Silvercorp to Acquire Guyana Goldfields

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

Today is Monday, April 27th.

On Friday the gold price traded up to as high as $1761 on a June futures basis before getting slammed by the Comex price management team down to as low as $1726 by mid-day after the Comex floor trading commenced. The Mining Stock Journal said that this is standard operating procedure for the Comex on Fridays when Europe and London are winding down for the weekend leaving only the Comex paper trading operation open. Gold did manage to climb back to $1743 by the close of Friday's afternoon Globex session. Silver followed a similar pattern as it traded as high as $15.55 and as low as $15.10 per the May futures. The Mining Stock Journal noted that this upcoming week could spark fireworks in the spot gold price as there's been an unusually large build-up in open interest in the May contract which goes first notice on Wednesday afternoon. The newsletter added that entities which still own or have been buying the May contract likely will stand for delivery which will put upward pressure on the spot price of gold.

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 …

Silvercorp Metals will acquire all of the issued and outstanding shares of Guyana Goldfields. The Transaction will create a diversified precious metals producer with two profitable underground silver mining operations in China and a gold mining operation in Guyana with a strong balance sheet to fund growth opportunities. Under the terms of the Transaction, each holder of Guyana Goldfields shares will have the option to receive, for each Guyana Goldfields share held, C$0.60 in cash or 0.1195 of a Silvercorp common share, subject to a maximum cash consideration of C$33.2 million. The consideration of C$0.60 per share represents a 71% premium to the 20-day volume weighted average price of Guyana Goldfields as of the close of trading on April 24th. The implied equity value of the Transaction is approximately C$105 million. Silvercorp trades on the TSX and the NYSE with the symbol SVM. Guyana Goldfields trades on the TSX with GUY. News Release

Metalla Royalty and Streaming says it has entered into a share purchase agreement with Idaho Resources Corporation, a privately held Nevada corporation, whereby a wholly-owned U.S. subsidiary of Metalla will acquire 100% of the issued and outstanding shares of IRC for $4.0 million in cash and shares.  IRC holds a 0.5% gross overriding royalty on the Anglo/Zeke claim block in Eureka County, Nevada, which is located on trend to the southeast of the Cortez Operations and Goldrush project owned by Nevada Gold Mines.  They also hold a 1.5% gross overriding royalty covering NuLegacy Gold Corporation's Red Hill project in Eureka County, Nevada, which is contiguous to the southeast of the Anglo/Zeke claims. Metalla trades on the TSX Venture and the NYSE with the symbol MTA. News Release

Seabridge Gold says that an updated Preliminary Economic Assessment for its KSM project has confirmed the potential for a dramatic improvement in project economics by incorporating the recently expanded, higher grade Iron Cap deposit into mine plans. Highlights of this new PEA for the project included an after tax NPV of $6 billion using Base Case three-year average price assumptions of US$1,340/oz gold, US$2.80/lb copper and foreign exchange rate of US$0.76 per C$1.00. The 44 year mine life appears to produce 19.6 million ounces of gold and 5.4 billion pounds of copper from the measured and indicated categories plus an additional 20.8 million ounces of gold and 13.8 billion pounds of copper from the inferred category with a life of mine average operating costs of negative $472 per ounce of gold produced, net of copper and silver by-product revenues. Seabridge trades on the TSX with SEA and in the US with SA. 

MAG Silver Corp. announced it has arranged a non-brokered private placement with Mr. Eric Sprott, offering four and a half million common shares of MAG at a price of C$13.25 per Common Share for gross proceeds of C$60 million. MAG intends to use the net proceeds of the Offering to fund exploration and development of the Juanicipio Project and for working capital and general corporate purposes. The Offering is expected to close on or before April 30, 2020, subject to satisfaction of customary closing conditions including the approval of the Toronto Stock Exchange. MAG trades on the TSX and the NYSE American with the symbol MAG. News Release

Probe Metals has acquired SOQUEM’s 25% interest int he company’s Detour Quevec JV project. Once the acquisition is complete, Probe will own 100% interest in the project. Pursuant to the Transaction, the Company will acquire SOQUEM’s interest in the Project for a consideration of $425,000. At closing, Probe will issue 620,081 common shares to SOQUEM for a total value of $425,000 based on 20-day volume weighted average price of $0.68 per share on the TSX Venture Exchange. Probe trades on the TSX Venture with PRB and on the OTCQB with PROBF. News Release

On Friday, Contact Gold announced the closing of the first tranche of the non-brokered private placement offering resulting in the issuance of a total of 7.5 million units at a price of $.10 per Unit for gross proceeds of ¾ of a million dollars. Each Unit consists of one common share of the Company and one Common Share purchase warrant, with each Warrant entitling the holder to purchase an additional Common Share at a price of $0.15 per share for a period of 24 months from the closing date. Contact Gold trades on the TSX Venture with C and on the OTC markets with CGOL. 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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