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Avrupa Minerals Preparing to Drill Soon at Flagship Alvalade Copper-Zinc Project, Closes Financing

Source: The Critical Investor for Streetwise Reports   10/26/2020

The Critical Investor profiles Avrupa Minerals at a time when the company is preparing to drill at its flagship Alvalade copper-zinc deposit, has closed financing and has completed a 4:1 consolidation.As 2020 keeps unfolding as one of the most remarkable years of the last decade with COVID-19 disrupting almost everything, resulting in unprecedented drops in economic activity and considerable volatility in the markets, and a second wave of the pandemic seems to be around the corner, the mining industry seems to be looking forward, on the back of a recovering economy, especially China returning back close to normal during the summer. A tiny company that is completely under the radar of many investors, but is also looking to get back into action, is Avrupa Minerals Ltd. (AVU:TSX.V; AVPMF:OTC; 8AM:FSE) with its flagship copper-zinc Alvalade project in Portugal, JV’d with MATSA (joined company of Trafigura and Mubadala,…

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Source: The Critical Investor for Streetwise Reports   10/26/2020

The Critical Investor profiles Avrupa Minerals at a time when the company is preparing to drill at its flagship Alvalade copper-zinc deposit, has closed financing and has completed a 4:1 consolidation.

As 2020 keeps unfolding as one of the most remarkable years of the last decade with COVID-19 disrupting almost everything, resulting in unprecedented drops in economic activity and considerable volatility in the markets, and a second wave of the pandemic seems to be around the corner, the mining industry seems to be looking forward, on the back of a recovering economy, especially China returning back close to normal during the summer. A tiny company that is completely under the radar of many investors, but is also looking to get back into action, is Avrupa Minerals Ltd. (AVU:TSX.V; AVPMF:OTC; 8AM:FSE) with its flagship copper-zinc Alvalade project in Portugal, JV’d with MATSA (joined company of Trafigura and Mubadala, 2 commodity giants).

Very recently the company announced a drill program for Alvalade, a 4:1 rollback and closed a small C$500k raise to pay G& and other ongoing costs, after receiving the all-important experimental exploitation license back in June of this year. The 4:1 roll-back will take place after shareholder approval is obtained at the AGM on December 14, 2020. The raise comprised 16.88 million units, consisting of a share and a full warrant, the share being priced at C$0.03 (pre-consolidated) and the warrant at C$0.05 (pre-consolidated) for a period of 36 months. The proceeds from the issuance of the units will be used to provide working capital for exploration programs in Portugal, Kosovo, potential new acquisitions, and for general corporate purposes.

I don’t usually regard a rollback without a complete overhaul of the company a welcome development as it dilutes existing shareholders, but in this case I view the Alvalade JV as such a robust and high quality JV that the company shouldn’t have to toil around with share prices of sub 5c when doing the rounds during financings. Furthermore, the roll-back isn’t that excessive, and this company doesn’t have to do large raises for a while, as MATSA is doing the heavy lifting of exploration funding.

After this quick catch-up regarding the company, it might be interesting to get something of a big picture update first, before Avrupa is discussed in further detail.

COVID-19 has hampered Avrupa for the most part of this year, and is returning to the spotlights with a second wave now. Even Trump ending up in a hospital recently as a COVID-19 patient didn’t hurt market sentiments, although no one really knows what exactly went on, how sick he was, and for how long. It even seems nowadays that his physicians seem to have invented an effective method to cure from virus, as a cocktail of synthetic antibodies and an anti-Ebola medicine got Trump back on his feet and working miraculously fast. In Europe where I live, people who suffered and recovered from the virus at a much younger age than Trump remain in a so-so condition for weeks or even months, although healthcare isn’t really inferior, to say the least.

As the markets, and to a lesser extent the real economy, were saved/backstopped by a massive US$2 trillion stimulus package, expectations are that this will happen again if the second wave starts to create lockdowns, etc., for the second time around. Trump and Treasury Secretary Steven Mnuchin are hesitant so far, but since a bill can be signed in 3–7 days if needed, I assume they are waiting until actual lockdowns are announced and eventual effects on the markets become more visible. I do expect the markets to react less violently compared to March, as they didn’t know what to expect from government stimulus back then, and they do now.

