Morning Briefing: Funding Secured for Minera's Cerro de Oro

Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.

Today is Wednesday May 31st. 

After selling off Monday evening and into early Tuesday morning, the gold price shot up from $1950 to as high as $1982 per ounce starting during the period of time when trading transitions from the eastern physical markets to the paper gold markets in London and New York. The yellow metal settled at $1977. Silver followed a similar trading path, albeit choppier, as poor man's gold sold down to $23.05 per ounce, testing that key level of support and then jumped up to $23.45 before fading to settle at $23.29. The Mining Stock Journal said it could not find any specific catalyst that helped to push gold higher on the day other than the fact that the debt ceiling issue appears to likely be settled, which means a lot more new Treasury issuance which should be dollar bearish and gold friendly. Silver actually closed lower vs the global close on Monday. Perhaps in correlation with the decline in the Dow. 

The mining stocks were down slightly Tuesday, with the GDX trading in a narrow trading range and closing down 0.7%. The Mining Stock Journal said that the precious metals sector could be finding a bottom though it would not be surprising if the banks make one more aggressive effort to push the paper prices of gold and silver lower in order to consolidate and shrink their large net short exposure to gold and silver Comex futures.

We will get to the news from the miners and explorers in a moment, but first a word about today’s sponsor.

This episode of Mining Stock Daily is brought to you by…Western Copper and Gold. 

Western Copper and Gold is focused on developing the world-class Casino project in Canada's Yukon Territory. The Casino project consists of an impressive 11 billion pounds of copper and 21 million ounces of gold in an overall resource. Western Copper and Gold trades on the TSX and the NYSE American with WRN. Be sure to follow the company via their website, www.westerncopperandgold.com.

And here’s what you need to know this morning….

Minera Alamos has arranged a funding package for construction of the Cerro de Oro gold mine in Mexico anticipated to begin next year. It signed a termsheet for a US$15 million Loan Facility and US$10 million Royalty. The US$15 million loan has a 3 year term with interest charged at 1.25% per month on any drawn amount. US$5 million will be available to draw down immediately to fund pre-permit activities. The US$10 million royalty is a 2.75% NSR on all metal production from Cerro de Oro. The company can buy back a 2% NSR within 30 months post by delivering a minimum 3200 oz of gold and paying US$6.3 million. The royalty holder will retain the option to sell the remaining 0.75% to Minera for US$3.7 million. It said the low capital cost of Cerro de Oro allowed it to consider less covenant heavy terms that provide for increased flexibility. Minera Alamos (TSXV:MAI) news release

Eldorado Gold entered into agreements with respect to a C$81.5 million strategic investment by the European Bank for Reconstruction and Development (EBRD). EBRD will subscribe for 6.3M shares at C$13 in a Private Placement. The proceeds will be invested in the Skouries project in Northern Greece, and be credited against the Company’s 20% equity funding commitment under the terms of the project financing facility. Eldorado also entered into an agreement with BMO Capital Markets and National Bank Financial for a C$135M bought deal. Eldorado Gold TSX:ELD news release

GoGold Resources announced additional drilling results from Los Ricos South, within the Eagle Deposit, including an exceptionally wide, high-grade intercept from hole 165, which intercepted 50m grading 1,126 g/t silver equivalent, including 7.8m grading 6,334g/t AgEq, one of the best holes drilled to date within the Los Ricos district. The company anticipates that results like these could add significantly to its upcoming revised resource and preliminary economic assessment to be completed this summer, which are its next milestones. A pre-feasibility study will follow before year end. GoGold Resources (TSX: GGD) (OTCQX: GLGDF) news release

Aldebaran Resources reported results for hole 225B from ongoing drilling at the Altar copper-gold project in San Juan Province, Argentina. The hole was drilled to test the continuity between mineralization encountered in holes 223 and 224, and to provide another pierce point into the geophysical anomaly below and lateral to the current resources at Altar. Highlights included 1,056m of 0.56% CuEq from 291 m depth including 951m of 0.60% CuEq. The hole confirms that the mineralized footprint of the Altar system is much larger than previously understood. The company said the hole shows previous drilling on the project merely scratched the surface of what is shaping up to be an extremely large copper system. Aldebaran Resources (TSX-V: ALDE, OTCQX: ADBRF) news release

Faraday Copper announced results from five drill holes at its Copper Creek Project in Arizona. Highlights included 484.81m of .42% copper, with a 103.26m interval of .79% copper. This hole was outside of the current underground mineral resource, highlighting the resource expansion potential to the west of Keel and at depth. Phase II drilling is focused on expanding the MRE, better delineating high-grade zones and testing new targets. This program is expected to conclude in the first week of June 2023. Twenty-seven drill holes have been completed and the results for twenty drill holes have been released to date. The assay results for additional completed drill holes will be released as they are received, analyzed and confirmed by the Company. (TSX:FDY) (OTCQX:CPPKF) News Release

Aurion Resources entered into an option agreement with Dragon Mining to acquire and eliminate all encumbrances, including a 3% Net Smelter Return Royalty on the Kutuvuoma and Silasselkä projects, originating from the purchase agreement dated May 23, 2014, for a total consideration of €5M and 37,500 Aurion shares. (TSXV: AU) (OTCQX: AIRRF) News Release

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