Morning Briefing: General Motors Signs New Investment Agreement for Thacker Pass

Good morning and welcome to the Mining Stock Daily Morning Briefing. I’m Trevor Hall.

And I’m Ian Wagner.

Its Wednesday, October 16th

After a late night sell-off Monday, gold took off higher shortly after midnight, running from $2655 to as high as $2686 before settling in the afternoon at $2679, up $13.70 from Monday. Silver similarly began a strong rally just after midnight but didn't launch higher until just after the Comex opened. Poor man's gold jumped from $31.10 to as high as $31.90 before closing out the afternoon session at $31.69, up $37 cents from Monday. 

Silver outperformed gold on a percentage basis 1.19% vs 0.5%. The mining stocks were the only major sector of the stock market that rose yesterday. GDX tacked on 1.29%. Many of the silver stocks were up over 2%. The Mining Stock Journal commented that the entire precious metals sector looks potentially explosive

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

This episode of Mining Stock Daily is brought to you by…Minera Alamos

Minera Alamos is a gold developer and producer with its first low capex mine, Santana, continuing to work through start-up development. The company is also advancing the Cerro de Oro project through the permitting process. Minera is built around its operating team which brought 4 mines into production in Mexico over the last 13 years. It is fully funded with over $20-million dollars in working capital. Learn more at mineraalamos.com. 

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

Lithium Americas says General Motors has entered into a new investment agreement with them to establish a joint venture for the purpose of funding, developing, constructing and operating Thacker Pass in Nevada. The JV Transaction will deliver $625 million of cash and letters of credit from GM to Thacker Pass alongside the conditional commitment for a $2.3 billion U.S. Department of Energy loan announced earlier this year. Under the terms of the Investment Agreement, GM will acquire a 38% asset-level ownership stake in Thacker Pass for $625 million in total cash and letters of credit , including $430 million of direct cash funding to the JV to support the construction of Phase 11 and a $195 million letter of credit facility that can be used as collateral to support reserve account requirements under the DOE Loan. The JV Transaction replaces the $330 million Tranche 2 common equity investment commitment from GM under its original investment agreement with the Company announced in January 2023. (TSX: LAC) (NYSE: LAC)News Release

Brixton Metals published additional 2024 drill results from the Trapper Gold Target at its wholly owned Thorn Project in British Columbia. Hole 304 yielded 227.5m of .5 g/t Au from a depth of 40m and included a 2m interval in there of 44.43 g/t. The 2024 drill campaign at the Trapper Gold Target totaled 2,745.60m of drilling across 11 HQ-sized diamond drill holes. The program was designed to test the extent and continuity of the main mineralized corridor along the Lawless Fault zone through a combination of infill and step-out drilling. Additional assays from the 2024 drill campaign will be released as they become available. (TSX-V: BBB, OTCQB: BBBXF) News Release

Sun Summit Minerals announced drill results from its fifth hole drilled during its inaugural exploration program at the JD Project in the Toodoggone District, north-central B.C. Hole CZ-24-005 returned one of the longest cumulative intervals of gold mineralization drilled to date at the Creek Zone with 57.95m of 2.69 g/t Au with subintervals of high-grade gold-bearing veins of 362 g/t gold over 0.25 metres, 53.60 g/t gold over 0.58 metres, and 21.60 g/t gold over 0.50 metres. This hole represents a 100 metre step out to the east from hole CZ-24-004. (TSXV: SMN) (OTCQB: SMREF) News Release

Mako Mining provided additional exploration results from the 2024 reverse circulation drill program at Mako's newest mining area, Las Conchitas, located immediately south of the Company's San Albino gold mine in northern Nicaragua. Results returned 22.88 g/t Au and 47.2 g/ Ag over 5m at the Mango Vein and 39.64 g/t Au and 83.7 g/t Ag over 2m at the Cruz Grande Vein. The main objective of the RC drill program is to test for new extensions of high-grade gold veins outside of the limits defined by the Company's 2023 mineral resource estimate. (TSXV:MKO) (OTCQX:MAKOF) News Release

Revival Gold provided an updates on the technical programs happening with their projects in both Idaho and Utah. An updated mineral resource estimate and preliminary economic assessment for the Mercur gold project is underway. All PEA-level metallurgical test work is now complete for the project. The exploration team at Beartrack-Arnett in Idaho have wrapped up their summer field work where magnetics, mapping and surface sampling have extended the Ridge Target another half a kilometers to the north-east. Activities have commenced on a draft plan of operations for Beartrack-Arnett. Completion is expected by year-end. (TSXV: RVG, OTCQX: RVLGF) News Release

NGEx Minerals announced a new financing package last night. The company intends to sell on a non-brokered private placement basis, an aggregate of up to 9,091,000 common shares of the Company at a price of C$11.00 per Common Share for gross proceeds of up to C$100 million. Net proceeds of the Private Placement will be predominantly used towards furthering exploration programs at the Lunahuasi project in San Juan Province, Argentina, continued exploration and maintenance of the Company's Los Helados project located in Region III, Chile, as well as for general corporate and working capital purposes. (TSX: NGEX) (OTCQX: NGXXF) News Release

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