Tartana Minerals Limited (ASX: TAT) (the Company) is pleased to announce that it has achieved several milestones during the March quarter and in April 2024. With the refurbishment of the solvent extraction – crystallisation plant in 2023 the Company produced its first 28 bag shipment of Copper Sulphate Pentahydrate (Copper Sulphate) and which has been sold to Kanins International, our offtake partner.
Highlights:
The Copper Sulphate Pentahydrate plant is continuing production and achieving its first sale;
Purchase of a new 3 Deck Kason Vibroscreen Separator to further increase production quality;
Standard Conduct and Compensation Agreement signed with landholder on the Maid EPM 27735;
Dr Alistair Lewis appointed to the Board;
Major subsequent events including:
$1.8 million raised including $1.7 million of new capital beyond Rights Issue subscriptions from shareholders – with $1.5 million of that amount being at $0.05 and the balance $0.3 million being a loan.
Name and ASX code change completed to Tartana Minerals Limited (ASX:TAT) and corporate rebranding including a new website www.tartanaminerals.com.au
As previously reported, it has been a difficult and long wet season with access to the mine restricted by high river levels in the Walsh River which had closed the Burke Development Road for several weeks. With accessibility having been restored, the mine is receiving diesel and acid supplies, and ongoing production is targeting the second 28-bag (34 tonne) shipment. The new Kason vibrating screen and other modifications are expected to improve plant performance and reliability.
Elsewhere, the Tartana Copper resource has an existing open pit resource to 130 m depth comprising of 10.039Mt @ 0.45% Cu for 44,781 tonnes of contained Copper using a 0.2% Cu cutoff grade as reported to the ASX on 9th February 2023. While the average grade increases by increasing the cutoff grade above 0.2% Cu, the Company believes a better solution is ore sorting, which has the potential to lift an average ore feed grade above 1% Cu and also minimises the open pit strip ratio.
Further, a Standard Conduct and Compensation Agreement (CCA) has been finalised with the landholder on the Maid EPM 27735. This CCA extends from 1 May 2024 through to 31 December 2025 and relates to proposed exploration activities including drilling regional prospects within EPM 27735, whilst excluding activities related to Tartana’s existing Mining Lease Applications at Cardross and Maid which lie within the surrounding EPM 27335 area.
The Company has also raised $1.82m including $0.3m in a new convertible note and the Rights Issue Shortfall Placement. This places the Company on sound financial footing with Copper Sulphate production expected to provide ongoing cash flow.
Copper Sulphate Production
While plant commissioning commenced last October and progressed through November, the onset of the extended wet season in December led to a slow start to production this year. This stems from high water levels in the Walsh River, which blocked access to the mine northwest of Chillagoe. In particular, it prevented the delivery of reagents, including sulphuric acid and diesel, to the mine site.
Production recommenced in April, with the completion of the first shipment of 28 bags (34 tonnes), and the completion of the second shipment is expected soon. Copper is being sourced from the ponds, which hold an estimated 96 tonnes of Copper in solution, and which equates to more than 300 tonnes of Copper Sulphate, assuming 80% recovery. Copper will then be sourced from the heaps, which contain an estimated 1,364 tonnes of Copper (as reported to the ASX on 22 July 2022), before the Company is to address the mining of remnant oxide and transition ore.
Additional LIX for the solvent extraction has been ordered and is expected to increase daily production to the forecast 6-8 bags per day. Combined with an additional roster, it will significantly increase production.
Plant reliability is improving, and the Company is recovering from both the challenges of the wet season and the deterioration of equipment such as the screen. The Company has purchased a new 3 Deck Kason Vibroscreen Separator from DTD Engineering, which will improve the product, enabling the sale of Tartana copper sulphate to premium markets with stricter product requirements. The bag scales are also being repaired to ensure constant bag weights.
This article includes content from Tartana Minerals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Far East Capital analyst Warwick Grigor breaks down a compelling narrative of why Brightstar Resources ‘stands out from the pack.’
While most operators in the Western Australian goldfields wait patiently by filling up their plants with their own ore, and getting it relegated to the back of the queue, Brightstar Resources (ASX:BTR) refused to be part of the waiting game.
According to a report by Warwick Grigor of Far East Capital, Brightstar stands out from the pack of smaller companies benefitting from consolidation by being an agitator.
The company started its consolidation story in December 2022 with a merger with Kingwest Resources, allowing it to commence mining 30,000 tons of ore at 6 grams/ton from the Selkirk open pit mine at the Menzies gold project.
