Morning Briefing: More Consolidation in the Royalty Space

Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.

Today is Thursday November 10th. 

On Wednesday gold and silver pulled back a bit from the big move that transpired starting last Friday, silver more so than gold not surprisingly. Gold bounced up and down between $1720 and $1705 per ounce, with a brief spike up to $1726 before settling at $1710. Silver on the other hand bounced around in a downtrend channel with a high of $21.70 and a low of $21.08 per ounce, where it settled. The Mining Stock Journal said that the mild pullback from a large push higher over the previous three trading days is the  healthy consolidation of a move that appears to be the start of a major bull cycle. The gold/silver ratio has smashed below an uptrend line on the chart this week, which is one more confirmation signal of a potential robust rally in the sector. 

The mining stocks were hit for about 1.5% but that was a function of the sharp decline in the general stock market. That said, the Amex Gold Bugs index and the GDX outperformed the broad equity indices by a factor of two to one. The Mining Stock Journal also noted that when the sell-off in the stock market was at its most intense during the last hour of trading, the mining stocks drifted sideways to slightly higher. The newsletter reiterates that the stars appear to be aligning for a major move higher in gold, silver and the mining stocks.

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….

In M&A news today, Triple Flag Precious Metals and Maverix Metals announced they have entered into a definitive agreement in which Triple Flag will acquire all of the issued and outstanding common shares of Maverix. The Transaction will combine two predominantly gold and silver streams and royalties, including 29 paying assets and 228 assets overall. Pursuant to the Transaction, Maverix shareholders may elect to receive either US$3.92 in cash or 0.360 of a Triple Flag share per Maverix share held, representing share consideration of US$3.92 per Maverix share based on the closing price of Triple Flag shares on November 9, 2022 of US$10.89. The exchange ratio implies a premium of 10% based on the closing share prices of Triple Flag and Maverix on the New York Stock Exchange on November 9, 2022, and a premium of 22% based on the 10-day volume-weighted average share prices of Triple Flag and Maverix on the NYSE as of November 9, 2022. The Purchase Price implies a total equity value for Maverix of US$606 million on a fully diluted basis. Triple Flag Precious Metals trades on the TSX and the NYSE with TFPM. Verix metals trades on the TSX and the NYSE with MMX. News Release

Nighthawk Gold reported assay results from drilling at the Kim Deposit, part of the Kim and Cass Deposits, which are within 15km of the Colomac Centre Area in Northwest Territories in Canada. Results included 7.3 g/t gold over 17.65m, and included 217 g/t gold over .5m. The Company purchased 100% of the Kim and Cass Property via an option agreement in 2021 and represents an important part of the potential “Hub-and-Spoke” future mine plan for the Colomac Gold Project. Exploration at the Kim and Cass Deposits focused on understanding the structural controls of the mineralization and expanding the near-surface mineral resources of these deposits. Nighthawk God trades on the TSX with NHK and on the OTCQX with MIMZF. News Release

Scottie Resources reported new assays on its Blueberry Contact Zone including intercepts of 9.79 g/t gold over 25.00 metres including 161 g/t gold over 1.3 metres. Additional deeper tests of the Blueberry Contact Zone have extended mineralization to a total vertical depth of 390 metres. The Blueberry Contact Zone is located 2 kilometres north-northeast of the past-producing Scottie Gold Mine, 35 kilometres north of the town of Stewart, BC, along the Granduc Road. Scottie Resources trades on the TSXV with SCOT and on the OTCQB with SCTSF. News Release

Unigold reported a feasibility study for a 5,000 tonnes per day run-of-mine heap leach operation at its Candelones oxide project in Dominican Republic for an operation to produce 31,400oz/y of gold at an all in sustaining cost of US$829/oz. The project will generate an after tax net present value of US$30 million at a 5% discount rate and an internal rate of return of 44% following an initial capital expenditure of US$36 million. Unigold also has a larger sulphide resource at Candelones which is expected to enhance the mine life and production profile. Unigold trades on the TSXV under UGD and on the OTCQX under UGDIF. News release

Solgold MD and CEO Darryl Cuzzubbo suddenly left the company having completed less than a year at the helm of one of the most important copper-gold development projects in the world. No reason was given for his departure at the start of the month SolGold announced a US$50 million royalty financing from Osisko Gold Royalties which added a 0.6% net smelter return (NSR) on its Cascabel licence area after having failed to raise funds via other avenues. News release

Adventus Mining and Salazar Resources said the Government of Ecuador through its investment institution, Investment Promotion and Attraction Strategic Committee approved the signing of the Investment Contract in support of the development of the El Domo copper-gold mining project. The Resolution grants Adventus Mining and Salazar various incentives until March 2033 including a 5% Reduction in the income tax tariff from 25% to 20%, total exemption from the capital outflow tax in all import of capital goods and raw materials, total exemption of import duties of capital goods and raw materials, including on all mine and mill related equipment, a dispute resolution article including international arbitration protection, legal and tax stability. Adventus Mining trades on the TSXV under ADZN and on the OTCQX under ADVZF. Salazar Resources trades on the TSXV under SRL and on the OTCQB under SRLZF. News release

The Mining Stock Daily morning briefing is produced by Clear Creek Digital 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.