Stimulus isn’t only confined to Trump politics, as Joe Biden is a big supporter of stimulus programs, as well, when looking at his election program, so Republican or Democratic, the markets will see stimulus if needed, and not left to crash into depression. On the back of a real economy that is recovering from the first wave, mining and metal prices are doing well, and especially copper, which is the most important metal for Avrupa’s flagship project, is doing very well since the March outbreak as can be seen in this chart by Macrotrends:

Copper prices are even closing in on 5-year highs set in 2017, but could be in for a small correction due to the upcoming second wave and potentially a chaotic presidential election. For next year a considerable deficit is forecast, so if the economy recovers further, I see copper prices going past US$3.25/lb levels. I do believe that, if a vaccine is developed successfully, economy and markets are eager to leave the current situation behind them, and a second stimulus package can help bridge the period between now and the moment the vaccine can be applied successfully at a large scale. This will take some time, as several programs by Big Pharma are paused or reconfigured as tests yield several undesired side effects in some cases. Considering the amount of research dedicated to this task worldwide, I hope and assume there will be a solution somewhere in the second half of 2021.

COVID-19 aside, I’m always checking the second most important metal for Avrupa as well, which is zinc. Zinc prices saw more of a breather compared to copper in the last month or so, but is overall certainly enjoying a strong and robust recovery comparable to copper, since an estimated 25% of world production came to a halt in March 2020 due to the pandemic, as can be seen here in this chart of Kitco:

As can be seen above, the zinc price is actually only just hovering along a long term US$1/lb average, so if a real economic recovery takes place, despite a bottleneck in zinc smelter capacity, we could see zinc prices go above US$1.20/lb levels again next year. An interesting detail around doing zinc due diligence was the ongoing discrepancy between a formerly assumed fundamental for the zinc price, LME inventory levels, and the actual zinc price:

 

A rising zinc price only corresponded with lower inventory levels until June 2018, after this it all didn’t make any sense anymore. Something much more specific to the zinc market, spot zinc treatment charges (TCs) going down (there is no zinc offered to smelters so no supply) are usually a front runner to the zinc prices, as can be seen here in this old chart coming out of a January 2017 zinc report by RBC:

 

It wasn’t easy to find a more updated chart regarding TC pricing, but one of the results was a Reuters chart from last year, showing high realized contract treatment charges as increased mine supply is creating the aforementioned bottleneck with smelter capacity:

COVID-19 caused many temporary mine closures with major producers like China, Mexico and Peru, so TCs came down as expected, and can be witnessed in this more recent chart by Wood Mackenzie, taken from a Trevali Mining presentation:

I am actually surprised to see the benchmark (= contract) TCs remain at US$300/ton during the COVID-19 crisis, as supply dropped off by about a quarter, and has seen spot TCs coming down a lot since the outbreak as well. The zinc price responded in reverse lockstep with the falling spot TCs as usual, but the gradual recovery in restarting mine production has seen spot TCs rising again and the zinc price correcting. What to expect next? Interesting to see is supply ramping up production to return to pre-pandemic levels on the back of recovering demand and also weather the high contract TCs, but on the other side there has been a lack of investments in smelter capacity the last few years, creating the ongoing bottleneck, and in the end creating zinc ingot shortages, which in the end could result in higher zinc prices when the economy fully recovers.

As there is oversupply going on from mine production, I don’t see a sharp spike in zinc prices coming anytime soon, usually created from a significant production supply/manufacturing demand deficit. According to an October 21 news release by the International Lead and Zinc Study Group (ILZSG), a platform formed by the United Nations, consisting of all major producing countries and industry players in the lead and zinc sector, several mines could experience problems to nameplate capacity again, but global supply for refined zinc metal will exceed demand significantly in 2020 (620kt), and for 2021 this surplus is expected to be 463kt. Notwithstanding this, the somewhat artificial deficit created by smelters could provide the markets with a zinc price at or above US1.10-1.20/lb levels for quite some time. This is about it for copper and zinc, let’s have a closer look to the company, as promised.

After receiving the new Alvalade Experimental Exploitation License (EEL) from the Portuguese Mining Bureau on June 15, the MATSA JV could be finalized, and exploration programs and budgets finally planned. MATSA also acquired two greenfield exploration licenses close to Alvalade at the same time as the Alvalade license issuance.

As a reminder, the EEL covers an area of approximately 115 square kilometers, is valid for up to five years, and includes the Sesmarias massive sulfide discovery, the nearby historical Lousal Mine, the Monte da Bela Vista stockwork zone, and a number of other already known massive sulfide targets noted on the map. Avrupa will operate the project through a joint technical committee with full funding by MATSA for up to three years, subject to project milestones.

I talked to President and CEO Paul Kuhn about the status of the exploration program as laid out in the news release of October 5, and this is the updated information:

  • Re-log historical Avrupa-drilled Sesmarias core with MATSA to integrate its knowledge of the Pyrite Belt into the overall understanding of the massive sulfide deposit (remember that MATSA has three operating Pyrite Belt mines in Spain, and at least one new un-announced discovery in the same rocks).

