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 previous week, Ascot Resources Ltd. (TSX: AOT | OTCQX: AOTVF) has entered non-binding agreements for a total of approximately US$50M in additional funding from Sprott Resource Streaming and Royalty Corp. and/or its affiliates and Nebari Natural Resources Credit Fund II.
The company has also entered into an agreement with a group of underwriters co-led by BMO Capital Markets and Desjardins Capital Markets, pursuant to which they have agreed to buy on a bought deal private placement basis 56,820,000 common shares of the company at a price of C$0.44 per common share, for gross proceeds of approximately C$25M.
The company will use the proceeds from these additional funding sources for the construction and operational ramp-up of the Premier Gold Project, to buy-back existing royalties, for additional working capital, and for general corporate purposes.
This includes a commitment from incoming executive chairman, Mr. Brett Lynch, to subscribe for approximately A$1.5m worth of fully paid ordinary shares, subject to the receipt of shareholder approval.
IonicRE’s binding commitments from existing sophisticated investors will raise A$500,000 through the issue of 27,777,777 Shares at an issue price of A$0.018 per Share, representing the last sales price on 23 January 2024.
New exploration and development
Meanwhile, Prime Mining Corp. (TSX: PRYM | OTCQX: PRMNF | Frankfurt: 04V3) announced its plans to undertake a 40,000m exploration drilling programme and further technical investigation of its wholly owned high-grade Los Reyes Gold-Silver Project in Sinaloa State, Mexico.
The company will continue preliminary investigations of metallurgical, geotechnical, and mine planning parameters, including process optimization, assessment of open pit versus underground opportunities, and evaluation of permitting requirements.
Prime plans to engage with local communities through educational and community programming, access (road) improvements, and water access.
The Los Reyes resource update is targeted for late-2024, subject to drilling results from the full 2023 year and on-going 2024.
Scott Hicks, executive vice president commented, “We begin the new year with approximately C$32.8M in cash. In 2024, our aim is to further illustrate the immense potential of the Los Reyes property through an initial, fully funded 40,000m drilling campaign targeting resource expansion and proving up several key generative targets. We will continue to engage with our stakeholders at the corporate and community levels and maintain the highest levels of performance in health, safety, and environmental stewardship.”
KEFI Gold and Copper Plc (AIM: KEFI) has confirmed a new discovery, and provided an operational update, in respect of the Jibal Qutman Gold Project in Saudi Arabia in the company’s minority-owned Gold & Minerals Ltd (GMCO) joint venture.
Having completed the 13,000m in-fill drilling programme in Q3-2023, GMCO pursued resource expansion drilling which quickly led to the discovery of the Asfingia satellite deposit. Compelling drilling results include:
- JQD_232: 13.9m (12.7m estimated true width at 7.9 g/t gold from 53.6m (including 1.2m at 66.6 g/t gold)
- JQD_265: 25.5m (37.5m ETW) at 1.9 g/t gold from 86.0m (including 7.4m at 5.2g/t gold)
- A 350m strike length has already been established down to a depth of 75m and the deposit remains open down-dip and along strike
Drilling is ongoing to define the limits of gold mineralization and estimate a maiden resource at Asfingia to complement the other deposits at Jibal Qutman.
Magnetic Resources NL (ASX: MAU) has carried out a number of deeper step out holes to see whether the LJN4 resource could be extended further at depth. The resource had a significant 107% increase in overall resource in its Laverton Project in November to 22.7Mt @1.69g/t totalling 1.24Moz of gold at 0.5g/t cut off and LJN4 increased by 317% from 204Koz to 852Koz.
Some compelling and exciting intersections included:
- Hole MLDD033 intersected 16m at 4.51g/t from 411m, which was a very large 200m step out below the current resource
- New hanging wall mineralization was also discovered in hole MLJD033 with an intersection of 2m at 15.32g/t from 247m, and 8.7m at 2.43g/t from 107m and 13m at 1.00g/t from 135m in MLJDD032
- MLJRCD826 intersected a 40m thick breccia zone from 270m-310m, which visually looks very promising and has assays pending
- MLJRCD826 is a large step out and is outside the current resource which augers well for the next resource upgrade
Other company news
Jeffrey R. Wilson has over 25 years’ experience in the mining industry, having served as a director, officer, and advisor of multiple public and private companies in the mineral exploration, and mining investment industries.
Additionally, Gary O’Connor has over 40 years of diverse experience as a mineral exploration and development professional in the management of successful resource projects as well as the evaluation, technical due diligence, and supervision of large mineral exploration and development projects. Mark J. Pryor is a geologist with a 40-year track record of successfully advancing multiple precious metal, copper, coal, REE, and Li projects from discovery through to exploitation.