Jim's Mining Letter - October 29, 2024

Founders Metals (FDR.V FDMIF 9DL0.F) announced the closing of its bought deal private placement offering of 8,340,000 common shares at a price of C$2.40 per share for aggregate gross proceeds of C$20,016,000. The company intends to use the net proceeds for ongoing exploration activities on the Antino gold project and general corporate purposes. Securities issued will be subject to a hold period under applicable securities laws in Canada expiring four months and one day after the closing of the offering. The Antino gold project is located in Suriname, South America, comprises 20,000 hectares and has produced over 500,000 ounces of gold from surface and alluvial mining to date. The company will complete 45,000 metres of drilling in 2024 and is fully funded for 60,000 metres in 2025…more

Boss Energy (BOE.ASX BQSSF B8Y.F) reported that the production ramp-up at its 30 per cent-owned Alta Mesa uranium project in Texas has passed another important milestone, with the first of three IX (ion exchange) plants nearing flow capacity. The first IX plant was commissioned in June 2024 with the second IX plant planned to commence operation in the first quarter of 2025 and the third IX plant planned to be online by year end of 2025. Ion exchange is a filtration system which removes liquid uranium from groundwater before being dried and processed into uranium yellowcake (U3O8). Alta Mesa is ramping up to an annualised production rate of 1.5 million pounds of UO8. Boss’ share of this production is 30 per cent. The production update was reported by Alta Mesa’s 70 per cent owner enCore Energy (EU EU.V 6TU.F). Per Paul Goranson, enCore’s Chief Executive, the company continues to work towards reaching full capacity through 2025 with plans to be fully operational at all three ion exchange plants…more

NexGold Mining (NEXG.V NXGCF TRC.F) and Signal Gold (SGNL.TSX SGNLF Y8B.F) announced that, due to significant demand, its previously announced concurrent financing has been oversubscribed and the companies are increasing the aggregate financing size to up to C$17 million, subject to an option to further increase the financing by an additional 15%. The concurrent financing is being 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 project in Northern Ontario and Signal’s Goldboro gold project in Nova Scotia. Pursuant to the revised financing structure, Signal will now offer up to 103,388,857 subscription receipts at a price of $0.08705 per receipt for gross proceeds of up to $9 million, with an option to offer up to an additional 15,508,328 receipts for additional gross proceeds of up to $1,350,000. The terms of the flow-through offering of NexGold will remain unchanged other than the increase in the amount of the offering. NexGold will now offer up to 10,000,000 units at a price of C$0.80 per unit. The net proceeds of the Signal financing are expected to be used by the combined company to fund the retirement of certain debt, the exploration and advancement of the Goliath project and the Goldboro project and for working capital and general corporate purposes. An amount equal to the gross proceeds from the issuances of the NexGold shares will be used to fund advancement of NexGold’s projects, which would include Signal’s projects assuming closing of the transaction…more

Collective Mining (CNL CNL.TSX GG1.F) announced that due to strong demand, it has increased the size of the bought deal to 7,000,000 common shares at a price of C$5.00 for gross proceeds of C$35 million. The company also has granted the underwriters an option to purchase up to an additional 1,050,000 shares to cover over-allotments and for market stabilization purposes. If the over-allotment option is exercised in full, the aggregate gross proceeds of the offering will be approximately C$40 million. The company intends to use the net proceeds to fund ongoing work programs to advance the Guayabales project, to pursue other exploration and development opportunities, and for working capital and general corporate purposes. Collective is a copper, silver, gold and tungsten exploration company with projects in Caldas, Colombia. The company has options to acquire 100% interests in two projects located directly within an established mining camp with ten fully permitted and operating mines. Management, insiders, a strategic investor and close family and friends own nearly 50% of the outstanding shares…more

Osisko Development (ODV ODV.V 3OZ0.F) announced that its private placement offering of units of the company was oversubscribed and has been fully allocated. An aggregate of 31,944,700 units are expected to be issued at a price of $1.80 per unit for gross proceeds of $57,500,460. The offering, together with recent financings, strengthens the company's balance sheet and provides the resources necessary to fund key upcoming milestones at the Cariboo gold project, including the final stages of its permitting process, an updated feasibility study and the ongoing bulk sample work. It will also accelerate pre-construction activities. All securities issued under the offering will be subject to a hold period expiring four months and one day from the closing date…more

Ioneer (INR.ASX IONR) announced that the company has received its federal permit for the Rhyolite Ridge lithium-boron project from the Bureau of Land Management. This becomes the first U.S. lithium project approved by the Biden Administration and advances the Esmeralda County, Nevada investment toward construction in 2025 and first production in 2028. Rhyolite Ridge will supply the batteries for more than 370,000 electric vehicles annually and will process battery materials on-site in the United States. Per Ioneer Managing Director, Bernard Rowe, the permit gives the company a license to commence construction in 2025 and begin work. With the project formally approved by the Federal government, Ioneer now expects to issue updated reserve figures and estimated project costs by December 2024 and advance toward a final investment decision with its financing partners.

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