    Paul Kuhn (PK): We are continuing with this work and have expanded it outwards to several other very attractive zones around the old Lousal Mine and Monte da Bela Vista (7-10 kms north of Sesmarias) and around the old Caveira Mine, a further 10 km north of Lousal. While looking for old core for its own projects in several remote storage areas, MATSA also discovered old drill core from the Lousal and Caveira areas.

  • Initial logging and possibly sampling of historical core prior to Avrupa’s involvement at Alvalade. The company has access to at least 10,000 meters of old core that has not be looked at for years.

    PK: MATSA discovered at least eight holes drilled a long time ago around Lousal and Caveira. The old core was stored and basically forgotten over the years, partially because of the hazardous condition of the boxes stacked in piles 3–4 meters high, and leaning dangerously. We are working on properly locating the old drill collars corresponding with those cores, and have already successfully located three of the eight collar locations. We are working on the others, in the vicinity of the Lousal workings.

  • Considering use of ionic leach geochemistry, to help identify and follow the trend of the Sesmarias mineralization. This is a relatively new geochemical technique that utilizes ultra-trace detection methods to find ions of many different elements that may indicate the presence of buried massive sulfide mineralization. We have done some orientation surveys over known mineralization at Sesmarias, and it seems to work quite well.

    PK: We have proposed doing this, at least in a first trial orientation survey of some 500 samples. The only issue at the moment is manpower and access.

  • Review all of the old Lousal Mine data and geology in order to consider new drill targets. It is reasonable to assume that Lousal and Sesmarias were all part of the same deposit a long time ago. Are there more sulfide lenses out there between Lousal and Sesmarias (7 km apart)? How much more of the remaining Lousal mineralization might be available for exploitation? Possibly 30–35 million metric tonnes of massive sulfide remaining within the old Lousal workings?

    PK: Continuing work here seems to point to that possibility. One of the reasons for the re-log is to consider this in detail and provide new drill targets between Sesmarias and Lousal, as well as around Lousal, itself. Some of the newly discovered historical drilling may help us with very near exploration at/around the Lousal Mine.

    Review old core from the Monte da Bela Vista stockwork zone to see where the ore deposit may be hiding. MBV is located 1.5–2 km north of Lousal, giving us over 9 km of strike length in this district.

    PK: As soon as we finish with Sesmarias, we will tackle the MBV core. We’ve already looked at a couple of the MBV holes, and this is helping us define how we plan to drill at MBV.

  • Review the old Caveira Mine data and drilling. Caveira is underexplored and is located only 9.5 km north of Monte da Bela Vista. We only drilled one or two holes in the area when we were working with Antofagasta years ago.

    PK: This is the same as at Lousal. Two of the guys are looking at the historical Caveira drill holes right now.

  • Review and compile exploration data for the rest of the license, as there are lots of targets to be explored.

    PK: We are really concentrating on Sesmarias, Lousal, and Monte da Bela Vista right now. Just started on the Caveira holes, and we are also reviewing the old gravity and magnetics studies to help with the targeting between MBV and Caveira. The partner’s geologist is quite interested in anomalism (geophysical and geological) located at a place called Cabeça Gorda, which is located about halfway between Caveira and MBV.

  • Drill targeting with the hope of starting drilling by the beginning of September

    PK: We were delayed in starting up by general pandemic considerations impacting, for example, holiday seasons. As well, we have found a real lack of employable persons in the immediate area of the project. We are now realizing that we need to continue with the re-logs of Sesmarias in more detail than expected, and integration of the two partners’ databases has taken time. Land access has been more difficult than expected or planned for in the Sesmarias area, so we are utilizing the time to push ahead on other attractive targets in areas of already known mineralization close to Sesmarias. We are looking at starting our drilling to the north of Sesmarias at Monte da Bela Vista and around the Lousal area, most likely in November.

In a closing remark, Paul Kuhn stated the following:

“Even with help from MATSA’s team of geos, things are moving slower than anticipated. We are all learning a new geological data reporting system in order to coordinate with MATSA’s mine team. This includes both partners of the JV entity, PorMining. Both teams are working together to learn the geology and the targeting characteristics. This has expanded work for all of us, but is giving us a lot of new opportunities. Drilling will start on the Alvalade Project as soon as we can complete this first stage of work and get a drill rig from Spain.

“MATSA sent over an experienced logging geologist from the mine a couple of weeks ago, to help us all integrate into their system. We’ve made quite a bit of progress, but there is more to do, and we will request the return of the geo for next week, probably. The work that we are doing at Sesmarias is further updating the model of the deposit from the previous iterations and putting it into the MATSA database will help us immensely with a proper 3D targeting model for the Sesmarias-Lousal-Monte da Bela Vista district. This means many new drillable targets in the upcoming drilling program beyond Sesmarias.”

