Morning Briefing: Wesdome to Acquire Angus Gold while Precious Metals See Slight Bounce this Morning
Good morning and welcome back to the Mining Stock Daily morning briefing. I’m Trevor Hall
It's Monday, April 7th.
The volatility throughout global markets continued its route through the day on Friday and into the overnight trading Sunday night and into this morning. While major indices were hammered lower by double digits throughout the last few days of trading, gold ended the week down a meager 1.5%, closing above the $3,000/oz mark at $3,035. Silver’s move could be classified as an utter rug pull without much support. It lost 16% in the last two days of trading last week and closed the week below its $30 mark at $29.23. The miners followed suite with the rest of the market and saw people selling anything they could, including the profitable miners as the GDX dropped 8.5% on the week. But there is a bit of good news this morning. Despite futures markets opening yesterday last afternoon and dropping anywhere from 4-5% at the open, both gold and silver saw a huge rebound as Asia came to the window for financial insurance in the precious metals. The US equities in pre-market trading are also well off their Sunday evening lows.
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…Integra Resources
Integra is a growing precious metals producer in the Great Basin of the Western United States. Integra is focused on demonstrating profitability and operational excellence at its principal operating asset, the Florida Canyon Mine, located in Nevada. In addition, Integra is committed to advancing its flagship development-stage heap leach projects: the past producing DeLamar Project located in southwestern Idaho, and the Nevada North Project located in western Nevada. Learn more about the business and their high industry standards over at integraresources.com
And here’s what you need to know this morning…..
M&A News this morning with an announcement that Wesdome Gold Mines will acquire all of the issued and outstanding common shares of Angus Gold. Wesdome will acquire Angus for $0.62 cash plus 0.0096 of a Wesdome share (the “Offer”), representing an aggregate value of $0.77 per Angus common share, based on the closing price of Wesdome’s common shares on the Toronto Stock Exchange on Friday. The Offer represents a premium of 59% to Angus’ 20-day volume-weighted average price. The deal quadruples Wesdome’s land position at Eagle River, consolidating two adjacent properties into one ~400 km2 contiguous strategic land package situated on a highly prospective greenstone belt. The expanded footprint hosts multiple targets and mineralization styles. (TSX: WDO, OTCQX: WDOFF) (TSX-V: GUS, OTC: ANGVF) News Release
Defiance Silver has entered into a non-binding letter of intent to acquire Green Earth Metals which is a private company with assets in Mexico. GEMS holds rights to three drill-permitted copper-gold-silver-molybdenum projects in Mexico's Sonoran Desert porphyry copper belt, covering a total of 6,795.22 hectares. The acquired projects are strategically located near Alamos Gold's operating Mulatos Mine, where the recently permitted "Puerto del Aire" mine-extension is under development. The area hosts top tier copper deposits, including the Cananea and La Caridad Cu-Mo±Au porphyry systems. With drill permits already in place, Defiance plans to launch a comprehensive exploration campaign, including a diamond drill program at the Victoria project. (TSXV: DEF) News Release
FPX Nickel has extended the company’s Global Generative Exploration Alliance with JOGMEC. FPX and JOGMEC have agreed to convert the arrangement into an open-ended joint venture going forward. The program will remain focused on the global identification and acquisition of high-quality awaruite nickel properties similar in geological character to the Company's flagship Baptiste Nickel Project in central British Columbia. FPX assumes majority position in the Generative Alliance, contributing 60% of expenditures and thereby securing 60% ownership in new joint venture projects generated by the Generative Alliance going forward. (TSXV: FPX) (OTCQB: FPOCF) News Release
Kenorland Minerals has obtained the approval from the TSX Venture Exchange for a new normal course issuer bid. Under the NCIB, Kenorland may purchase up to 3,875,552 Common Shares, which represents approximately 5% of the Shares outstanding. The Board of Directors believes the underlying value of the Company may not be reflected in the current market price of its Shares. As a result, depending upon future price movements and other factors, the Board believes that the Shares may represent an attractive investment to the Company and their purchase is an appropriate use of the Company's financial resources and in the best interests of the Company and its shareholders. (TSXV: KLD) (OTCQX: KLDCF) News Release
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That’s it for today everyone. Have a great day. Stay safe.
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