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Gold Royalty, Abitibi Royalties & Golden Valley to Combine to Create a Leading Growth and Americas-Focused Precious Metals Royalty Company

Vancouver, British Columbia and Val-d’Or, Québec–(Newsfile Corp. – September 7, 2021) – Gold Royalty Corp. ("Gold Royalty") (NYSE American: GROY), Abitibi…

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Vancouver, British Columbia and Val-d'Or, Québec--(Newsfile Corp. - September 7, 2021) - Gold Royalty Corp. ("Gold Royalty") (NYSE American: GROY), Abitibi Royalties Inc. ("Abitibi Royalties") (TSXV: RZZ) (OTC PINK: ATBYF) and Golden Valley Mines and Royalties Ltd. ("Golden Valley") (TSXV: GZZ) (OTCQX: GLVMF) are pleased to announce that they have entered into definitive agreements (the "Agreements") dated September 6, 2021, pursuant to which Gold Royalty will acquire all of the issued and outstanding common shares of each of Abitibi Royalties and Golden Valley by way of statutory plans of arrangement (the "Arrangements").

Under the terms of the Agreement with Abitibi Royalties, which was negotiated at arms-length, each holder of the common shares of Abitibi Royalties (each, an "Abitibi Royalties Share") will receive 4.6119 Gold Royalty common shares (each, a "Gold Royalty Share") for each Abitibi Royalties Share held. Such share exchange ratio implies consideration of C$25.33 per Abitibi Royalties Share and a premium of approximately 22%[1] to Abitibi Royalties shareholders based on the 20-day volume weighted average price of the Gold Royalty Shares and Abitibi Royalties Shares ending on September 3, 2021.

Under the terms of the Arrangement with Golden Valley, which was negotiated at arms-length, each holder of the common shares of Golden Valley (each, a "Golden Valley Share") will receive 2.1417 Gold Royalty Shares for each Golden Valley Share held. Such share exchange ratio implies consideration of C$11.76 per Golden Valley Share and a premium of approximately 86%1 to Golden Valley shareholders based on the 20-day volume weighted average price of the Gold Royalty Shares and Golden Valley Shares ending on September 3, 2021. The consideration for the Golden Valley Shares reflects Golden Valley's ownership in Abitibi Royalties plus the additional value of its other assets.

At closing, existing Gold Royalty, Abitibi Royalties (excluding Golden Valley's ownership in Abitibi Royalties) and Golden Valley shareholders will own approximately 54%, 23% and 23%, respectively, of Gold Royalty after giving effect to the Arrangement ("GRC") on a fully diluted and in-the-money basis.

Transaction Highlights

  • Balanced Portfolio with 191 Royalties Across Cash Flowing, Development and Exploration Assets (Schedule A): Well-balanced, diversified and peer-leading portfolio of royalties with current cash flow generation and further growth potential, including:
    • Cash-Flowing: Six royalties owned on operating mines with additional immediate cash generation potential from current investments.
    • Near-Term Cash Flow: Royalties in production expected to more than double with seven mines currently under development based on the respective operators' disclosed plans.
    • Development: 14 Feasibility / PEA stage royalties and 15 resource stage royalties.
    • Exploration: 12 key exploration royalties and 137 early stage exploration royalties.
  • Cornerstone Royalty on a Portion of Canada's Largest Gold Mine, Canadian Malartic: Coveted exposure to portions of Canada's largest producing gold mine, Canadian Malartic. With significant resource and reserve estimates, premier operators, and a multi-decade mine life, Canadian Malartic is widely regarded as a world-class mine. The Odyssey underground mine will become a significant cash flow generator for the combined company.
  • Multiple Avenues for Expected Growth (Cash Flow, Exploration, Royalty Generator Model): Royalty portfolio expected to drive year-over-year cash flow growth. GRC to leverage unique royalty generator model with a track record of success at Ely Gold and Golden Valley to facilitate organic growth.
  • Premier Operating Partners with Americas Focus (Concentration in Nevada and Québec): Increased diversity of the combined company's mining operators, with over 15 key operators ranging in scale from senior gold mining companies to junior developers and concentrated in premier jurisdictions such as Nevada and Québec.
  • Strong Balance Sheet and No Debt: The combined company is expected to have $47 million in cash and marketable securities and no debt[2].
  • Experienced Management Team with Track Record of Creating Value: With a balance of technical and capital markets experience, GRC will continue to be led by a highly credible and established management team with a track record of creating value and sourcing accretive transactions.
  • Path to Re-Rate Through Increased Scale, Asset Quality and Precious Metals Focus: Potential share price re-rate through increased operating scale, royalty portfolio diversification, capital markets presence, increased trading liquidity and greater support from institutional investors.

