MAI, WGX, SVB, CAPT, DV x 2
It's official. Minera Alamos aka MAI is no longer a Meixco-focused gold miner. According to today's PR, which announces they have completed the purchase of several gold assets in Nevada, including the producing Pan mine, they have become, to quote the Pr's subheading, an 'Emerging U.S. Focused Gold Producer'.
The transaction cost MAI over $88M cash plus almost 97M shares, both paid to EQX. I expect EQX to follow their usual practise and start selling those shares as soon as the hold period is over -- in January, I believe - so unless they are unloaded as a block there will be a buying opportunity. The cash was raised by selling subscription receipts containing 380M shares and 380M warrants, so expect more selling pressure as those come available for trading in January.
This means MAI will end up with more than 1B shares, so I expect a rollback to come. Their main job now is to generate good enough numbers from Pan and Santana that not everyone dumps the new shares and warrants as soon as they begin trading.
MAI also announced that Jason Kosec has been installed as Chairman, and that they have agreed to to $25M gold prepay contract covering the next two years.
Message 35280395
West Australian gold miner Westgold Resources aka WGX released their three year plan, and the market reaction was very positive. It's not hard to see why. If they can follow through on these plans, by FY28 )July 2027 to June 2028) they say they can produce 470 oz Au at low cost and therefore high margin. And as they take pains to point out, the plan is conservative, e.g. not taking into account the possibilities for organic growth such as the Fletcher Zone at Beta Hunt.
The plan is based on producing current Ore Reserves through their four processing hubs, while increasing both mill processing capacity and ore grades. Note also that the plan will be fully funded on cash on hand and forecast cash flows.
The PDF and presentation linked below lay out all the derails of the plans for each mine and mill over the next three years.
FWIW, after reading through the plans in detail, they do seem both conservative and achievable. Judging by today's trading, the Ms. Market agrees.
westgold.com.au
Link to presentation
westgold.com.au
I have been waiting, increasingly impatiently, for Silver Bull Resources aka SVB to release an update on their case against Mexico for not protecting their Sierra Mojada prospect from an illegal occupation which has shut down exploration.
The case has finally proceeded to arbitration under NAFRA and CUSMA, and the case is to be heard between Oct. 6 and Oct. 11. It seems to me that SVB has a solid case, and they have been able to attract some high-powered lawyers to present their case.
So we wait.
First up will be the decision of the arbitration panel, which will take some time to be rendered. Then we will wait to hear what SVB will do with any money they collect. There are several ways this could go. Since now worthless Sierra Mojada is SVB's only asset, they could wind up the company and distribute the award to shareholders. Or the money could be used to acquire another asset for SVB to work on, but since SVB's management is busy right now with their work at Arras Resources, this seems less likely.
Message 35280107
Capitan Silver aka CAPT has been busy since it was spun out from RRI a few years ago. They started with a small property with two isolated silver veins, and have since expanded the renamed Cruz de Plata property in Durango to a much larger size which now encompasses silver vein structures over an area of 20k m by 7 km.
CAPT has also been busy drilling up these veins and developing new prospects, with six currently being advanced to drill-ready stage. They are also planning a property-wide geophysical survey for early next year, and have expanded the currently underway drill programme to 15km. with assays for 38 holes currently pending.
They have already greatly increased their geological understanding of the mineralization, now thought to extend well beyond that was previously thought. They have also identified some high grade gold prospects to go along with the deposit at the Capitan Hill Oxide Gold deposit, for which an initial Resource Report is currently being calculated.
Helped of course by the price of silver, CAPT has been able to engineer a substantial rise in its share price since its inception. I am confident that long as the PoS holds up, the work they have underway will lead to further substantial increases.
Message 35280137
Even if your company name contains the word 'silver', it never hurts to find gold. Dolly Varden Silver aka DV is showing that via their latest drilling in their Kitsault Valley landholdings in BC's Golden Triangle. There is already a well-defined silver deposit at Homestake, but with their latest drilling DV is expanding the nearby Homestake Gold deposit, which seems to have resulted from a separate minerlizing event.
A 45m step out generated an intersection of 3.34 g/t Au over 120m, including 216 g/t Au over 0.52m and 166 g/t Au over 1.3m. There is plenty of drilling underway at DV's various properties, so I look forward to more promising assays.
Message 35280189
Later that afternoon DV announced a $30N bought deal financing It is larger than I would have liked, but the price is decent and no warrants are included. We'll see if the 15% overallotment is taken up.
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