Morning Briefing: Solaris take on $80M Financing Agreement for Warintza
Welcome to Mining Stock Daily. I’m Trevor Hall.
Today is Monday, December 11th
Last week the partially manipulated sell-off in the precious metals was punctuated on Friday with a $32 per ounce drubbing of gold and a 3.25% assassination attempt on silver. The Mining Stock Journal reminds the audience that the precious metals sector needed a corrective pullback to expunge the technically overbought condition of the sector as well as throw some ice water on the investor sentiment. That said, Friday's public execution of gold and silver reeked of some official intervention because the news release that sent the stock market soaring also should have been bullish for the precious metals sector.
The newsletter said that it expects more downside pressure to be applied to gold, silver and the mining stocks as gold, silver and the GDX are still technically overbought and are hanging above key moving averages like the Sword of Damocles. However, this pullback should set-up the next 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… 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….
Collective Mining announced assay results from the first four directional drill holes into the Apollo porphyry system at its Guayabales gold-copper-silver-tungsten project in Caldas, Colombia which have expanded the deposit to the southwest, and intercepted high-grade mineralization at the deepest vertical depth drilled to date. Highlights included 389.45m @ 1.36g/t gold equivalent up to 935m Below Surface in hole D4, which extended the system by 100m to the southwest. Apollo now measures 520m x 395m x 935m. Drilling continues with four rigs as part of a 42,000m program, with two at the Apollo and two at Trap. Collective Mining (TSX:CNL) news release
Nevada Gold Mines received a Record of Decision from the US Bureau of Land Management for the plan of operations for its new Goldrush underground mine at the Cortez Complex in Nevada, USA. The mine is expected to start ramping up production in 2024 after the commissioning of the initial project infrastructure and is forecast to produce 130,000oz next year, and grow to 400,000ozpa by 2028. More than US$370 million has been invested in the project to date and NGM anticipates making an investment of $1 billion to get to planned production.
Dundee Precious Metals published a maiden mineral resource estimate of close to 1.8 million ounces at its Čoka Rakita gold project in eastern Serbia. The resource now sits at 9.79 million tonnes (“Mt”) at a grade of 5.67 grams per tonne (“g/t”) for 1.78 million ounces of gold in the inferred category. DPM is continuing its drilling program focused on extending the limits of Čoka Rakita, which remains open to the northeast and to southwest, and is also aggressively pursuing additional skarn targets on the Čoka Rakita licence as well as on three additional licences to the north and the south. DPM will also drive the project towards a PEA in the second quarter of the coming year. (TSX: DPM) News Release
Gladiator Metals announced results from its recently completed diamond drill program at Cowley Park. highlights this morning included 26m of 1.49% Cu and 368 ppm Mo from a depth of 98m and included a 4m interval of 7.75% Cu and 686 ppm Mo. The company says the results confirm the width and continuity of high-grade mineralization previously targeted at Cowley Park with mineralization remaining open in all directions. A new zone of copper skarn mineralization has also been discovered in hole 015 with 10m @ 1.23% Cu intersected at 204m. This result lies only 50m to the south of the historical area of drilling. (TSXV: GLAD) (OTCQB: GDTRF) News Release
Solaris Resources entered into an US$80M financing agreement with Orion Mine Finance for the advancement of the Warintza copper project in Ecuador. The financing is comprised of a US$60 million four-year senior secured debt facility, an offtake with a buyback provision upon a change in control, US$10 million in equity and a commitment for US$10 million in additional equity financing. The first US$30 million is expected to close and be drawn down in the coming weeks. Another US$15 million can be drawn on the submission of an Environmental Impact Assessment, and a further US$15 million can be drawn on the publication of a Pre-Feasibility Study for Warintza. Under the offtake agreement, Orion can purchase 20% of metals produced from Warintza for 20 years from the start of production. Solaris Resources (TSX:SLS) News release
Heliostar Metals completed its warrant exercise incentive program with 17.5 million shares in the capital of the company exercised for aggregate gross proceeds of more than $5M. The proceeds of the Incentive Program will be used for exploration and development of the Ana Paula Project and for working capital purposes. (TSXV: HSTR) (OTCQX: HSTXF) News Release
The Mining Stock Daily morning briefing is produced by Clear Commodity Network 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.