David Garofalo, CEO, President and Chairman of Gold Royalty, stated: "We are pleased to present this consolidation opportunity to the shareholders of Golden Valley, Abitibi Royalties and Gold Royalty that will firmly establish the combined company as the leading growth and Americas-focused precious metals royalty company. We will have a significant presence in Québec and Nevada, two of the most favoured mining regions worldwide. The acquisition of Golden Valley and Abitibi Royalties represents a very compelling extension of our strategy by adding royalties over the world class Canadian Malartic mine - a generational asset that will continue to deliver gold production for decades to come. This business combination also provides a strong balance of asset quality, scale, financial strength and management to drive significant growth and to deliver further potential upside through a significant value re-rating to the benefit of all our stakeholders."

Glenn Mullan, CEO, President and Chairman of Golden Valley, who will be joining GRC's board of directors on completion of the transactions, commented: "This is a great outcome for Golden Valley shareholders. The transaction provides an immediate and compelling premium for our shareholders and the opportunity to continue to participate in the continued growth of what is a world class asset portfolio. Having considered the landscape, we are convinced that Gold Royalty is the best fit among the peer group of royalty companies to take over stewardship of our assets and I am particularly excited to be joining the Gold Royalty board at closing and to work with the Gold Royalty management team to execute on the growth strategy"

Ian Ball, CEO and President of Abitibi Royalties, commented: "Upon joining Abitibi Royalties in 2014, my goal was to build the "Best Gold Company." I define this as the company that achieves the best share performance - period. In 2014, we started at C$0.35 per share and today we are announcing a combination with Gold Royalty at an implied value of C$25.33 per share. We have always tried to do it the right way, by walking in the same shoes as our shareholders. However, there is a point when someone with different skills is needed in order to continue the success of the company. I believe Abitibi Royalties has reached this stage. I look forward to seeing the Gold Royalty team build upon this exciting platform."

Benefits to Gold Royalty Shareholders

  • Adds a large, high-quality and strategic portfolio of North American-focused royalties, including:
    • Four royalties (1.5% NSR, 2% NSR, 3% NSR, 15% NPI) on portions of Canadian Malartic, a large, long-life and cornerstone asset with the potential to sustain production for decades; and
    • A royalty (2.5-4.0% NSR) on Cheechoo, proximate to Newmont's Eleonore Mine in Québec.
  • Builds on Gold Royalty's royalty generator model with dedicated teams focused in Québec, Ontario and Nevada to help originate, evaluate and target opportunities with exploration upside.
  • Significantly enhances Gold Royalty's cash position, while remaining debt free.

Benefits to Abitibi Royalties and Golden Valley Shareholders

  • Significant premiums of 22% and 86% to Abitibi Royalties and Golden Valley shareholders, respectively, in each case, based on the 20-day volume-weighted average price as of September 3, 2021.
  • Meaningful ownership in a leading growth and Americas-focused precious metals royalty company with continued exposure to Abitibi Royalties' and Golden Valley's respective royalty portfolio through ownership of GRC shares.
  • Expanded presence in Québec through Gold Royalty's royalties on properties managed by Monarch Mining Corporation and Wallbridge Mining Company Limited.
  • Increase exposure to royalties that are in production, currently under development, in the feasibility or preliminary economic assessment stage and on numerous key exploration projects.
  • Incremental potential upside to Abitibi Royalties and Golden Valley shareholders due to increased operating scale, capital markets presence, royalty portfolio diversification and growth profile.
  • Simplifies ownership of Abitibi Royalties and eliminates Golden Valley's current holding company structure, unlocking value for Golden Valley shareholders.
  • Improved trading liquidity due to NYSE American listing.

Transaction Conditions & Timing

Gold Royalty executed Agreements with each of Abitibi Royalties and Golden Valley, respectively. Pursuant to each such Agreement, the Arrangement with Abitibi Royalties will be by way of a plan of arrangement under this Business Corporations Act (British Columbia) and the Arrangement with Golden Valley will be by way of a plan of arrangement under the Canada Business Corporations Act. Each Agreement is subject to customary conditions applicable to the transactions contemplated therein, including receipt of requisite court, shareholder and stock exchange approvals.

Each of Abitibi Royalties and Golden Valley intend to call a meeting of shareholders to seek shareholder approval for their respective Arrangements. Completion of each Arrangement will require:

  • approval of at least 66 2/3% of the votes cast by applicable shareholders at the applicable meeting, and
  • approval of a simple majority of the votes cast by applicable shareholders excluding certain shareholders as required under Multilateral Instrument 61-101.

