Gold and silver prices surged again this week, although both metals were hit on Friday. The disconnect between the valuation of mining equities relative to the underlying commodity price has been expanding. We are overdue for correction and/or a period of consolidation but it remains to be seen when that will be. It certainly feels like it has begun or is just around the corner. Q2 earnings announcements have started to accelerate with most companies impacted from the CV19 protocols and mandated mining suspensions. However, Q3 earnings are on track to be significantly better with a full quarter of production (hopefully) at higher average gold and especially silver prices.
There were more financing's this week although nothing compared to the last two weeks. These include:
AbraPlata: Announced a $15m private placement (PP), led by Eric Sprott to accelerate growth. This was subsequently increased to $18m.
Bunker Hill Mining: Announced an increase to the previously announced brokered (PP) by 50% to $15m.
Chesapeake Gold: Announced a $20m PP. After completion, Eric Sprott will own and control approx. 16.40% of the issued and outstanding common shares. Metates is a massive project with gold and silver reserves of 18m oz. and 500m oz. and favorable economics.
Deep-South Resources: Announced a $1m non-brokered PP.
Ethos Gold: Announced an additional $2.1m financing.
Hemlo Gold: Arranging PP of $3m. This was subsequently increased to $3.5m
Impact Silver: Announced an upsizing to the previously announced PP to $7m.
Lion One Metals: Amended the previously announced PP. Per the agreement, a syndicate of underwriters, have agreed, on a bought deal PP basis (I) 11.765m units @ $1.70/unit (Tranche 1 units) for proceeds of $20m and (II) 7.318m units @ $2.05 per tranche 2 unit for proceeds of $15m, for a total of $35m. Each tranche 1 unit will consist of one common share and ½ of one warrant with an exercise price of $2.35/share for a period of 12 months. Each tranche 2 unit will consist of one common share and ½ of one warrant. Each full tranche 2 warrant can be exercised to acquire common stock at $2.75/share for a period of 12 months.
Novo Resources: Announced an upsizing to the previous announced PP to $42.5m and concurrent non-brokered PP of $3m. The net proceeds from the increased financing will be used to fund the acquisition (discussed later) and capital expenditures.
Nubian Resources: Announced a $4.2m investment by Eric Sprott.
NV Gold: Announced PP of up to $3m.
Redstar Gold: Announced a $7m non-brokered PP.
$AQA.TO, $BTG, $CXB.TO, $EXK, $AG, $FNV, $GBR.V, $GPL, $HL, $IAG, $JAG.TO, $NVO.V, $OR, $PAAS, $PVG, $RGLD, $SVM, $TGZ.TO, $TXG.TO
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