Jim's Mining Letter - July 18, 2024

Marimaca Copper (MARI.TSX MARIF E2E1.F) announced a C$68 million equity investment in the company by Assore International Holdings. The investment consists of the acquisition of 9,417,210 common shares of Marimaca by AIH from an affiliate of Tembo Capital Mining at a price of C$4.50 per share for gross proceeds to Tembo Capital of C$42,377,445; and the issuance of 5,725,000 units of the company to AIH by way of a non-brokered private placement for gross proceeds of C$25,762,500. Each unit consists of one common share and one half of one common share purchase at a price of C$4.50 per unit. Each warrant will entitle AIH to purchase one additional common share at an exercise price of C$5.85 for a period of 18 months. Following completion of the investment and additional private placement, AIH will own approximately 14.99% of the issued and outstanding common shares on a non-diluted basis and 18.07% on a partially diluted basis. In addition, another investor will subscribe for 1,000,000 units by way of private placement on the same pricing terms as AIH for gross proceeds of C$4,500,000. Proceeds will be used to advance the development of the company’s Marimaca copper project located in the Antofagasta region, Chile and for exploration work programs at key targets within the company’s regional land package.

Foran Mining (FOM.TSX FMCXF 48M.F) announced that it has entered into an amending agreement with Eight Capital, as co-lead agent and joint bookrunner with BMO Capital Markets and National Bank Financial, to increase the size of the offering from $222,000,008 to $260,891,830. The offering will now consist of 57,010,327 common shares of the company at an issue price of $4.05 per share for gross proceeds of $230,891,824 plus 4,501,874 common shares to be issued as flow-through shares with 2,906,977 of these shares to be issued at a price of $6.88 per share and 1,594,897 of these shares to be issued at a price of $6.27 per share for gross proceeds of $30,000,006. Additionally, the company intends to amend its existing subscription agreement with Agnico Eagle Mines (AEM AEX.TSX 0R2J.L AE9.F), pursuant to which Agnico Eagle will agree to acquire up to 24,472,052 common shares at an issue price of $4.05 per share for gross proceeds of up to $99,111,811. The revised subscription is expected to result in Agnico Eagle maintaining a 9.9% interest in the company on a pro forma basic voting basis as originally contemplated. The net proceeds of the offerings will be used for exploration and development of the company’s mineral projects in Saskatchewan, and for working capital and general corporate purposes…more

Brixton Metals (BBB.V BBBXF 8BX1.F)announced that it has entered into a definitive option agreement with Eldorado Gold (EGO ELD.TSX ELO1.F) whereby Eldorado has been granted the option to acquire 100%-ownership of Brixton’s Atlin Goldfields project. The project is a road accessible, 579 square kilometer mineral claim group located near the town of Atlin, British Columbia. During the 5-year option period, Eldorado will fund C$1,000,000 in exploration expenditures per year beginning September 30, 2024, for an aggregate spend of C$5,350,000, including an additional minimum commitment to fund C$350,000 of exploration expenditures on or before September 30, 2024. Eldorado will make cash payments to Brixton of C$250,000 per year for aggregate payments of C$1,100,000 during the option period, including an additional minimum payment of C$100,000 within 10 days of signing the agreement. At the end of the option period, Eldorado will have the right to exercise the option to acquire 100% ownership of the project by making a cash payment to Brixton in the amount of C$7,000,000, in respect of which Brixton, at its election, may receive up to 50% of such payment in the form of common shares of Eldorado. Upon exercise of the option by Eldorado, Brixton will be granted a 1.0% net smelter return royalty, with Eldorado retaining an option to purchase half of Brixton’s royalty for $2,000,000 prior to the commencement of commercial production at the project.

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