Archive | Junior Exploration Sector

Canada’s Boutique-Broker Bust May Be Over But Lessons Remain – by Kristine Owram (Bloomberg News – June 26, 2017)

https://www.bloomberg.com/

The crisis that wiped out a quarter of Canada’s independent brokers seems to have halted. Four new firms signed up with the Investment Industry Regulatory Organization of Canada in the first five months of 2017 and only two deregistered. That compares with net dropouts over the last four years as plunging commodity prices and higher compliance costs favored big banks.

Boutique dealers were also battered by Canadian investors’ post-crisis aversion to risk capital, which prompted them to avoid the kind of companies that typically work with smaller brokerages. Such firms funnel research and capital into small and mid-cap companies, which account for more than a quarter of volume traded in Canada’s equity markets.

“Life for independents has gotten better over the last six months,” Dan Daviau, chief executive officer of Toronto-based independent broker Canaccord Genuity Group Inc., said by phone. “Investors are all of a sudden saying, ‘Hey, I don’t mind taking a little more risk, I don’t mind investing in an early-stage tech company or a mining company that’s just discovering stuff.’” Continue Reading →

Canada’s First Cobalt braves political risk to pile in to Congo – by Aaron Ross (Reuters U.S. – June 23, 2017)

https://www.reuters.com/

KINSHASA – With Western companies in Democratic Republic of Congo treading carefully in the face of political turbulence and a worsening business climate, Canada’s First Cobalt Corp is an unlikely newcomer to the central African nation’s mining scene.

Several of the Toronto-based firm’s workers are former employees of First Quantum Minerals, whose prized Kolwezi project was expropriated in 2010 in an episode that underscored the risks of investing in Congo. But for First Cobalt CEO Trent Mell, the logic of entering a country responsible for nearly two thirds of global cobalt output as the electric vehicle market booms is simple.

“The bottom line is: No DRC, no Tesla,” he said, referring to the U.S. automaker. “You can’t fill the void when you have 64 percent of production coming out of the DRC.” Demand for the metal, a key component in the lithium-ion batteries that power electric cars and mobile phones, is surging. Consultancy CRU Group say electric car and plug-in hybrid vehicle sales could quadruple to 4.4 million in 2021. Continue Reading →

BUILDING A MINER IN THE GOLDEN TRIANGLE – by James Kwantes (Resource Opportunities – September 16, 2016)

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IDM Mining (IDM-V) site visit

Getting to IDM Mining’s Red Mountain gold project in northwestern British Columbia wasn’t quite “planes, trains and automobiles,” but it was close. First I flew from Vancouver into Smithers. There’s some family history in the neighbourhood — down the road is Houston, where my grandfather settled with his family after emigrating from the Netherlands. There’s some family history for IDM CEO Rob McLeod, as well.

From Smithers it was into a rental car for the 330-kilometre trek to Stewart, nestled beside the Alaska panhandle. Jagged mountain peaks and tall waterfalls make the final approach beautiful.

A helicopter picked me up for the last leg to Red Mountain, 15 kilometres northeast of Stewart. It was a cloudy day, so the pilot had to take the “long way,” threading his machine through the Bitter Creek Valley to the site. It’s the same route the road will take from Stewart — in the helicopter, it was still only about 10 minutes. Continue Reading →

“This transaction will … [create] one of the largest cobalt exploration companies in the world” – by Staff (Mining Journal – June 22, 2017)

http://www.mining-journal.com/

Australian-based Cobalt One has entered a trading halt pending an announcement on the merger proposal. The two companies signed an option agreement earlier this month whereby First Cobalt was granted an option to acquire 50% of Cobalt One’s cobalt assets in the Cobalt region of Ontario.

Cobalt One’s assets include a cobalt refinery while First Cobalt’s assets include the former producing Keeley-Frontier silver-cobalt mine in Ontario and cobalt exploration ground in the Democratic Republic of Congo.

Under the “friendly merger” proposed by First Cobalt, Cobalt One would hold 60% of the enlarged company, with its chairman Paul Matysek, CEO Jason Bontempo and director Bob Cross to go onto the First Cobalt board. Continue Reading →

Harte Gold’s Sugar Zone just the ‘tip of the iceberg’ analyst says – by Trish Saywell (Northern Miner – June 16, 2017)

Global mining news

Harte Gold Corp’s (TSX: HRT) Sugar zone deposit in northern Ontario will be in commercial production in the second quarter of 2018, chairman and CEO, Stephen Roman, told The Northern Miner’s Canadian Mining Symposium in London.

When Roman took over management of the company at the request of shareholders in 2009, Sugar was known to contain around 200,000 ounces of gold.

