Morning Briefing: Minera Alamos Announces Funding Package for Cerro de Oro
Welcome to Mining Stock Daily. I’m Trevor Hall.
Today is Monday October 30th.
Last week the gold price rose $22 from the previous week, closing at $2012 per ounce on Friday. The price spiked up to $2,020 on geopolitical events after being pushed down to $1,986 in early Friday trading. The Mining Stock Journal commented that it's unusual for gold to rise like it did on a Friday during end of week Comex trading. The newsletter added that it was surprised gold was allowed to close over $2,000 and it felt like there was considerable short-covering by the banks, which piled heavily into shorts last week per the COT report. Silver diverged negatively from gold, falling 73 cents on the week. The price was pushed lower every day last week and closed Friday at $22.77 per ounce, once again not being permitted to remain above $23.
After an eleven-day rally that took the mining stocks higher, with the GDX running up 13.8% and back over its 21, 50 and 100 dma's since October 4th, they pulled back with the GDX testing its 50 dma last week. On Friday the GDX bounced 2.4%. The Mining Stock Journal said that the pullback from the rally during October is potentially bullish as it may be setting up another big move 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… Western Copper and Gold
Western Copper and Gold is focused on developing the world-class Casino project in Canada's Yukon Territory. The Casino project consists of an impressive 11 billion pounds of copper and 21 million ounces of gold in an overall resource. Western Copper and Gold trades on the TSX and the NYSE American with WRN. Be sure to follow the company via their website, www.westerncopperandgold.com.
And here’s what you need to know this morning….
Minera Alamos has executed a definitive agreement for the Cerro de Oro funding package. The company is partnering with Auramet International Inc. and Auramet Capital Partners LP which is comprised of a loan facility for up to US$15 million and a US$10 million royalty. Minera Alamos also completed a drawdown of an initial US$5 million under the loan facility to advance certain pre-construction work related to the Cerro de Oro project. Auramet International, Inc. is one of the world's largest physical precious metals merchants. Auramet provides a full range of services to all participants in the precious metals supply chain. (TSXV: MAI). News Release
Arizona Sonoran Copper Company announced assays from 5 holes at Cactus East and 4 from Parks/Salyer in Arizona. It said drilling at 125 ft spacings is demonstrating the continuity and thicknesses of mineralization within the proposed Cactus East and Parks/Salyer high grade underground oxide and enriched mineralized zones. It has also begun exploratory drilling at the MainSpring property ar Parks/Salyer South, with five holes of a 10-hole program now complete. Highlights included 164.6m @ 1.97% Cu and 0.013% Mo in hole 164 at parks salyer. Arizona Sonoran Copper Company (TSX:ASCU | OTCQX:ASCUF) News Release
Collective Mining announced assays for four holes drilled in the Apollo target area at its Guayabales project in Caldas, Colombia including its Best Hole to Date in a New High-Grade Subzone within the eastern portion of the Apollo porphyry system with 519.1m at 2.74 g/t Gold Equivalent from Surface in hole 72. This included 290.8m grading 3.45 g/t. At 1,424 g/t gold equivalent on a gram x metre basis, hole 72 represents the largest grade accumulation drilled to date at Apollo. The 2023 Phase II drilling program has reported 43 holes with 10 holes awaiting assay results from the lab. Since the announcement of the discovery hole at Apollo in June 2022, a total of 74 drill holes for 32,536m have been completed. Collective Mining (TSX: CNL, OTCQX: CNLMF) News Release
Ero Copper entered into a binding term sheet with Vale Base Metals to advance the Furnas copper project in the Carajás district of Pará, Brazil. Ero can earn a 60% interest upon completion of exploration, engineering and development milestones over five years, including drilling 90,000m in three phases and producing a feasibility study. Following investment approval, the parties will enter into a joint venture agreement with Ero granting Vale an initial 11% free carry and funding 71% of the first $1 billion of Project capital expenditures. Furnas is an IOCG project 190km from Ero's Tucumã project, which it plans to build next year. Ero Copper (TSX: ERO, NYSE: ERO) news release
Marathon Gold says the Newfoundland and Labrador Minister of Environment and Climate Change has released the proposed addition of the Berry Desposit to the Valentine Gold Project from the provincial environmental assessment process. While review at the federal level continues, earlier guidance that the federal regulator will not require a new impact assessment means that Berry is on track to be fully permitted well in advance of its scheduled mining in the second quarter of 2025. Today’s news means that provincial permitting can now proceed immediately, in some cases via amendments to existing Project permits, and in other cases with new Berry-specific permits. (TSX: MOZ) News Release
Fortuna Silver reported the Mexican Federal Administrative Court has ruled in favour of Minera Cuzcatlan, Fortuna’s Mexican subsidiary, and re-instated the 12-year environmental impact authorization for the San Jose Mine. In its ruling, the Court dismissed the allegations of SEMARNAT contained in the annulment resolution. The San Jose Mine is in full compliance with all material environmental laws and continues to operate under the terms of the EIA. (NYSE: FSM) (TSX: FVI) News Release
Some some quick news snippets to close us out today:
Bruce McLeod has been appointed to the board of Meridian Mining as an independent member. Most recently, he was the President and CEO of Sabina Gold & Silver Corp. until Sabina was acquired by B2Gold Corp. in April.
Li-FT Power has received approval to list its common shares on the TSX-Venture Exhcange, which should commence at the market open on November 1st.
Brixton Metals announced a private placement of up to $10 million, consisting of units of the company, national flow-through units and charity flow-through units. The Company’s largest shareholder, BHP Investments Canada Inc., a wholly owned subsidiary of BHP Group Limited, intends to participate in the Offering to maintain its 19.9% pro-rata share position.
And PI Financial has initiated coverage of MSD sponsor Fireweed Metals with a BUY rating and C$2.30/sh target price.
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