Morning Briefing: Royal Gold to Acquire Great Bear Royalties
Welcome to Mining Stock Daily. I’m Trevor Hall.
Today is Wednesday, July 11th.
Last week in the holiday shortened, light volume week, the gold price was ambushed from $1815 all the way down to $1730 before rising to settle the week at $1740. The Mining Stock Journal said that the entire price decline occurred Tuesday and Wednesday and was triggered by overt predatory selling at the p.m. London price fix both days. Mining Stock Journal said that gold is getting spanked by hedge fund algos, which are programmed to sell paper gold in response to the recent big moves higher in the dollar index. But the dollar is rising primarily vs the euro and the yen. The Mining Stock Journal said this is indicative of a massive credit market problem brewing similar to 2008 that will eventually lead to a migratory flood of flight-to-safety capital into all forms of gold and silver. Speaking of poor man's gold, silver was clubbed like a baby seal on Tuesday last week, flash-crashing from just above $20 to as low as $18.80 before settling the week at $19.42. The stunning volatility is a product of extreme position shifting in the Comex paper silver market. The Mining Stock Journal said that, as it predicted, the COT report for last week showed that the hedge funds went net short paper silver while the banks increased their net long position and the commercial users and producers reduced their hedges. The newsletter said that this trend bears watching closely because when the COT structure has developed in the past like this, it has led to investible bottoms in the entire precious metals sector.
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….
Royal Gold and its subsidiary, International Royalty Corporation, has entered into a definitive agreement with Great Bear Royalties to acquire all of the issued and outstanding common shares of GBR for cash consideration of C$6.65 per common share. The Acquisition Price represents a 43% premium over GBR’s 20-day volume weighted average trading price on the TSXV up to and including July 8, and values GBR at approximately C$199.5 million on a fully diluted basis. The Acquisition has been unanimously approved by the boards of directors of both Royal Gold, Inc. and GBR, and the Board of Directors of GBR has resolved to recommend that the shareholders of GBR approve the Acquisition. GBR’s sole material asset is a 2.0% net smelter return royalty that covers the entirety of the Great Bear Project in the Red Lake district of Ontario, Canada, indirectly owned and operated by Kinross. There is a provision in the terms for the ability of Kinross to purchase a 25% interest in the Royalty for an amount equal to 25% of IRC’s purchase price of GBR, adjusted for inflation, at any time from the transaction closing date until the earlier of a construction decision for the Great Bear Project and 10 years after the transaction closing date. Royal Gold trades on the NASDAQ with RGLD. News Release
Arizona Sonoran Copper has entered into a one year exclusivity period with Rio Tinto Venture Nuton™. The exclusivity was triggered by successfully modelling the Cactus and Parks/Salyer ore samples and achieving the previously contemplated indicative metallurgical recoveries of at least 72%. Nuton will continue to test the application of its copper heap-leach related technology to the primary sulphide component of the Cactus Mine and Parks/Salyer Projects through column leaching and scoping out capital and operating costs and design parameters. Arizona Sonoran Copper trades on the TSX with ASCU and on the OTCQX with ASCUF. News Release
ValOre Metals announced multiple PGE assay results from the follow-up Trado auger program at the Ipueiras target on the Pedra Branca Platinum Group Elements Project in Brazil. Results included 8 meters grading 2.05 g/t tonne palladium, platinum and gold just 1 meter below surface and 6m of 3.6 g/t palladium, platinum and gold from just 2 meters depth. The company says Trado® end of hole depths typically represent that the auger has entered impenetrable unweathered bedrock, so mineralization and ultra-mafic rocks (“UM”) present at EOH remain open at depth and require follow-up core or RC drilling. ValOre Metals trades on the TSXV with VO and on the OTC with KVLQF. News Release
Blackrock Silver shared new drill results from the company’s scout-drilling program on the Tonopah North project located in West Central Nevada, adjacent to the Company's Tonopah West project along the Walker Lane trend. Blackrock has completed ten reverse circulation drillholes in the Tonopah North project as part of a scout-drilling program to test for the margins of the Tonopah caldera system. All drillholes penetrated cover rocks known to host lithium deposits in the region including the TLC deposit, which is located within five kilometres of the drilling. A significant zone of lithium-bearing material was intersected. Lithium values up to 852 ppm lithium within a 23-metre thick section of the Siebert Tuff was discovered. Blackrock Silver trades on the TSXV with BRC. News Release
That concludes today’s morning briefing.
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