In addition, each Agreement is conditional on the completion of the Arrangement contemplated in the other Agreement. Each Agreement provides for, among other things, non-solicitation covenants, with "fiduciary out" provisions that allow each of Abitibi Royalties and Golden Valley to consider and accept a superior proposal, subject to a "right to match period" in favour of Gold Royalty. The Agreements also provide for a termination fee of C$10.0 million to be paid by Abitibi Royalties and C$5.0 million by Golden Valley to Gold Royalty. The Agreement between Abitibi Royalties and Gold Royalty provides for a reciprocal expense reimbursement of C$1.5 million if the Agreement is terminated under certain circumstances. The Agreement between Golden Valley and Gold Royalty provides for a reciprocal expense reimbursement of C$1.0 million if the Agreement is terminated under certain circumstances.

The directors, senior officers and certain shareholders of Abitibi Royalties and Golden Valley, holding in the aggregate approximately 65.4% and 38.0%, respectively, of the issued and outstanding common shares of each of Abitibi Royalties (including Golden Valley) and Golden Valley, have entered into voting support agreements with Gold Royalty, pursuant to which they have agreed to vote their shares in favour of their respective Arrangements at the applicable shareholder meeting. Of such shares, approximately 11.2% of the outstanding Abitibi Royalties Shares and 31.4% of the outstanding Golden Valley Shares are subject to a "hard" lock-up voting support agreement.

Each of Gold Royalty, Abitibi Royalties and Golden Valley are working towards closing the applicable transactions in the fourth quarter of 2021.

Board Approval

The boards of directors of each of Abitibi Royalties and Golden Valley have formed special committees of independent directors (the "Special Committees") to consider the proposed transactions. The Abitibi Royalties Special Committee has received an opinion from Maxit Capital LP that, based upon and subject to the limitations, assumptions and qualifications of and other matters considered in connections with the preparation of such opinion, the consideration to be received by Abitibi Royalties shareholders (excluding Golden Valley) pursuant to the Abitibi Royalties Arrangement is fair, from a financial point view (the "Abitibi Fairness Opinion"). The Golden Valley Special Committee has also received an opinion from Maxit Capital LP that, based upon and subject to the limitations, assumptions and qualifications of and other matters considered in connections with the preparation of such opinion, the consideration to be received by Golden Valley shareholders pursuant to the Golden Valley Arrangement is fair, from a financial point view (together with the Abitibi Fairness Opinion, the "Fairness Opinions").

Following their review and in consideration of, among other things, the Fairness Opinions, the Special Committees have unanimously recommended to their respective boards of directors to approve the Arrangements. The Abitibi Royalties and Golden Valley boards, following the receipt and review of the recommendations from their Special Committees, have unanimously approved the Agreements and have determined that the Arrangements are fair to shareholders of Abitibi Royalties and Golden Valley, respectively, and are in the best interest of their respective shareholders, and recommend that their respective shareholders vote in favour of their respective Arrangements.

Advisors and Counsel

BMO Capital Markets and Raymond James Ltd. are acting as financial advisors to Gold Royalty in connection with the Arrangements. Sangra Moller LLP is acting as Canadian legal advisor to Gold Royalty, Lavery de Billy, LLP is acting as Québec legal advisor to Gold Royalty and Haynes & Boone LLP is acting as U.S. legal advisor to Gold Royalty.

Maxit Capital LP is acting as financial advisor to Abitibi Royalties and Golden Valley in connection with the transaction. Getz Prince Wells LLP is acting as legal advisor to Abitibi Royalties and Golden Valley. Dentons Canada LLP is acting as legal advisor to the Special Committee of Abitibi Royalties and Maxis Law Corporation is acting as legal advisor to the Special Committee of Golden Valley.

Webcast and Conference

Gold Royalty, Abitibi Royalties and Golden Valley will host a joint webcast and conference call on September 7, 2021 at 11:00 AM Eastern (8:00 AM Pacific) for members of the investment community to discuss the Arrangement. Webcast and call-in information is provided below.

Webcast URL

https://produceredition.webcasts.com/starthere.jsp?ei=1494763&tp_key=0b01fadbb8

Conference Call Participant Numbers

Confirmation #:

6199662

Local:

Toronto: 647-794-4605

Vancouver: 604-449-6082

North American Toll Free:

1-888-204-4368


About Abitibi Royalties Inc.

Abitibi Royalties Inc. owns various royalties at the Canadian Malartic Mine near Val-d'Or, Québec. In addition, Abitibi Royalties is building a portfolio of royalties on early-stage properties near producing mines and generating mineral projects for option or sale.

About Golden Valley Mines and Royalties Ltd.

