Gold Surges along-side new Joint Ventures and M&A Activity
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Monday, February 24th.
With the breakout of the gold price last week over $1600, it's only a matter of time before it makes a run to the all-time high of $1900. While the mainstream narrative is that gold is moving higher in a coronavirus stimulated flight-to-safety, the Mining Stock Journal explains that gold is a yellow dog that has sniffed out the money printing and currency devaluation operations of the major Central Banks. The mining stock newsletter added that Central Bank money printing and the corresponding devaluative effect on fiat currencies is just getting started. silver is starting to outperform. On the weekly chart, the gold/silver ratio knifed below its 50 day moving average last week. The Mining Stock Journal noted that we're at the beginning of stunning moves higher for both silver and the junior 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... 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 10 billion pounds of copper and 18 million ounces of gold in an overall resource. Western Copper and Gold trades on the TSX and the NYSE American with WRN. Last week, Western announced the strategic investment of just under $2-miilion dollars by Mr. Michael Vitton is the former Executive Managing Director and Head of US Equity Sales for BMO Capital Markets and has been very active as lead underwriter in a number of mergers and acquisitions throughout his career. Be sure to follow the company via their website, www.westerncopperandgold.com.
And here’s what you need to know this morning out of the junior sector. And there is lots to share regarding new joint ventures and acquisitions. So lets get started.
Calibre Mining announced that the company and Rio Tinto Exploration have entered into an option earn-in agreement, pursuant to which Rio Tinto can earn up to a 75% interest in Calibre’s 100%-owned Borosi Projects in Northeast Nicaragua. The Borosi Projects host both gold-silver and copper-gold resources in two areas as well as multiple lesser explored copper-gold skarns, low-sulphidation epithermal gold-silver vein systems and bulk tonnage copper-gold porphyry targets. This is a $45 million dollar earn-in agreement. Calibre and Rio Tinto have entered into a strategic exploration alliance agreement under which they will work together to identify and acquire exploration concessions in Nicaragua, with a focus on copper-gold porphyry, skarn and epithermal precious metal systems. The exploration deal is a 5-year deal. Calibre trades on the TSX with CXB and on the OTCQX with CXBMF. News Release
Yamana Gold announced it has entered into a definitive purchase agreement to sell a portfolio of royalty interests and the contingent payment to be received upon declaration of commercial production at the Deep Carbonates Project at the Gualcamayo gold mine for total consideration of $65 million to Guerrero Ventures Inc. Yamana says the transaction marks another step in the Company’s efforts to optimize its portfolio and improve its financial flexibility. The sales consideration is expected to advance the Company’s generative exploration program and for other purposes, including contributing to the Company’s dividend reserve fund. Guerrero will acquire two portfolios of precious metals royalty, stream and gold loan assets from funds related to Orion Resource Partners and Yamana for total consideration of $268 million and $65 million. Upon closing of the Acquisitions, Guerrero intends to change its corporate name to Nomad Royalty Company Ltd.
Integra Resources shared new drill results from its 2019 Florida Mountain metallurgical sampling program along with its exploration and engineering programs for this year. Final dirll holes from Florida Mountain met program included 40.39 g/t gold and 11.38 g/t silver over 1.5 meters and 9.73g/t gold and 19.55 g/t silver over another meter and a half. Integra is also planning a 16,000 meter exploration focussed drilling campaign for both high-grade and low-grade bulk-tonnage gold-silver targets to include War Eagle, Milestone, Blacksheep, and the extensional targets adjacent to current resources at Florida Mountain and DeLamar Deposits. Integra says it is contemplating releasing an updated PEA in the second half of 2020 that will incorporate portions the 1.9 Moz AuEq of measured and indicated unoxidized material and 0.3 Moz AuEq of inferred unoxidized material at the DeLamar Deposit into the updated economics and a new mine plan. However, the Company will continue to de-risk and advance the Project towards pre-feasibility and permitting on several other fronts. You can read more into the company’s strategy on this morning’s press release. Integra trades on the TSXV with ITR and on the OTC markets with IRRZF. News Release
Japan Gold has formed a country-wide alliance with Barrick Gold to jointly explore, develop and mine certain gold mineral properties and mining projects in Japan. The Barrick Alliance covers the entire country of Japan including 28 out of 30 projects currently held by Japan Gold. Barrick will sole fund a 2-year Initial Evaluation Phase of each project and will then fund a subsequent 3-year Second Evaluation Phase on projects which meet Barrick criteria. Japan Gold trades on the TSX Venture with JG and on the OTC markets with JGLDF. News Release
Excellon Resources and Otis Gold announced that they have entered into an agreement today whereby Excellon will acquire all the issued and outstanding shares of Otis Gold. Under the terms of the Transaction, Excellon will acquire all outstanding shares of Otis at a share exchange ratio of 0.23 Excellon shares for each Otis share. Based on the Exchange Ratio, upon completion of the Transaction, existing Excellon shareholders will own 74% and former Otis shareholders will own 26% of the combined company. Otis trades on the TSX Ventue with OOO. Excellon trades on the TSX with the symbol EXN. News Release
This morning SEMAFO announced an inferred mineral resource of 2.2 million ounces of gold at the Bantou Project in Burkina Faso. The resource statement will be published in early March, along with SEMAFO's full reserves and resources statement. The inferred resource comprises two main areas, Bantou and Bantou Nord. SEMAFO’s initial 2020 exploration budget of $4 million is likely to increase as the exploration program moves outside the existing zones and follows up on previous drill results. The company trades on the TSX with SMF.
That is a wrap from us today here at Mining Stock Daily. Thanks again for tuning in. If you are planning on attending PDAC in a couple weeks, I will be presenting at the Letter Writer’s Presentation Sunday afternoon in the 2 o’clock hour. I will be sharing my topic; a young investors approach to the new gold bull market. Feel welcome to join me in room 801 that afternoon.
And also, I hope you will join me tomorrow as I air my interview with now former CEO of Royal Gold, Mr. Tony Jensen.
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