Unfortunately, this all means a delay for the commencement of drilling, and the earlier communicated timeframe of the 7,000–8,000-meter program being October 2020 will be moved toward later into Q4, 2020, probably November as mentioned. It is anticipated that the second wave of COVID-19 won’t have a further delaying impact, barring a complete lockdown as we have witnessed in March-April of this year.

As a reminder, the Sesmarias discovery combined with the Lousal historical resources/workings is the obvious target for MATSA, as it generates a 40–50Mt resource potential (Sesmarias 10 Lens is guesstimated by me to contain about 19–20Mt, Lousal a potential 20-30Mt, both guesstimated at 1% Cu or better). Avrupa and MATSA are looking to see if Sesmarias, Lousal and also Monte Da Bela Vista, all several kilometers apart from each other, could form a district scale system. In my last article about Avrupa, I calculated JV project/NPV potential estimates for the company at many multiples of the current share price (C$0.035 now vs. C$0.29–0.45 at FS stage, unconsolidated). Even the rock bottom cash compensation for the Avrupa interest per the JV deal (C$10 million) is almost three-fold of the current market cap, and as this compensation has been negotiated with metal prices at significantly lower levels, I see potential to renegotiate terms if these prices remain at current levels or go even higher in the next few years.

Conclusion

Although it seems to take a little while longer, Avrupa as the operator has been planning its exploration program for Alvalade together with the technical people of MATSA, and it is anticipated that drilling could start in November. As this is a new phase for the company, management thought the timing was right for a 4:1 roll-back, as the share structure and especially the extremely low share price weren’t doing justice to the quality of the Alvalade JV, and could hamper future financing rounds. After closing this one last small C$500k raise, Avrupa is no longer completely dependent on MATSA. Alvalade, being an intensively drilled and mined brownfield project in the past with 40–50Mt copper/zinc potential, could easily be brought back to life. If there is one JV partner that can do this, it is MATSA, which is backed by two giants and has brought a comparable 40Mt project from development into production in just three years. So, of course, this will not happen overnight, but if the drill bit can start proving up the anticipated resource potential, MATSA is not going anywhere soon, and Avrupa will likely benefit from these developments.

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I hope you will find this article interesting and useful, and will have further interest in my upcoming articles on mining. To never miss a thing, please subscribe to my free newsletter on my website www.criticalinvestor.eu, in order to get an email notice of my new articles soon after they are published.

The Critical Investor is a newsletter and comprehensive junior mining platform, providing analysis, blog and newsfeed and all sorts of information about junior mining. The editor is an avid and critical junior mining stock investor from The Netherlands, with an MSc background in construction/project management. Number cruncher at project economics, looking for high quality companies, mostly growth/turnaround/catalyst-driven to avoid too much dependence/influence of long-term commodity pricing/market sentiments, and often looking for long-term deep value. Getting burned in the past himself at junior mining investments by following overly positive sources that more often than not avoided to mention (hidden) risks or critical flaws, The Critical Investor learned his lesson well, and goes a few steps further ever since, providing a fresh, more in-depth, and critical vision on things, hence the name.

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The author is not a registered investment advisor, and currently has a long position in this stock. Avrupa Minerals is a sponsoring company. All facts are to be checked by the reader. For more information go to www.avrupaminerals.com and read the company’s profile and official documents on www.sedar.com, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.

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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Avrupa Minerals, a company mentioned in this article.

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( Companies Mentioned: AVU:TSX.V; AVPMF:OTC; 8AM:FSE,
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St-Georges Announces the Closing of the $5.57M Offering

Montréal – November 30, 2021 – St-Georges Eco-Mining Corp. (CSE:SX) (OTC:SXOOF) (FSE:85G1) (CNSX:SX.CN) is pleased to announce the closing of its…

Montréal – November 30, 2021 St-Georges Eco-Mining Corp. (CSE:SX) (OTC:SXOOF) (FSE:85G1) (CNSX:SX.CN) is pleased to announce the closing of its previously announced non-brokered private placement offering of 10,127,273 “flow-through” units at a price of $0.55 for total gross proceeds of $5,570,000.15. A total of 11 subscribers participated, including 4 insiders for $305,000 and 3 institutional investors in Sprott Assets, Maple Leaf and Marquest for $3,725,000 or 66.8%.

Each FT Unit is comprised of one (1) common share in the capital of the Company on a “flow-through” basis (each, a “FT Share”) and one half (0.5) FT Share purchase warrant (each, a “FT Warrant”). Each full FT Warrant entitles the holder thereof to purchase one (1) Share at an exercise price of $0.65 for a period of 24 months (the “Warrant Expiry Date”).

