Morning Briefing: Piedmont and Sayona Merge to Create Largest Producer of Hard Rock Lithium in North America

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

Its Tuesday, November 19th.

The precious metals sector found a relief rally to begin the week yesterday after six days hitting the down elevator. The US Dollar which had been on a tear higher since the US election, finally stalled out a bit, allowing gold and silver to catch the bid. Gold opened its trading yesterday at $2570 front month and didn’t look back much throughout the day, closing up 1.7% to $2614 per ounce. Silver opened at 30.38 per ounce and rallied for more than 2.5% to close at 31.22 per ounce. Geopolitics and concerns in the War in Ukraine also had something to do with the move as the Biden administration announced the delivery of long-range missiles available to Ukraine to reach further into Russia. That was yesterday. Today, there is news of Ukraine using the US missiles to strike Russian territory for the first time in that region’s war. 

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… Minera Alamos

Minera Alamos is a gold developer and producer with its first low capex mine, Santana, continuing to work through start-up development. The company is also advancing the Cerro de Oro project through the permitting process. Recently, Minera announced the proposed acquisition of Sabre Gold Mines which owns the planned 40,000 oz/y Copperstone gold mine in Arizona. Minera is built around its operating team which brought 4 mines into production in Mexico over the last 13 years. Learn more at mineraalamos.com.

And Here’s what you need to know this morning…..

Australian listed Sayona Mining announced the signing of a definitive agreement to merge with Piedmont Lithium. The Transaction will result in an approximate 50% / 50% equity holding of shareholders of Piedmont and Sayona (on a fully diluted basis) in MergeCo immediately following the closing of the Transaction. Piedmont will be undertaking a proposed capital raise of ~US$27 million. Sayona is undertaking a capital raise of A$40 million (~US$27 million). Upon closing of the Transaction, Sayona will also undertake a conditional placement (“Conditional Placement”) for A$69 million in MergeCo to Resource Capital Fund. The companies say the the combination delivers scale, optimization and growth potential by creating the largest producer of hard rock lithium in North America. (NASDAQ: PLL; ASX: PLL)(ASX: SYA) News Release

Hercules Metals announced new drill intercepts from its Hercules Property in western Idaho. Hole 12 intersected 338m of 0.47% Cu, with the final 154m ending in 0.51% Cu and 104 ppm Mo, marking the first recorded increase in mineralization at depth on the Property. Final assays from hole 8 show alteration increasing from phyllic to outer potassic in the latter half. Furthermore, a north-south cross-section now demonstrates copper and potassic alteration are increasing towards the Grade Creek Zone, where a large untested chargeability and magnetic anomaly presents one of the most compelling targets for a vertically extensive early porphyry center. The company says modelling now constrains the geometry of a late porphyry intrusion, allowing drilling to focus on the significantly better grades in all directions. (TSXV: BIG) (OTCQB: BADEF) News Release

Brixton Meals reported its final batch of 2024 drill results from the Trapper gold target on the Thorn Project in British Columbia. Hole 311 yielded 48.5m of 1.16 g/t Au from a depth of 73m and included 3m of 5.67 g/t. Hole 310 returned 42m of .61 g/t and included a 9m interval of 1.16 g/t. The 2024 drill campaign at the Trapper Gold Target totaled 2,745.60m of drilling across 11 HQ-sized diamond drill holes. (TSX-V: BBB, OTCQB: BBBXF) News Release

Faraday Copper announced results of three drill holes from its ongoing Phase III drill program at the Copper Creek Project in Arizona. At Rum, hole 78 intersected 57.73 metres at 0.85% copper from surface. This intercept includes a zone of supergene copper enrichment of 23.25 m at 1.58% copper from 24.25 m. EAst of American Eagle, hole 76 returned 24.20 m at 0.45% copper and 1.51 grams per tonne ("g/t") silver from 176.36 m, within 69.45 m at 0.29% copper and 1.01 g/t silver from 160.55 m. The Company expects to include over 30,000 metres of incremental drilling in a mineral resource update planned for 2025, with the new targets representing a significant opportunity to enhance the project value. (TSX:FDY) (OTCQX:CPPKF) News Release

Kodiak Copper reported new drill results in a 200m step-out at the MPD porphyry project in British Columbia. HOles 13 and 15 discovered “adit-type” mineralization of copper-oxide at surface with sulphides at depth in an area not previously drilled. Hole 15 ended in four meters of .64% Cu, .14 g/t Au and 2.23 g/t Ag before the hole was lost. Results to date suggest the Adit, South, Mid and 1516 Zones are part of a larger near surface porphyry system covering three kilometres of strike and straddling the Summer's Creek fault. Kodiak's future drilling in this area will continue to target shallow copper within coincident copper-in-soils and a broad 3D induced polarization (3D IP) chargeability anomaly. (TSXV: KDK) (OTCQB: KDKCF) News Release

Elemental Altus Royalties announced its operating and financial results for the quarter. Royalty revenue of $3.7M and adjusted revenue of $4.8M were records for the company, up 32% on the quarter. Adjusted EBITDA of $3.7M was up 72% on the quarter. The company has $50M worth of available liquidity for non-dilutive royalty acquisitions. The company expects further revenue growth through increased royalties at Bonikro, Ballarat and SKO in 2025. (TSXV: ELE) (OTCQX: ELEMF) News Release

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That’s it for today everyone. Have a great day. Stay safe. 

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