the gold production and 100% of the silver production until 190,000 ounces of gold and 2.15 million ounces silver have been delivered, after which the stream drops to 3.25% of the gold production and 50% of the silver production for the life of mine. Under the proposed Precious Metals Stream, WPMI will pay total cash consideration of US$110 million, US$38 million of which is payable upon closing and the remaining portion of which is payable during the construction of the Deeps Zone project at Marmato, subject to receipt of required permits and licenses, sufficient financing having been obtained to cover total expected capital expenditures, and other customary conditions. In addition, WPMI will make ongoing payments equal to 18% of the spot gold and silver price until the uncredited portion of the upfront payment is reduced to nil, and 22% of the spot gold and silver price thereafter. The proceeds from the Precious Metals Stream will solely be used to fund the expansion of the Company’s mining operations in the Deeps Zone at its Marmato Project located in the Department of Caldas, Colombia. Caldas trades on the TSX Venture with CGC. News Release
Roscan Gold shared diamond drill results from an additional 10 holes at its Mankouke South Target at the Kandiole Project in West Mali. Results from today included 5.16 g/t gold over 65 and 4.03 g/t gold over 28.5 meters, both of these separate intervals coming from the same drill hole. The company said these first high-grade gold results in fresh rock are very encouraging and point to a deeper feed source for the mineralization at Southern Mankouke. While still early days this often is a trademark of the larger deposits in the district. Roscan Gold trades on the TSX Venture with ROS and on the OTC with RCGCF. News Release
GR Silver announced drill results from the Plomosas Silver Project in Sinaloa, Mexico. These results are located in the Plomosas Mine Area, one of six priority areas with a combination of recent (2016 to 2018) and historical drill data being released by the Company. These results included 1,235 g/t silver over 11 meters and 1,469 g/t silver over 3.7 meters. These drill hole results show high-grade silver and gold mineralized zones outside of the previously mined polymetallic (Pb-Zn-Ag-Au) mineralization in the Plomosas Mine Area. The company also says their ongoing investigations along the 8,000 m of underground tunnels at the Plomosas Mine Area, including geological/structural mapping and sampling, continue to reveal new mineralized zones. These new zones demonstrate that mineralization is not only hosted within a single high-grade structure but within multiple cross-cutting shallow and vertical structures. GR Silver trades on the TSX Venture with GRSL and on the OTCQB with GRSLF. News Release
Tudor Gold says it has added a third diamond drill rig to the 2020 companies as the company intensified its exploration efforts at its flagship Treaty Creek property located in the Golden Triangle of British Columbia. Diamond drilling started on the Goldstorm Zone with two drill rigs in May. The 2020 budget allows for 22,500 meters of drilling on the Goldstorm Zone. The gold-copper-silver mineralization remains open to the northeast and to the southeast, as well as to depth. The goal of the 2020 drilling program is to clearly define the limits of the mineralization to facilitate the resource calculations. Tudor Gold trades on the TSX Venture with TUD. News Release
TriStar Gold announced it has entered into a bought deal with Cormark Securities for a total of $8 million, consisting of just over 26 and a half million units at a price of $.30 per unit. Each Unit will consist of one common share in the capital of the Company and one-half of one common share purchase warrant. Each Warrant shall entitle the holder to acquire an additional Common Share at an exercise price of $0.40 for a period of 24 months following the closing of the Offering. The Company intends to use the net proceeds of the Offering to further advance its Castelo de Sonhos gold project and for general working corporate purposes. TriStar trades on the TSX Venture with TSG and on the OTCQB with TSGZF. News Release
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