Golden Valley Mines and Royalties Ltd. is focused on project and royalty generation and continues to evaluate opportunities to enhance its mining exploration property portfolio. Golden Valley is able to grow its current assets by way of partner-funded option/joint ventures and through its shareholdings in related-entities.

About Gold Royalty Corp.

Gold Royalty Corp. is a gold-focused royalty company offering creative financing solutions to the metals and mining industry. Its mission is to acquire royalties, streams and similar interests at varying stages of the mine life cycle to build a balances portfolio offering near, medium and longer-term attractive returns for its investors. Gold Royalty's diversified portfolio currently consists primarily of net smelter return royalties on gold properties located in the Americas.

Additional Information

Further details on the respective Agreements and Arrangements will be filed by Abitibi Royalties and Golden Valley under their respective profiles on SEDAR at www.sedar.com. In addition, further information regarding the respective Arrangements will be contained in management information circulars to be prepared by Abitibi Royalties and Golden Valley in connection with their respective shareholder meetings and filed on their respective SEDAR profiles on www.sedar.com at the time that such circulars are mailed to shareholders. All shareholders are urged to read the applicable management information circular once it becomes available as it will contain additional important information concerning the Arrangements.

For additional information, please contact:

Abitibi Royalties Inc.
Ian Ball, President & CEO
Tel.: 1-888-392-3857
Email: info@abitibiroyalties.com

Golden Valley Mines and Royalties Ltd.
Glenn Mullan, President & CEO
Tel.: 1-819-824-2808 ext.204
Email: glenn.mullan@goldenvalleymines.com

Gold Royalty Corp.
David Garofalo, CEO, President and Chairman
Tel.: 1-833-396-3066
Email: info@goldroyalty.com

Cautionary Statement on Forward-Looking Information:

Certain of the information contained in this news release constitutes 'forward-looking information' and 'forward-looking statements' within the meaning of applicable Canadian and U.S. securities laws ("forward-looking statements") and involve known and unknown risks, uncertainties and other factors that may cause Gold Royalty's, Abitibi Royalties' and/or Golden Valley's actual results, performance and achievements to be materially different from the results, performance or achievements expressed or implied therein. Such forward-looking statements, including but not limited to statements relating to: the proposed transactions and the respective Arrangement; the ability of the parties to satisfy the conditions to closing of one or both Arrangements; the anticipated timing, benefits and effects of the completion of the Arrangements, expected cash flows from royalties and other assets, expected development and operations at projects underlying the parties' existing interests and the parties' future growth plans and strategies, involve risks, uncertainties and other factors which may cause the actual results to be materially different from those expressed or implied by such forward-looking statements. Such factors include, among others, obtaining required court, shareholder and regulatory approvals, exercise of any termination rights under the respective Agreements, any inability to satisfy the other conditions in the Agreements, material adverse effects on the business, properties and assets of the parties; any inability of the parties to realize the benefits of either proposed transaction. Inability of the parties to identify and complete suitable acquisition opportunities; any inability of the operators of the properties underlying the parties' royalty and other interests to execute proposed plans for such properties, risks related to such operators or the exploration, development and mining operations of the properties underlying the parties' royalty and other interests; impacts of macroeconomic developments as well as the impact of and the responses of relevant governments to the COVID-19 pandemic and the effectiveness of such responses; and any inability of the parties to carry out growth plans. Although each of Gold Royalty, Abitibi Royalties and Golden Valley has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. None of Gold Royalty, Abitibi Royalties or Golden Valley undertakes to update any forward-looking statements, except in accordance with applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SCHEDULE A

