Morning Briefing: Summit Royalties to Acquire Star Royalties in New M&A Deal
Good morning and welcome back to the Mining Stock Daily morning briefing.
It’s Monday, March 16th
The markets traded risk off for most of the week last week as investors and traders attempted to find some clarity for an off-ramp in escalations in the Middle East. The GDX and GDXJ traded in the red the last 3 days of the week. Gold’s favorable trend is still in tact, despite the front month contract price coming fairly close to its 50DMA in this morning’s session, where it seems to have found a bit of support and bounced higher off its lows. The $5,000 mark continues to be well rounded support for the yellow metal. The conflict in the middle east continued through the weekend as President Trump has called for an international coalition to secure the Strait of Hormuz, while Iran maintains it controls the waterway and will only close it to its "enemies." Amidst this volatility, oil benchmarks have hit record highs due to supply disruptions, while heavy bombing continues in Beirut's southern suburbs.
We will get to the news out of the miners and explorers in a minute, 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…..
Summit Royalties and Star Royalties are combining. Summit has agreed to acquire all of the issued and outstanding common shares of Star of C$0.60 per Star Share based on the Exchange Ratio and the closing price of the Summit Shares on the TSX Venture on Friday. This implies a 32% premium as to its 20-day volume weighted averages of both shares and a fully-diluted in the money equity value of the transaction of C$51M. The deal brings in a gold stream on the Coperstone asset in Arizona, which Minera Alamos continues to develop and move forward towards a commencement of productions, which is anticipated for later this year. (TSXV: SUM, OTCQB: SUMMF) (TSXV: STRR, OTCQX: STRFF) News Release
Eldorado Gold has received its Operating Authorization for the Ormaque deposits at the Lamaque Complex in Val-d’Or, Quebec. The Operating Authorization allows Ormaque to mine and deliver high-grade underground ore to the Sigma Mill and unlocks the value of development capital already invested at the Lamaque Complex. Eldorado will continue drilling to test lateral and depth extensions at Ormaque as part of a broader exploration program across the Lamaque — Bourlamaque properties. In parallel with permitting and exploration success across the Lamaque Complex, Eldorado is advancing studies to position the Sigma mill for a potential increase in throughput from its current capacity of approximately 2,500 tonnes per day (“tpd”) towards its fully permitted capacity of 5,000 tpd. (TSX: ELD, NYSE American: EGO) News Release
Southern Cross Gold published results from four drill holes from the Sunday Creek Gold-Antimony Project in Victoria, Australia. All four holes delivered high-grade gold-antimony mineralization, demonstrating the continuity and predictability of the upper Apollo system. The highlight results this morning was 17.3 m @ 22.9 g/t AuEq (15.3 g/t Au, 3.2% Sb) from 251.1 m. Multiple intervals in these holes exceeded 20% antimony, consistent with the zonation model that predicts the richest antimony grades in the upper 700 m of the system. That is strategically important given current antimony prices and global supply constraints. (TSX: SXGC) (ASX: SX2) (OTCQX: SXGCF) News Release
Banyan Gold published new drill results which returned new high-grade silver intercepts from the AurMac Proejct in Yukon. At the Airstrip Deposit, drilling returned 3,408 g/t Ag over 1.4m. Drilling at Powerline returned 880 g/t Ag over 1.5m, 20.35 g/t Ag over 5.8m and 731 g/t Ag over .8m. At least eight distinct Keno veins have been identified across an approximately 2km x 3km zone. (TSX-V:BYN) (OTCQB:BYAGF) News Release
Great Pacific Gold reported new channel and rock-chip sampling at the Magiabe West beingvein discovery. Samples returned 137 g/t Au 3.97% Cu and 76 g/t Ag, confirming the presence of high-grade polymetallic epithermal vein mineralization within the southern portion of the Wild Dog Structural Corridor. These results confirm that quartz-sulphide mineralization continues along strike and within adjacent structures, supporting the interpretation that the Magiabe area represents a broader mineralized structural corridor rather than a single isolated vein, and highlighting the potential for additional high-grade shoots along strike and at depth. (TSXV: GPAC) (OTCQX: GPGCF) News Release
American Pacific Mining has initiated its MT geophsyical survey at the Madison Copper-Gold Project in Montana. The survey will consist of approximately 100 MT stations deployed across the property on a combination of 250-metre and 500-metre grid spacing . The program is designed to image subsurface resistivity contrasts to depths of approximately 1-2 kilometres, targeting additional concealed skarn clusters and porphyry centres believed to be the potential source of both the copper-gold skarn mineralization historically mined at Madison. (CSE: USGD) (OTCQX: USGDF) News Release
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That’s it for today everyone. Have a great day. Stay safe.
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