M&A Continues within the Junior Mining Sector
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Monday, March 15th.
After another aggressive attack on the paper gold price early Friday morning that took April gold down to $1696, the price came roaring back with gold settling at $1720. Silver followed gold, with May silver trading back below $26 to $25.45 before soaring back up 52 cents to settle just below $26. The Mining Stock Journal said that, based on the latest Commitment of Traders report showing trader positions thru last Tuesday, the Comex banks have aggressively reduced their net short position in paper gold and silver. Even more encouraging, the hedge fund cohort has been reducing its net long position in gold primarily by piling into short positions. Historically this pattern where the banks cover shorts and the hedge funds go short has preceded big moves higher in both gold and silver. As such, the Mining Stock Journal has turned cautiously bullish on the precious metals sector and is starting to set-up for what could be a massive move higher driven by Federal deficit spending funded by a lot more Fed money printing and soaring price inflation.
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… Rio2.
Rio2 is advancing the Fenix Gold Project in Chile, the largest undeveloped gold heap leach project in the Americas. Fenix consists of 5 million ounces in the measured and indicated resource category and 1.4 million ounces in the inferred resource category. With a robust PFS in place, Fenix is set up for fast-tracked construction and production. You can find a list of project and company information on their website, rio2.com.
And here’s what you need to know this morning.
Yesterday, Battle North Gold announced they had entered into a definitive arrangement agreement pursuant to which Evolution Mining agreed to acquire all of the issued and outstanding shares of Battle North at a price of C$2.65 per common share in cash, for total consideration for all issued and outstanding shares pursuant to the Transaction of approximately C$343 million. The Consideration represents a 46% premium over the closing price of the Battle North common shares on the Toronto Stock Exchange on March 12, 2021 and a 54% premium based on the volume-weighted average price of the Battle North common shares over the last 20 trading days. Evolution will be acquiring Battle North’s Bateman gold project, located in the Red Lake district, consists of a 28,000 ha land package with a mineral reserve estimated at 635,000 ounces of gold, a resource estimate of 390,000 ounces measured and indicated and a 343,000 ounce inferred resource. Battle North trades on the TSX with BNAU. Evolution Mining trades on the ASX with EVN. News Release
But wait, there’s more M&A out this morning as well. Gran Colombia Gold and Gold X Mining announced they have entered into a definitive arrangement agreement pursuant to which Gran Colombia will acquire all of the issued and outstanding common shares of Gold X not already owned by Gran Colombia. Under the terms of the Agreement, all of the issued and outstanding Gold X Shares will be acquired by Gran Colombia in exchange for Gran Colombia common shares on the basis of 0.6948 of a Gran Colombia Share for each Gold X Share. The Exchange Ratio implies consideration of CA$4.10 per Gold X Share based on the 20-day volume weighted average price of the Gran Colombia Shares. for total consideration of approximately CA$315 million on a 100% and fully diluted in-the-money basis. The Exchange Ratio represents a premium of 39% based on the closing price of the Gold X Shares on the TSX Venture Exchange on the Value Date and a 44% premium based on the 20-day volume weighted average price of the Gold X Shares ending on the Value Date. Gold X trades on the TSX Venture with GLDX. Gran Colombia trades on the TSX with GCM. News Release
Discovery Metals shared results from 14 diamond drill holes targeting the Josefina and Todos Santos high-grade vein trends at its flagship Cordero project located in Chihuahua State, Mexico. Results included 2,166 g/t silver equivalent over 1.3 meters, 2,290 g/t silver equivalent over 1.3 meters and 1,605 g/t silver equivalent over 2.9 meters. Multiple vein trends with a combined strike extent of more than 5 km flank the higher-grade bulk-tonnage domain at Cordero; the Josefina and Todos Santos vein trends currently represent approximately 3 km of this strike extent. Discovery Metals trades on the TSX Venture with DSV and on the OTCQX with DSVMF. News Release
Cerrado Gold announced the results from its first drill hole from its 12,000-metre exploration drill program starting at the Baritina Target, at its Minera Don Nicolás Project located in Santa Cruz province, Argentina. That result returned 17 meters grading 17.91 g/t gold, including a 6.5 meter interval grading 36.94 g/t gold. The focus for the current 12,000-metre exploration program is to delineate new, high grade, near surface mineralization that can be brought into the production schedule in the near term. Cerrado Gold trades on the TSX Venture with CERT. News Release
The Atlantic side of Canada is seeing an increase in mineral exploration over the past few years. Its seems new companies are flocking to the area in hopes of making the next great discovery. But that wasn’t always the case. Kylie Williams is here to tell the story of how one company changed the perspective of this area of the world.
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I’m Trevor Hall. Have a wonderful day. Be well.
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