Fortuna Silver Sets Eyes to West Africa with Roxgold Merger
Welcome to Mining Stock Daily. This is your host, Kylie Williams, stepping for Trevor Hall
Today is Monday, April 26th.
On Friday morning, shortly after the Comex floor opened at 8:20 a.m. NY time, the Comex banks engaged in their ritualistic Friday price ambush in which they flood the Comex floor and computer trading system with paper gold and silver contracts. After an early Friday morning rally in Asia and Europe ran gold up to $1796 and silver up to $26.40, but the manipulated waterfall price decline removed $26 from the gold price and as much as 50 cents from silver. Gold managed to settle at $1776 and silver settled just above $26. The Mining Stock Journal said that, for now, $1800 is being defended by the price management team but the newsletter does not expect a successful defense for much longer. That said, with first notice delivery day for May silver on Thursday and the current open interest in May silver representing 315 million ozs of silver, the Mining Stock Journal expects heavy pressure to be placed on the silver price this week in an effort to encourage the paper silver longs to sell or roll their position forward to July, which is the next front month. The newsletter also expects increased volatility in the precious metals sector ahead of the FOMC meeting. It's bad optics to have the gold price running rampantly higher while the entity that controls the U.S. dollar printing press is deciding the near-term fate of the money supply.
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… Western Copper and Gold
Western Copper and Gold is focused on developing the world-class Casino project in Canada's Yukon Territory. The Casino project consists of an impressive 11 billion pounds of copper and 21 million ounces of gold in an overall resource. Western Copper and Gold trades on the TSX and the NYSE American with WRN. Be sure to follow the company via their website, www.westerncopperandgold.com.
And here’s what you need to know this morning.
Fortuna Silver and Roxgold announced they have entered into a definitive agreement whereby Fortuna will acquire all the issued and outstanding securities of Roxgold. Upon completion of the Transaction, existing Fortuna and Roxgold shareholders will own approximately 64.3% and 35.7% of the pro forma company, respectively. The exchange ratio implies a consideration of approximately C$2.73 per Roxgold common share based on the closing price of the Fortuna common shares on the Toronto Stock Exchange on April 23, representing a 42.1% premium to the closing price of Roxgold on the TSX on the same date. The implied fully diluted in the-money equity value of the Transaction is estimated at approximately C$1.1 billion. Appian Natural Resources Fund, which is Roxgold’s largest shareholder and controls 13.2% of Roxgold shares, has provided its support in favour of the Transaction. Roxgold trades on the TSX with ROXG and on the OTCQX with ROGFF. Fortuna Silver trades on the NYSE with FSM and on the TSX with FVI. News Release
Meridian Mining reported its first assay results from its Cabaçal Copper-Gold camp in Mato Grosso, Brazil. Hole 1 returned 23.7m of .8% copper equivalent. Hole 2 returned 22.7 meters of .8% copper equivalent. Hole 3 returned 48.6 meters of 1.4% copper equivalent and hole 4 returned 15.9 meters of 4% copper equivalent. The holes targeted the high grade zones of unmined mineralisation adjacent to the historical Cabaçal underground mine and are open to the south-east and targeted for follow up drilling. CEO Dr. Adrian McArthur said in the press release, ““Today’s drill results have launched the re-emergence of Cabaçal as a significant camp scale VMS Copper- Gold project.” Meridian Mining trades on the TSX Venture with MNO. News Releas
ValOre Metal announced results for 1 channel sample and 19 Trado® auger holes collected from the Esbarro NW target area at ValOre’s 100%-owned Pedra Branca Platinum Group Elements (“PGE”) Project in northeastern Brazil. Channel sampling returned 6.5 meters grading 2.17 grams per tonne palladium + platinum + gold from surface. Auger drilling returned 12.0 m grading 1.73 g/t 2PGE+Au from surface. The Esbarro NW target is drill-ready, with 10 reverse circulation holes planned totaling approximately 200 m with drilling anticipated to commence in May. ValOre Metals trades on the TSX Venture with VO and on the OTC with KVLQF. News Release
Argonaut Gold says it has discovered high grade gold veins below the El Crestón open pit at its La Colorada mine in Sonora, Mexico. The high grade intercepts include 12.2 meters of 98.9 g/t gold and 30.3 g/t silver, and included a 3 meters interval of 383 g/t gold and 113.5 g/t silver. Other results reported were 21.3 metes of 44.6 g/t gold and 274.9 gt silver. The company is working to study the viability transitioning from an open pit mining scenario to an underground mine in the future. ARgonaut Gold trades on the TSX with AR. News Release
Marathon Gold reported results from its latest batch of exploration drill holes completed at the Valentine Gold Project, central Newfoundland. 15 drill holes were reported this morning, and included results of 2.71 g/t gold over 122 meters, 1.69 g/t gold over 156 meters and 1.7 g/t gold over 87 meters. An additional batch of results from these drill holes remains to be released. Drilling is scheduled to resume in mid-May and continue through to the end of the year. Marathon trades on the TSX with MOZ. News Release
Canada Silver Cobalt Works shared an additional wedge intercept of the second silver vein within 60 metres of the Robinson Zone Discovery on the Castle Silver Mine property in Gowganda, Ontario. Assays returned 51,612 g/t over an interval of .41 meters. The Castle Property is 15 km east of Aris Gold Corp's Juby gold deposit. Canada Silver cobalt Works trades on the TSX Venture with CCW and on the OTC with CCWOF. News Release
Liberty Gold shared drill results from the five final metallurgical diamond drill holes at its Carlin-style Black Pine oxide gold property in southern Idaho, USA. These holes complete the 2020 core drilling program, composed primarily of large diameter holes to be used for metallurgical column testing. Results included .77 g/t gold over 10.8 meters and 1.23 g/t gold over 34.1 meters. Black Pine is located in the northern Great Basin, immediately adjacent to the Utah/Idaho border. It is a Carlin-style gold system, similar in many ways to the prolific deposits located along Nevada’s Carlin trend. Liberty Gold trades on the TSX with LGD and on the OTCQX with LGDTF. News Release
That’s it for the news briefing this morning. We’ll be back later today with more news and interviews.
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