Morning Briefing: G Mining Finances the Tocantinzinho Gold Project
Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.
Today is Monday, July 18th.
Last week gold was pushed down $37 per ounce to $1703, with two brief spikes below $1700, as the hedge funds continue to chase the US dollar index higher and short Comex paper gold and silver contracts as part of the trade. Silver sold off 60 cents per ounce last week, though it bounced nicely on Friday after briefly testing $18. The Mining Stock Journal said that the hedge fund activity in Comex gold and silver can be monitored in the weekly Commitment of Traders Report compiled by the Comex banks and published by the CFTC. The newsletter said that the hedge funds went net short paper gold last week, meaning the gross short position was greater than the gross long position. Similarly, the hedge funds further increased their net short in paper silver.
On the other side of this positioning, the Comex banks increased their net long position in silver and substantially reduced their net short position in paper gold. The Mining Stock Journal said that it is rare when the hedge fund category on the Comex goes net short. This is potentially a very bullish set-up for the precious metals sector. The mining stocks continue to erode away, with the GDX declining on the week to its lowest price since early April 2020. The Mining Stock Journal commented that, once gold and silver get a firm bid that pushes their prices higher, the mining stocks should respond by sling-shotting higher.
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…Arizona Sonoran Copper.
Arizona Sonoran Copper Company is a lower-risk copper developer with a significant exploration potential on private land just south of Phoenix, in an infrastructure rich area of Arizona. The Cactus Project PEA illustrates an 18 year mine life, generating US$1 Billion post-tax free cash flow. It is a scalable, low capital intensity project with strong leverage to the copper price. The Company is led by an executive management team and Board which have a long-standing track record of successful project delivery in North America complemented by global capital markets expertise. Read more about the company at arizonasonoran.com.
And here’s what you need to know this morning…
First Mining Gold is to acquire private company Beattie Gold Mines that owns the mineral rights to mining claims that make up the former Beattie mining concession which forms part of the Duparquet gold project in Quebec, Canada for C$6.2 million and 49.1 million shares. It will also acquire private companies in which it is a 10% shareholder which own claims that make up the former Donchester mining concession and Dumico property, and the surface rights to the Beattie, Donchester and Dumico properties for $2.5 million in cash and 20 million shares. The deals add to First Mining’s Central Duparquet property which together with its Pitt and Duquesne projects, the transactions will boost First Mining’s resources to 3.3 million ounces M&I and 2Moz inferred in the region. Its Springpole project remains its core focus however, which is being advanced to feasibility and the environmental assessment process. Shares in First Mining Gold trade on the TSX under FF and on the OTCQX under FFMGF. News release
G Mining says it has reached a financing agreement for a total of US$481M to fund the construction of the Tocantinzinho gold project in Pará State, Brazil. The total package consists of a $116 million equity financing via a private placement with strategic investors at 80 cents per share from the likes of La Mancha Investments, Franco-Nevada and Eldorado Gold. Franco will also provide a $250M gold stream and a $75M senior secured term loan. That gold stream is for 12.5% of the gold production until 300,000oz are delivered and will then be reduced to 7.5%. The gold stream and term loan financings are closed, and the remainder of the financing package is expected to close in the September quarter. G Mining trades on the TSXV with GMIN. News Release
Bravo Mining obtained a receipt for its final prospectus from the securities regulatory authorities in Canada, other than Quebec, for an initial public offering of 23 million shares at C$1.75 each for gross proceeds of $40.3 million to explore its Luanga Project, to make certain payments under the option agreement entered into by Bravo with respect to the Luanga PGM+Au+Ni project in Carajás in Para, Brazil. Canaccord Genuity and BMO Capital Markets are co-lead agents with a syndicate including National Bank Financial, Cormark Securities and INFOR Financial. The Offering is expected to close later this week on or about July 21. Bravo has conditional approval to list on the TSX Venture Exchange under the ticker "BRVO".
FPX Nickel says the Van Target step-out drilling program has started at the Company's Decar Nickel District in central British Columbia. This year's drilling is focused on expansion of mineralization at Van, where an initial drilling program in 2021 confirmed a major new discovery and suggested the potential for Van to host a large-scale, standalone nickel deposit which could rival the deposit already delineated at Decar's neighboring PEA-stage Baptiste Deposit. 2021 Van holes defined a large zone of strong awaruite nickel mineralization about 400 to 750 m wide and up to 750 m long, to downhole depths of up to 350 m, with these results comparing favourably to the mineralized area defined by outcrop sampling and subsequent drilling at Baptiste. This new program will consist of 8 to 10 widely-spaced holes to the south, southwest and west of that 2021 discovery. FPX Nickel trades on the TSXV with FPX and on the OTCQB with FPOCF. News Release
Endurance Gold reported initial diamond drilling results from the Eagle area on its Reliance Gold Property near the historical Bralorne-Pioneer Camp in southern British Columbia. Assays from the first two holes included a highlight of 12m grading 8.41 grams per tonne in hole 24 which included 7.7m grading 11.85 gpt. The company said the new wide intersections are within the same structural setting as the steeper dipping Imperial Zone some 750m northwest in the footwall of the Royal Shear Fault. Endurance has completed 1,950 m of the proposed 8,000 m nine hole program. Endurance Gold trades on the TSXV under EDG and on the OTC Pink under ENDGF. News release
Minera Alamos closed its non-brokered private placement offering of 8 million shares at 55 cents for proceeds of $4.4 million. No finders fees were paid. The net proceeds will be used to advanced the Cerro de Oro gold project in Mexico through permitting and to plan for long-lead time orders of equipment and supplies for construction. President Doug Ramshaw subscribed for 950,000 Shares for $522,500. Minera Alamos trades on the TSXV under MAI. News release
That concludes today’s morning briefing.
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