Morning Briefing: IAMGOLD in Consolidation Mode with Acquisition of Two Explorers
Good morning and welcome back to the Mining Stock Daily morning briefing.
It's Monday, October 20th.
The precious metals complex was hammered lower in what could be an expected profit taking move. Not only was gold and silver lower, but the miners outpaced the sell-off which is typical when chips come off the table. Even with the dark red day on Friday, the metals and the miners were still able to have positive weekly moves. We will see how long the correction lasts, if at all, because this morning gold is back to levels it closed at on Thursday of last week, currently $4,300/oz on the December contract, while silver is back trading over $51 an ounce. Not much economic data is expected this week, with exception of inflation rates out on Friday. But that, once again, would be delayed under the continued US government shutdown.
We’ll get to the news from the miners and explorers here in a moment, but first a quick word about today’s sponsor.
This episode of Mining Stock Daily is brought to you by… Integra Resources
Integra is a growing precious metals producer in the Great Basin of the Western United States. Integra is focused on demonstrating profitability and operational excellence at its principal operating asset, the Florida Canyon Mine, located in Nevada. In addition, Integra is committed to advancing its flagship development-stage heap leach projects: the past producing DeLamar Project located in southwestern Idaho, and the Nevada North Project located in western Nevada. Learn more about the business and their high industry standards over at integraresources.com
And here’s what you need to know this morning…..
IAMGOLD has entered into an agreement to acquire all of the issued and outstanding shares of Northern Superior Resources. The Transaction will consolidate Northern Superior's significant land package and notable deposits, including Philibert, Chevrier and Croteau, with IAMGOLD's Nelligan and Monster Lake Projects. The combined assets, together the "Nelligan Mining Complex", will rank as one of the largest pre-production gold camps in Canada with Measured and Indicated Mineral Resources of 3.75 million ounces of gold and Inferred Mineral Resources of 8.65 Moz Au. The close proximity of the primary deposits to each other supports the conceptual vision of a central processing facility being fed from multiple ore sources within a 17-kilometre radius. Northern Superior's shareholders will receive 0.0991 of an IAMGOLD common share and C$0.19 in cash for each common share of Northern Superior. This implies total consideration of C$2.05 per Northern Superior Share, a total transaction value of approximately $267.4 million and represents a premium of 27.4% based on the 20-day volume-weighted average prices. (NYSE: IAG) (TSX: IMG) (TSXV: SUP) (OTCQB: NSUPF) News Release
And IAMGOLD isn’t done there. They are also in agreement to acquire Mines D’Or Orbec. he acquisition will consolidate IAMGOLD's existing ownership of Orbec Shares through which the Company will add the highly prospective Muus Project, which is adjacent to the Company's Nelligan and Monster Lake Projects in the Chibougamau region of Quebec. Orbec shareholders will receive total consideration representing a value of C$0.125 per Orbec Share in a cash and shares transaction comprised of C$0.0625 per Orbec Share and 0.003466 of an IAMGOLD common share ("IAMGOLD Shares") for each Orbec Share. This implies a total equity value based on fully diluted shares outstanding, net of IAMGOLD's ownership, of C$17.2 million and represents a premium of approximately 25% to the closing price of the Orbec Shares on Friday. The Muus Project would contribute 24,979 hectares ("ha") of mineral rights within the immediate area of IAMGOLD's properties which total 38,403 ha. (TSXV: BLUE) News Release
Arizona Sonoran Copper has published its new pre-feasibility study results for the Cactus Project in Arizona. Using a base case $4.25/lb Cu, the project economics sit at a $2.3B NPV and an IRR of 22.8% after-tax. The open-pit and SXEW operation would produce approximately 103,000 tonnes of estimated average annual copper cathodes over the first 10 years of mining. The project’s payback period under these estimates is 5.3 years with all-in sustaining cost of $1.62 per pound of copper. The company is now moving forward with a definitive feasibility study, work on permitting of the project, and a path towards project financing. (TSX:ASCU | OTCQX:ASCUF) News Release
Collective Mining provided an exploration update from the Guayabales Project and the San Antonio Project. The Company has ten diamond drill rigs operating and remains on track to complete its recently revised forecast of approximately 60,000 metres of drilling in 2025. The company noted the possibility of significant mineralization from drilling the Ramp Zone in hole APC143-D1, which is the deepest elevation drilled to date at Apollo. Assays for this hole are expected in 4-6 weeks. Another rig is expected to start drilling Target X this week, where the company recently announced a new greenfield silver discovery of 12.85m of 503 g/t AgEq. At the San Antonio Project, the company is awaiting assay results from hole 24, which visually, according to the company, encountered a zone of intermediate sulphidation sheeted veinlet mineralization was intersected beginning at approximately 75 metres downhole which continued for up to 225 metres in length. A second, albeit narrower zone of similar style sheeted veinlet mineralization has been logged from approximately 430 metres to 500 metres downhole. Finally, porphyry style mineralization was encountered beginning at around 725 metres downhole and has been logged with various degrees of intensity until the end of the hole at 1,072 metres. (NYSE: CNL) (TSX: CNL) News Release
Vizsla Copper announced drill results form four holes completed during the Phase 1 drill program at the Thira porphyry discovery, Poplar Project, central British Columbia. Results reported today were highlighted with 237.3m of .51% CuEq in hole 145 and 240m of .39% CuEq in hole 144. Mineralization remains open in every direction. Expanded soil geochemical and IP geophysical surveys are ongoing. The surveys are designed to identify additional porphyry centers and prioritize new drill targets across the ~8 by 2 kilometer, mostly till-covered Thira alteration corridor. A phase 2 drill program is being planned to further evaluate the potential size and scale of Thira. (TSXV: VCU) (OTCQB: VCUFF) News Release
Prospector Metals announced final assy results from 12 holes from the Skarn Ridge - Bueno Trend. Drill results include 2.97 g/t Au over 25m from 137m downhole (ML25-014), 61.45 g/t Au over 1.9m from 21.9m downhole plus 4.64 g/t Au over 10m from 51m downhole (ML25-022), and 141 g/t Au over 0.5m from 63.75m downhole (ML25-023). The next phase of exploration will include follow up drilling on both the TESS-Java and Skarn Ridge-Bueno discovery areas, as well as further exploration of the prospective 4km gap between these zones. (TSXV: PPP) (OTCQB: PMCOF) News Release
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That’s it for today everyone. Have a great day. Stay safe.
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