Osprey Gold and MegumaGold Announce Merger; Gold Soars

Welcome to Mining Stock Daily. This is your host, Trevor Hall

Today is Tuesday, March 24th.

Gold jumped over 6% and $107 futures basis over night, trading around $1675 level. It did make a solid attempt at $1700 but fell short. Silver was also trading closer to its $14 mark. Not only is gold moving on safe haven demand and the announcement by the Fed on more aggressive measure to keep the market functioning in the United States, including For the first time, purchases of corporate bonds, backstop direct loans to companies and will "soon" roll out a program to get credit to small and medium-sized business. News was also shared that three of the world’s largest gold refineries have suspended production in Switzerland for at least a week to help combat the spread of the coronavirus. 

We’ll get to the news out of the miners and explorers here in just a quick moment, but first a quick mention of today’s sponsor. 


This episode of Mining Stock Daily is brought to you by... Integra Resources

Integra Resources trades on the TSX-V under ITR and the OTCQX under IRRZF. Integra Resource is advancing its past producing DeLamar (DeL - a - Marr ) Gold-Silver project in SW Idaho through aggressive drilling and exploration. The latest Resources Estimate released earlier this summer showed approximately 4 million Gold equivalent ounces in the measured and indicated category.The maiden PEA for the project established a net present value of C$473-million and an IRR of 43%. The management of Integra successfully sold its previous brownfields project for C$590 million in summer 2017. Read more about the company and its successful management team at integraresources.com.

And here’s what you need to know this morning out of the junior sector. 

Osprey Gold announced yesterday afternoon that they have entered into a letter agreement pursuant to which MegumaGold would acquire 100% of the issued and outstanding shares of Osprey via a business combination. Osprey’s exploration licences all sit contiguous with MegumaGold claims in the heart of the Meguma gold district. Osprey’s main focus is developing the Goldenville Project, located in Nova Scotia’s largest historic gold district within the Meguma Supergroup. Under the agreement, each shareholder of Osprey will receive MegumaGold shares on a two to one ratio. For reference, The Moose River Consolidated Project, which was recently purchased by St. Barbara from Atlantic Gold, is currently producing gold from the Touquoy open-pit mine located approximately 10 km south of Osprey’s Caribou Project and 4 km west of MegumaGold’s Touquoy West Project. Osprey Gold trades on the TSX Venture with the symbol OS. MegumaGold trades on the CSE with the symbol NSAU.

Contact Gold announced rock sampling results from the Tango target at its Green Springs project located on the Cortez Trend in Nevada. There are 26 samples ranging from 0.1 g/t Au to 1.52 g/t Au across the target area. In this morning’s press release, CEO Matthew Lennox-King said Tango is the most obvious drill target he has ever seen and much of the team’s rationale for acquiring Green Springs was to begin aggressively testing for one million + ounce Alligator Ridge type deposits hosted at the base of the Pilot shale formation. The Green Springs project is fully permitted under a 70-acre Plan of Operations permit from the United States Forestry Service. Contact Gold trades on the TSX Venture with C and on the OTC markets with CGOL. News Release

Luminex REsources released Condor Camp Zone drilling results and included 3.12 g/t gold and 68.2 g/t silver over 44 meters. The Camp Zone remains open at depth and along strike. Future drilling will continue with two drills, one focusing on expansion of the Camp zone targets at depth and one testing shallow surface targets between the Camp Zone and the known mineralization at the Soledad deposit. However, the company has elected to temporarily pause drilling due to the recent events from COVID-19. 

Other companies announcing suspension of work this morning included Balmoral Resources, Alamos Gold, and Aston Bay. 

And now joining us is Kai Hoffman to deliver this week’s Oreninc Weekly Update in financings. 

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Novo Resources announced it has finalized the acquisition of a 100% interest in exploration licenses from Artemis Resources Limited and certain Artemis joint venture partners and dissolved the remaining Novo-Artemis joint ventures. As consideration for the Transaction, Novo issued 1,640,000 common shares and paid A$820,000 to Artemis. Novo also issued 360,000 common shares and paid A$180,000 to Sorrento Resources Pty Ltd, one of Artemis’ joint venture partners on the 47K project. News Release

Nexus Gold announced it has completed an offering of 8,980,000 units by way of non-brokered private placement at a price of $0.05 per Unit for gross proceeds of $449,000. Each Unit consists of one common share of the Company, and one common share purchase warrant exercisable to acquire an additional share at a price of $0.07 for a period of sixty months. (TSXV:NXS) News Release

That’s it from me this morning. We’ll be back throughout the rest of the day today and tomorrow with more commentary. Be sure to hit that subscribe button if you have not done so already. 

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