In 2024, Brightstar made a takeover offer of Linden Gold Alliance, a company that operates the underground Second Fortune gold mine, which currently produces 13,000 ounces.
ROM loader placing Second Fortune gold ore into road train in April 2024.
“It is always more complicated when a company is operating multiple mines and mills, which is what Brightstar is planning; more complicated but possible if you have good operational management. Share price performance is going to depend upon how completely the company delivers on its plans,” Warwick wrote.
Highlights of the report:
Brightstar announced a merger with Linden Gold Alliance Limited, a private company operating the underground Second Fortune gold mine, which has produced 13,000 oz FY24 YTD. The bid values Linden at $23.7 million.
The company’s latest game plan involves the development of two mining hubs, Laverton and Menzies, with the sequential development of three open pits and four underground gold mines. The total pre-production cost will be $34 million. Peak gold production will be 91,000 oz in 2026 and 98,000 oz in 2027. The Laverton mill can be refurbished to a 500,000 tpa capacity for just under $20 million, but with some softer rock blending it could get up to 600,000 to 700,000 tpa. Once the mill is up and running again it will be in a good position to accept third-party ore, but more likely it will prefer to acquire ore positions of 50,000 to 100,000 oz that may become available.
With Brightstar, the share price will move less on speculation and more on delivery. The share price is still at modest levels now, and firmly in an uptrend. Brightstar stands out from the pack of smaller companies talking about being beneficiaries of consolidation by being the agitator. Initially, it is already having its ore being toll treated in the Gwalia mill. The next step will be the recommissioning of its Laverton mill.
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The gold price has hit record levels in 2024, leaving investors wondering just how high it can go.
During a recent webinar presented by the Mining Network, host Simon Catt, asset management director at Arlington Group, was joined by a group of industry veterans who gave their thoughts on where gold and silver may be going.
The group was comprised of Eric Sprott, founder of Sprott Securities and Sprott Asset Management; Franco-Nevada (TSX:FNV,NYSE:FNV) founder and Chair Emeritus Pierre Lassonde; Ned Naylor-Leyland, gold and silver fund manager at Jupiter Asset Management; Luke Gromen, founder of macroeconomic research firm Forest for the Trees; and Michael Oliver, founder and CEO of technical research firm Momentum Structural Analysis.
Read on for an overview about what they said about the future of the yellow and white metals.
Historic precedent for gold price gains
2023 saw the gold price trading between support and resistance as investors kept to the sidelines and favored the high yields and safety of the bond market and interest-bearing assets.
This year, markets are on edge due a slew of factors, including a volatile macroeconomic situation, spiking sovereign debt, grinding conflicts in Eastern Europe and the Middle East and an upcoming election in the US that is all but guaranteed to create deeper divisions within the world’s largest economy.
Oliver sees a situation starting to play out that is reminiscent of the gold bull markets that ran from 1979 to 1980 and 2010 to 2011. “I think we have the most interesting set of dynamics for this year that we’ve ever seen in markets compressed into a short-term period of time,” he said during the panel.
Like today, these were periods of high volatility. The end of the 1970s brought staggering growth in inflation, and central banks responded with skyrocketing interest rates; meanwhile, 2010 saw interest rates fall to near 0 percent on the back of a recession caused by an imploding housing market in the US.
In both cases, investors looked to hedge their portfolios with gold and drove the price to new highs.
What came after? Oliver said that both gold and silver prices saw huge gains. “During those times not only did gold and silver go vertical, but silver outpaced gold by double and triple," he noted.
He believes a similar situation is setting up in 2024 with instability in the financial system, geopolitical uncertainty and a reverberating sense of nervousness in the markets.
Lassonde also looked back to the 1970s, recalling an inflationary environment that bears similarities to today. He pointed to increasing US debt, with a US$2 trillion per year deficit and policies that are injecting more cash into the market.
“They’re printing money, and when you’re printing money, you’re going to create inflation and it’s going to be very, very sticky,” he told listeners during the online event.
De-dollarization boosting global gold demand
Gromen intimated that America's high debt load is reducing confidence in the US dollar as a global reserve currency and causing a reduction in foreign holdings. Instead, central banks are moving to gold as a means to diversify.
He pointed to China, which has been making bulk purchases of gold as a matter of national security as it attempts to limit its use of the US dollar and deals with a global distrust of the yuan for trading commodities like oil.
