Morning Briefing: Rio2 Announces Construction Financing Package for Fenix
Good morning and welcome to the Mining Stock Daily Morning Briefing. I’m Trevor Hall.
Its Tuesday, October 22nd
Gold started moving higher Sunday evening and rallied all the way up to $2756 before a cliff dive when the NYSE opened Monday took it back down to as low as $2729. Gold bounced in the afternoon to settle at $2734, up $3.80 from Friday. Silver followed the same price-path as gold, trading as high as $34.50 December contract basis before the cliff-dive took it back down to as low as $33.66. Silver's afternoon bounce took it up to $33.98, up 73 cents from Friday. The mining stocks were marginally higher on the day after a big move higher at the NYSE open. The Mining Stock Journal commented that the sector looks a bit stretched and could use pullback to set up the next move higher.
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. Minera is built around its operating team which brought 4 mines into production in Mexico over the last 13 years. It is fully funded with over $20-million dollars in working capital. Learn more at mineraalamos.com.
And Here’s what you need to know this morning…..
Rio2 has arranged a mine construction financing package expected to total approximately US$150 million for construction and general working capital of the Company’s 100%-owned Fenix Gold Project in Chile. The finance package is comprised US$120M from Wheaton Precious Metals, an overnight market public offering for C$40 led by Raymond James and Eight Capital, and a non-brokered private placement of C$5M to Wheat. $100M of the Wheaton financing comes with a Flexible Prepay Arrangement, in which Rio2 can exchange a total of 95,000 of gold over 7 years to pay against the principal. The two companies have also amended its Gold Stream arrangement first put into place in the fall of 2021. (TSXV: RIO; OTCQX: RIOFF) News Release
Bunker Hill Mining provided an exploration update from the Bunker Hill Mine and its in-mine work to delineate targets designed to support higher run-of-mine grade they they move towards production in the first half of next year. This year’s campaign will consist of 19 drill holes in which the company aims to confirm historical drilling and update the compliant resource and reserves statement. An additional drill campaign, totaling 3,000 feet (~910 metres), is expected to commence in Q1|25. This program will follow up on vein-type drill intercepts centred around the historic drill hole #3402, completed before the closure of the mine in 1982. Early indications are this program, if successful, may significantly add to Bunker’s current silver resource. This material could be available for mining in 2025. (TSXV:BNKR|OTCQX:BHLL) News Release
Awalé Resources says they have uncovered a new and open 3.5 km long gold footprint next door to the BBM discovery. The company is calling it the Sienso gold footprint and it was revealed by the same Termite Mound sampling methodology used at BBM. It is situated within the 100% Awalé owned property. In this quarter, the Company will conduct IP geophysics over the new target area. If the results from the program align with the geochemical anomaly, an initial drill program will follow in Q1 2025. Surface Termitaria and Soil geochemistry will continue along the open southern extensions of the anomalies mentioned in this release as well as new programs along parralel structural targets further east within the Sienso permit area. (TSXV: ARIC) News Release
Silver Tiger reported its Preliminary Feasibilty Study for th eEl Tigre Project in Mexico. The PFS is focused on the conventional open pit mining economics of the Stockwork Mineralization Zone. The project current sits with an after-tax NPV of $222M with an IRR of 40%. The 10-year mine life would see the project recovering a total of 43 million payable silver equivalent ounces. Its initial capital costs of $86.8M has a payback period of 2 years. (TSXV:SLVR) (OTCQX:SLVTF) News Release
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