Kirkland Lake Doubles its Dividend
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Thursday, March 19th.
Gold took another header on Wednesday as fear of the unknown from the coronavirus gripped all markets and selling prevailed. On an April paper gold futures basis gold was taken down $70 from its high on Tuesday. The Mining Stock Journal noted that the price held $1480 all day long despite several attempts to push it lower. Silver has been flirting with $12 prices on and off but $12 seems to be holding. The mining stocks were re-hammered on Wednesday, retracing 80% of their gains on Tuesday. Interestingly, the Mining Stock Journal noted that there has been brief periods of backwardation between and among successive Comex future experies and between April Comex paper gold and the London price fix. Backwardation occurs when the spot price is trading above the futures prices, indicating and extreme imbalance between the demand for physical gold delivery now vs the willingness to defer delivery into the future. The newsletter noted that backwardation typically precedes big price moves higher. However, it added that in terms of the current market environment, all bets are off except ownership and control of physical gold and silver. Finally, the Mining Stock JOurnal released its bi-weekly issue one day early and it includes a list of its favorite bottom-fishing mining stock play.
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 out of the junior sector.
Kincora Copper has closed its agreement with RareX and now controls over 1,700 square kilometers in a leading porphyry jurisdiction in Australia. This includes the flagship Trundle project, the only brownfield porphyry project held by a listed junior in the Lachlan Fold Belt, located less than 30km from the China Molybdenum Company (CMOC) operated Northparkes copper-gold mine. Kincora trades on the TSX Venture with KCC. News Release
Coro Mining Corp. today announced that it has entered into an unsecured working capital facility with its major shareholders, Greenstone Resources and Tembo Capital Mining, pursuant to which the Lenders have agreed to lend up to US$6.0 million to Coro to fund the Company through these challenging times. The working capital facility has a 12-month term from the date of closing and bears interest at 12% per annum. Greenstone and Tembo will receive an aggregate 3% arrangement fee under the facility, which will be payable at maturity. The proceeds will allow Coro to continue its exploration and development plans, in a measured fashion, for its flagship Marimaca Copper Project, while removing the need to raise equity in this Coronavirus emergency market environment. Drawdown by the Company under the WCF is subject to the approval of the Toronto Stock Exchange. Coro Mining trades on the TSX with the symbol COP. News Release
IMC International Mining announced this morning it has entered into a definitive agreement to acquire 100% of the issued and outstanding share capital of Thane Minerals, which holds a 100% interest in the Cathedral property, located in north-central British Columbia. IMC has agreed to issue to the current shareholders of Thane an aggregate of $2-million CAD worth of common shares in the capital of IMC at a deemed price of $0.38 per common share, representing over 5 million shares. The Purchased Shares will be escrowed and released over a 36-month period. In addition to the foregoing, if through additional exploration programs, a resource calculation of at least 800,000,000lbs of copper-equivalent, as determined based on a National Instrument 43-101 compliant resource estimate, is determined to be indicated within the Cathedral Project area, then IMC will issue an additional aggregate of $2-million CAD worth of common shares. IMC trades on the Canadian Securities Exchange with the symbol IMCX. News Release
Yesterday, Kirkland Lake Gold reported on its progress with its share repurchasing program. Kirkland says 10.1 million common shares of its 20 million goal was achieved. A total of approximately $350 million was used to repurchase the 10.1 million shares. In addition, a quarterly dividend payment of US$0.125 per common share will be paid on April 13, 2020 to shareholders of record as of the close of business on March 31, 2020. This is a double in its original dividend to shareholders. Kirkland Lake trades on the TSX and the NYSE with the symbol KL. 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.
Mining Stock Daily is distributed over a dozen different networks throughout the world and in proud partnership with the Junior Mining Network. It is produced by Clear Creek Digital and Investment Research Dynamic's Mining Stock Journal.
Have a wonderful day. Be well.
Mining stock daily and its affiliates are not responsible for any loss arising from any investment decision in connection with the material presented herein.