“Yuan oil demand is turning gold back into an oil currency, and on an annual dollar production basis the oil market is 12 to 15 times the size of the physical gold market,” Gromen said.
This sentiment was echoed by Lassonde when he spoke about the future of the greenback, noting that gold isn’t needed when the dollar performs its function as a reserve currency.
“But when it doesn’t, that’s when gold usually shines,” he said.
Lassonde also suggested that actions from the US have effectively weaponized the dollar.
Against that backdrop, some countries, like those in the BRICS bloc, have become frustrated with the US and are pursuing their own system. Lassonde sees this manifesting in strong central bank buying of gold, noting that more than 1,200 metric tons were accumulated in 2023, representing over a third of the 3,400 metric tons produced.
He also pointed to another entity in the over-the-counter market that has been driving the gold price, but said he doesn’t think it’s central banks. Simply calling it a "whale," Lassonde said he's seen moves in the market where calls have been bought at higher prices. “Is it Chinese interests that are doing this? I don’t know. Nobody knows. I’ve asked around, nobody knows, but it is a very interesting time in the gold space right now,” he said.
Is silver due to follow gold higher?
While there has been a lot of media attention surrounding gold as price records continue to be set, silver too has benefited, and may be poised for an even greater surge. As a monetary metal, silver is influenced by the same macroeconomic and geopolitical variables as gold, but it has an additional industrial component that is spiking demand.
While Gromen still sees silver as a monetary metal for the masses, he doesn’t see it being useful to central banks that are looking to deleverage their debt. He said if that happened it would drive the price of the white metal in ways that would ultimately collapse the economy, likening it to oil and copper.
“If you take oil up from US$80 a barrel to US$400, the global bond market is going to collapse, and the bottom half of the global population is going to starve. If you did so with corn, if you did so with wheat, if you did so with copper — same sort of dynamic. Those are very useful commodities,” Gromen said.
While bullish on silver, Sprott believes the market is manipulated and the price is suppressed.
“I look at what happened on the last day of March, and the price of silver looked like it wanted to go when it was being suppressed … I’m assuming that the guys who are short the 800 million ounces of silver on the COMEX didn’t want the price to explode for quarter end, which of course is very important to banking institutions. Needless to say, from that day on silver has basically gone straight up,” Sprott said. Silver surged above US$30 per ounce on May 17.
Sprott said that according to the Silver Institute, demand for silver is outstripping supply by 200 million ounces. A considerable portion of that demand is silver destined for India, which purchased 76 million ounces in February, representing nearly all the production of silver for the month, and another 32 million ounces in March.
In addition to Indian demand, Sprott spoke about how there is a push in China to invest in silver. “China has come out in advertisements on TV suggesting their citizens should buy silver rather than gold. Now, that is a rather dramatic thing when you’re thinking that 1.4 billion people over there are all buying silver when there is already a shortage,” he said.
Naylor-Leyland also touched on the theme of silver market tightness during the webinar, saying the market imbalance is favoring a rise in price based solely on industrial demand for the white metal.
He also suggested that a positive shift in investment could send the silver price soaring. “I think that the market at some point will have to understand that the silver is going to come from somewhere, and then I see that as the best, most obvious way that investors can benefit from a big rewriting of the mining equity space,” he said.
How high can gold and silver prices go?
Overall, the panelists see variables aligning to support a surge in prices for monetary metals.
Lassonde believes one possible outcome is the ratio between gold and the Dow Jones Industrial Average (INDEXDJX:.DJI) becoming 1:1. Citing historical events to support this claim, he noted that it’s happened twice over the past 120 years.
The first instance was after the Great Depression, when the Dow lost 90 percent of its value between 1929 and 1934, going from 380 points to 36, matching the price of gold at the time.
The second was from 1979 to 1980. Lassonde explained that after it peaked at over 1,000 points in 1966, the Dow retreated to around 600 points by the mid-1970s. This came alongside the end of the gold standard in 1971, and the price of gold moved higher. By 1980, the Dow had recovered to 819 points and gold had soared to US$800 per ounce.
“Do I believe it’s going to go back to 1:1? Maybe, but maybe at that point the Dow is not 37,000, it may be half of that. Okay, so if you say it goes back to 2:1 and the Dow stays where it is, that’s still close to US$19,000 gold. And if the Dow goes back down to 20,000 and it goes to 1:1, you’re still looking at US$20,000 gold,” he commented.
