Morning Briefing: SolGold Enters into Gold Stream Deal with Franco-Nevada and Osisko
Welcome to Mining Stock Daily. I’m Trevor Hall.
Today is Monday, July 15th.
Last week after a price-dip early in the week, the price of gold rallied on a benign CPI report and launched back over $2400 to close the week at $24.20 up $22, front-month Comex contract basis. Silver, on the other hand, was pushed lower as it dropped 54 cents from the previous week's close to $31.16. The Mining Stock Journal pointed out that silver held the $31 level, front month futures basis, the entire week which could be bullish. The mining stocks followed gold and the general stock market higher, with GDX jumping 5.3% for the week. The Mining Stock Journal noted that most of the action was concentrated on the producer mining stocks, thought the junior small caps started to see some buying late in the week
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… 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….
SolGold announced it has entered into a gold stream agreement with both Franco-Nevada and Osisko for the provision of US$750 million in project advancement funding and a proportion of development funding in exchange for a percentage of the gold produced from the Cascabel Project in Ecuador. They deal is comprised of two segment, of which Franco-Nevada and Osisko will contribute 70% and 30%, respectively. The initial deposit will be for $100M and paid over three tranches, which will be allocated towards de-risking, permitting, completion of the development funding package and completion of the feasibility study on the Project to take it to a Final Development Investment Decision. The remaining $650M will be contributed to funding the construction of Cascabel. Franco and Osisko will receive an amount in reference to 20% of the recovered gold in concentrate from Cascabel until 750,000 ounces of gold have been provided after which the percentage will reduce to 12% for the life of the mine. (LSE:SOLG) (TSX:SOLG) News Release
Sierra Madre Gold and Silver have a binding off-take agreement with Swiss-based global minerals trader, MRI Trading for the concentrates from the Guitarra silver and gold mine in Mexico. The agreement is for a 2 year term. MRI had previously received the concentrate from the time that the mine was last in production in 2018 and understands the high quality of the material. (TSXV: SM) (OTCQX: SMDRF) News Release
Calibre Mining announced a new 100,000m resource expansion and discovery drill program at the Valentine Gold Mine in Newfoundland and Labrador. The expanded program will include a robust geoscience initiative including a high-definition property wide LiDAR geophysical survey, till sampling and enhanced prospecting to assist with resource expansion and discovery drilling. This will be the largest pure exploration drilling campaign in Valentine’s history. This program is an addition to the current ore control RC dril program and the Winkie/RAB drilling program testing bedrock geology. (TSX: CXB; OTCQX: CXBMF) News Release
Exploits Discovery says they have discovered a new mineralized zone at the company’s Bullseye property which is located along the Appleton Fault Zone in Central Newfoundland. This newly discovered mineralized zone has been named the "Saddle Zone." Results from the discovery returned 67.55 g/t Au over 3.3m 85m below surface. Other results included 53.37 g/t Au over .6m and 35.82 g/t over .9m. The Bullseye claims were staked by Exploits in September 2022 and are contiguous to New Found Gold Corp.'s Queensway project. (CSE: NFLD) (OTCQB: NFLDF) News Release
Arras Minerals has commenced a 100-hole, 5,000-metre KGK drill program to explore a 6.5 km x 2.1 km buried chargeability anomaly identified by a Soviet era Induced Polarization("IP") survey on Arras's 100% owned Tay exploration License. The purpose of the KGK program is to sample the top of bed rock through the overburden to assess the geology and the cause for the chargeability high on the Tay License. Should the KGK drilling confirm the presence of a buried hydrothermal system or porphyry style alteration, the program will be followed up with a diamond drill program expected later in the year. (TSX-V:ARK) News Release
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