Yamana to Acquire Monarch Gold
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Monday, November 2nd.
December gold on Friday rose as much as $33 from Thursday before settling up $12 at $1880. The Mining Stock Journal said gold benefited from a flight to safety move on Friday as well as torrid demand from India for gold bars that must be delivered physically into the country. December silver jumped as much as 70 cents on Friday and settled just below $23.70. The gold/silver ratio closed Friday at 79.50. The Mining Journal said that the charts for both gold and silver appear to have found support and seem to be basing for a move higher. The newsletter said that the gold/silver ratio chart similarly appears to have found resistance at the 80 level and is set-up for move lower. Away from flight to safety, a catalyst that could launch the precious metals higher would be another round of money printing from the Fed, which meets this week on Wednesday, with the policy statement and Fed Chairman press conference on Thursday afternoon. That said, the mining stock newsletter does not expect anything radical to be announced this week.
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… Minera Alamos.
Minera Alamos is a Mexico focused gold development company which is on the cusp of graduating to the ranks of gold producers in early 2021. Minera Alamos is traded with the symbol MAI on the TSX-V and with MAIFF in the US OTC Markets. Read more about their development strategies at mineraalamos.com.
And here’s what you need to know this morning.
Monarch Gold has entered into a definitive agreement with Yamana Gold to acquire the Wasamac property and the Camflo property and mill through the acquisition of all of the outstanding shares of Monarch for total consideration of approximately C$200 million or C$0.63 per Monarch share on a fully diluted basis. The total consideration to be paid by Yamana to the shareholders of Monarch is approximately C$60.8 million in cash and C$91.2 million in Yamana shares. Under the plan of arrangement, Monarch will first complete a spin-out to its shareholders, through a newly-formed company that will hold its other mineral properties and certain other assets and liabilities of Monarch, by issuing as consideration common shares of SpinCo having an implied value of approximately C$47.5 million. The transaction represents a 43% premium to the closing price of Monarch shares. Monarch Gold trades on the TSX with MQR and on the OTCQX with MRQRF. News Release
Ely Gold royalties has reached binding agreements with twelve separate individuals to purchase private mineral interests on over 8,000 acres of private fee ground in Elko County, Nevada. All of the fee ground and the Mineral Interests are currently leased to and cover certain portions of GSV's Railroad-Pinion Project that is currently being developed as a heap-leach mining operation. The Leases provide for a combined 1.15% net smelter returns royalty and annual lease payments of over $150,000. The Mineral Interests and Leases cover large portions of the Dark Star, Pinion and Jasperoid Wash deposits in the South Railroad Complex as well as portions of the POD and Bald Mountain zones in the North Railroad. Ely trades on the TSX Venture with ELY and on the OTCQX with ELYGF. News Release
CANEX Metals announced results from recent reverse circulation drilling at the company Gold Range Project in Arizona. Drilling at the western side of the Eldorado Target has discovered a new zone of disseminated gold mineralization. Results include 0.9 g/t gold over 27.4 metres within a larger interval grading 0.5 g/t Au over 50.3 metres starting from surface in strongly oxidized material. The discovery remains open in all directions. Canex trades on the TSX Venture with CANX. News Release
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I’m Trevor Hall. Have a wonderful day. Be well.
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