Morning Briefing: Two Billion Dollar Deals in Mining Today
Good morning and welcome back to the Mining Stock Daily morning briefing. I’m Trevor Hall.
It's Tuesday, May 27th.
With markets closed in the US yesterday, we look back at the week prior. The precious metals ended the week on a positive note with gold’s front month contract seeing lots of buying as the US stock market continued to see more volatility after President Trump’s EU tariff comments, which he would later backtrack over the weekend. Gold closed at $3,365/oz, up more than 2%. However, that has mostly been given back over global trading in the past 24 hours. Even with the gold market and the gold miners seeing positive results, the big bull market story came Friday after market close with the Executive Order out of the White House which sets to establish nuclear energy as a cornerstone to the American energy strategy. Uranium equities in both US and Canada soared Friday in anticipation of the news, while Canadian equities continued the momentum yesterday while the US was celebrating the holiday.
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…..
Franco-Nevada has entered into an agreement to acquire an existing royalty package on the Côté Gold Mine in Ontario from a private third party for total cash consideration of just over $1B. The royalty package consists of a 7.5%1 gross margin royalty on the Côté Gold Mine. The Royalty applies, on a 100% basis, to mineral production from the Chester 1, 2 & 3 claims which cover all of the Mineral Reserves and over 99.9% of current Mineral Resources on the Côté Gold Mine. Royalty deductions include cash operating costs and exclude all capital, exploration, depreciation and other non-cash costs. The Côté Gold Mine is operated through an unincorporated joint venture by IAMGOLD and is owned by both IAMGOLD and Sumitomo Metal Mining. (TSX: FNV) (NYSE: FNV) News Release
MAC Copper has entered into a binding scheme implementation deed with Harmony Gold Mining Company and Harmony Gold (Australia) under which it is proposed that Harmony Australia will acquire 100% of the issued share capital in MAC. Under the terms, MAC shareholders will receive US$12.25 (A$18.931) cash per MAC share, representing a diluted equity value of MAC of just over $1Billion USD. That's a 20% premium to the last closing price on the NYSE as of Friday. The board of MAC unanimously supports the Transaction and unanimously recommends that MAC shareholders vote in favour of the Scheme, in the absence of a Superior Proposal. (NYSE:MTAL, ASX:MAC) News Release
Kenorland Minerals has acquired 125,430 hectares of mineral claims within the Onaman-Tashota Greenstone Belt in Northern Ontario called the Kowkash project as well as 119,779 hectares of mineral claims located in Central New Brunswick called the Atlantic Project. In addition, Kenorland has entered into a purchase and sale agreement with a private BC company pursuant to which Kenorland has purchased a 100% interest in 31,052 hectares of mineral claims adjacent to the Atlantic Project. Kowkash and Atlantic were acquired through staking while the purchase agreement for the adjacent land was purchased through the issuance of common shares and a .5% net smelter return royalty. (TSXV: KLD) (OTCQX: KLDCF) News Release
After the official restart announcement of the Madsen Mine last week, West Red Lake Gold is back with more drill results from the South Austin area of the mine. Today’s results are 50 meters up-dip in the zone and returned 12.1m @ 61.51 g/t Au including 1m of 725 g/t Au while another hole returned 8.35m @ 43.54 g/t Au and included a 1m interval of 347.81 g/t Au. The current underground drilling program at the Madsen Mine is focused on further definition of near-term mining inventory, as well as growth of the current mineral resource. Drilling has been focused on the more continuous and higher-grade portions of the Austin, South Austin, North Austin and McVeigh Zones. This will continue to be the strategy through 2025. (TSXV: WRLG) (OTCQB: WRLGF) News Release
Anfield Energy says the U.S. Department of the Interior (“DOI”) has approved the Company’s Velvet-Wood uranium project in San Juan County, Utah. Velvet-Wood was previously selected as part of the federal government’s national response to the energy emergency declared by President Donald J. Trump. Velvet-Wood was the first uranium project to be prioritized under newly established emergency procedures that accelerate the environmental review process for critical energy infrastructure. The Bureau of Land Management (“BLM”) completed its review of the project in less than 14 days. (TSX.V: AEC; OTCQB: ANLDF) News Release
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That’s it for today everyone. Have a great day. Stay safe.
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