But the mining executive, who had sold Gold Eagle Mines the year before to Goldcorp (TSX: G; NYSE:GG) for $1.5 billion, had a hunch that the project, 25 km northeast of White River and 60 km east of the Hemlo area gold mines, held an awful lot more gold than that. Continue Reading →

ETF rebalancing a bumpy ride for junior gold miners – by Joyita Sengupta (Globe and Mail – June 14, 2017)

https://www.theglobeandmail.com/

In an unprecedented move, one of the most popular junior gold miner exchange-traded funds is set to rebalance on Friday after growing too large for its market. After months of volatility, miners and investors alike are preparing for even more uncertainty.

Cursed by its own success as a $4-billion (U.S.) ETF in a $30-billion space, VanEck Vectors Junior Gold Miners ETF (GDXJ-N) began to expand beyond the index it tracks, the MVIS Global Junior Gold Miner’s Index.

Combined with VanEck’s Vectors Gold Miner ETF, (GDX-N), the company is nearing the significant shareholder status point of 20-per-cent ownership in several companies, many of which are Canadian, which means special filing requirements and significant trading restraints. Continue Reading →

‘Auspicious’ time for M&A, yet difficult to secure capital – mining survey – by Henry Lazenby (MiningWeekly.com – June 6, 2016)

http://www.miningweekly.com/

VANCOUVER (miningweekly.com) – There is a clear indication that mergers and acquisitions (M&A) activity among smaller players in the mining sector will increase this year, while the majors will increase divestitures to focus on core commodities.

This will, in turn, benefit some of the midtiers that are able to make acquisitions, a recent survey by international executive search firm Pedersen & Partners has found. Nearly 80% of the 114 executives surveyed by Pedersen & Partners suggested that M&A activity will likely be part of their 2017 strategy.

Pedersen & Partners commented on Monday that, internationally, transactions in 2016 were mostly on the divestment side as companies sought to reduce debt. Looking to this year, it appears that the sector will build slowly and begin to improve more rapidly toward the end of the year. Continue Reading →

Women in Mining: Judy Baker exploring for gold in Wawa and Red Lake – by Frank Giorno (Timmins Today – June 5, 2017)

https://www.timminstoday.com/

‘For women who have the drive to succeed, the opportunity is there’

Throughout Canada’s mining history, strong women leaders have made their mark in the mining industry beginning with Kathleen Rice and Viola McMillan in the early and mid 20th Century.

In the first decade and a half of the 21st Century, Judy Baker of Argo Gold and Ingrid Hibbard of Pelangio Gold, both spoke at the 2017 Canadian Mining Expo in Timmins, Ont. about their respective companies and the work they are doing to explore and bring into production their properties.

Baker and Hibbard follow the trail blazed by Kathleen Rice, a mining pioneer of the 1920s who explored nickel deposits near Thompson, Man. and set up gold mines in the Snow Lake area of Northern Manitoba; and Viola McMillan, who found several gold mines in the Timmins Porcupine camp of the 1950s, 1960s and 1970s. McMillan also served as the president of the Prospectors and Developers Association for many years. Continue Reading →

Having hit potential ‘tale of the tiger’, reinvigorated Northern Superior gathers momentum – by Henry Lazenby (MiningWeekly.com – June 1, 2017)

http://www.miningweekly.com/

VANCOUVER (miningweekly.com) – Junior exploration company Northern Superior Resources is building on the strong momentum gained in recent months, making two new gold discoveries at its Croteau Est project, in Quebec, and gearing up for further exploration at its key assets.

“It’s very exciting to get back to exploration again,” president and CEO Dr Thomas Morris told Mining Weekly Online in a recent interview (see attached video). “We find ourselves flush with cash and the aim is to demonstrate growth in terms of ounces.”

Morris pointed out that at March 31, the company had cash and cash equivalents of C$6.61-million, comprising C$2.11-million of flow-through funds, and working capital of C$5.55-million. Continue Reading →

Gold and Canada offer safe havens for investors – by Len Gillis (Timmins Daily Press – June 1, 2017)

http://www.timminspress.com/

TIMMINS – Mining companies are looking to invest in Canada because it is a safe place to be, along with having with some of the best-qualified mining people in the world. And that’s all good news right now for gold mining.

That was part of the message this week from Judy Baker, the president and CEO of Argo Gold. She will be one the speakers at the Investor’s Forum, which is part of the Big Event Canadian Mining Expo on at the McIntyre Community Building this week. Baker spoke briefly Wednesday at the opening ceremonies of the Big Event and encouraged those in the crowd to take an interest in the forum.