Lassonde noted that the gap between the last two times for gold to reach parity with the Dow was 46 years, which he thinks would be a reasonable timeframe again — it could then occur in 2026 or 2027. On a more immediate timeline, he said the gold price could easily reach US$3,200 within the next 12 months.
He's also predicting that the gold-silver ratio will go to 70:1, taking silver to US$40 over the next 18 months.
Though Lassonde’s predictions may seem high, he wasn’t alone on the panel. Pointing to previous shifts from bear to bull markets, Oliver suggested a seven to eightfold price movement isn't out of line, which would lead to US$8,000 gold. He also suggested that silver could potentially rise to above US$200 in those circumstances.
Gromen anticipates similar gains, calling for a near-term gold price of US$3,000. He thinks it will move quickly and will rise more significantly in the longer term, basing his call on the gold price as a percent of US foreign-held treasuries.
From 1970 to 1989, the percentage was never less than 20 and averaged 40 percent; however, when the global economy was concerned about the US dollar in the late 1970s, it grew to 135 percent. Following the collapse of the Soviet Union, it declined to 5 percent and today it’s at 7 percent. Gromen said the low ratio, along with the debt crisis, suggests a three time price move to get to the historical low of 20 percent and six times to 40 percent.
“US$7,500 on the low end, and in a real dollar crisis you could go 100 percent, right? So you’d have to go up 10 times, 15 times," he explained, adding that his base case is US$7,000 to US$10,000 at the end of the cycle.
For his part, Naylor-Leyland opted not to provide a price prediction for gold, instead suggesting it is more about what happens with the US dollar and treasuries, and that gold is more useful when it comes to measuring the strength of local currencies. However, he did note that he could see pullbacks in the next 12 months.
When it comes to silver, Naylor-Leyland said he sees a narrowing gap in the gold-silver ratio. He predicts it will drop below 70:1, allowing the silver price to climb above the US$30 level.
Investor takeaway
While gold price predictions of US$7,500, US$10,000 or even US$20,000 might seem like wild theories, it's important to recognize that they are coming from respected industry veterans.
When asked for his opinion, Sprott said he could see them all playing out. However, he emphasized that investors can make money without gold making the incredible gains suggested by Lassonde, Oliver and Gromen.
“For people to profit immensely from where we are, I mean if it just went to US$3,000 I’m sure the gold stocks would probably go up 100 percent. So that’s probably more what I’d like to leave on the table — that you don’t need to go to any of those levels to be a very successful investor in the precious metals area,” he said.
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Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Trojan Gold Inc. (CSE: TGII) (the "Company" or "Trojan") is pleased to announce a private placement financing consisting of the sale of up to 10,000,000 units (the "Units") and 5,000,000 flow-through units (the "FT Units") in the capital of the Company at a price of CDN$0.05 per Unit and CDN$0.10 per FT Unit for aggregate gross proceeds of a minimum of CDN$350,000 and a maximum of CDN$1,000,000 (the "Offering").
Each Unit will consist of one common share (a "Common Share") and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Unit Warrant"). Each Unit Warrant will entitle the holder thereof to purchase one Common Share in the capital of the Company for a price of CDN$0.08 for a period of 24 months from the date of the closing, subject to acceleration of the expiry date upon the occurrence of certain events.
Each FT Unit will consist of one Common Share that will qualify as a "flow-through share" for the purposes of the Income Tax Act (Canada) and one-half of one common share purchase warrant (each whole common share purchase warrant, a "FTWarrant"). Each FT Warrant will the holder thereof to purchase one Common Share in the capital of the Company for a price of CDN$0.12 for a period of 24 months from the date of the closing.
The Unit Warrants and FT Warrants are subject to acceleration of the 24 month expiry date in the event that the Common Shares have a closing price on the Canadian Securities Exchange of $0.20 or greater for a period of five consecutive trading days at any time after the closing of the Offering and upon the Company giving 30 days' notice of acceleration.
The Units and FT Units will be offered for sale to purchasers resident in Canada (except Quebec) and/or other qualifying jurisdictions pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 Prospectus Exemptions (the "Listed Issuer Financing Exemption"). The securities issued pursuant to the Offering will not be subject to any statutory hold period in accordance with applicable Canadian securities laws.
There is an offering document related to the Listed Issuer Financing Exemption that can be accessed under the Company's profile at www.sedarplus.ca and on the Company's website at https://www.trojangold.com. Prospective investors should read this offering document before subscribing for any securities issued in connection with the Offering.
