Endeavour Mining and SEMAFO: Merging in West Africa

Welcome to Mining Stock Daily. This is your host, Trevor Hall

Today is Monday, March 23rd.

Gold spiked up to $1518 on Friday and then was systematically taken back down below $1500 to as low as $1482, as the Fed and the banks attempt to prevent the gold price from signalling to the markets and the public that the Central Banks have lost control of the fiat currency fractional banking Ponzi scheme. Silver followed a similar flight path as gold, with the May Comex silver contract trading as high as $13.09 before being pushed back below $13 to as low as $12.30. As thiscommentary is being written, gold is trading at $1495 and silver is trading at $12.57. The Mining Stock Journal believes it's only a matter of time before the precious metals are the beneficiary of a flight-to-safety rush into the only assets that will preserve wealth while the Central Banks devalue fiat currencies.

 

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... Pacific Empire Minerals

Pacific Empire Minerals Corp. is a junior exploration company focused on the discovery of gold-rich copper deposits in British Columbia, Canada. Pacific Empire trades on the TSX Venture Exchange under the symbol PEMC and on the OTCQB markets under the symbol PEMSF. The Company currently has a very tight share structure. Pacific Empires’ unique approach to the prospect generator business model incorporates the Company’s own reverse circulation drill to advance projects beyond that of typical prospect generators. More information on Pacific Empire can be found at pemcorp.ca.

And here’s what you need to know this morning out of the junior sector. 

Endeavour Mining announced they  have entered into a definitive agreement whereby Endeavour will acquire all of the issued and outstanding securities of SEMAFO. Pursuant to the Plan of Arrangement, SEMAFO common shares will be exchanged at a ratio of 0.1422 Endeavour ordinary shares for each one SEMAFO common share. The Exchange Ratio represents a premium of 27.2% based on the 20-day volume weighted average price of both companies for the period ending on Friday and a premium of 54.7% based on the closing price of Endeavour and SEMAFO’s shares on the TSX on Friday. The implied equity value for SEMAFO is equal to C$1.0 billion based on Endeavour’s closing price. Existing Endeavour and SEMAFO shareholders will own approximately 70% and 30%, respectively, of the combined company on a fully-diluted in-the-money basis. This deal would create a top 15 gold producer with over 1-million ounces of gold production per year.  Endeavour Mining trades on the TSX with EDV and on the OTCQX with EDVMF. News Release

Nighthawk Gold reported assay results from its ten remaining holes of its 110 drillhole program from last year. Nighthawk says drilling was expanded into the central region of the Colomac Main sill, including less explored portions of Zones 2.5, and 2.0,  all part of Nighthawk's Colomac Gold Project in the Northwest Territories of Canada. Highlights from reported this morning included 1.86 g/t gold over 36.1 meters and 1.22 g/t gold over 40.15 meters. CEO Dr. MichaelBryon says this drill program changed how the companied viewed the deposit. He continued to say the recent discovery of the sill's dramatic widening of its mineralized portion to depth of up to 3 times its near surface true width represents an incredible opportunity that may result in the exponential growth of tonnage and contained ounces. Nighthawk trades on the TSX with NHK and on the OTCQX with MIMZD. News Release

Wallbridge Mining says it continues to define high-grade gold mineralization at shallow depth adjacent to the existing mine workings within the Main Gabbro area on its Fenelon Gold Property and this mineralization can be readily accessed from the existing mine workings. Results from the ongoing definition drill program proximal to existing mine workings in the Main Gabbro announced today include 19.47 g/t Au over 10.15 metres and 6.09 g/t Au over 21.05 metres. Six drill rigs are currently active on the Property: five are focusing on exploration drilling from surface, doing large-spaced step-outs to define the footprint of the Fenelon gold system, and one underground drill rig is doing more closely spaced definition drilling of the Main Gabbro zones near the existing mine workings. Wallbridge trades on the TSX with the symbol WM and on the OTC markets with WLBMF. News Release

Unigold shared results from its ongoing drill program at the Candelones Extension deposit, part of the Company’s 100% owned Neita Concession in the Dominican Republic. Highlights included 10.18 g/t gold over 18.5 meters with mineralization beginning about 60 meters below surface. A second hole returned 12.94 g/t gold over 10.5 meters. Both of these holes reported also had various amounts of silver, copper and zinc mineralization as well. Unigold trades on the TSX Venture with UGD and on the OTC markets with UGDIF. News Release

Silver Elephant Mining, which was formally known as Prophecy Development Corp., announced this morning tha the compan’s trading symbol on the OTCQX  has changed to SILEF. Its TSX symbol is now ELEF. Silver Elephant is developing its Pulacayo silver project in Bolivia. 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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