Morning Briefing: Mako Mining to Acquire Goldsource Mines
Welcome to Mining Stock Daily. I’m Trevor Hall
Today is Tuesday March 26th.
Gold was somewhat volatile on Monday, spiking up to 2,179 Sunday night then trading down early Monday morning to as low as 2,165 heading into the London a.m. fix, after which it climbed to as high at 2,182 before fading to settle at 2,173 up $6 from Friday. Silver followed a similar price path, trading briefly back over $25 then was slammed down to $24.72 but began moving higher 2 hours before the London morning fix. Silver made one more quick turtle-head back over $25 and then faded to close at $24.81, up just 2 cents from Friday. The Mining Stock Journal said that it believes there's a tug-of-war going on between the large physical metal accumulators and the western hemisphere price containment squad. Data shows that an extraordinary amount of gold flowed into China in February from Swiss refiners. China and India both are buying a lot of silver right now. The mining stocks popped at the open of trading and maintained their gains for part of the day but pulled back to close well off their highs though higher than Friday.
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… Vizsla Silver.
Vizsla Silver is focused on becoming one of the world’s largest single-asset silver producers through the exploration and development of the 100% owned Panuco-Copala silver-gold district in Sinaloa, Mexico. The company consolidated this historic district in 2019 and has now completed over 325,000 meters of drilling. The company has the world's largest, undeveloped high-grade silver resource. Learn more at https://vizslasilvercorp.com/
And here’s what you need to know this morning….
Mako Mining has entered into an arrangement agreement with Goldsource Mines to acquire all of their issued and outstanding shares. The Transaction will create a company that will combine Mako's Nicaraguan gold operations and mine-building team with Goldsource's 100% owned Eagle Mountain Gold Project in Guyana, South America. Holders of the issued and outstanding Goldsource Shares will receive 0.2200 of a common share of Mako for each Goldsource share. The premium of the transaction is approximately 40.9% based on spot and approximately 52.1% based on Mako's and Goldsource's 20-day volume-weighted average price on the TSX Venture Exchange as of yesterday. Concurrent with the execution of the Arrangement Agreement, Wexford, Mako's largest shareholder, provided Goldsource with the Bridge Loan in the amount of C$2,000,000 to fund anticipated activities of Goldsource at Eagle Mountain between the date hereof and the closing of the Transaction. (TSXV: MKO) (OTCQX: MAKOF) News Release
Americas Gold and Silver provided an update on exploration work at the Galena Complex. The company reported exceptionally high grade returns from hole 49-703. That hole assayed 20,147 g/t silver and 5.9% copper (20,842 g/t silver equivalent[1]) over 2.1 m. This mineralization lies within 30 meters of existing mine infrastructure. The Company intends to drill additional holes to delineate the vein and contained grade and is confident that this area can provide high-grade ore to the mill before the end of Q2-2024. (TSX: USA) (NYSE American: USAS) News Release
New Found Gold announced results from 38 diamond drill holes that were completed as part of a program designed to expand on a new discovery called ‘Iceberg Alley’ that is located 1km along strike of Iceberg, as well as 114 diamond drill holes that were completed to test a segment of the Keats Baseline Fault Zone that trends under South Hermans Pond at the Keats Zone adjacent to the highly prospective Appleton Fault Zone. Drilling at Iceberg Alley returned a highlight interval of 187 g/t Au over 2.55m along with 29.0 g/t Au over 2.50m. Drilling at Keats has returned 34.4 g/t Au over 3.55m. A full list of results can be found on this morning’s press release. Approximately 3,500m of core is currently pending assay results. (TSX-V: NFG, NYSE-A: NFGC) News Release
Nine Mile Metals announced assay results form hole 2 of this years program at the Wedge Mine in the BAthurst Mining camp of New Brunswick. The company says the hole confirms the presence of a new, larger mineralized system at Wedge. The hole returned three inerlaized zones from 36.74m fo 173m. The complete length of the hole returned 136.31m of 0.44% Cu, 0.07% Pb, 0.54% Zn, 0.06 g/t Au and 3.52 g/t Ag. The Main Copper Zone occurs between 134.00m and 174.00m, spanning 40.00m and assaying 1.32% Cu, 0.21% Pb, 1.54% Zn, 8.8g/t Ag, and 0.164 g/t Au. (CSE: NINE) (OTCQB: VMSXF) News Release
Yesterday we heard from Orecap’s Stephen Stewart. Today he and the company announced that they will undertake a normal course issuer bid to purchase up to 23.3 million of their common shares over the course of the year. Orecap believes that the market price of its Common Shares may not reflect their underlying value and the Board of Directors has authorized this initiative because, in the Board's opinion, the proposed purchase of Common Shares pursuant to the NCIB constitutes an appropriate use of Orecap's funds, and the repurchase of its Common Shares is one way of creating shareholder value. (TSXV: OCI) News Release
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