SilverCrest C$75 million Financing, Equinox Merger Complete, COVID-19 and PDAC
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Wednesday, March 11th.
Gold and silver, especially gold, were down somewhat sharply on Wednesday as were the mining stocks. However, the mining stocks bounced back in the last hour of trading, with both the HUI index and GDX closing green. The Mining Stock Journal said that, based on the February BIS statement of account, the BIS was actively implementing gold price control operations via gold swaps. In addition Privately Negotiated Transactions and Exchange For Physical transactions over the last week as reported by the Comex show that the Fed and the big banks were implementing gold price control activities aggressively over the past 5 days. The Mining Stock Journal said that it suspects the intense Central Bank price management operations were in preparation for the announcement of massive fiscal and monetary stimulus from Central Banks globally and especially the Fed and the U.S. Government. It added that every sell-off in gold, silver and mining stocks should be seen as a buying opportunity if not an outright gift from the precious metals gods.
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.
Equinox Gold and Leagold announced they have completed their proposed merger yesterday. Equinox Gold now has six producing mines, two development projects, two expansion projects and, according to Executive chairman Ross Beaty, the financial capacity to fund its development plans. Leagold shares are expected to be de-listed today. Leagold shareholders will receive 0.331 of an Equinox Gold common share for each Leagold share held. Each Leagold warrant and option will become exercisable for Equinox Gold common shares, as adjusted in accordance with the exchange ratio. The US$670 million debt and equity financings associated with the merger have also been completed. Equinox Gold trades on the TSX and the NYSE with EQX. News Release
Wesdome shared they Q4 and Year End financial and production numbers yesterday. The company said Production increased by 28% over 2018 while Cash costs decreased by 9% over 2018. Eagle River reserves increased by 36% net of production, and reserve grade increased by 20%. Measured and Indicated resources increased by 258%. In 2020 Wesdome plans to further increase production at Eagle River Complex, with guidance of 90,000 – 100,000 ounces, and increase the exploration and definition drilling to over 105,000 metres. The Eagle River operations generated $48.4 million of free cash flow, of which the majority was reinvested in major exploration programs at Kiena. Wesdome trades on the TSX with WDO and on the OTC with WDOFF.
SilverCrest Metals announced this morning it has entered into an agreement with a syndicate of underwriters to which they have agreed to purchase, on a bought deal basis, 9.1 million common shares of the company at a price of C$8.25 for gross proceeds of $75 million. The Company intends to use the net proceeds of the Offering for the continued exploration and development of the Company’s Las Chispas Project and for general working capital and administrative purposes. The Offering is expected to close on or about April 3, 2020 and is subject to a number of conditions, including receipt of all necessary securities regulatory approvals and the approval of the Toronto Stock Exchange and NYSE American. The Company will pay the Underwriters a cash commission of 5% of the gross proceeds of the Offering.
Genesis Metals says it has commenced its Phase 1 drill program for 2020 at the Chevrier Gold Project in the eastern Abitibi Greenstone Belt in Central Quebec. The program is fully funded and is expected to drill up to 8,000 meters. Drilling will initially target two areas of the deposit with holes ranging from 140 to 470 metres depth. The property is contiguous with the Monster Lake gold project and 20 kilometers northeast of the new IAMGOLD Corporation/Vanstar Mining Resources Inc. Nelligan gold discovery. Genesis trades on the TSX Venture with GIS. News Release
Treasury Metals and Platinex are combining land packages in the Shining Tree District in northern Ontario. Treasury will transfer a 100% interest in its 280 claim unit 5,045 Ha. Shining Tree Fawcett East property to Platinex, to create the largest combined gold focused property package in the Shining Tree District, according to Treasury. Platinex will also receive royalties comprising four Ontario and Chile based exploration projects covering gold, PGM's and base metal opportunities. Treasury will receive 12 and a half million shares of Platinex and 5 million non-transferable common share purchase warrants. Each Consideration Warrant will be exercisable at a price of $0.05 per share for a period of three years. Treasury trades on the TSX with the symbol TML. Platinex trades on the CSE with the symbol PTX. News Release
And on a final note, CBC News reported Sudbury has confirmed its first case of COVID-19 and the gentleman did attend PDAC last week. Medical professionals are asking those who attended PDAC 2020 to monitor for symptoms for 14 days. Please stay vigilant and cautious as you go about your days.
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Have a wonderful day. Be well.
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