Kirkland Lake to Acquire Detour Gold
Australia’s Kirkland Lake takes the headlines this morning with the acquisition of Detour Gold and their project assets in Ontario. We will rundown the terms of the agreement for you this morning, right here on Mining Stock Daily.
Welcome to Mining Stock Daily.
Today is Monday, November 25th.
This is Trevor Hall and I welcome you to today’s briefing.
On Friday the price gold shot up to as high as $1473 as India continues sucking large quantities of physical gold into the country legally and via smuggling. But once New York's paper gold market commenced trading, gold was rammed back down to $1462, down a couple bucks from Thursday. The Mining Stock Journal commented that it's typcial for gold to be attacked in New York on Fridays after the eastern hemisphere physical buyers are done for the weekend. Silver managed to keep its head above $17.
On another note, the Mining Stock Journal said that the GDX mining stock ETF appears to have possibly bottomed out from the decline that started September 5th. Though the 50 day moving average at $27.36 on Friday appears to be resistance for now, the newsletter noted that both the RSI and MACD momentum indicators appear to be in an uptrend coming off of an oversold condition. The newsletter also said that several small cap junior exploration stocks, which have been relentlessly pounded lower, are at price levels which have significantly reduced the risk and increased the potential ROR from owning shares in these quasi-venture capital companies
Today's episode of Mining Stock Daily 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 today out of the junior sector.
Kirkland Lake Gold and Detour Gold announced they have entered into a definitive agreement whereby Kirkland Lake Gold will acquire all of the issued and outstanding shares of Detour, adding the Detour Lake Mine to Kirkland’s portfolio. All of the issued and outstanding shares of Detour will be exchanged for just under one half of a share of Kirkland Lake Gold, which implies a C$27.50 price per share of Detour, a 24% premium to the closing price on Friday. Along with the mine, Kirkland says it also looks to exploration at the 1000 square-km land package in Ontario where they believe there could be considerable potential for new discoveries to support future mineral resource growth. Kirkland Lake trades on the TSX and the NYSE with the symbol KL. Detour Gold trades on the TSX with the symbol DGC and on the OTC with DRGDF. https://www.juniorminingnetwork.com/junior-miner-news/press-releases/709-tsx/kl/70068-kirkland-lake-gold-to-add-new-cornerstone-asset-through-acquisition-of-detour-gold-grows-free-cash-flow-mineral-reserves-and-production.html#.XdvCO7SCan4.twitter
Condor Gold announced that it has received the final results of metallurgical tests on La India, Mestiza and America deposits. Gold extraction from the La India samples confirm the results of the PFS study, demonstrating that the estimated average gold recovery of 91% from the PFS remain valid for the La India deposit. Gold extraction from the America and Mestiza samples are similarly comparable to the original metallurgical results, and clearly show that the satellite pits will be amenable to treatment through the proposed CIL or CIP flowsheet. Condor says the studies were essential as they finalise the size of the processing plant ahead of a construction decision. The most recent iteration of metallurgical studies represents the latest of Condor’s efforts to expand the district-wide potential of our concession package, while further de-risking the Project. Condor Gold trades on the TSX with the symbol COG and on the OTC markets in the US with CNDGF. https://www.juniorminingnetwork.com/junior-miner-news/press-releases/condor-gold/70063-condor-gold-plc-announces-additional-metallurgical-test-results-on-la-india-and-satellite-deposits.html#.XdvFC4l1pGY.twitter
Tinka Resources received the final assays results from its 2019 drill program from the company’s Ayawilca project in Peru. The company says the hole intersected several zone of high grade zinc mineralization including 10.1% zinc over 26.1 meters and 42.4% zinc over 3.6 meters. Tinka also received its final approval from its modified Environmental Impact Assessment from the Peruvian Ministry of Energy and Mines. The permit enables Tinka to carry out all of the drilling activities needed to advance the proejct through the next phase of exploration and development. Tinka trades on the Venture exchange with TK and on the OTC markets in the US with TKRFF. https://www.juniorminingnetwork.com/junior-miner-news/press-releases/799-tsx-venture/tk/70070-tinka-drills-26-metres-grading-10-zinc-at-ayawilca-and-receives-approval-of-drill-permit-for-2020-2021-work-programs.html
BHP will invest further into SolGold with a $22-million purchase of SolGold shares along with 1-quarter options. With the deal, BHP will become SolGold’s largest shareholder with approxiately 14.87% ownership of the diluted share capital. SolGold trades on the TSX with the symbol SOLG and on the OTC markets with SLGGF. https://www.juniorminingnetwork.com/junior-miner-news/press-releases/2150-tsx/solg/70065-solgold-plc-announces-bhp-to-invest-a-further-us-22m-in-solgold.html
That is a wrap from us today. Thanks again for tuning in. If you have any questions or followups, please feel free to email me at trevor@clearcreekdigital.com. I’ll be sure to get back to you in a timely manner.
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