In the event that, during the period of 4 months following the closing date of the Offering, the trading price of the Shares on the Canadian Securities Exchange (the “CSE”) reaches $1.25 per Share on any single day, the Corporation may, at its option, accelerate the Warrant Expiry Date by delivery of notice to the registered holders (an “Acceleration Notice”) thereof and issuing a press release (a “Warrant Acceleration Press Release”, and, in such case, the Warrant Expiry Date shall be deemed to be 5:00 p.m. (Montreal time) on the 30th day following the later of (i) the date on which the Acceleration Notice is sent to warrant holders, and (ii) the date of issuance of the Warrant Acceleration Press Release.

The Corporation will use the proceeds of the Offering to further advance the exploration effort on its wholly owned Manicouagan Project following important recent developments.

The Corporation paid finder fees of $302,700.01 in cash and issued: (i) 557,273 non-transferable Finder’s warrants entitling the holder thereof to purchase at an exercise price of $0.65.

All securities issued pursuant to this Offering are subject to the applicable statutory hold period ending March 31, 2022. The Offering is subject to the approval of the CSE.

Related Party Transaction

Certain insiders of the Corporation subscribed for a total of 554,545 FT Units under the Offering, which is a “related party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The issuances to the insiders are exempt from the valuation requirement of MI 61-101 by virtue of the exemption contained in section 5.5(b) as the Corporation’s shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in section 5.7(a) of MI 61-101 in that the fair market value of the consideration of the securities issued to the related parties did not exceed 25% of the Corporation’s market capitalization.  The Corporation did not file a material change report more than 21 days before the expected closing of the Offering as the details of the Offering and the participation therein by related parties of the Corporation were not settled until shortly prior to closing and the Corporation wished to close on an expedited basis for sound business reasons.

ON BEHALF OF THE BOARD OF DIRECTORS

“Neha E. Tally”

NEHA EDAH TALLY
Corporate Secretary

About St-Georges Eco-Mining Corp.

St-Georges develops new technologies to solve some of the most common environmental problems in the mining sector, including maximizing metal recovery and full circle EV battery recycling. The Company explores for nickel & PGEs on the Julie Nickel Project and the Manicougan Palladium Project on Quebec’s North Shore and has multiple exploration projects in Iceland, including the Thor Gold Project. Headquartered in Montreal, St-Georges’ stock is listed on the CSE under the symbol SX and trades on the Frankfurt Stock Exchange under the symbol 85G1 and on the OTCQB Venture Market for early stage and developing U.S. and international companies. Companies are current in their reporting and undergo an annual verification and management certification process. Investors can find Real-Time quotes and market information for the company on www.otcmarkets.com.

The Canadian Securities Exchange (CSE) has not reviewed and does not accept responsibility for the adequacy or the accuracy of the contents of this release.







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These 18 ASX resources IPOs are due to list in December. EIGHTEEN.

It’s like an advent calendar for mining and exploration IPOs, except instead of factory floor chocolate you get gold. GOLD. … Read More
The post These…

It’s like an advent calendar for mining and exploration IPOs.

Sometimes two.

Please note that these listing dates are extremely speculative. If you’re interested, contact the company direct for a better idea of when they expect to start trading on the ASX.

COSMOS EXPLORATION (C1X)

Focus: Gold, Copper and Nickel

Tentative Listing Date: 1 Dec

The RareX (ASX:REE) spinoff wants to raise $5m through its IPO. It has two projects: ‘Byro East’ (nickel-copper-PGEs) in WA and ‘Orange East’ (gold) in NSW.

Byro East was pegged by $45m market cap rare earths explorer RareX last year. It is very greenfields — having never been drilled — but Cosmos has identified four areas which could be prospective for Ni-Cu-PGEs.

Based on past exploration work, Cosmos has also identified several gold-copper targets at the small 40sqkm ‘Orange East’ project.

 

ORANGE MINERALS (ASX:OMX)

Focus: Gold, Copper

Tentative Listing: 3 Dec

Orange, which is looking to raise $7m in an IPO, is hunting for copper-gold in two major regions: Lachlan Fold Belt (NSW) and Eastern Goldfields (WA).

The NSW assets are close to major gold mines like Cadia (43.4Moz). In WA, it has ground within 25km of Lefroy’s (ASX:LEX) ‘Burns’ copper gold discovery (38m @ 7.63g/t gold, 0.56% copper).

A minimum 1,500m of drilling is planned following listing, with maiden resource at ‘Calarie’ gold project in NSW forecast for early 2022.

