Morning Briefing: Montage Launches a $170M Financing with New Strategic Investment from Zijin
Welcome to Mining Stock Daily. I’m Trevor Hall.
Today is Tuesday, July 16th.
After selling off $10 from Friday's close overnight Monday through the close of Asian markets, gold staged a rally that took it from $2406 to as high as $2445 before it sold off to close at $2427, up $9 from Friday. Silver on the other hand yo-yo'd overnight and throughout the western paper market trading hours, trading as low as $30.77 and as high as $31.32. Poor man's gold ended up dumping back below $31 to close at $30.91, down 11 cents from Friday. The mining stocks bounced around a narrow trading range but ended up down a bit from Friday, with GDX down 0.22%. The Mining Stock Journal noted that the rally in the sector from late June took the sector back into overbought territory and there could be pullback before the next leg higher begins.
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… Arizona Sonoran Copper
Arizona Sonoran Copper Company (ASCU:TSX) is focused on developing its brownfield copper project on private land in Arizona. The Cactus Mine Project is located less than an hour's drive from the Phoenix International airport. Grid power and the Union Pacific Rail line situated at the base of the Cactus Project main road. With permitted water access, a streamlined permitting framework and infrastructure already in place, ASCU's Cactus Mine Project is a lower risk copper development project in the infrastructure-rich heartland of Arizona.For more information, please visit www.arizonasonoran.com.
And here’s what you need to know this morning….
Montage Gold says they have launched a brokered private placement for just over 97 million common shares at a price of C$1.70 per share for aggregate gross proceeds of up to C$170 million, which will include a strategic investment from Zijin Mining in addition to the Lundin Family Trusts increasing their stake from 17.7% to 19.9%. Zijin’s participation would mean it owns 9.9% of the company. Stifel and SCP Resource Finance LP as co-lead agents and joint bookrunners. The net proceeds of the Offering will be used for development expenditures at the Company's Koné Project, exploration, and for working capital and general corporate purposes. (TSXV: MAU) (OTCQX: MAUTF) News Release
Marimaca Copper says Assore International Holdings will be financing the company with a C$68M equity investment. The Strategic Investment consists of the acquisition of 9,417,210 common shares of Marimaca by AIH from an affiliate of Tembo Capital Mining at a price of C$4.50 per Common Share for gross proceeds to Tembo Capital of C$42.3M. In addition, Marimaca will also issue 5.7M units by way of non-brokered private placement for gross proceeds of C$25.7M. Each Unit consists of one Common Share and one half of one Common Share purchase warrant at a price of C$4.50 per Unit. Each Warrant will entitle AIH to purchase one additional Common Share at an exercise price of C$5.85 for a period of 18 months. If Assore would to exercise those warrants, it would own approximately 18% of Marimaca. (TSX: MARI) News Release
Brixton Metals has entered into a definitive option agreement with Eldorado Gold to vend Brixton’s Atlin Goldfields Project to Eldorado. During the 5-year option period (the “Option Period”), Eldorado shall fund $1,000,000 in exploration expenditures per year beginning September 30th, 2024, for an aggregate spend of $5,350,000; including an additional minimum commitment to fund $350,000 of exploration expenditures on or before September 30th, 2024. During the Option Period, Brixton shall be the Operator of the Project with Eldorado approving all work programs and budgets relating to the Project. Eldorado will also work closely and support Brixton with respect to ongoing environmental monitoring and community engagement efforts. (TSX-V: BBB, OTCQB: BBBXF) News Release
Nevada King Gold shared results of 15 reverse circulation reconnaissance holes drilled at the East Ridge Target (ERT) within the Atlanta Gold Mine Project. First pass drilling at the ERT has led to the discovery of an at-surface oxide gold zone called the East Ridge Zone ("ERZ") that is located within the overall ERT area and includes the highlight interval of 1.32 g/t Au over 22.9m. Other results included 22.9m of .33 g/t Au and 21.3m of .53 g/t. The company says the ERZ represents the first satellite gold discovery made at Atlanta and demonstrates the project's district-scale potential. (TSXV: NKG) (OTCQX: NKGFF) News Release
Western Copper and Gold have made additions to their senior management team. n early August, Michael Psihogios will be taking over the role of Chief Financial Officer from Varun Prasad, and Jeff Eng will be assuming the role of Vice President Projects. Mr. Psihogios is currently the CFO of Atlas Salt Inc. and will transition roles over the coming months. Mr. Eng most recently he was a Project Director for Teck Resources working on the mine life extension for the Red Dog mine. (TSX: WRN) (NYSE American: WRN) News Release
The Mining Stock Daily morning briefing is produced by Clear Commodity Network and Investment Research Dynamic’s Mining Stock Journal. It is distributed throughout the world through your podcast network of choice, and by our friends at the Junior Mining Network.
The information presented should not be considered investment advice. Mining stock daily and its affiliates are not responsible for any loss arising from any investment decision in connection with the material presented herein. Please do your own research or speak with a licensed financial representative before making any investment decisions.