The proceeds from the FT Units sold pursuant to the Offering will be used by the Company to fulfill the cost requirements relating to the proposed exploration program of the Helmo South Property, as well as to conduct exploration at the Paulpic/Adair-Wascanna Properties and the Watershed Property. The proceeds from the Units sold pursuant to the Offering will be used for general working capital and may also be used to fund further exploration.
Trojan is an active Ontario-based prospect generator junior exploration company, led by a team of professionals having exploration, engineering, project financing and permitting experience. Trojan has accumulated land positions in the Hemlo Gold Camp and Shebandowan Greenstone Belt which in management's view represent mineral exploration potential. For further information on the Company, please visit www.trojangold.com. Trojan is listed on the Canadian Securities Exchange under the symbol (CSE: TGII), on the OTC Pink Market under the ticker symbol TRJGF and on the Frankfurt Exchange under the symbol KC1.
For further information, please contact: Charles J. Elbourne, President & CEO Trojan Gold Inc. 82 Richmond St. East, Suite 401 Toronto, Ontario M5C 1P1 Telephone: 416-315-6490 Email: elbourne007@gmail.com Website: www.trojangold.com
Further Information
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Forward-Looking Statements
This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information can be identified by words or phrases such as "may", "will", "expect", "likely", "should", "would", "plan", "anticipate", "intend", "potential", "proposed", "estimate", "believe" or the negative of these terms, or other similar words, expressions, and grammatical variations thereof, or statements that certain events or conditions "may" or "will" happen, or by discussions of strategy. Forward-looking information contained in this press release includes, but is not limited to, statements relating to the terms and timing of the private placement described in this press release and the anticipated uses of the proceeds raised from such private placement.
Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is based on assumptions made in good faith and believed to have a reasonable basis. Such assumptions include, without limitation, that: the Company will receive all necessary approvals required in order to complete the issuance of the securities pursuant to the private placement described in in this press release; that there will be sufficient interest from potential investors in order to complete the private placement on the terms as described herein or at all; and that the Company will have the necessary resources to be able to use the funds raised in the private placement for exploration expenses as anticipated.
However, forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected, or implied by such forward-looking statements. Such risks include, but are not limited to: the potential that the Company will not be able to proceed with the issuance of securities on the terms described in this press release or at all; the risk that the Company will not have the ability to conduct exploration activities on its current mineral properties as anticipated; and other risks (including but not limited to risks faced by issuers in the mining industry generally) as described in the Company's public disclosure record at www.sedarplus.ca.
Accordingly, undue reliance should not be placed on forward-looking statements and the forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained herein are made as at the date hereof and are based on the beliefs, estimates, expectations, and opinions of management on such date. The Company does not undertake any obligation to update publicly or revise any such forward-looking statements or any forward-looking statements contained in any other documents whether as a result of new information, future events or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required under applicable securities law. Readers are cautioned to consider these and other factors, uncertainties, and potential events carefully and not to put undue reliance on forward-looking information.
Montage Gold Corp. ("Montage" or the "Company") (TSXV: MAU) (OTCQX: MAUTF) announces that it will hold its Annual General and Special Meeting (the "Meeting") on Friday, June 7, 2024 . The Notice of Meeting and Management Information Circular relating to the meeting has been mailed to shareholders and has been filed under the Company's profile at www.sedarplus.ca .
The proposed slate of director nominees will consist of six individuals: Ron Hochstein , Richard P. Clark , Anu Dhir, David Field , Alessandro Bitelli and Martino De Ciccio . If elected, Ron Hochstein will be proposed as the Chair of the Board replacing Peter Mitchell who is not standing for re-election. In addition, Sasha Bukacheva and Hugh Stuart will not be standing for re-election as directors. With the successful transition of the previously announced new management team complete, Hugh Stuart , Kevin Ross , and Adam Spencer will be stepping down from their executive positions over the coming weeks.
Ron Hochstein , proposed Chair of the Board commented: "I would like to thank Peter Mitchell for his contributions and leadership during his time as Chair of the Board. I would also like to thank Sasha and Hugh for their contributions to the board during their tenure as directors. I also extend my gratitude to Hugh, Kevin, and Adam for their assistance during this transition phase for the Company as well as their significant contributions to the success of Montage over the years."
