Jim's Mining Letter - July 15, 2024

SolGold (SOLG.L SOLG.TSX SLGGF S8F.F) announced that it has entered into a syndicated gold stream agreement with Franco-Nevada (FNV 0QYZ.L 3FO.F) and Osisko (OR OM4.F) for the provision of $750 million in project advancement funding and a proportion of development funding in exchange for a percentage of the gold produced from the Cascabel project. The deposit comprises two funding segments, of which Franco-Nevada and Osisko will contribute 70% and 30%, respectively. The initial deposit of $100 million is to be paid over three tranches, a third of which is expected to be received later today, and is allocated towards de-risking, permitting, completion of the development funding package and completion of the feasibility study on the project to take it to a final development investment decision. The construction deposit of $650 million is to be contributed to funding the construction of the project. In exchange for the deposit and ongoing payments to SolGold equivalent to 20% of the spot gold price at the time, the syndicate will receive an amount in reference to 20% of the recovered gold in concentrate from Cascabel until 750,000 ounces of gold have been provided, after which the percentage will reduce to 12% for the life of the mine. At a time when global demand for copper is expected to surge, the agreement, which involves gold only, preserves the revenue streams from the significant copper, silver, and a large portion of the gold resources at Cascabel for SolGold and its shareholders, while also fulfilling SolGold's commitment to royalty holders, the Ecuadorian Government, and stakeholders to advance the project…more

Alamos Gold (AGI AGI.TSX 0UGS.L 1AL.F) announced completion of the previously announced acquisition of all the issued and outstanding common shares of Argonaut Gold (AR.TSX 0UIK.L ARNGF A8U.F) not already held by Alamos. As part of the transaction, Alamos acquired Argonaut’s Magino mine, located adjacent to the Alamos’ Island Gold mine in Ontario, Canada. Argonaut’s assets in the United States and Mexico have been spun out as a newly created junior gold producer named Florida Canyon Gold (FCGV.V), which will commence trading on the TSX Venture Exchange at
the opening on Tuesday, July 16, 2024. Under the terms of the transaction, shareholders of Argonaut will be entitled to receive 0.0185 of a Class A common share of Alamos and 0.1 of a common share of Florida Canyon Gold in exchange for each issued and outstanding common share of Argonaut…more

Madison Metals (GREN.CN MMTLF 4EF0.F) announced that the Ministry of Mines and Energy of Namibia has granted a licence for base and rare metals, industrial minerals, and nuclear fuels for Exclusive Prospecting Licence 8905, which lies at Madison West within Mining Licence 86A, the same licence area that hosts the Khan Copper Mine. This is said to be an important development, signifying a major milestone for Madison as the company continues to build its portfolio and capitalize on the growth opportunities in the uranium mining sector. Madison is earning a 90% interest in ML-86A and EPL-8905 through cash payments, while 10% carried is held by the company’s Namibian partners. The new licence expands Madison’s scope of exploration and development to include uranium, copper, gold, silver, and other precious metals. This aligns with Madison’s commitment to advancing uranium production and exploring high-value base and rare metals opportunities. The addition of copper exploration on the Namibian licence, alongside that of uranium, expands Madison’s potential for producing more of the in-demand critical metals.

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