Kirkland Lake and Agnico Eagle Mines Announce Merger of Equals
Welcome to Mining Stock Daily.
Today is Tuesday September 28th.
On Monday gold settled at $1752, up marginally from Friday's close after trading up to as high as $1761 before the Asian physical markets closed and the precious metals derivatives based trading in London took over. Silver settled up 27 cents or 1.2% from Friday, outperforming gold by considerable margin percentage-wise. The positive action in the metals occurred despite higher interest rates and a higher dollar. The Mining Stock Journal said that the charts of both metals are starting to look more bullish. The mining stocks were flat, though traded higher early in the day, as GDX was up 2% from Friday at one point early in the trading day. The Hulbert Gold Newsletter Sentiment Index, which is a highly reliable contrarian indicator, hit negative 22.6% on Friday. This index measures the average recommended exposure to gold by market timing newsletters that make recommendations on gold positioning. Historically a reading this bearish precedes a rally in the precious metals sector by a fews days to a few weeks.
We’ll get to the news out of the miners and explorers in a moment, but first a quick mention of today’s sponsor.
This episode of Mining Stock Daily is brought to you by… Integra Resources.
Integra Resources is advancing the past-producing DeLamar Project in southwestern Idaho. The Company has continued to demonstrate resource growth and conversion through greenfield and brownfield exploration and plans on delivering a pre-feasibility study in Q4 2021 to further de-risk and advance the project towards permitting. Integra Resources trades on the TSX-V under ITR and the NYSE American under ITRG.
And here’s what you need to know this morning.
The Kirkland Lake saga continues today. Agnico Eagle and Kirkland Lake Gold announced that they have entered into an agreement to combine in a merger of equals with the combined company to continue under the name “Agnico Eagle Mines Limited”. Pursuant to the Merger Agreement, Kirkland Lake Gold shareholders will receive 0.7935 of an Agnico Eagle common share for each Kirkland Lake Gold common share held (the “Consideration”). The Consideration to Kirkland Lake Gold represents approximately a 1% premium to the 10-day volume weighted average prices on the Toronto Stock Exchange, as at close of trading Friday September 24, 2021 and implies a combined market capitalization of approximately $24 billion. Upon closing, existing Agnico Eagle and Kirkland Lake Gold shareholders will own approximately 54% and 46% of the combined company, respectively. Kirkland Lake Gold appointed a special committee of independent directors to consider and make a recommendation with respect to the Merger. Based on the unanimous recommendation of the Kirkland Lake Gold special committee of independent directors, and after consultation with its outside financial and legal advisors, the Board of Directors of Kirkland Lake Gold has unanimously approved the Merger Agreement. The Board of Directors of Kirkland Lake Gold recommends that Kirkland Lake Gold shareholders vote in favour of the Merger.
Eloro Copper provided new exploration drill results from the Iska Iska polymetallic project in the Potosi Department of southern Bolivia. Two results which were testing the Santa Barbara Breccia Pipe returned 160.22 g/t silver equivalent, which contained 36.53 g Ag/t, 1.63% Zn, 1.20% Pb and 0.10% Sn, over 194.14 meters. The second hole returned 94.68 g/t silver equivalent over 169.93 meters. Eloro is focusing on defining a maiden NI 43-101 compliant mineral resource in a target area encompassing approximately 1,200m along strike, 500m in width and extending to a depth of 600m in the SBBP and surrounding mineralized envelope. The company trades on the TSX Venture with ELO and on the OTCQX with ELRRF. News Release
Sokoman Minerals reported new results from the Phase 6 drilling at the Moosehead Property in central Newfoundland. The assays returned 30.59 g/t Au over 2.75 m and 32.72 g/t Au over 1.70 m. These results come from the 75 Zone, located approximately 100 m along strike south of the main Eastern Trend. There are currently 4 drills at the project. Sokoman trades on the TSX Venture with SIC. News Release
Kingfisher Metals provided an pdate on regional exploration at the Goldrange Project. Goldrange is located approximately 25 km south of the town of Tatla Lake in Southwest British Columbia. Ridge and spur talus and soil sampling was completed over several regions within the 367 km2 Goldrange Project. Rock sampling and backpack drilling was completed within newly identified grassroots targets in addition to confirmation sampling at historical zones of mineralization. Rock sampling has returned up to 89 g/t gold at the Lori zone, 43 g/t gold at the Lost Fiddle zone and 38 g/t gold at the Lotus Zone. Regional exploration across the Goldrange Project has been focused on advancing several targets to the drill ready stage in addition to covering areas proximal to the Cloud Drifter Trend as well as the northern end of the project which was previously unexplored. Kingfisher trades on the TSX Venture with KFR and on the OTCQB with KGFMF. News Release
Omai Gold Mines reported the initial 5,000 metre drilling program on its Omai project in Guyana has been completed and a Phase 2 exploration program is underway with two drills. A total of seventeen diamond drill holes totalling 7,323 metres have been completed to date this year. Twelve of the completed holes tested beneath the past producing Wenot pit, all of which confirmed that the Wenot Shear Corridor and the associated gold mineralization, extend to depths of at least 100 to 250 m below the past-producing pit. Omai Gold trades on the TSX Venture with OMG. News Release
Meridian Mining announced it has entered into an agreement with Beacon Securities Limited, as lead agent and sole bookrunner on behalf of a syndicate of agents , in connection with a best efforts private placement of up to 12,900,000 common shares of the Company at a price of $0.70 per Offered Share for gross proceeds to the Company of up to approximately $9,030,000. The Company intends to use the net proceeds of the Offering for advancing its camp scale VMS Copper-Gold-Silver Project in Mato Grosso, Brazil, working capital and general corporate purposes. Meridian Mining trades on the TSX Venture with MNO and on the OTCQB with MRRDF. News Release
That concludes today’s morning briefing. We’ll be back later today with more market commentary and corporate updates. Also to note, tomorrow’s long-form episode will be published later than normal as we are expecting to have a rundown of this week’s market events.
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