 

8AU (ASX:8AU)

Focus: Gold, Nickel, Copper, PGEs

Tentative Listing Date: 3 Dec

The FirstAU (ASX:FAU) spinoff wants to raise between $8m and $12m through its IPO. It has lodged its prospectus with ASIC and is seeking to listing on the ASX around 3 December.

It has five projects in WA. Its flagship is ‘Talga’ project in the East Pilbara, a leading exploration location with new discoveries made nearby by Calidus Resources (ASX:CAI) at its ‘Warrawoona’ project and De Grey Mining (ASX:DEG) at Hemi.

The potential targeting of ‘Hemi-like’ intrusions within the East Pilbara projects present an exploration opportunity for 8AU “as both the exploration areas of the Talga JV and Railway Well project are located in a comparable geological environment”, it says.

 

LARVOTTO RESOURCES (ASX:LRV)

Focus: Gold, Copper, Cobalt, Nickel, PGEs

Tentative Listing Date: 6 Dec

Larvotto is looking to raise up to $6m in an IPO. It has three main projects: ‘Mt Isa’ (copper-gold-cobalt in Queensland), ‘Eyre’ (nickel-gold-PGEs in WA) and ‘Ohakuri’ (gold in NZ).

Mt Isa — acquired from Minotaur Exploration and Rio Tinto — is in a well-endowed, world-class copper and gold region.

Nearby deposits include the Mount Isa Mines Operation (MIM), Ernest Henry, E1, Swan-Mt Elliott, Starra, Osborne, Little Eva, Eloise, Jericho, Barbara, and Kulthor.

Larvotto says the project, although adjacent to the famous MIM operation, has been underexplored using modern exploration techniques.

 

AMERICAN WEST METALS (ASX:AW1)

Focus: Zinc, Copper, Indium

Tentative Listing Date: 7 Dec

John Prineas-chaired American West wants to raise $11m through its IPO. It has three advanced, high grade base metal projects in Utah focused on copper and zinc; two of which already have significant resource estimates.

The ‘West Desert’ project already hosts a 59Mt historical zinc-copper resource defined under Canadian NI-43-101 standards.

Following admission to the ASX, American West will undertake work to establish a JORC compliant resource – a must-have for ASX listed companies — and will further assess development potential with scoping studies.

The company will also continue exploration across the large and underexplored project area “where high-grade intersections of copper and zinc have already been encountered outside the resource envelope, indicating strong potential for further discoveries”.

 

RUBIX RESOURCES (ASX:RB6)

Focus: Copper, Nickel, PGEs, Zinc, Gold

Tentative Listing: 8 Dec

Rubix is looking to raise $4.5m in an IPO.

Its key asset is ‘Paperbark’, 25km from the ‘Century’ mine held by New Century Resources (ASX:NCZ) in North Queensland.

Supporting the Paperbark Project are three greenfields (unexplored) projects: ‘Etheridge’ (gold in Queensland) ‘Lake Johnston’ (nickel, copper, PGEs in WA) and ‘Collurabbie North’ (nickel, copper, PGEs in WA).

 

PANTHER METALS (ASX:PNT)

Focus: Gold, Nickel

Tentative Listing: 10 Dec

WA-based PNT, a subsidiary of London-listed Panther Metals PLC, raised $5m in an IPO.

Initial drilling will take place at the Coglia nickel-cobalt project, where a JORC compliant exploration target of 30-50 million tonnes at 0.6-0.8% nickel and 400-600 parts per million cobalt has already been defined.

The Merolia gold project is also high on Panther’s agenda, with immediate drilling also planned at the ‘40 Mile Camp’ 2.5km by 5km gold anomaly.

 

RONIN RESOURCES (ASX:RON)

Focus: Gold, Copper, Coal

Tentative Listing: 10 Dec

Colombia-focussed Ronin is looking to raise $5m in an IPO.

The company’s main game is ‘Vetas’: a large, high-grade, thermal coal project containing a JORC Compliant Exploration Target.

The Santa Rosa Project is an earlier stage gold and copper project “located in a prolific artisan mining district”.

 

HARANGA RESOURCES (ASX:HAR)

Focus: Gold, Uranium, Lithium

Tentative Listing Date: 13 Dec

The African gold, lithium and uranium explorer wants to raise up to $6.5m in an IPO.

‘Saraya’ in Senegal is an advanced-stage uranium-lithium-tin project explored by French Government-owned Areva prior to 2010. That work included an estimated 48,000m drilling.

The project is mainly hosted by granites and pegmatite units which is also prospective for lithium, tin, tantalum and niobium, with spodumene (lithium minerals) having been visually reported.

