Morning Briefing: G Mining and Reunion Gold Merge

Welcome to Mining Stock Daily. I’m Trevor Hall.

Today is Monday April 22nd.

Last week gold closed the week at $2413, a new record high and an all-time on a weekly basis. For the week the price jumped $48. Silver also was higher on week, rising 69 cents to close out the week at $28.84. The Mining Stock Journal said that, despite the technically overbought condition of gold and silver per the RSI and MACD, the two precious metals continue grinding higher, much to the surprise of on-lookers, Wall Street analysts and those who are skeptical of gold and silver's status as real money. The mining stocks also rose last week, with GDX up 1.7%. Some individual stocks had big gains last week in response to company-specific positive developments. As an example, US Gold - a Mining Stock Journal favorite - jumped 10% in response to the outlook that it will soon be awarded operating permits for its gold-copper project in Wyoming. Q1 earnings for the miners should be better than expected, which might ignite the rocket engines on the mining stocks.

We will get to the news from the miners and explorers in a moment, but first a word about today’s sponsor.

This episode of Mining Stock Daily is brought to you by… Victoria Gold.

Victoria Gold operates the Eagle Gold Mine within the Dublin Gulch Property. Eagle is the largest gold mine in Yukon's long history of gold production. In addition to the long-life Eagle Gold Mine, the Dublin Gulch property has upsized exploration potential including priority targets Raven and Lynx among others. Follow all the gold production and exploration news at ⁠vgcx.com⁠.

And here’s what you need to know this morning…. 

G Mining Ventures and Reunion Gold are combining companies. Through the Transaction, GMIN will acquire RGD's flagship Oko West Project located in Guyana, within the Guiana Shield region. GMIN plans to move Oko West quickly through technical studies to a construction decision. Under the terms of the Agreement, GMIN and RGD shareholders will receive common shares of a newly formed company equivalent to RGD shareholders being issued 0.285 GMIN common shares for each RGD common share. In addition, RGD shareholders will receive common shares in a newly created gold explorer that will hold all of RGD's assets other than Oko West. GMIN has agreed to fund SpinCo with $15 million. RGD shareholders will receive estimated consideration of $0.65 per RGD common share, an estimated Transaction equity value of $875 million. (TSXV: RGD) (OTCQX: RGDFF) News Release

New Found Gold has entered into a property purchase agreement with Labrador Gold for the Kingsway Project in Newfoundland and Labrador. As consideration for the Purchased Assets, New Found will issue to LabGold  shares of the company equal to $20M divided by the closing price of the Shares on the TSX Venture Exchange on the last trading day prior to the closing date of the Transaction. Exploration over the past several years by LabGold has resulted in several high-grade gold discoveries including Big Vein, Pristine, and Golden Glove that display similar mineralizing styles to the Queensway Project. (TSX-V: NFG, NYSE-A: NFGC) News Release

Ascot Resources say the company poured its first gold over the weekend. Commissioning of the process plant at PGP is ongoing, with commercial production anticipated in Q3 of 2024. The first gold pour was achieved from gold recovered through the gravity circuit. Commissioning of the carbon-in-leach (“CIL”) circuit is currently underway. (TSX: AOT; OTCQX: AOTVF) News Release

AbraSilver has  entered into subscription agreements in respect of a strategic C$20 million non-brokered private placement with Kinross and an affiliate of Central Puerto. The Company will issue an aggregate of 50,000,000 Common Shares at a subscription price of C$0.40 per Common Share, representing approximately a 3% premium to the closing price of the Common Shares on Friday.  AbraSilver and Kinross will form a regional partnership to jointly explore for and acquire new projects in Argentina focused on silver, gold, and copper. (TSXV: ABRA) (OTCQX: ABBRF) News Release

Patriot Battery Metals published the remaining core assay results for drill holes completed in 2023 at the CV5 Spodumene Pegmatite. This drilling included both infill holes as well as holes completed over the western extension of the pegmatite body. Infill hole assays returned 133.9m of 1.21% Li2O and 50.5m of 1.42%, which also included 15.6m of 3.26%. Western Extension drilling returned 30.5m of .77% Li20 and 21.3m of .88%. Drilling has traced the CV5 Spodumene Pegmatite over a strike length of 4.6 km, which remains open along strike at both ends and to depth. (TSX: PMET) (ASX: PMT) (OTCQX: PMETF) News Release

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