Morning Briefing: Montage Gold Secures $825M Construction Financing

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

And I’m Ian Wagner

Its Thursday, October 24th

Yesterday gold moved higher Tuesday night and through the close of Asian markets. But starting about 30 minutes before the a.m. London price fix, the price was pushed off a cliff. From top to bottom, gold dropped from $2772 to as low as $2722 before a small bounce took it to $2729 for the afternoon settlement, $30 from Tuesday. 

Silver's price beating began three hours earlier than gold, as it was hammered from $35.04 to as low as $33.60 before small bounce $33.88, down $1.15 from Tuesday. The Mining Stock Journal commented that this abrupt sell-off had the price management team's fingerprints all over it along with momentum-chasing hedge funds and CTA's dumping truckloads of paper contracts. The mining stocks actually held up better than expected although GDX shed 1.9% of its value. 

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…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 375,000 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…..

Montage Gold has entered into an agreement with both Wheaton Precious metals and Zijin Mining for an aggregate US$825 million financing package to fund the development of its flagship Koné project in Côte d'Ivoire. The package is comprised of a $625M gold stream and a $75M senior secured loan facility coming from Wheaton. Zijin is contributing a $75M fully redeemable subordinated gold stream and a $50M senior secured loan facility. Wheaton will purchase 19.5% of the payable gold from the Core Area of Interest until 400,000 ounces of gold has been delivered, thereafter dropping to 10.8% of the payable gold from the Core Area of Interest until an additional 130,000 ounces of gold has been delivered, at which point the Wheaton Stream will be reduced to 5.4% of the payable gold from the Core Area of Interest for the life of the mine. Montage can however reduce the Wheaton Stream deliveries to nil following the Second Dropdown Threshold if payable gold reasonably expected to be delivered from the Core Area of Interest has been previously delivered under the stream from areas outside the Core Area of Interest. Zijin will receive 3.1% of the payable gold from the Koné project until 54,000 ounces of gold has been delivered, after which Zijin will receive 1.3% of gold production for the remaining life of the mine, unless the Zijin Stream is redeemed according to the buy back terms. (TSXV: MAU) (OTCQX: MAUTF) News Release

Scorpio Gold announced drill results from the Manhattan District in Nevada. Hole 7 returned 6.08 g/t Au over 9.4m and 63.7 g/t Au over 1 m, which confirms mineralization associated with the Reliance Fault. Hole 6 returned 5.5 g/t over 1.5m and 5.33 g/t over 2.2m. The holes reported delineate and extend historically drilled mineralization and demonstrate the potential to connect gold mineralization from the Goldwedge Underground through the Echo Bay West and East Pits with a strike length of approximately 1.8 km. Further assay results are pending for the completed Phase 1 and 2 drill holes. (TSXV: SGN) (OTCQB: SRCRF) News Release

Scottie Resources reported new assays on the Scottie Gold Mine Project in British Columbia. Specifically, results are come from the Blueberry Contact Zone. Results reported today included 8.78 g/t Au over 9m, including 1m of 30.9 g/t. That same hole also hit another 3.47m of 12.2 g/t. Other highlights included 2.7m of 12 g/t Au at the Road Vein and 4m of 6.87 g/t at the Blueberry vein. These new assays represent the first results from the 10,000 m 2024 drill program. Additional results will be released as they are received. (TSXV: SCOT) (OTCQB: SCTSF) News Release

Talon Metals has discovered 99.92 meters of copper and nickel mineralization on its maiden drill hole at the Boulderdash target in the Upper Peninsula of Michigan.  The discovery is a part of their ongoing 2024 exploration plan. Talon encountered 99.92 meters of mineralized bedrock starting at just 9.14 meters depth. Within this intercept is 48.00 meters grading 2.11% Copper Equivalent or 0.83% Nickel Equivalent. The target is situated just 8 miles northwest of the Eagle Nickel Mine. Talon's Boulderdash target will be followed by additional drill holes to further evaluate the mineralized system for additional mineralization and to understand the geometry of the system. (TSX: TLO) (OTC Pink: TLOFF) News Release

Orezone Gold provided an update on the hard rock expansion at its Bomboré Gold Mine. Site works are well-advanced with the plant-site area cleared and all major earthworks complete. Laydown areas have been prepared and are ready to receive construction equipment, offices, and major plant deliveries. Camp upgrades for construction supervision and teams are also now operational. The first shipment of the hard rock fleet by the mining contractor, which includes new trucks and excavators, has arrived in Burkina Faso and will be transported to site in late October. This early delivery will allow for systematic training of operators well ahead of the start of hard rock mining and will facilitate more cost-effective mining of the lower transition material in the near-term. The hard rock expansion is forecasted to increase annual gold production to over 170,000 ounces, an approximate 50% increase from current levels, with first gold planned in Q4-2025. (TSX: ORE, OTCQX: ORZCF) News Release

McEwen Mining has closed an additional $35 million investment by Nuton and Rio Tinto. McEwen Copper previously announced a non-brokered private placement financing of up to 2,333,333 common shares at a subscription price of US$30.00 per common share, for gross proceeds of up to US$70 million. The first tranche of the Offering was led by a $14 million investment by McEwen Mining and a $5 million investment by Rob McEwen. In this second tranche of the Offering, Nuton has purchased an additional 1,166,666 common shares of McEwen Copper for $35 million and two other investors have acquired 66,669 common shares for $2 million. Following the closing of this second tranche of the Offering, McEwen Copper has raised a total of $56 million. (NYSE: MUX) (TSX: MUX) News Release

Shares of Newmont dropped more than 7% in afterhours trading last night after the company published their Q3 financials. Despite publishing their most profitable quarter in years, the company’s cost of production continued to rise with an all-in sustaining cost of $1631 per ounce, cutting into those margins. Operations from Nevada continued to be a bit of a thorn in their side with declining production and rising costs in the area. 

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