The ‘Issia’ gold project in Cote d’Ivoire is proverbial stone’s throw from Tietto Minerals’ (ASX:TIE) 3.02Moz ‘Abujar’ project, which should produce its first gold bar in the fourth quarter of 2022.

 

INFINTY MINING (ASX:IMI)

Focus: Gold, Lithium, Nickel

Tentative Listing Date: 14 Dec

WA-based Infinity is a Macarthur Minerals (ASX:MIO) spinoff looking to raise between $7m and $10m in its IPO. The offer has now closed.

It will have 19 tenements covering 711sqkm in the Pilbara and Central Goldfields.

 

ARMADA METALS (ASX:AMM)

Focus: Nickel, Copper, PGEs

Tentative Listing Date: 15 Dec

Armada wants to raise between $8m and $10m through its IPO.

It has 2,991sqkm of ground in the Nyanga Province, Gabon which includes several drill-ready nickel-copper targets like ‘Libonga North’, ‘Libonga South’ and ‘Matchiti Central’.

With over U$10m spent on exploration to date, Armada plans to hit these targets hard with drilling over the next two years.

 

CHEMX MATERIALS (ASX:CMX)

Focus: High Purity Alumina, Kaolin, Manganese

Tentative Listing Date: 20 Dec

ChemX — more advanced materials technology company than aspiring miner– wants to raise $7m through its IPO.

It says it has developed a proven process to produce High Purity Alumina (HPA), a critical input for battery technology.

ChemX plans to develop this ‘HiPurA’ HPA tech, as well as the ‘Kimba’ kaolin-halloysite and ‘Jamison Tank’ manganese projects in South Australia where exploration drilling is scheduled to kick off in Q1 2022.

 

DMC MINING (ASX:DMM)

Focus: Nickel, Gold

Tentative Listing Date: 22 Dec

WA-based nickel explorer DMC wants to raise $5m through its IPO.  It has two projects: ‘Ravensthorpe’ and ‘Fraser Range’.

Ravensthorpe is a nickel and gold project next door to First Quantum Minerals’ (FQM) open-pit nickel mine and the RAV8 sulphide nickel mine. There has been limited historical exploration within the project, DMC says.

The 873sqkm of Fraser Range tenements makes DMC one of the largest junior landholders in the region, which is best known for its company-making Nova nickel discovery.

 

FALCON MINERALS (ASX:FAL)

Focus: Gold

Tentative Listing Date: 22 Dec

This hotly anticipated Chalice Mining (ASX:CHN) spinoff will be chaired by Mark Bennett, discoverer of the aforementioned Nova nickel discovery.

Falcon wants to raise between $15m and $30m through its IPO to tackle three projects: Pyramid Hill (VIC), Viking (WA), and Mount Jackson (WA).

Pyramid Hill — CHN’s No 1 focus before it hit the motherlode at Julimar – is highly prospective for high-grade gold deposits like the nearby, world-class Fosterville mine.

Since 2018, CHN has completed ~124km of drilling across the ~5,000sqkm project, defining four large scale prospects.

They include ‘Karri’, which is defined by shallow gold hits up to 34g/t over ~4km of strike, and ‘Banksia’, a giant 10km-long anomaly which returned hits up to 8.7g/t.

 

ARBARTA RESOURCES (ASX:AB1)

Focus: Gold and Base Metals

Tentative Listing Date: 23 Dec

Arbarta wants to raise between $5m and $7m through its IPO. It has three exploration projects in WA – ‘East Laverton’, ‘England’ and ‘Edward’.

East Laverton sits on~ 1200sqkm of its namesake underexplored East Laverton Greenstone Belt.

Greenstone belts host economic deposits of many minerals — including silver, copper, and zinc — but they are best known for gold.

Edward is also in an area of underexplored greenstone belt on trend to the south of the ‘Marvel Loch’ and ‘Transvaal’ deposits, and ~40km from the Marvel Loch processing facility.

England is next door to the Granny Smith processing facility in Laverton owned by miner Gold Fields. This means any discovery could be developed quickly, it says.

 

SOLIS MINERALS (ASX:SLM)

Focus: Copper

Tentative Listing: 24 Dec

The South American copper play is looking to raise $6m in an IPO.

It is already listed on the TSX, so this IPO is designed to “significantly enhance its exposure to investors in the ASX market, which has a dynamic and deep junior resources exploration sector”.

Solis has three large-scale copper exploration projects in Chile and Peru.

The recently acquired ‘Mostazal’ project in Chile has a multi-kilometre porphyry target to be drill-tested this year, underneath a high-grade copper-silver historical resource.

Solis also owns the ‘Ilo Este’ and ‘Ilo Norte’ projects in Peru’s southern coastal copper belt, prospective for porphyry and IOCG discoveries.
 

