Morning Briefing: Osino Receives New Bid for Twin Hills; Discovery Silver Publishes Feasibility Study
Welcome to Mining Stock Daily. I’m Trevor Hall.
Today is Tuesday February 20th.
Last week gold was down marginally from the week before despite a $30 cliff dive Tuesday after a worse than expected CPI report which took spot gold below $2000 briefly. April gold, the new contract front-month, briefly dipped below $2000 Wednesday but rallied impressively the last two days of the week despite a hot PPI report to close at $2024, down $11 from the previous week. The Mining Stock Journal noted that gold held up well despite the absence of China from the global markets as the country has been observing its Lunar New Year the last 8 days. Silver surprised everyone by rallying, as March silver ran from $22.60 the previous week's close to finish last week at $23.48. From Tuesday's CPI price ambush, silver rallied $1.20 the rest of the week. The Mining Stock Journal said that the reality of supply/demand deficit may be pushing the price higher. The newsletter also noted that the Comex banks are now net long paper silver, which is usually a bullish indicator. The minings stocks continue to take a beating, though GDX, after closing below $26 on Tuesday, managed to rally 3.7% the last three days of the week to close at $26.86. The Mining Stock Journal said that it still believes the precious metals sector is percolating for a 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… Fireweed Metals
Fireweed Metals is advancing 3 different projects within the Yukon and Northwest Territories, including the flagship Macmillan Pass Project, a large zinc-lead-silver deposit and the Mactung Project, one of the largest and highest-grade tungsten deposits in the world. Fireweed plans to advance these projects through exploration, resource definition, metallurgy, engineering, economic studies and collaboration with indigenous people on the path to production. For more information please visit fireweedmetals.com.
And here’s what you need to know this morning….
Osino Resoures announced it has received a proposal from a foreign-based mining company for the acquisition of all of the issued and outstanding common shares of the Company. Pursuant to the terms of the New Offer, the Company's shareholders would receive cash consideration of C$1.90 for each Common Share, valuing Osino at approximately C$368 million. The New Offer will provide the Company with a loan comprising of US$10 million facility concurrently with the execution of the arrangement agreement to enable the continued, fast-tracked development of the Twin Hills gold project and to fund other liquidity needs of the Company. The offer would also include an advance in an amount equal to the termination fee payable by the Company in the event of a termination of the DPM Arrangement Agreement as a result of the New Offer. Based on the closing price of the DPM common shares on the Toronto Stock Exchange as of February 16, 2024, the Superior Proposal represents a premium of approximately 32% to the implied value of the consideration offered pursuant to the DPM Arrangement Agreement and approximately 68% premium to the unaffected share price one trading day prior to announcement of the DPM Arrangement Agreement. Dundee has decided not to amend its original terms. (TSX:OSI.V) (OTCQX:OSIIF) News Release
Discovery Silver published results from its Feasibility Study for the Cordero silver project in Mexico. The study shows an average all-in sustaining cost of less than $12.50 per ounce over the first eight years of a 19-yr mine life placing Cordero in the bottom half of the cost curve. Its NPV now sits at $1.2B with an IRR of 22%, while the NPV expands to $2.2B in year 4. Initial Developent costs is at $606M. Its reserves sit at Ag - 302 Moz, Au - 840 koz, Pb – 3.0 Blb and Zn – 5.2 Blb, positioning Cordero as one of the largest undeveloped silver deposits globally. The Company plans to progress all financing options for the Project through the course of 2024. These options include equity, debt, offtake, joint ventures, partnerships, lease financing on major equipment, streams, royalties and other strategic alternatives. (TSX: DSV, OTCQX: DSVSF) News Release
Magna Mining provided initial drill results from exploration work this year at Crean Hill. These results were from drilling targeting the near surface advanced epxloration area of the 109 FW Zone. Highlights included 0.3% Ni, 2.0 % Cu, 8.6 g/t Pt + Pd + Au over 14.0 metres, 0.6% Ni, 1.0 % Cu, 9.5 g/t Pt + Pd + Au over 14.7 metres, and 0.2% Ni, 1.1 % Cu, 11.4 g/t Pt + Pd + Au over 10.2 metres. Currently two drills are active at Crean Hill, with one rig supporting Advanced Exploration planning, and six drillholes have been completed to date. A second drill has been focused on testing high-priority exploration targets in the footwall of the Crean Hill orebody. A third drill has recently been mobilized to the Shakespeare site and has commenced regional exploration drilling. (TSXV: NICU) (OTCQB: MGMNF) News Release
Elemental Altus Royalties says it expects to receive an initial US$12.1 million in cash and equity as a result of its secured creditor claim against Rambler Metals and Mining Limited in relation to the Company's Ming gold stream. This contributes to approximately US$20 million in one-off payments the Company expects to receive from across the portfolio in 2024-2025, which are in addition to the company’s royalty revenue guidance for 2024. (TSXV: ELE) (OTCQX: ELEMF) News Release
Amex Exploration released results from a new western extension of th eGratien Gold Zone on the Perron Project in the Abitibi Region of Quebec. This zone was previously undrilled. Results included 3.5m of 29 g/t Au, with a half meter interval of 185 g/t, and 3m of 18.66 g/t Au with a .6m interval of 76.5 g/t Au. (TSXV: AMX) (OTCQX: AMXEF) News Release
FPX Nickel subsidiary, CO2 Lock, has completed a comprehensive field program at its SAM site in central British Columbia, including the first-ever successful injection of CO2 into a brucite-rich ultramafic mineral project. The company successfully injected CO2 at depth, with downhole sensors verifying the desired CO2 content throughout the carbonated water injection, bolstering confidence in the effectiveness of CO2 Lock's proprietary approach. (TSXV: FPX) (OTCQB: FPOCF) News Release
Horizonte Minerals shared its updated Capex estimate for the Araguaia Nickel Project. A review indicates the estimated capital required to complete the construction of Araguaia, commission the project and deliver first metal is approximately US$454 million. As a result, the Estimate at Completion ("EAC") currently stands at US$1,004 million, approximately 87% higher than the previously disclosed capex budget of US$537 million. (TSX:HZM) News Release
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