Strategy Behind Strategic Financings

Strategy Behind Strategic Financings

Whilst new discoveries will be in high demand once the deficit sets in for many base metals, it is not getting easier nor cheaper to unlock the value of discoveries, often calling for more intensive exploration programs. The financing strategies to make these discoveries possible are therefore important to analyse. Kura does just that this week as we delve into financings over US$35 million carried out in the last 4 years in the base metals space, and explore how strategic investments can work well for all stakeholders if played right.

Filo Mining Drills 378 Metres of 0.44% Copper and 0.89 g/t Gold at Filo del Sol - Including 12 Metres of 12.60 g/t Gold, 0.54% Copper and 260 g/t Silver

Filo Mining Corp. (TSX-V, Nasdaq First North: FIL) seven assays from its Filo del Sol project rank within the top results of the week according to Opaxe and mark the end of the 2019 drill program at the property, which is located on the Chile/Argentina border. All but one of the holes ended in mineralization, which has shown the project’s continued upside potential, complementing the encouraging production outlook from Pre-Feasibility Study.

Drilling at Continental Gold’s Buriticá Project Discovers BMZ4, a New High-Grade and Broad Mineralized Zone

CONTINENTAL GOLD (TSX: CNL; OTCQX: CGOOF) holds one of the largest and highest grade gold projects globally, the Buriticá Au project in Colombia, which has production scheduled to start in 2020. Once in full production the mine could double formal production levels of gold in Colombia. The team continues to explore upside at the property with recent new discovery at BMZ4 where they will continue to drill.

Great Panther Provides Update on Tucano Gold Mine

Great Panther Mining Ltd. (TSX:GPR; NYSE:GPL) have commissioned a supplemental modular liquid oxygen supply system at the Tucano Gold Mine in Brazil to process higher grade sulphide ore, and has to date processed ore as high as 2g/t Au with 94% recoveries. Before the supplemental oxygen, Great Panther were limited to processing lower grade oxide material. With recent reports highlighting the future of new discoveries likely to be fewer and at lower grade, technologies like this one are encouraging for making those new discoveries economic to mine.

Guyana Goldstrike Identifies Outcrops Along a 1,100 m Magnetic Trend; Marudi Gold Project, Guyana

Guyana Goldstrike Inc. (TSXV:GYA, OTC:GYNAF, FSE:1ZT) have identified previously unmapped outcrops along 1,100 metres of a magnetic quartzite-metachert trend north of its Mazoa Hill 43-101 resource. This news follows the trend of juniors focussing on brownfield exploration, and is encouraging for the company as they will work to expand the resource with exploratory drilling, adding to the 42,000 m historic drilling and working to add to the three mineralized zones.

Adventus Announces Robust Results of its Preliminary Economic Assessment for the El Domo VMS Deposit

Adventus Zinc (TSX-V: ADZN; OTCQX: ADVZF) reported a Mineral Resource Estimate update and robust PEA at their El Domo deposit at the Curipampa project in Ecuador. The PEA outlines development potential for production of copper, gold and zinc by open pit and underground methods. El Domo is economically attractive compared to development project peers and upside potential at Curipampa will continue to be explored by the Adventus team as they evaluate and drill new targets in 2019. Adventus also announced a strategic investment from the Noblis Group of Ecuador as part of a C$12.1 million private placement, see here.

Toachi Mining announces positive PEA for its La Mina VMS Project

Toachi Mining (TSX.V:TIM OTCQB:TIMGF) has released its independent PEA for the La Mina VMS Project in Ecuador. The gold-copper-zinc-silver project's mine plan has 2 mt of potentially mineable mineralization with average head grade 10 AuEq g/t. The mine would operate for 7.1 years  and the All-In Sustaining Cost is $101/t milled. For more information.

Chakana announces CDN$8 million strategic investment from Gold Fields Limited

Chakana Copper Corp. (TSX.V:PERU OTC:CHKKF FRA:1ZX) has announced a C$8 million strategic investment from Gold Fields Ltd to advance their Soledad copper-gold project in Central Peru, which is characterized by high-grade breccia pipes. Gold Fields operates the Cerro Corona mine in Peru, and will now represent over 16% of Chakana's outstanding shares at a price of C$0.51, (the company closed April 29 at C$0.37).

Teck's San Nicolas, Zafranal projects could go up for sale in 2019

Teck Resources Ltd (TSX: TECK.A and TECK.B, NYSE: TECK) has indicated its advanced Cu-Au project in Peru, Zafranal, will be positioned for sale potentially by year end, along with their San Nicolas asset in Mexico. CEO Don Lindsay also expressed the company was not looking to acquire and develop any new copper projects at present, but will be focussing on its Quebrada Blanca copper project in Chile, which has production forecast for 2021.