ODV, KTN, OGCx2, WEX, AUX, WRLG
I am quite surprised that Osisko Development aka ODV appears to have persuaded someone to give them $450M (evenetually), enough to pay back their current loan from National Bank as well as, ODV says, fully fund the construction of the Cariboo gold mine in BC.
The lender is Appian Capital Advisory, a large worldwide group that manages private capital. This got me wondering why Appian would enter into this agreement. First off, if you read through the terms of the agreement they look very favourable to Appian, including high interest rates and Appian getting over 5M warrants on favourable terms.
Then I looked through all the mining news I have posted on my board for mentions of Appian. Most of them are to do with ODV's sister company Osisko Mining, but one other company had a number of mentions, Harte Gold. Harte quickly got into trouble and Appian declared a default, which quickly led to s strategic review and a takeoever of Harte Gold by Silver Lake Resources.
Given that the collateral for the loan ODV is getting from Appian is the Cariboo Mine, I would guess that Appian hopes something similar will happen with ODV, resulting in Appian either getting the mine or extracting more money.
I remain glad I only have a tiny stake in ODV.
ca.finance.yahoo.com
Kootenay Silver aka KTN announced that a 50k drill programme will begin their Columba silver project in Chihuahua Mexico, for which they recently released an Inferred Resource containing 54.1 Moz of silver, 25.2 kt of lead, and 65.6 kt of zinc. Two drills will arrive in the coming weeks to begin the initial 25km of drilling, aimed at expanding the Resources around the B, D, and F veins, all of which are open in multiple directions.
Message 35202028
OceanaGold aka OGC, which already runs gold and copper mines in the Philippines, on both islands of New Zealand, and in South Carolina, have announced further diversification by farming into 75% of three gold prospects in Nevada. It's a good thing OGC has become a cash generation machine because the cost is not cheap, requiring staged exploration expenditures totaing $US 65M over 8+ years.
The three properties, currently owned by HWG.CN, are TJ, Jake Creek and Hot Creek, TJ seems to be the star, as the companies plan to begin drilling it as soon as the agreement is finalised, but all three have returned good drill results in previous scout exploration.
HWG aka Headwater Gold, although still trading on the CSE, has very experienced personnel and a roster of 10 prospects across the western US, including 2 farmed out to Newmont.
Message 35202047
In addition, OGC announced they are renewing their share buyback programme, which will authorize them to buy an cancel up to 23M shares over the next year. During the recently completed buyback, OGC cancelled 6.85M shares over the last year.
It's nice to be generating so much cash flow indeed!
ca.finance.yahoo.com
Western Exploration aka WEX announced that drill crews have been mobilized to its Aura Au/Ag project in Nevada. They say the 4km programme is looking for 'bonanza-grade' materials in extensions if historic resources in the property. Maybe if they find those grades WEX will finally gain some traction in the market.
Message 35202082
I have been eagerly awaiting the initial drill results from Golden Cross Exploration aka AUX on its Ready Creek prospect, in Victoria, Australia, so I was a little disappointed to open today's PR and find no drill results.
But there was still some good news. First, what they are seeing in the drill cores matches the geology of nearby high grade gold deposits, particularly Sunday Creek. Second, the recently completed $5M PP has allowed the acceleration of the drilling by bringing in a second rig, and also to bring forward plans for deeper exploratory holes.
Message 35202119
FWIW, the IKN newsletter did an extensive analysis of Ontario gold miner West Red Lake Gold aka WRLG on the weekend and make a buy decision. I can't share the analysis, but I will say it covered the two main risk factors for WRLG I have identified: the presence of Frank Giustra, and the necessity of high gold prices to make the economics work.
FWIW, BMO came out with a new analyst report on PM producers. Among the new ratings are EDV at Ooutperform with a target of $52, OGC at Outperform with a target of $27, and MTA at Ourperform with a target of $8.
FWIW, RBC alos released a new analyst report on PM producers. Among the rating are OGC at Outperform with a target of $25, IAU at Outperform SPec with a target of $1.50, and ODV at Outperform Spec with a target of $5. |