Shareholders as of the record date of April 26, 2024 , will be eligible to vote at the Meeting. Shareholders are encouraged to vote by proxy, which must be received by Endeavor Trust by 10:00 a.m. , Vancouver Time on Wednesday, June 5, 2024 .
Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Montage Gold Corp. (TSXV: MAU) is a Canadian-listed company focused on becoming a premier multi-asset African gold producer, with its flagship Koné project, located in Côte d'Ivoire, at the forefront. Based on the Feasibility Study published in 2024, the Koné project ranks as one of the highest quality gold projects in Africa with a long 16-year mine life, low AISC of $998 /oz over its life of mine, and sizeable annual production of +300koz of gold over the first 8 years. Over the course of 2024, the Montage management team will be leveraging their extensive track record in developing projects in Africa to progress the Koné project towards an investment decision, thereby unlocking significant value for all its stakeholders.
FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking information and forward-looking statements within the meaning of Canadian securities legislation (collectively, "Forward-looking Statements"). All statements, other than statements of historical fact, constitute Forward-looking Statements. Words such as "will", "intends", "proposed" and "expects" or similar expressions are intended to identify Forward-looking Statements. Forward looking Statements in this press release include statements related to the use of proceeds from the Offering; the final acceptance of the TSX Venture Exchange; the Company's mineral reserve and mineral resource estimates; the timing and amount of future production from the Koné project; expectations with respect AISC of the Koné project; anticipated mine life of the Koné project; and expected recoveries and grades of the Koné project. Forward-looking Statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include uncertainties inherent in the preparation of mineral reserve and resource estimates and definitive feasibility studies such as the Mineral Reserve Estimate and the UFS, including but not limited to, assumptions underlying the production estimates not being realized, incorrect cost assumptions, unexpected variations in quantity of mineralized material, grade or recovery rates, unexpected changes to geotechnical or hydrogeological considerations, unexpected failures of plant, equipment or processes, unexpected changes to availability of power or the power rates, failure to maintain permits and licenses, higher than expected interest or tax rates, adverse changes in project parameters, unanticipated delays and costs of consulting and accommodating rights of local communities, environmental risks inherent in the Côte d'Ivoire, title risks, including failure to renew concessions, unanticipated commodity price and exchange rate fluctuations, risks relating to COVID-19, delays in or failure to receive access agreements or amended permits, and other risk factors set forth in the Company's 2023 AIF under the heading "Risk Factors". The Company undertakes no obligation to update or revise any Forward-looking Statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for Montage to predict all of them, or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any Forward-looking Statement. Any Forward-looking Statements contained in this press release are expressly qualified in their entirety by this cautionary statement.
NON-GAAP MEASURES
This press release includes certain terms or performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards ("IFRS"), including cash costs and AISC (or "all-in sustaining costs") per payable ounce of gold sold and per tonne processed and mining, processing and operating costs reported on a unit basis. Non-GAAP measures do not have any standardized meaning prescribed under IFRS and, therefore, they may not be comparable to similar measures employed by other companies. The Company discloses "cash costs" and "all-in sustaining costs" and other unit costs because it understands that certain investors use this information to determine the Company's ability to generate earnings and cash flows for use in investing and other activities. The Company believes that conventional measures of performance prepared in accordance with IFRS, do not fully illustrate the ability of mines to generate cash flows. The measures, as determined under IFRS, are not necessarily indicative of operating profit or cash flows from operating activities. The measures cash costs and all-in sustaining costs and unit costs are considered to be key indicators of a project's ability to generate operating earnings and cash flows. Non-GAAP financial measures should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and are not necessarily indicative of operating costs, operating profit or cash flows presented under IFRS. Readers should also refer to our management's discussion and analysis, available under our corporate profile at www.sedarplus.ca for a more detailed discussion of how we calculate such measures.
Impact Minerals Limited (ASX:IPT) (Company) is pleased to advise that it has received firm commitments from sophisticated investors for a strategic placement (Placement) to raise A$3,000,000 (before costs) via the issue of 150,000,000 fully paid ordinary shares (Placement Shares) in the capital of the Company (Shares) at an issue price of A$0.02 per Placement Share. For every three Placement Shares subscribed for, one free-attaching option will be issued with an exercise price of $0.027 per option and an expiry date that is 15 months after the date of issue (Placement Options).
Strategic A$3 million placement mostly supported by major shareholders to be issued under the Company's existing available placement capacity under ASX Listing Rule 7.1.
In addition, funds being received from exercise of listed options (IPTOB) into shares.
