C$150 Million Bought Deal for Osisko Mining
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Monday, June 1st.
The price of gold rose $23 on Friday which means, moving to August gold, the next front month gold contract, gold on a futures basis is trading at $1745. The Mining Stock Journal noted that 37,000 contracts have been noticed for delivery in the first two days of the June contract notice period, which puts June gold on track to exceed the record level of deliveries in April. The belle of the ball, however, is silver, which soared 53 cents or nearly 3% on Friday and was trading up another 16 cents in early Globex system trading on Sunday evening. On Friday the gold/silver ratio fell again to 94.7. The Mining Stock Journal said that the silver market is starting to feel animal spirits and is setting up for a move that could take silver over $20 before the end of the summer, if not sooner, given that silver jumped from $17 to to $18.50 in just 9 trading days.
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... Corvus Gold.
Corvus is an advanced gold-silver exploration and development company focused on the North Bullfrog and Mother Lode Projects in Nevada. The company has been named a Top Five TSX gold equity performer Four of the last Seven years & a multi time top 50 OTCQX performer. Corvus Gold trades on the Toronto Stock Exchange with the symbol KOR and on the OTCQX with CORVF. Follow all the news form Corvus and its two-mine projects with fast-tracked potential via the company's website, corvusgold.com.
And here’s what you need to know this morning …
Radisson Mining shared drilling results from the ongoing 60,000 meter exploration drill program on its O’Brien gold project in the Larder Lake Cadillac Break. The program resumed on May 11th, after having paused on March 24th, in response to Government of Quebec orders related to the COVID-19 pandemic. Recent drilling has demonstrated the potential for a second mineralized trend to the east, largely untested below 400 m. Results from this area returned 8.35 g/t gold over 6 meters in the 36E Zone. In the west, drill results returned 13.86 g/t gold over 2.1 meters at the F Zone. The company says these holes, along with historical high-grade intercepts highlight an opportunity to add resources in the gap between current resources and the old O’Brien mine. Radisson Mining trades on the TSX Venture with RDS and on the OTC markets with RMRDF. News Release
Galway Metals reported assay results from drilling on the western-most section of the Richard Zone at the Company's Clarence Stream project in southwest New Brunswick, Canada. Hole 101 intersected 6.2 g/t gold over 38.5 meters, which included a smaller half meter interval grading 373 g/t gold. Hole 100 intersected 1.4 g/t gold over 85 meters. This is the widest intersection anywhere at Clarence Stream to date. Galway resumed drilling with 3 rigs at Clarence Stream in late May. Galway's plan over the next several months is to continue drilling the 2 gaps between the zones, to tighten drill spacings - generally to 50 metres for inclusion in the pending resource update, and to follow-up on the recent new discoveries of multiple veins to the north of the GMZ. Galway trades on the TSX Venture with GWM. News Release
Gowest Gold shared assay results from recent drilling at its Bradshaw Gold Deposit within the company’s North Timmins Gold Project. This latest surface drilling program was designed to assist in the development of Bradshaw’s mineable resource, and more specifically focused on the location of the vent raise, the secondary egress necessary for the production phase of the mine and on the crown pillar assessment prior to continuing the expansion of the Advanced Exploration Bulk Sample program. Highlights today included 12.24 g/t gold over 2.2 meters and 1.89 g/t gold over 2.5 meters. Gowest trades on the TSX Venture with GWA. News Release
Monarch Gold announced it has entered into an agreement for the sale of the Fayolle property to IAMGOLD. The Fayolle property consists of 39 mineral claims covering an area of 1,373 hectares in Quebec. In order to acquire the Fayolle property, IAMGOLD will pay Monarch a total amount of $11.5 million through the issuance of common shares of IAMGOLD to Monarch for a total value of $9.7 million based on a 10-day volume weighted average price (VWAP) on the TSX preceding today's announcement, a $0.3 million cash payment upon transfer of ownership of a parcel of land to IAMGOLD, and a $1.5 million cash payment 90 days after the initial transport of ore from the Fayolle deposit. Monarch Gold trades on the TSX with MQR and on the OTC markets with MRQRF. News Release
Osisko Mining announced it has entered into an agreement with Canaccord Genuity Corp. and Eight Capital to act as co-lead underwriters on a bought-deal private placement basis of over 41 million units of the Corporation at a price of C$3.65 per Unit for gross proceeds of C$150 million. Each Unit will consist of one common share of the Corporation (a "Unit Share") and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant will entitle the holder to acquire one common share of the Corporation for 18 months from the closing of the Offering at a price of C$5.25. Osisko Mining trades on the TSX with OSK. News Release
That’s it from me this morning. We’ll be back throughout the rest of the day today and tomorrow with more commentary. Be sure to hit that subscribe button if you have not done so already.
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