Jim's Mining Letter - October 8, 2024

Coeur Mining (CDE CDM1.F) and SilverCrest Metals (SIL.TSX SILV S0C.F) announced that they have entered into a definitive agreement whereby a wholly-owned subsidiary of Coeur will acquire all of the issued and outstanding shares of SilverCrest, whose shareholders will receive 1.6022 Coeur common shares for each SilverCrest common share. Together with Coeur’s growing silver production from its recently expanded Rochester mine in Nevada and its Palmarejo underground mine in northern Mexico, the addition of SilverCrest’s Las Chispas mine is expected to generate peer-leading 2025 silver production of approximately 21 million ounces from 5 North American operations, with approximately 56% of revenue generated from US based mines and approximately 40% of revenue from silver. The combined company is also expected to produce approximately 432,000 ounces of gold next year. There is said to be a significant revaluation opportunity given positioning of the combined company as a leading silver mining company and the expected near-term impacts from the recently completed expansion of the Rochester silver and gold operation in Nevada…more

Hummingbird Resources (HUM.L HUMRF 2HM.F) noted recent developments from Pasofino Gold (VEIN.V EFRGF N07A.F), which has announced a non-brokered private placement of up to 4,806,767 units of the company at C$0.70 ($0.52) per unit for gross proceeds of up to C$3,364,737 ($2,500,000). Each unit will consist of one common share of the company and one half of one common share purchase warrant entitling the holder to purchase one common share at a price of C$0.90 for a period of 18 months following the issue date of the units. The securities issued will be subject to a hold period in Canada expiring four months and one day from the closing date of the offering. Securing this funding will support the further advancement of the Dugbe gold project in Liberia and provide working capital. Hummingbird will retain a majority shareholding in Pasofino and therefore a controlling stake in what is described as a potential world class development project…more…more

Thor Explorations (THX.V THX.L THXPF T2X.F) announced the first set of results from an initial drilling programme that targets the down-plunge potential beneath the current open pit extents at the Segilola Gold Mine in Nigeria. Significant results received to date include 3.0 metres grading 11.24 grammes per tonne gold from 294 metres in drillhole SNMDD011 and 1.5 metres grading 3.22 grammes per tonne gold from 269 metres in drillhole SNMDD012. These are the initial results received from the first two holes drilled out of an ongoing 12 hole drilling programme of which five holes have been drilled. The company says additional drilling results will be published in due course. Per Segun Lawson, President & CEO, intersecting high-grade gold mineralisation 50 metres below the current pit design is an encouraging start to the proof-of-concept drilling programme, which has returned positive intersections in the projected locations below the current open pit design and is the first demonstration since the company started mining that there is further potentially achievable underground mining below the designed Segilola pit. The target is to both upgrade parts of the remaining inferred resource and to increase the size overall of the underground resource with the objective of increasing the life of mine at Segilola…more

Osisko Development (ODV ODV.V 3OZ0.F) announced that due to strong market demand, the company intends to close a second tranche of its non-brokered private placement of up to 13,888,888 units at a price of $1.80 per unit for additional gross proceeds of up to approximately $25 million. Each unit consists of one common share and one common share purchase warrant entitling the holder to purchase one additional common share at a price of $3.00. Osisko intends to use the net proceeds of the offering towards the advancement of its Cariboo gold project and Tintic project, and for general corporate purposes. All securities issued under the offering will be subject to a hold period expiring four months and one day from the date of issue. The company is focused on past-producing mining camps located in mining friendly jurisdictions with district scale potential and its objective is to become an intermediate gold producer by advancing its 100%-owned Cariboo gold project, located in central B.C., Canada, the Tintic project in the historic East Tintic mining district in Utah, United States and the San Antonio gold project in Sonora, Mexico…more

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