VERTEX MINERALS (ASX:VTX)

Focus: Gold

Tentative Listing: 24 Dec

This gold explorer is looking to raise $5.5m in an IPO. It has four projects: ‘Hill End’ (NSW), ‘Hargraves’ (NSW), ‘Pride of Elvire’ (WA), and ‘Taylors Rock’ (WA).

Hill End is in the region where the Beyers and Holtermann nugget — the largest single piece of reef gold ever discovered — was found. This is the nugg itself:

Feast ur eyes.

 

ANDEAN MINING (ASX:ADM)

Focus: Copper, Gold

Listing: Just before Xmas

Andean (expected code: ADM) seeks to raise up to $7m through its initial public offering that is due to close on 9 December.

Its relatively advanced ‘El Dovio’ copper-gold (with silver and zinc) project in Colombia is a volcanogenic massive sulphide system –deposits that are rich in base and precious metals like copper, zinc, lead, gold, and silver.

Because these deposits tend to ‘cluster’ together, VMS camps – like  DeGrussa on Western Australia — can often be mined for a very, very long time.

Nearby VMS projects include producing ‘El Roble’ mine, which has mined ore plus reserves totalling 3.89Mt grading 2.77% copper and 2.44 grams per tonne (g/t) gold, and ‘El Alacran’ (4.8Mt at 1.4% copper and 0.83g/t gold).

El Dovio is also close to other significant mining projects such as AngloGold Ashanti’s 28 million oz gold equivalent (AuEq) ‘Quebradona’ project and Zijin Mining’s 12Moz ‘Buritica’ gold mine. Great neighbourhood.

The post These 18 ASX resources IPOs are due to list in December. EIGHTEEN. appeared first on Stockhead.
















Author: Reuben Adams

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Energy & Critical Metals

M&A: Capstone Set to Merge With Mantos Copper

Capstone Mining Corp. [CS-TSX] said Tuesday it has agreed to merge with Mantos Copper, a…

Capstone Mining Corp. [CS-TSX] said Tuesday it has agreed to merge with Mantos Copper, a Chilean-focused company that is run by British investment firm Audley Capital Advisors and Orion Mine Finance.

Upon completion of the transaction, Mantos will be renamed Capstone Copper Corp and will remain headquartered in Vancouver. It will also apply to have its shares listed on the Toronto Stock Exchange.

The transaction will establish Capstone Copper as a premier copper producer with a diversified portfolio of high-quality, long life operating assets focused on the Americas with an extensive pipeline of near-term organic growth opportunities.

It will feature a 2021 copper production base of 175,000 tonnes of copper from four mines and 4.9 million tonnes of copper reserves.

On November 29, 2021, Capstone shares closed at $6.15 and currently trade in a 52-week range of $6.64 and $1.80.

Capstone is a Canadian base metals mining company with a focus on copper. Its portfolio includes the Pinto Valley copper mine in Arizona, and the Cozamin copper-silver mine in Zacatecas, Mexico. In addition, Capstone holds a 70% interest in Santo Domingo, a large scale, fully-permitted, copper-iron-gold project in Region 111, Chile, in partnership with Korea Resources Corp.

Earlier this year, the company closed a US$150 million streaming agreement with Wheaton Precious Metals Corp. (WPM-TSX, WPM-NYSE) covering 50% of the silver production at Capstone’s Cozamin mine.

Capstone described the deal as transformational, giving it one of the lowest debt positions amongst base metal producers at a time when he is expecting significant copper production and cash flow growth.

In 2021, Capstone has said it expects to produce between 175 and 190 million pounds of copper at a cash cost of between US$1.75 and US$1.90 per pound.

The company is currently advancing two operational growth projects (at Cozamin and Pinto Valley) in a bid to sustain 200 million pounds of copper production, starting in 2022.

Under the deal announced Tuesday, each Capstone shareholder will received one newly issued Capstone Copper share for each Capstone share held. Existing Mantos shareholders will continue to hold Capstone Copper shares.

Once the transaction is complete, former Capstone and Mantos shareholders will collectively own 60.75% and 39.5% of Capstone Copper respectively.

John MacKenzie, Executive Chairman and founder of Mantos, will become CEO of Capstone Copper. Darren Pylot, currently President and CEO of Capstone, will become Executive Chair of the new company.

The combined company anticipates production growth of over 45% by 2024 to 260,000 tonnes of copper annually form fully financed projects.

Upon completion of the transaction, Mantos’ largest shareholder, funds managed by Orion Resource Partners, will become an approximately 32% shareholder of Capstone Copper.

 

Author: Staff Writer

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