Shares of Sienna Resources skyrocketed on Thursday after it acquired the Marathon North property in Northern Ontario.
Junior explorer Sienna Resources (TSXV:SIE,OTC Pink:SNNAF) has acquired the Marathon North palladium property in Northern Ontario, which is adjacent to Generation Mining’s (CSE:GENM) Marathon palladium project.
Interest in the area has peaked in recent months, with global platinum-group metals (PGMs) producer Impala Platinum (OTC Pink:IMPUY,JSE:IMP) merging with North American Palladium in December to create Impala Canada, which now manages the Lac des Iles palladium mine near Thunder Bay.
Increased activity in the palladium exploration and mining sector has likely been a result of the metal’s breakthrough performance in 2019. The commodity was the most expensive traded precious metal last year, and has climbed 17 percent so far in 2020.
And palladium’s price surge doesn’t seem to be over yet. After breaking its previous record highs in 2019 and again in the first few weeks of 2020, the metal, which is used to reduce emissions in vehicles, broke the US$2,550 per ounce threshold to trade for US$2,577.27 on Monday (January 20).
It slipped from its new all-time high shortly after; currently palladium is priced at US$2,296.
Sienna Resources President Jason Gigliotti explained how PGMs prices motivated the company to acquire the package, which will complement the firm’s platinum, palladium and nickel project in Sweden, where a drill program concluded in October.
“Platinum and palladium prices have been some of the best performing metal prices recently, especially palladium, which is right near an all-time high,” he said in a media release.
“The timing for our new platinum-palladium project acquisition could not be more opportune … We feel that there is a massive demand and appetite for platinum and palladium assets and Sienna’s goal is to be a significant player in this arena in 2020.”
Shares of the explorer skyrocketed 80 percent following the announcement.
Even though it is only the third top palladium-producing country, Canada’s palladium projects have dominated the news cycle lately due to their potential, grade and jurisdiction.
Impala’s Lac des Iles mine, which has been in production for more than two decades, has been called a world-class orebody, while Generation Mining’s Marathon project has been dubbed “the largest undeveloped palladium deposit in North America.”
Shares of Generation Mining also climbed this week, shooting up 28 percent following the news that Canadian billionaire Eric Sprott was investing C$5 million to acquire 8.8 percent of the company.
This is the second time in three months the investor has bought into a Canada-listed palladium company.
Palladium One is currently developing the Läntinen Koillismaa palladium project in Finland, where it plans to spend the bulk of its newly acquired investment capital.
By midday on Thursday (January 23), shares of Sienna Resources were up 90 percent, trading for C$0.09.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.