“The junior mining companies need your support and your interest,” she said. “Without exploration activities we wouldn’t have mining development.” Argo Gold is an exploration company active in the Red Lake area and the Wawa camp. Continue Reading →

Pasinex shines at Pinargozu mine in Turkey – by Salma Tarikh (Northern Miner – May 1, 2017)

http://www.northernminer.com/

Pasinex Resources — the 50%-owner of the high-grade Pinargozu zinc mine in southern Turkey — has seen its shares climb more than 300% over the past year. Driving the share-price appreciation have been improvements at the Pinargozu mine and the soaring zinc price following supply shortages.

In a telephone interview from Turkey, Pasinex’s founder and CEO Steve Williams says the company has just started reaping the production benefits at Pinargozu.

“The big thing with us was that the last few years were terrible and tough times. And we took the decision to build the mine. This year is where we are really going to benefit … And we expect to show the market that we will have a very good year of zinc production.” Continue Reading →

Cobalt junior miner preps for summer drill program – Staff (Northern Ontario Business – May 18, 2017)

https://www.northernontariobusiness.com/

A Toronto-based cobalt junior miner is combining old mining data with modern technology to assess if an historic mining property can be put back into operation using bulk mining techniques.

First Cobalt announced it has started fieldwork on its 2,100-hectare Keeley-Frontier Mine property and surrounding exploration claims at Silver Centre, 25 kilometres south of the historic mining town of Cobalt.

The company’s stated objective is to assess the property for its potential as a large-scale, bulk mining operation, “something which has not been considered previously for this historic mining district,” according to a May 18 new release. Continue Reading →

Hookers and Blow: The Only Real Metric in the Junior Mining Industry – by Peter Clausi (InvestorIntel.com – May 3, 2017)

https://investorintel.com/

Peter M. Clausi is an experienced investment banker, executive and director and CEO for CBLT Inc., formerly known as Green Swan Capital.

We have suffered through at least four years of soul-sucking mining markets. The pain has shot through the juniors, the intermediates, even the mighty senior producers.Many in the industry this year have been quick /eager/ desperate to call a recovery. “It’s over!” we shout, with fingers crossed, hoping that saying it makes it true.

PDAC 2012: ah, the good ole days. Every booth in the trade show and the investor side was spending marketing money. The parties were huge. Treasuries were full. Scotch tastings, a banquet of food and 35,000 people wedged into downtown Toronto for The Mining Show. Companies were on undisciplined buying sprees, spraying capital like water from a hose. That’s what the smell of gold near $1,800 an ounce will do.

Fast forward to PDAC2014. Think Cormac McCarthy’s The Road, the great Irish potato famine, Mad Max, Fort McMurray after the fire, the dark side of the moon. That year, attendance fell to about 25,000, with empty booths artfully draped to cover up the holes. Continue Reading →

NEWS RELEASE: Eldorado to Acquire Integra Gold Corporation (May 15, 2017)

http://www.eldoradogold.com/

VANCOUVER, May 15, 2017 /CNW/ – Eldorado Gold Corporation (the “Company” or “Eldorado”) is pleased to announce that it has entered into a definitive agreement with Integra Gold Corp. (“Integra”) (TSXV:ICG) (the “Arrangement Agreement”), pursuant to which Eldorado has agreed to acquire all of the issued and outstanding common shares of Integra that it does not currently own, by way of a plan of arrangement (the “Arrangement”) under the Business Corporations Act (British Columbia).

Under the Arrangement, shareholders of Integra will be entitled to receive, at their option, for each Integra share they own either (i) 0.24250 Eldorado shares, (ii) C$1.21250 in cash, in both (i) and (ii) subject to pro ration, or (iii) 0.18188 of an Eldorado share and C$0.30313 in cash.

The maximum number of shares issuable by Eldorado under the Arrangement will be approximately 77 million (based on the number of Integra shares outstanding less Integra shares currently owned by Eldorado). The maximum amount of cash payable by Eldorado under the Arrangement will be approximately C$129 million equal to 25% of the total consideration. The total transaction value is approximately C$590 million, inclusive of Integra shares held by Eldorado. Continue Reading →

Money From The Mines! – Copper $$$ Allowing ‘Everybody To Eat A Food’ – by Ryon Jones (Jamaica Gleaner – May 14, 2017)

http://jamaica-gleaner.com/

It could be another 15 years before Carube Copper Corp begins mining in Jamaica, but residents in several communities around the exploration sites are already seeing benefits from the Canadian company’s presence.

More than 600 persons have been employed on a on-and-off basis over a five-year period, with an employment cycle typically lasting for three weeks with workers earning between $2,500 (eight hours) and $3,500 (11 hours) per day. Carube, which is a junior mining company, has seven special exclusive prospective licences to explore for copper and gold across the island.

Bellas Gate, St Catherine, is, however, the most advanced exploration and the one believed to have the most potential. This is now the site of focus with Carube having reclaimed Oz Minerals’ 70 per cent interest in their joint venture last year. Continue Reading →