The Epic Trilogy of Guyana Goldfields
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Thursday, June 4th.
On Wedneday the prices of gold and silver were given another push lower, with 90% of that push occurring during Comex floor trading hours, which is nothing more than a euphemism for the paper gold derivatives market. Gold closed on top of its 50 day moving average after spiking below the key moving average during the Comex trading session. The Mining Stock Journal commented that, while anything is possible, it does not expect the gold price to fall much below its 50 day moving average other than briefly if at all. Silver had 30 cents removed from its price during the day on Wednesday. It performed in-line with gold and the gold/silver ratio was unchanged at 94 and change. The mining stocks per the GDX ETF were hit for 3.7% but closed above the 50 dma. The Mining Stock Journal said it that the current price pullback is a buy opportunity and, while the sector could go lower, this sell-off will be short-lived.
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 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 …
The bidding war continues for Guyana Goldfields. Yesterday, after market closed, Guyana Goldfields announced they have received a new offer from a foreign-based multinational mining company for the acquisition of Guyana Goldfields. The Board of Directors of the Guyana Goldfields has unanimously determined, after consultation with its financial and legal advisors, that the New Offer constitutes a "Superior Proposal" in accordance with the terms of the arrangement agreement between the Company and Silvercorp Metals
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. In this deal, Guyana shareholders would received cash consideration of C$1.85 for each Common Share, valuing Guyana Goldfields at approximately C$323 million. The New Offeror has also agreed to provide the Company with a US$30 million secured loan facility to finance ongoing operations of the Aurora gold mine and to fund other liquidity needs of the Company. Based on the closing price of the Silvercorp common shares on the Toronto Stock Exchange as of June 3, 2020, the Superior Proposal represents a premium of approximately 35% to the implied value of the consideration offered pursuant to the Silvercorp Arrangement Agreement. Guyana Goldfields trades on the TSX with the symbol GUY. News Release
Western Copper and Gold has shared their exploration plans for the Casino Copper-Gold Project in the Yukon. The 2020 drill program will test the High Gold Zone, Northern Porphyry and Canadian Creek Targets identified by last year's program. Drilling will be performed by three diamond drill rigs, and will initially consist of 43 holes between 150 metres and 500 m in depth. It is expected that drilling will commence mid-June and be completed by the end of the third quarter. Western Copper and Gold trades on the TSX and the NYSE with WRN. News Release
O3 Mining announced it has expanded its current drill program in Val D’Or, tripling its 50,000 meter program to a 150,000 meter drill program. The exploration budget has also increased to C$24 million. The drilling strategy consists of development and advanced exploration at Malartic, resource development and exploration at Alpha and more advanced exploration drilling at East Cadillac. O3 Mining trades on the TSX Venture with OIII. News Release
Pure Gold announced the commencement of their 2020/2021 exploration and resource growth program at its Red Lake Mine in Red Lake, Ontario. ver 30,000 meters of diamond drilling, including both underground and surface drilling, is planned to optimize the near term mine plan, expedite the growth of our mineral resources and aggressively expand new high-grade discoveries. The company says While they remain completely focused on our fully-funded mine construction and ramp up, they also strongly believe in the potential for their mineral reserves and mine production to grow, and their new program is designed to start building our future growth today. Pure Gold trades on the TSX Venture with PGM. News Release
Gaia Metals has entered into an arm's-length, non-binding, letter of intent with DG Resource Management Ltd, whereby the Company may acquire a 100% undivided interest in the Freeman Creek Property. The Property consists of 76 claims covering approximately 599 hectares and is located on BLM lands, outside of US Forest Service Lands and other protective areas, within the state of Idaho, USA. The Freeman Creek Property is located approximately 15 km northwest of Salmon, Idaho, and is accessible via paved highway and a network of gravel roads and trails. Gaia trades on the TSX Venture with GMC and on the OTCQB with RGDCF. News Release
And yesterday, Treasury Metals announced it has entered into a definitive share purchase agreement with First mining pursuant to which Treasury will acquire aloof the issued and outstanding shares of Tamaka Gold, a wholly owned subsidiary of First Mining which owns the Goldlund Gold Project, which is located adjacent to Treasury’s Goliath Gold Project in Northwestern Ontario. Goldlund hosts a large near-surface gold resource estimated to contain 809,200 ounces of gold in the Indicated category, plus 876,954 ounces of gold in the Inferred category. Treasury Metals trades on the TSX with TML. News Release
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