Jim's Mining Letter - May 27, 2024

Aris Mining (ARIS.TO ARMN) announced that it has entered into a binding agreement with MDC Industry Holding, a wholly-owned subsidiary of the Abu Dhabi based investment company Mubadala Investment, whereby Aris Mining will acquire an additional 31% joint venture interest in the Soto Norte gold-copper project in Colombia, bringing its total ownership to 51%. In exchange, Aris Mining will issue 15,750,000 shares to Mubadala, representing an approximate 9.9% ownership stake based on Aris Mining’s issued and outstanding shares as of March 31, 2024, with an additional 6,000,000 shares to be issued on receipt of an environmental license. Soto Norte is one of the largest undeveloped underground gold projects in South America set to employ modern and sustainable mining practices.

Argosy Minerals (AGY.AX ARYMF) announced that it has secured a $5 million strategic investment from Amperex Technology via a placement of new shares at A$0.14631 per share, a 15% premium to the 10-day volume weighted average price (as at 21 May 2024). Amperex has agreed to place its shares into a 12-month standstill period. Argosy says it is confident the strategic investment will facilitate a successful relationship with Amperex and provide an opportunity to leverage Amperex’s substantial technical capabilities to support Argosy’s ambitions and near-term growth phase to fully develop the Rincon Lithium Project. Amperex is a world leader in the development and high-volume production of lithium-ion batteries.

Trigon Metals (TM.V PNTZF) announced that it has achieved commercial production from the underground operations at its Kombat Mine in Namibia. Per the company, this marks a major step forward in Trigon’s path to becoming a leading mid-tier copper producer. Trigon defines commercial production status as operating at 70% of production capacity over 30 consecutive days. After restarting mining operations from the open pit in May 2023, the company commenced production from underground ahead of schedule, having announced underground training and the first blast on February 5, 2024. Underground production has resulted in an increase in the company’s metal output, owing to the higher grade of ore. As more high-grade ore tonnes from underground displace lower-grade open pit ore, copper production increases which is expected to translate into lower operating costs.

True North Copper (TNC.AX) announced an update in relation to its fully underwritten A$24.3 million equity raising. The company has now successfully closed the institutional component of the entitlement offer, raising a total of A$9.0 million before costs at an offer price of A$0.056 per share, and the placement to institutional investors raising a further A$7.6 million before costs. The retail component of the entitlement offer for A$7.7 million is anticipated to open on Friday, 31 May 2024. The equity raising, together with existing cash, will fund True North through to steady state production at the Cloncurry Copper Project (including contingency, working capital, and other corporate expenses), exploration growth strategy and strengthen the company’s financial position.

Equinox Gold (EQX.TO EQX) announced the first gold pour at its new Greenstone Mine in Ontario, Canada. The mine has achieved its inaugural gold pour on schedule, producing 1,800 ounces of gold from the full recovery circuit, with all equipment operating as expected. The company says it looks forward to ramping up to commercial production in the third quarter of this year. The Greenstone Mine will be Equinox Gold’s flagship asset and largest, lowest-cost producer. When operating at capacity, the mine is expected to produce approximately 400,000 ounces of gold annually for the first five years, and average 360,000 ounces of gold per year for its initial 14-year mine life, making Greenstone one of Canada’s largest gold mines.

These are opinions only of the individual author.  The contents of this piece do not contain investment advice and the information provided is for educational purposes only and no discussions constitute an offer to sell or the solicitation of an offer to buy any securities of any company.  All content is purely subjective and you should do your own due diligence.  No representation, warranty or undertaking, express or implied, as to the accuracy, reliability, completeness or reasonableness of the information contained in the piece is made.  Any assumptions, opinions and estimates expressed in the piece constitute judgments of the author as of the date thereof and are subject to change without notice.  Any projections contained in the information are based on a number of assumptions and there can be no guarantee that any projected outcomes will be achieved.  No liability is accepted for any direct, consequential or other loss arising from reliance on the contents of this piece.  The author is not acting as your financial, legal, accounting, tax or other adviser or in any fiduciary capacity.