M&A News out of the Junior Explorers
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Monday, March 30th.
Gold continues to fight aggressive attempts by the western price management squad to stifle the gold price from signaling to the markets that the massive Central Bank money printing operations are just getting started. After the blatant price smash twoweeks ago, gold embarked on a "V" shaped rally last week. For now it looks like the big banks are trying to draw a line in the sand at $17. Silver also bounced sharply last week with the gold silver ratio dropping 20 points down to 110 before closing out the week at $113. The mining stocks also bounced last week before pulling back slightly on Thursday and Friday. The Mining Stock Journal commented that it's only a matter of time before gold and silver become untracked to the upside, followed by the mining stocks, as it is becoming increasingly evident that the Fed is going to go "Weimar" with the printing press. Adding napalm to this equation in the increasing evidence of physical gold and silver shortages.
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... Corvus Gold
Corvus Gold. Corvus is an advanced gold-silver exploration and development company focused on the North Bullfrog and Mother Lode Projects in Nevada. The company has been named a Top Five TSX gold equity performer Four of the last Seven years & a multi time top 50 OTCQX performer. Corvus Gold trades on the Toronto Stock Exchange with the symbol KOR and on the OTCQX with CORVF. Follow all the news form Corvus and its two-mine projects with fast-tracked potential via the company's website, corvusgold.com.
And here’s what you need to know this morning …
Seabridge Gold announced this morning it has entered into an agreement to acquire a 100% interest in the 3 Aces gold project in the Yukon, Canada from Golden Predator Mining Corp. for 300,000 Seabridge common shares, potential future cash payments totalling $2.25 million, continuing royalty participation in the project by Golden Predator and the immediate cash payment of $263,000 as reimbursement for project-related payments made by Golden Predator. Seabridge Gold Chairman and CEO Rudi Fronk said the 3 Aces Project is a first rate exploration play with the potential to host a high grade commercially-viable ore body. Seabridge trades on the TSX with SEA and on the NYSE with SA. News Release
Argonaut Gold and Alio Gold announced they have entered into a definitive agreement for an at-market merger whereby Argonaut will acquire all of the issued and outstanding shares of Alio. Under the terms of the Arrangement Agreement, all of the Alio issued and outstanding common shares will be exchanged on the basis of 0.67 of an Argonaut common share per each Alio common share. The Exchange Ratio has been agreed based on the volume-weighted average prices of Argonaut and Alio common shares over the 20 trading days ended on March 27, 2020. Argonaut will continue to be managed by the executive team in Reno, Nevada. Argonaut trades on the TSX with the symbol AR. Alio gold trades on the TSX and the NYSE with ALO. News Release
Premier Gold confirmed their offer to acquire the remaining 50% interest in the Greenstone Gold Mines Partnership from CEnterra Gold for total consideration of the offer is approximately US$205 Million. The offer is comprised of a cash payment in the amount of US$175 Million, and in addition the assumption of all Centerra's obligations under the partnership agreement, including the remaining earn-in obligation of approximately US$30 Million. Premier submitted the offer in cooperation and with the support of a company that has completed its technical due diligence in relation to the 2019 mineral resource estimate and recent economic update for Hardrock. Premier Gold trades on the TSX with PG and on the OTCPK with PIRGF. News Release
Aura Mineral and Para Resources announced this morning that Aura has completed the purchase of all of the issued and outstanding shares of Para’s wholly-owned subsidiary Z79 Resources. Z79 owns through Gold Road Mining the Gold Road Mine located in Arizona and various options to acquire parcels of land adjacent to the Gold Road Project, among other things. In addition to completing the Share Purchase, Aura has also advanced US$4 million to Gold Road Mining for the development and restart of the Gold Road Project . Aura will advance an additional US$4 million to Gold Road Mining within one month of the date of closing. Aura trades on the TSX with the symbol ORA. News Release
GR Silver MIning has closed its acquisition of the Plomosas Silver Project from First Majestic. As consideration, GR Silver and its Mexican subsidiary paid CDN$100,000; granted a subsidiary of First Majestic a 2% net smelter return royalty on the Plomosas Project with half of the NSR being subject to a buy-back option for US$1,000,000; and issued to First Majestic 17,097,500 common shares of GR Silver. GR Silver trades on the TSX Venture with GRSL and on the OTCQB with GLYXF. News Release
TMAC Resources shared their Preliminary Feasibility Study for its Hope Bay Property in Nunavut. Highlights from the technical report shared a pre-tax net present value of C$549 million and a 15 year mine life using a $1,400 gold price. Proven and Probable reserves are estimated to be 3.5 million ounces of gold with 5.2 million ounces of measured and indicated resources and 2.1 million ounces of an inferred resource. Life of Mine cash costs are estimated to be $841 per ounce US. In a statement within the news this morning, CEO Jason Neal said, “Ultimately it is more likely that the feasibility study and eventual expansion at Hope Bay will be pursued either with a new partner or a new owner of Hope Bay than by TMAC as a standalone single-asset company.” TMAC trades on the TSX with the symbol TMR. News Release
Great Bear Resources has filed the management information circular and related meeting material for its special meeting of shareholders to be held on April 23rd. The purpose of the Meeting is to seek approval of the previously announced spinout by way of a plan of arrangement between Great Bear and Great Bear Royalties, whereby the owners of common shares of Great Bear are entitled to receive one-fourth of a common share of Great Bear Royalties for each GBR Share held immediately prior to the closing of the Arrangement. Following the Arrangement, Great Bear Royalties will no longer be a wholly owned subsidiary of Great Bear. The Arrangement will require approval by at least two-thirds of the votes cast by shareholders present in person or represented by proxy and entitled to vote at the Meeting.
Osisko Gold Royalties has entered into an agreement with Investissement Québec, a well known Québec institution and long-term supporter of Osisko, for a non-brokered private placement of over 7 and a half million common shares of the Company at a price of $11.00 per Common Share for a total of $85 million. The net proceeds from the Private Placement will be used for general working capital purposes. After the closing of the Private Placement, Investissement Québec will hold 5.04% of the issued and outstanding shares of the Company. Osisko Gold Royalties trades on the TSX and the NYSE with the symbol OR. 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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