Junior Mining Financings Abound
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Wednesday, May 27th.
Gold was pummeled on Tuesday for $30 but $23 of the drop predictably didn't occur until the Comex day session started at 8:20 a.m NY Time. It was classic and blatant price manipulation. The Mining Stock Journal said that the price attack was definitely connected to the Comex contract roll period, when the hedge funds sell the current front month, which is June, and roll some of their position to the next front month, which is August. The roll period typically begins about a week ahead of first notice day, which is Friday this week. This particular price control operation allows the Comex banks to cover short positions that were established at higher levels. The newsletter added there may be another motivation for the attack, which is to enable banks to cover shorts ahead of India's re-opening. India has been shut down tighter than any other country and official gold imports stopped. Other than what gets smuggled into the country, no gold has has flowed into India. In fact the gold price has held up well despite India's absence since late February. However, India is now slowly re-opening with gold price data available from a couple gold buying hubs plus there was a report in the India Times which reported that gold buying has resumed at gold stores in some regions. Once India is fully operational, it will be like waking up a giant starving gold-eating beast. Silver again outperformed gold as the gold/silver ratio closed just below 97. The Mining Stock Journal said this sell-off in the sector should be bought.
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. Be sure to follow the company via their website, www.westerncopperandgold.com.
And here’s what you need to know this morning …
Maple Gold Mines shared new assay results from its 2020 winter drilling campaign at the Douay Project. Three drill holes were completed in the western part of the Porphyry Zone where higher than deposit average grades are present and historical drilling is relatively sparse. Highlights from this morning’s announcement included hole 283 which returned 1.91 g/t gold over 17 meters and bottomed with 1.06 g/t gold over 7 meters. That same hole was terminated early due to COVID-19. The company says deepening this drill hole is warranted. The company says there are more drilling gaps remaining to be tested on the Porphyry Zone. Maple Gold trades on the TSX Venture with MGM and on the OTCQB with MGMLF. News Release
Sama Resource shared results of a preliminary economic assessment for the developmoent of is Samapleu Nickel-Copper project in Ivory Coast. According to the technical report, the Samapleu project will produce an average of 3,900 t of carbonyl nickel powder, 8,400 t of carbonyl iron powder and 14,100 t of copper concentrate per year over a 20-year mine life. The project at this point consists of $282 million in capital costs. Usiing an 8% discount rate, the project has a pre-tax NPV of $615 million and an internal rate of return of 32.5%. Sama trades on the TSX Venture with SME and on the OTC with SAMMF. News Release
Ascot Resources announced it has entered into an agreement with a syndicate of underwriters led by Desjardins Capital Markets and Stifel GMP, pursuant to which the Underwriters have agreed to purchase, on a bought‐deal basis, just under 30 million common shares of the Company at a price of C$0.85 per Share for aggregate gross proceeds to the Company of C$25.0 million. The net proceeds of the Offering will be used for the continued development of the Company’s Premier Gold Project, including the purchase of long lead time equipment and for general working capital purposes.
The Offering is scheduled to close on or about June 17, 2020 and is subject to a number of conditions, including receipt of all necessary securities regulatory approvals and the approval of the Toronto Stock Exchange. Ascot trades on the TSX with AOT and on the OTCQX with AOTVF. News Release
Vizsla Resources also announced a financing this morning. The $4 million bought deal financing consists of over 9 million common shares of the company at a price of $.43 per share. The net proceeds from the Offering will be used to advance the Panuco project, as well as for working capital and general corporate purposes. The Offering is scheduled to close on or about June 18, 2020 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange and the securities regulatory authorities. Vizsla trades on the TSX Venture with VZLA and on the OTCQB with VIZSF. News Release
Equinox Gold says it received $145 million from the exercise of warrants and the company issued 21.4 million common shares in relation to the exercise of the warrants and currently has 238.1 million common shares issued and outstanding. As at May 26, 2020, the Company's cash balance is more than $480 million. The Company intends to use proceeds from the warrant exercises to advance its development and expansion projects, continue exploration, reduce debt, and for general corporate and working capital purpose. Equinox trades on the TSX and the NYSE with EQX. 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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