Welcome to our roundup of some of the most prominent mining investment, exploration, and development stories on Theassay.com from the last seven days.
Financing and M&A
Finance news last week kicked off with Firefinch Ltd’s (ASX: FFX) spin-off Leo Lithium Ltd’s initial public offering (IPO) to raise up to A$100M has closed oversubscribed. Firefox proposed demerger of a number of assets is being undertaken by way of in specie distribution (demerger) into Leo Lithium Ltd.
The IPO, comprising a pro-rata offer to eligible Firefinch shareholders, a shortfall offer and an offer to Firefinch, received strong support from Firefinch shareholders and high quality institutional investors, closing oversubscribed. Over 90% of the offer was allocated to existing Firefinch shareholders.
“We are pleased to have reached this important milestone in the separation of our gold and lithium assets. Subject to shareholder approval, the demerger will allow Firefinch to focus its attention on the development of the world-class, multi-million-ounce Morila Gold Project, while providing our shareholders with exposure to the future development of Goulamina through our 20% retained stake,” Firefinch Managing Director, Dr Michael Anderson, said.
Tinka Resources Ltd (TSX-V: TK) has entered into an equity subscription agreement with Nexa Resources S.A. the largest zinc producer in Latin America. Nexa operates several long-life operating mines and smelting operations in Peru and Brazil and under the terms of the agreement, Nexa will subscribe for 40,792,541 common shares of Tinka at a price of C$0.22 per common share for gross proceeds to Tinka of C$8.97M.
President and CEO of Tinka, Dr Graham Carman, stated, “Tinka is thrilled to welcome Nexa as a strategic investor in the company, joining Buenaventura and Sentient Equity Partners as our major shareholders.
“Nexa’s strategic investment in Tinka, and the co-investment by Buenaventura, is a strong endorsement of our globally significant Ayawilca zinc project and of Peru as an important long-term mining and investment jurisdiction.
“Nexa is a dominant player in the zinc business in Latin America, owning three mines and a smelting operation in central Peru near Ayawilca.”
New exploration and development
In exploration and development headlines, we heard that 1911 Gold Corp (TSXV: AUMB) (OTCQX: AUMBF) completed its first phase of 2022 exploration drilling, testing multiple high-grade gold targets at the 100%-owned Rice Lake and Apex (Snow Lake) Gold Properties in Manitoba, and will initiate the 2022 field exploration programme in the coming weeks.
In Q1-Q2 2022, the company completed 9,202m of exploration drilling in 35 drillholes, testing 18 targets across four project areas on its Rice Lake and Apex properties in Manitoba.
Freeman Gold Corp. (TSXV: FMAN | OTCQX: FMANF) received approval of a Plan of Operations application to the USDA-Forest Service (USFS), Salmon and Challis National Forests, North Fork Ranger District in Idaho.
“The approval allows us to drill test key extensions of the Lemhi Gold Deposit to maximize the near surface oxide ounce count. We are very much looking forward to drill testing exiting new targets in our underexplored land package. After our success at Beauty, we are very optimistic that additional gold mineralization can be discovered in the property package,” said executive chairman Paul Matysek.
Following the recent update to the Makuutu Mineral Resource Estimate (MRE) to 532 million tonnes at 640ppm Total Rare Earth Oxide (TREO), above a cut-off grade of 200 parts per million (ppm) TREO minus CeO2 (TREO-CeO2), a review has been conducted to establish further exploration potential at Makuutu and plan the work programmes to be conducted over the next 12 months.
In drilling headlines, Galileo Mining Ltd (ASX: GAL) uncovered extremely rare and valuable Rhodium assays in previously announced drill hole NRC266 from the Callisto discovery at the company’s 100% owned Norseman project in Western Australia.
“The rhodium assays confirm the presence of this valuable metal within the Callisto mineralized system,” Managing Director, Brad Underwood, said.
Kairos Minerals Ltd (ASX: KAI) has extended known mineralization, paving the way for an upgrade of the existing 873,500oz mineral resource, with the receipt of final 4m-composite sample results from a RC drilling programme conducted in 2021 at its 100%-owned Mt York Gold Project located in the Pilbara region of Western Australia.
The 2021 RC drilling programme at Mt York project comprised 95 drill holes for a total of 14,988m, and it was completed on 19 November last year.
Finally, Cerrado Gold Inc. (TSX.V: CERT | OTCQX: CRDOF) has released its operational and financial results for the first quarter of 2022 Q1. 2022 represents the second quarter of mine operations post completion of restructuring at Cerrado’s Minera Don Nicolas Mine in Argentina.
Highlights of the financial and operational results include Cerrado’s Minera Don Nicolas Mine producing a total of 13,007oz of gold in Q1 2022 (13,499 Gold Equivalent Ounces), a 74% improvement compared to the first quarter of 2021.
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