Jim's Mining Letter - June 25, 2024

Patriot Battery Metals (PMET.TSX PMT.ASX PMETF R9GA.F) announced the final batch of core assay results of the CV5 spodumene pegmatite from its recently completed 2024 winter drill program at Corvette, located in the Eeyou Istchee James Bay region of Quebec. The CV5 spodumene pegmatite, with a maiden mineral resource estimate of 109.2 Mt at 1.42% Li2O inferred, is situated approximately 13.5 km south of the regional and all‑weather Trans-Taiga Road and powerline infrastructure. Per the company, these final holes demonstrate the scale of mineralization over a significant strike length and it is confident of meaningful conversion of the mineral resource from inferred to indicated. Release is targeted in August 2024 inclusive of a maiden mineral resource for the CV13 discovery. Patriot says it remains on track to provide a preliminary economic assessment to the market based upon the updated CV5 resource and is targeting Q3 2024 for that. Results for 4,538 m (16 holes) remain to be reported from the 2024 winter drill program, all from CV13 and including multiple step-out drill holes targeting the recently discovered high-grade Vega Zone…more

McEwen Mining (MUX MUX.TSX US8.F) announced a non-brokered private placement financing of up to 2,333,333 common shares of its wholly-owned subsidiary McEwen Copper at a subscription price of $30 per common share, for gross proceeds of up to $70 million. McEwen Copper currently has 30,937,615 common shares outstanding (basic and diluted). Lead orders to purchase 27% of the total offering have been committed by McEwen Mining and Rob McEwen; McEwen Mining will purchase up to 466,667 common shares of McEwen Copper for $14 million and Rob McEwen will purchase up to 166,666 common shares for $5 million. Final investment amounts are subject to adjustment according to anti-dilution and pre-emptive rights on the part of other existing shareholders of McEwen Copper. Funds will be used to advance work on a bankable feasibility study for the Los Azules copper project, which is scheduled for publication by the end of Q1 2025. Subscription for the remaining 1,700,000 common shares is available to qualified accredited investors, subject to a $2 million minimum investment. McEwen Copper holds a 100% interest in the Los Azules copper project in San Juan, Argentina and the Elder Creek project in Nevada, USA. Los Azules is ranked the 8th largest undeveloped copper deposit in the world; a June 2023 preliminary economic assessment estimates a $2.7 billion after-tax NPV8% at $3.75/lb Cu, a low average C1 production cost of $1.07/lb Cu, a 3.2-year payback period, and a 27-year mine life.

Highfield Resources (HFR.ASX 23H.F) announced an update on the company’s progress in securing the remaining funding for Phase 1 of the Muga potash mine, located in northern Spain. The mine is said by the company to be set to deliver a new global and secure source of potash, a critical input in fertilizers to increase crop yields. Muga is fully permitted and construction ready, subject to financing, and is strategically located in the middle of the European market providing key competitive advantages with respect to access to customer markets and superior economics. Highfield says it has made good progress with a combination of potential investors from a range of sources including offtake customers, equity investors, strategic business partners and royalty providers, in relation to negotiations for transactions that are expected to deliver the funding required for Muga phase 1 capex. The company expects to finalise the negotiations early to mid Q3 2024.

Terra Metals (TM1.ASX 21V.F) announced that it has successfully secured commitments from institutional and sophisticated investors to subscribe for 100,000,000 new shares at an issue price of A$0.06 per share, to raise gross proceeds of A$6 million. The company’s largest shareholder, Tribeca, has committed to subscribe for approximately A$941,000 under the placement and directors have committed to subscribe for A$174,000. In addition, several new resource focused institutions supported the placement, which the company says validates the recent Dante Reefs discovery. Proceeds will be used to accelerate exploration and development of the Dante project in Western Australia, and for general corporate purposes, including: infill and extensional drilling; metallurgical and mineralogical analysis; geophysical surveys; and new discovery drilling of magmatic copper sulphide targets. Per CEO and Managing Director, Thomas Line, the recent copper-platinum group element sulphide discovery at the Dante Reefs is the first of its kind in Australia. The Dante Reefs are mapped to outcrop for at least 42km of strike across the Dante project, with most remaining undrilled.

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