Metallic Minerals Corp. claims that mining major Newmont Corp. exercises its “additional right” to purchase additional shares of the company. Read to discover other ways companies are working together.
Metallic Minerals Company (MMG:TSX.V; MMNGF:OTCQB) announced that the mining major Newmont Corp. exercises his “additional right” to buy additional shares of the company.
With this purchase, Newmont will continue to hold 9.5% in Metallic Minerals by purchasing a total of 342,750 common shares at C$0.33 per share to “adjust for certain non-monetary transactions made by the company over the past six last months “.
“We are very pleased with Newmont’s continued collaboration and support on the La Plata project,” said Metallic Minerals President Scott Petsel. “Our latest drilling results demonstrate the potential of the La Plata project as a district-scale precious metal-rich porphyry system with multiple holes ranging from 500 to 900 meters of continuous mineralization from surface and including some of the highest grades. values multiplied by the thickness of copper drill holes in the United States over the past year.
Exploration at its La Plata copper-silver-gold-platinum group element (Cu-Ag-Au-PGE) project in southwest Colorado was funded with the initial investment of $6 .3 million Canadian dollars from Newmont. In addition to capital, Newmont also provided technical support and expertise for the project through a joint committee with Metallic Minerals, including several site visits.
“These contributions are expected to continue into 2024 and may include Newmont providing experienced personnel to the project to enhance surface data acquisition, geological mapping and geophysics,” Metallic Minerals said in a statement.
The new offering is subject to final approval by the TSXV.
The catalyst: 2024 exploration campaign
The main Allard deposit at La Plata remains open to expansion at depth and along trend, and more than 20 new surface targets have been identified that could represent additional porphyry centers, Petsel noted.
“Final planning is underway for the 2024 exploration campaign, which is expected to include resource expansion drilling with a focus on the higher-grade porphyry units of the Allard deposit and initial drilling tests on new priority targets outside the Allard resource zone. he said.
Last month, Metallic Minerals published the final results of its 2023 drilling campaign at La Plata, noting that all four holes intersected porphyry-type mineralization from surface and along their entire length.
Three of the four holes in the 4,530 meter program intercepted continuous Cu-Ag-Au-PGE porphyry mineralization over 500 meters wide at 0.3% Cu, including significant intervals exceeding 0.5% at 0, 7% Cu Eq (copper equivalent) with associated Ag. , Au and PGE. Drill hole LAP23-05 intersected 909 meters of continuous mineralization from surface, grading 0.26% Cu Eq over the entire length of the hole with a 550 meter wide higher grade zone.
“Our emerging vision for the La Plata project is that we have the potential for a district-scale system with multiple porphyry centers in addition to the Allard resource area,” Petsel said. “This is supported by multikilometre-scale soil metal values that extend well beyond the drilling area and match the strong weathering responses in our detailed district-scale airborne hyperspectral survey .”
The company announced an expanded July 2023 NI 43-101 resource for La Plata of 1.2 billion lb Cu and 17.6 Moz Ag at an average grade of 0.41% Cu Eq, 0.37% Cu and 3.72 g/t Ag, using an average grade of 0.25%. Threshold content of Cu Eq.
The inaugural resources were largely based on historical drilling for which platinum group element and gold assays were not available. Metallic said it plans to add the full range of precious metals to future resource updates.
According to the company, the U.S. Geological Survey identified the La Plata Mining District as a potential critical mineral resource area under the Earth Mapping Resources Initiative program and, in 2023, completed significant geological and geophysical studies to improve understanding the critical mineral occurrence in the district.
These resources and results, combined with those of its flagship Keno property in the Yukon and an alluvial gold production royalty agreement signed with Parker Schnabel of the Discovery Channel show “Gold Rush”, led Couloir Capital to rate the stock as a buy last year. In an updated research note on September 27, it set a per-share fair value estimate of C$0.74.
Copper, a major player in the energy transition
Despite some slowdown due to slower-than-expected electric vehicle sales, the global copper market was worth US$304.1 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 5.1%. 2023 to 2032 to reach 496.8 billion US dollars. Acumen Research and Consulting reported.
“The growing demand for copper could be met through the development of mining technology, well-organized designs for ore processing and the discovery of new copper reserves,” notes the Acumen report. “According to the United States Geological Survey (USGS), international copper reserves increased by approximately 720 million tons in 2017, and undiscovered copper reserves are estimated at approximately 3,500 million tons.”
Haywood Securities noted in a January 2024 report that given the time it takes for new copper supply to come online, the market for the metal “will tighten for the foreseeable future (and) this could eventually lead to a new copper cycle. ” Haywood noted that forecasts call for a copper deficit this year, marked by a supply shortfall of around 500,000 tonnes.
CNBC reported copper supply is low in January and the ongoing global transition to renewable energy will continue to generate strong demand for the metal.
“The incredible growth in the number of electronic gadgets such as laptops, mobile phones, smart devices and televisions across the world is increasing the demand for this product,” the Acumen report said.
Ownership and structure of shares
About 17% of Metallic Minerals is owned by management and insiders, including CEO Greg Johnson with 4.15%, independent director Gregor Hamilton with 0.92% and Chairman Petsel with 0.5%.
About 34% is held by strategic investors, including 9.5% from Newmont and mining financier Eric Sprott, who owns 14.5%.
About 22% are held by institutions. The rest, 27%, is intended for retail.
Its market capitalization is CA$49.3 million, with 166.99 million shares outstanding, of which 123.02 million are floating. It trades in a 52-week range of C$0.44 to C$0.24.
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- Metal Minerals Company is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee of between US$4,000 and US$5,000.
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