Welcome to a roundup of some of our financing, exploration, and development stories on Theassay.com over the last week. To keep up to date with all the latest headlines, subscribe to our weekly newsletter.
Financing and M&A
Over the past seven days, Osisko Metals Incorporated (TSXV: OM | OTCQX: OMZNF | FRANKFURT: 0B51) has sold an additional 5% ownership interest in Pine Point Mining Limited to a subsidiary of Appian Natural Resources Fund III LP, a fund advised by Appian Capital Advisory LLP, a London-based private equity group specializing in the acquisition and development of mining assets, for an expected payment of approximately C$8.33M.
Robert Wares, CEO, and chairman, commented, “The sale of the additional 5% interest in Pine Point to Appian will allow the company to advance the Gaspé Copper project without resorting to an additional equity financing, which in the current market would be excessively dilutive. We thank Appian for their committed interest in the Pine Point Project and look forward to a continued productive joint venture.”
Lotus Resources Limited (ASX: LOT | OTCQB: LTSRF) is undertaking a placement to strategic investors to raise A$30M via the issue of 100M new shares at A$0.30, a 6.5% discount to its last traded price of A$0.32. Settlement is expected to take place on 28 February 2024.
In addition to the placement, the strategic investors will also acquire 6M shares from managing director Keith Bowes and 4.7M shares from non-executive director Grant Davey who are selling down for tax obligations. Post the placement and the sell down, Mr. Davey will maintain a ~8% interest in Lotus holding approximately 150M shares, while Mr Bowes will hold approximately 15M shares.
New exploration and development
American Lithium Corp. (TSXV: LI | Nasdaq: AMLI | Frankfurt: 5LA1) has also filed an independent National Instrument 43-101 Technical Report on a preliminary economic assessment (PEA) for the company’s Falchani Lithium Project located in Puno, southwestern Peru.
The PEA and accompanying technical report were completed by DRA Global and Stantec Consulting Services Inc. The PEA demonstrates that Falchani has the potential to become a substantial, low-cost, long-life producer of high purity lithium carbonate with the potential to also produce sulphate of potash and cesium sulphate by-products alongside LCE.
Blue Sky Uranium Corp. (TSXV: BSK | FSE: MAL2 | OTC: BKUCF) has announced the results of a new PEA for its Ivana uranium-vanadium deposit at the company’s 100% owned Amarillo Grande Project in Rio Negro Province, Argentina.
The updated PEA incorporates a new mineral resource estimate, with approximately 80% of the resources now in the indicated category. The PEA demonstrates robust economics from a surficial mining operation, predicting 11 years of uranium and vanadium production.
PEA highlights:
- After-tax NPV 8%: US$227.7M
- After-tax IRR: 38.9%
- After-tax payback period: 1.9 years
- Pre-production capital cost: US$159.7M, includes US$35.4M contingency
- Life of mine (LOM) sustaining capital cost: US$27.3M, includes US$5.4M contingency
- Average LOM total cash cost net of credits: US$23.29/lb U3O8
- Average LOM all-in sustaining Costs (AISC) net of credits: US$24.95/lb U3O8
Drilling results
Meanwhile, Freegold Ventures Limited (TSX: FVL | OTCQX: FGOVF) has reported drilling results from the Saddle zone section at Golden Summit near Fairbanks, Alaska. The drill results are from the company’s 2023 exploration programme.
The programme has been successful in demonstrating significant expansion potential with drilling 250m west of the main Cleary/Dolphin zone intersecting multiple zones with over 2g/t Au over a considerable width (2.12g/t over 197.3m) within a broader interval of 1.76g/t Au over 276.5m.
The new Saddle zone results, 4km east of the central Dolphin/Cleary Zone, show further expansion potential to the east. The zone comprises an extensive vein system mapped on the surface, covering a 3km by 1km area. The 2023 programme tested an 800m strike length of this vein swarm and successfully intersected attractive gold and silver mineralization in all seven reconnaissance holes. The programme also tested the depth potential.
Lastly this week, Mink Ventures Corporation (TSXV: MINK) has completed a 507m drill programme, in six drill holes, at its Warren Copper Nickel Project. All six holes intersected sulphide mineralization, with a total of 144 core samples submitted for analysis, with results pending.
The drill programme has confirmed that there is a strong correlation between surface geophysical survey responses including magnetics, electro-magnetic (EM) responses (conductivity), induced polarization (IP) responses with surface sulphide mineralization in historical trenches, and recent drill intercepts. The Warren property covers 1,010ha of land, located in Whitesides Township, approximately 35km west of Timmins, Ontario.
Mink explains that the preliminary surface examination and sampling of trenches, along with the recent drill programme, has given the company geologists significant insight into the nature of the mineralization on the property. Additionally, the drilling has confirmed the correlation between surface geophysical survey responses including magnetics, electro-magnetic (EM) responses (conductivity), and induced polarization (IP) responses and the mineralized A zone surface trenching and recent drill intercepts.
