Eldorado Gold Acquiring QMX Gold
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Thursday, January 21st
Overnight Wednesday February gold worked its way up to $1,856. Paper gold then began to tip-over just after the London a.m. price fix which slashed $25 off the gold price. Ironically, paper gold took off like a rocket ship as the Comex floor opened,soaring $39 to $1870 by noon NY time. Gold settled above it's 50 dma. Silver followed the same price path as gold, and finished the day up 1.76%, slightly outperforming gold. The mining stocks soared generally over 3%, with many silver stocks jumping in excess of 5%. The Mining Stock Journal noted that India's rapid appetite continued on Wednesday, as the ex-duty import premiums reported from gold-buying hubs around India indicated that Indians were buying physical gold hand-over-fist. The Mining Stock Journal has suggested that the pop in the gold price during the incoming President's Inauguration ceremony was a proper response to the expected massive Federal deficit spending, money printing and associated dollar devaluation that will accompany the incoming Presidential administration.
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… Rio2
Rio2 is advancing the Fenix Gold Project in Chile, the largest undeveloped gold heap leach project in the Americas. Fenix consists of 5 million ounces in the measured and indicated resource category and 1.4 million ounces in the inferred resource category. With a robust PFS in place, Fenix is set up for fast-tracked construction and production. You can find a list of project and company information on their website, rio2.com.
And here’s what you need to know this morning.
Eldorado Gold and QMX Gold announced they have entered into a definitive arrangement agreement in which Eldorado will acquire all of the outstanding shares of QMX (not already owned by Eldorado) for total consideration of approximately C$132 million on a 100% and fully diluted basis or C$0.30 per QMX share (the “Arrangement”). Eldorado currently owns 68,125,000 shares of QMX, or approximately 17% of QMX shares outstanding, which it purchased at C$0.06 per share in a private placement on December 30, 2019. The Arrangement Consideration represents a 39.5% premium to the closing price of QMX shares on the TSX Venture Exchange on January 20, 2021. Eldorado says This transaction expands the position in the Abitibi camp and is consistent with our strategy of pursuing growth at Lamaque in Quebec. Following the completion of the Arrangement, QMX shareholders will own approximately 2.8% of the issued and outstanding shares of Eldorado.
Integra Resources provided on update on Pre-Feasibility Study work at the company’s DeLamar project in Idaho. The 2021 exploration drill program at DeLamar will total 10,000 meters, including follow-up drilling on the successful 2020 high-grade drill program at Florida Mountain and War Eagle, as well as low-grade, heap-leachable extension drilling at Florida Mountain primarily to the east and west of the existing resource envelope. Henrietta Ridge, the un-tested northern extension of the DeLamar resource, as well as select targets in the Black Sheep area will also be drilled this year. The Company’s Pre-feasibility Study (“PFS”) is on-schedule for delivery in Q4 2021. As part of this PFS, Integra has undertaken multiple trade-off studies aimed at recovering more silver (“Ag”) than was contemplated in the 2019 Preliminary Economic Assessment (“PEA”). These studies include an increased mill size to recover more silver and alternative processing options to increase that potential millu size. Integra Resources trades on the TSX Venture with ITR and on the NYSE with ITRG. News Release
Genesis Metals, whom we spoke with earlier this week, reported new assay results from 10 holes at the Chevrier Gold Project in the Abitibi. Results included 13.46 g/t gold over 8.9 meters, 19.44 g/t gold over 1.2 meters and 26.1 g/t gold over .7 meters. The objective of the Phase II program was to continue drill testing the extensions and down plunge continuity of newly recognized high-grade gold shoots within and near the Chevrier Main deposit area to delineate their boundaries and mineralized volumes within and below the pit shell from the 2019 mineral resource estimate. Genesis Metals trades on the TSX Venture with GIS. News Release
Silver Sands Resources and Mirasol Resources reported results from six diamond drill holes from their Phase I exploration program at the Virginia Silver project in Argentina. Highlights include 198.51 g/t silver over 33.5 meters and 233.54 g/t silver over 9.25 meters. Results for 12 holes are still pending. Crews are mobilizing for the follow up Phase II drill program planned to begin late thismonth. Silver Sand trades on the CSE with SAND and on the OTCQB with SSRSF. News Release
HighGold was also out with new drill results this morning from the company’s flagship Johnson Tract polymetallic Gold Project in Southcentral Alaska. Results reported today include drill intersections that continue to expand the down-plunge and up-plunge extents of the JT Deposit and also demonstrate the continuity of the deeper Footwall Copper-Silver Zone. Results included 5.9 g/t gold equivalent over 11 meters and 10 g/t gold equivalent over 4 meters. The 2020 Drill Program totaled 16,418 meters in 32 completed drill holes. Assays remain outstanding for 12 drill holes. HighGold trades on the TSX Venture with HIGH and on the OTCQX with HGGOF. News Release
And now, let's turn it over to Kai Hoffman for the latest Oreninc Weekly Update.
And speaking of financings, a few more hit the tape today. Great Bear Resources announced a $37 million bought deal private placement of flow-through common shares. Alexco Resources announced a $10.5 million bought deal flow-through share public offering and E3 Metals also announced a $5.2 million bought deal private placement.
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I’m Trevor Hall. Have a wonderful day. Be well.
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