Anticipated Research and Development Rebate of $395,000 due shortly.
Major shareholders strongly supported the placement, an endorsement of the Company's future strategic plans.
Impact Minerals’ Managing Director Dr Mike Jones, said, “We are now very well-funded to complete the Pre-Feasibility Study on our unique Lake Hope High Purity Alumina Project located here in Western Australia by the end of this year. We have deliberately placed most of the shares to our major shareholders which is a strong endorsement of our plan to move forward as quickly as possible with Lake Hope and we thank them for their support.
We would also like to thank those new shareholders who have recently exercised our listed IPTOB 2 cent per share options I would like to encourage other holders of IPTOB to consider doing the same before the expiry date of June 2nd. As well as the Lake Hope project we will also be able to progress our Arkun battery and strategic metals project for which we recently received up to $180,000 in co-funding from the WA Governments Exploration Incentive Scheme for drilling of our exciting Caligula copper target”.
The proposed use of funds of the placement funds is as follows:
Notes: The above table is a statement of the Company’s intentions as at the date of this Announcement. As with any budget, the allocation of funds set out in the above table may change depending on a number of factors, including development of new opportunities, market factors and general business and economic conditions. As such, actual expenditure levels may differ significantly from the above estimates.
Evolution Capital and Barclay Pearce Capital acted as the Joint Lead Managers to the Placement (Broker) and will be issued a cumulative total of 15,000,000 options exercisable at A$0.027 each with an expiry date 15 months after the date of issue (Broker Options). The Broker Options will be split equally between the Joint Lead Managers.
In addition to the Broker Options, the Brokers will receive a Management fee of 2% of Proceeds from the Offer and a Selling Fee of 4% of Proceeds from the Offer excluding the Chairman’s List.
The Placement Shares, Placement Options and Broker Options will be issued under the Company’s existing available placement capacity under ASX Listing Rule 7.1. The issue price of the Placement Shares represents a 5.6% discount to the volume weighted average price for the 15 days immediately before 15 May 2024 being $0.0211.
All Placement Shares and Shares issued upon exercise of the Placement Options and Broker Options will rank equally with the Company’s existing Shares on issue.
Provided all the requirements under the ASX Listing Rules have been met, the Company intends to seek quotation of the Placement Options and Broker Options, and to issue the Placement Options and Broker Options under a prospectus.
This article includes content from Impact Minerals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
John Feneck, partner and portfolio manager at Feneck Consulting, shared his thoughts on gold, silver, copper and uranium, outlining his outlook for these commodities and stocks he's currently watching.
Starting with gold, he said he thinks it's proven itself as a safe-haven asset, with more "smart money" now getting involved. At the same time, he sees gold-mining companies starting to put on positive performances.
"We're off to the races in gold producers in terms of doing well at the earnings level, and that gets the attention of big money ... (and) that's what's needed to generate more interest in the space," Feneck said.
In terms of silver, he's encouraged to see it getting close to the crucial US$30 per ounce level after last year's rangebound trading. Moving forward, it's possible US$25 to US$26 may become support instead of resistance.
Precious metals stocks on his radar at the moment include Newmont Mining (TSX:NGT,NYSE:NEM), Dakota Gold (NYSEAMERICAN:DC), Golden Cariboo Resources (CSE:GCC,OTC Pink:GCCFF), PTX Metals (CSE:PTX,OTCQB:PANXF), Guanajuato Silver Company (TSXV:GSVR,OTCQX:GSVRF) and Silver X Mining (TSXV:AGX,OTCQB:AGXPF).
Copper prices have also rising in 2024, and Feneck is looking at small- and mid-cap companies that haven't moved yet. Among those are NevGold (TSXV:NAU,OTCQX:NAUFF) and Vortex Metals (TSXV:VMS,OTCQB:VMSSF).
Moving over to uranium, Feneck remains bullish and is interested in juniors. He mentioned F3 Uranium (TSXV:FUU,OTCQB:FUUFF) and Standard Uranium (TSXV:STND,OTCQB:STTDF) as companies on his list.
Watch the interview above for more from Feneck on the resource sector and the companies he's eyeing.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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Notes: The above table is a statement of the Company’s intentions as at the date of this Announcement. As with any budget, the allocation of funds set out in the above table may change depending on a number of factors, including development of new opportunities, market factors and general business and economic conditions. As such, actual expenditure levels may differ significantly from the above estimates.