Morning Briefing: Silver47 and Summa Silver to Merge Companies
Good morning and welcome back to the Mining Stock Daily morning briefing. I’m Trevor Hall.
It's Tuesday, May 13th.
Gold and gold stocks were taken to the cleaners yesterday and optimism in trade talks between the US and China welcomed risk into US equities once again. Gold fell three and a half percent on the day, closing at 3,228 per ounce. The price did find support and bounced at $3,212, a line which has acted as support in recent weeks. Moving averages continue to grind their way higher in an attempt to meet current price levels, as gold continues to consolidate. Despite the price gouge yesterday, the upward trend remains intact. But on big down days in gold, the gold miners typically attempt to do worse, and that was the case yesterday. The GDX and the GDXJ were down more than double that of gold on a percentage basis, as they lost 7 and 8 percent respectively.
Silver was down 8/10ths yesterday as it continues to hang out within the $32 range.
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…Vizsla Silver.
Vizsla Silver is focused on becoming one of the world’s largest single-asset silver producers through the exploration and development of the 100% owned Panuco-Copala silver-gold district in Sinaloa, Mexico. The company consolidated this historic district in 2019 and has now completed over 375,000 meters of drilling. The company has the world's largest, undeveloped high-grade silver resource. Learn more at https://vizslasilvercorp.com/
And here’s what you need to know this morning…..
Silver 47 and Summa Silver are merging. Both companies have entered into an arm’s length definitive agreement for an at-market merger. The entity will continue under the name Silver47 Exploration Corp. The Combined Company will become a premier high-grade silver focused explorer and developer with a portfolio of silver-rich mineral resource staged projects in the United States (Alaska, Nevada and New Mexico). Collectively, the Companies' mineral resources equal approximately 10 Moz AgEq at 333 g/t AgEq of indicated mineral resources and 236 Moz AgEq at 334 g/t AgEq inferred mineral resources. Following completion of the Transaction, the Silver47 Shares will continue trading on the TSXV and the Summa Shares will be de-listed from the TSXV. The two companies have also entered into a $5M financing to see the deal through. (TSXV: AGA) (OTCQB: AAGAF)(TSXV: SSVR) (OTCQX: SSVRF) News Release
G2 Goldfields shared diamond drill results from the Peters Mine Property in Guyana. The Peters Mine Property is part of a regional portfolio of gold properties in the historic Oko-Aremu-Peters Mine district, Guyana. The project lies approximately 35 km southwest of the Company’s flagship OKO property which hosts mineral resources of 1.5 million ounces of gold Indicated and 1.6 million ounces of gold Inferred. The primary purpose of the recent drill program was to provide vital geological and structural information in several areas of known gold mineralisation. Results inlucded 76m of 1.5 g/t Au and 42m of .8 g/t. (TSX: GTWO; OTCQX: GUYGF) News Release
Northern Superior Resources says they have discovered a new zone beneath and south of the current resource at the Philibert gold property in Quebec. Drilling there returned 18m of 2.48 g/t Au with 4.9m grading just over 7 g/t. Other results reported this morning were 50.3m of .7 g/t and 32.6m of .48 g/t. The Philibert property is located 9km from IAMGOLD’s Nelligan project. (TSXV:SUP) (OTCQB:NSUPF) News Release
West Red Lake Gold reported new drill results from the Madsen Mine. Today’s results focused on the South Austin Zone and were located directly below Stope 6 from the recent bulk sampling campaign and have defined the Stope 6 mining panel an additional 40 metres down plunge. This area is also approximately 300m down plunge from the exceptional South Austin intercepts previously announced in February. Today’s results included 18.7m of 48.97 g/t Au, 4.5m of 52.86 g/t Au and 7.5m of 25.49 g/t Au. The purpose of this drilling was definition and expansion within priority areas of South Austin to continue adding to an inventory of high-confidence ounces to support the restart of production at the Madsen mine, with ramp-up to commence during H2 2025. (TSXV: WRLG) (OTCQB: WRLGF) News Release
District Metals announced a non-brokered private placement financing for $6M. The Shares offered under the Listed Issuer Financing Exemption Offering, which includes most of the capital, will not be subject to a hold period in accordance with applicable Canadian securities laws. The Company intends to use the net proceeds of the Offering to fund exploration activities on the Company's projects in Sweden, and for general corporate purposes. (TSXV: DMX) (Nasdaq First North: DMXSE SDB) (OTCQB: DMXCF) News Release
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That’s it for today everyone. Have a great day. Stay safe.
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