Jim's Mining Letter - November 12, 2024

Hot Chili (HCH.ASX HCH.V HHLKF) announced that the company has entered into a three-year option agreement to acquire a 100% interest in the historical La Verde open pit copper mine, which lies approximately 30 kilometres south of the company’s Costa Fuego copper-gold project planned central processing hub in the coastal range of the Atacama region, Chile. La Verde comprises significant historical open pit workings, where shallow porphyry copper oxide mineralisation was previously exploited by private interests across a strike extent of approximately 800 metres, widths of up to 200 metres and depths of up to 15 metres. Historical drilling was limited to the surrounding leases, with little to no drilling undertaken across the mine area. Importantly, says the company, La Verde sits in the centre of Hot Chili’s recently consolidated and larger Domeyko landholding, secured in an option agreement in April 2024. The execution of the La Verde option agreement marks the first time that the entire La Verde porphyry system has been consolidated and controlled by a single party, allowing for drill testing across a potentially much larger porphyry copper deposit footprint, measuring approximately 1.4 kilometres by 1.2 kilometres. The company has undertaken several exploration programs across the Domeyko region since April of this year. These programs were extended over the La Verde copper mine area as part of the company’s due diligence process, prior to the option agreement execution. Hot Chili commenced a first-pass drill program at La Verde, comprising eleven RC drill holes for approximately 4,000 metres, on 30 October 2024 with one drill rig in operation. Two drill holes for 800 metres are already complete, confirming wide intersections of porphyry-style copper mineralisation in both holes, based on visual logging, with assay results pending. The company says it is well positioned with A$25.7 million in cash…more

Aldebaran Resources (ALDE.V ADBRF) announced that it has entered into an option to joint venture with Nuton Holdings, a Rio Tinto venture, whereby Nuton can acquire a 20% indirect interest in the Altar project by making staged payments totaling $250 million. This is non-dilutive financing with an upfront payment of $10 million, $20 million projected for Q4 2024 after the publication of an updated mineral resource estimate if Nuton elects to proceed, $30 million projected for Q2/Q3 2025 after the publication of a preliminary economic assessment that includes a Nuton case if Nuton elects to proceed and a final payment of $190 million after the publication of a pre-feasibility study that includes a Nuton case, expected in 2026 if Nuton elects to exercise the option. Aldebaran remains the operator. Nuton’s proprietary sulphide leaching technologies could add significant value to the Altar project by reducing the costs and capital required for development.

Ariana Resources (AAU.L 4A6.F) announced that it has entered into a strategic project financing agreement for the provision of an aggregate loan of up to $5 million, of which an initial $2 million has been advanced. The company plans to utilise these funds primarily to commence a feasibility study on the Dokwe gold project. The investor has further agreed to cornerstone an equity investment of a minimum of A$350,000 and up to A$500,000 into the planned ASX capital raise as part of the anticipated ASX dual-listing. Ariana can utilise additional funds up to an aggregate of $5 million over four years, which, combined with future capital arrangements the company may separately enter into, provides funding flexibility as the Dokwe project is advanced towards construction. The agreement has been arranged by RiverFort Global Capital  and the investor may elect to convert the balances outstanding into shares…more

Resolute Mining (RSG.ASX RSG.L RMGGF) confirmed that the company’s CEO, Terence Holohan, and two other employees, have been detained in Mali by government officials. The executives were in Bamako to hold discussions with the mining and tax authorities regarding general activities related to Resolute’s in-country business practices, and to progress open claims made against Resolute, which the company maintains are unsubstantiated. Following the conclusion of these meetings, the three employees were unexpectedly detained. Medcaw Investments (MCI.L) also announced a detention, in this case of a director of a subsidiary of Abyssinian Metals, which is reversing into the company. The claimed unlawful seizure and detention of the director occurred during a negotiation process under the Agreement on Encouragement and Reciprocal Protection of Investment between the Federal Democratic Republic of Ethiopia and the Kingdom of The Netherlands.

NexGold (NEXG.V NXGCF TRC.F) and Signal Gold (SGNL.TSX SGNLF Y8B.F) announced that the companies have closed their oversubscribed and upsized concurrent financings for aggregate gross proceeds of C$18.5 million. The financings were carried out in connection with the proposed plan of arrangement, pursuant to which NexGold will acquire all of the shares of Signal to create a near-term gold developer, advancing NexGold’s Goliath gold complex project in Northern Ontario and Signal’s Goldboro project in Nova Scotia. NexGold has also continued the agreement with i2i Marketing Group, which will work to facilitate investor awareness about NexGold and its assets. i2i has been paid an additional $250,000 to develop required content and for advertising for up to six months or until such funds last. After exhaustion of the additional funds the budget may be adjusted monthly based on market conditions and NexGold’s requirements…more

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