| | | RIO, ODV, WGX, ORS
As expected Rio2 aka RIO announced the final funding package for the construction of the Fenix gold project in northern Chile. As these arrangements usually are, it is pretty complicated. Wheaton Precious Metals (WPM) already had a gold stream on Fenix, and this package expands that support, adding on a $100M prepaid gold facility, a $20M standby lone facility, and a $5M PP, as well as amending that pre-exisiting gold stream. In addition RIO announced a $40M marketed PP, since upsized to $55M.
In general I am satisfied with the financing, with the shares in the PPs at a reasonable price (last week's share price). I found an analysis of the deal from WPM's viewpoint that confirmed my thought that the key to turning this from a good deal for RIO to a great deal is for RIO to be able to use the early repayment option on the prepaid gold loan, which is in turn relies on RIO being able to build the mine on schedule. Given this management group's track record and the simplicity of Fenix's operation, I think that is a good bet.
Message 34874750
There was some news out of Golden Cariboo Mining which may have relevance for Osisko Development aka ODV's Cariboo Gold Project near Barkerville, BC. Golden Cariboo has been pulling some promising intercepts from drilling on a part of their Quesnelle Gold Project that is boarded on three sides by ODV properties. Their latest PR announces that they had to terminate a hole through apparent mineralization because it reached the boundary with ODV's property, though still in a gold vein zone with clear alteration. Since mineralization does not respect claim boundaries, I will be watching for the assays on this hole due to the potential implications for ODV.
Message 34874665
West Australian gold/nickel producer Westgold Resources aka WGX released a number of new regulatory documents related to the upcoming AGM. Among them is their Annual Report, linked below. I read through it and didn't see anything new and significant, but it is still worth reviewing to see a description of their operations laid out in an easy to read fashion.
westgold.com.au
Orestone Mining aka ORS released an update on its latest project, a JV with CCD on Las Burras, a Cu/Au/Mo prospect in Salta, Argentina. Previous exploration has already defined two prophyries, but ORS believes that the previous limited drilling only tested the peripheries of these porphyries. To that end, they will be carrying out a programme of geophysics to better define drilling targets.
Message 34876562 |
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