Significant Royalties - Stages of Development
Royalties on Producing AssetsRoyalty LocationOperator
Canadian Malartic (Open Pit)3.0% NSRQuébecAgnico Eagle/Yamana
Jerritt Canyon 0.5% NSR, PTRNevadaFirst Majestic
Marigold0.75% NSRNevadaSSR Mining
Isabella Pearl0.75% NSRNevadaFortitude Gold
Rawhide15% NPINevadaRawhide Mining
Royalties on Development Assets
Canadian Malartic (Underground)3.0% NSRQuébecAgnico Eagle/Yamana
Ren - Goldstrike1.5% NSR, 3.5% NPINevadaBarrick/Newmont
Gold Rock - Pan Mine0.5% NSRNevadaFiore Gold
Beaufor Mine1.0% NSRQuébecMonarch Mining
Beacon MillC$2.50 PTRQuébecMonarch Mining
Lincoln Hill - Rochester Mine2% NSRNevadaCoeur Mining
Royalties on Feasibility / PEA Stage Assets
Railroad-Pinon 0.44% NSRNevadaGold Standard Ventures
Hog Ranch 2.25% NSRNevadaRex Minerals
Cheechoo2.5-4.0% NSRQuébecSirios Resources
São Jorge1.0% NSRBrazilGoldMining
Yellowknife1.0% NSRNorthwest TerritoriesGoldMining
La Mina2.0% NSRColombiaGoldMining
Sleeper 0.33% NSRNevadaParamount Gold
Mt. Hamilton1.0% NSRNevadaWateron
Fenelon 2% NSRQuébecWallbridge Mining
Royalties on Resource Development Stage Assets
Titiribi2.0% NSRColombiaGoldMining
Yarumalito1.0% NSRColombiaGoldMining
Whistler1.0% NSRAlaskaGoldMining
Crucero1.0% NSRPeruGoldMining
Quartz Mountain0.25% NSR, 1.25% NSROregonAlamos
Croinor Gold 2.5% NSRQuébecMonarch Mining
McKenzie Break2.5% NSRQuébecMonarch Mining
Swanson 2.5% NSRQuébecMonarch Mining
New Alger1.0% NSRQuébecRadisson Mining
Almaden0.5% NSRIdahoGoldMining
Cachoeira1.0% NSRBrazilGoldMining
Surubim1.0% NSRBrazilGoldMining
Royalties on Key Exploration Stage Assets
War Eagle2.0% NSRIdahoIntegra
Rodeo Creek 2.0% NSRNevadaI-80 Gold
Red Lake Project1.0% NSROntarioPacton Gold
Malartic South 2.5-3.0% NSRQuébecEagle Ridge
Callahan0.5% NSRQuébecAgnico Eagle
Menderes 3.0% NSRTurkeyFrontline Gold
Borden Lake Exploration0.4% NSROntarioNewmont
Watershed (Côté Gold Exploration)1.0% NSROntarioIAMGOLD
Carlin Exploration 1.5% NSRNevadaBarrick/Newmont
Pinson Exploration1.5% NSRNevadaBarrick/Newmont
Lone Tree Exploration1.5% NSRNevadaBarrick/Newmont
Turquoise Ridge1.5% NSRNevadaBarrick/Newmont

 


[1] Spot exchange rate on September 3, 2021 of 1.2513 Canadian dollars per U.S. dollar.

[2] Pro forma cash and equivalents (including $19.9 mm of Agnico Eagle Mines shares and $4.4 mm of Yamana Gold shares based on share prices as at 3-Sep-21) less estimated transaction costs of $8.75 mm. On September 3, 2021, Gold Royalty announced that it entered into a commitment letter for an up to $25 mm revolving credit facility.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/95705

Today’s News

West High Yield (W.H.Y.) Resources Ltd. Announces Completion of Private Placement

Calgary, Alberta–(Newsfile Corp. – September 28, 2021) – West High Yield (W.H.Y.) Resources Ltd. (TSXV: WHY) ("West High Yield" or the "Company") is…

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Calgary, Alberta--(Newsfile Corp. - September 28, 2021) - West High Yield (W.H.Y.) Resources Ltd. (TSXV: WHY) ("West High Yield" or the "Company") is pleased to announce the completion of its previously announced placement offering (the "Offering") of units (the "Units"). The Company completed one closing under the Offering for gross proceeds of CAD$116,457.25.

Under the Offering, the Company issued 332,735 Units, comprised of 332,735 common shares in the capital of the Company (the "Common Shares") and 83,183 Common Share purchase warrant (the "Warrants"). One (1) full Warrant, together with CAD$0.45, entitles the holder thereof to acquire one (1) additional Common Share of the Company for a period of twelve (12) months from the date of closing. The Warrants will not be listed on the TSX Venture Exchange.

About West High Yield

West High Yield is a publicly traded junior mining exploration and development company focused on the acquisition, exploration, and development of mineral resource properties in Canada with a primary objective to develop its Record Ridge magnesium deposit using green processing techniques to minimize waste and CO2 emissions.

Contact Information:

West High Yield (W.H.Y.) Resources Ltd.
Frank Marasco Jr., President and Chief Executive Officer
Telephone: (403) 660-3488 Facsimile: (403) 206-7159
Email: frank@whyresources.com

Cautionary Note Regarding Forward-looking Information

This press release contains forward-looking statements and forward-looking information within the meaning of Canadian securities legislation. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that they will prove to be correct.

Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. The Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The securities of the Company will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OF THIS RELEASE.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/97953

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Today’s News

North American Nickel Congratulates PNR on Signing Definitive Asset Purchase Agreement to Acquire Assets in Botswana

Vancouver, British Columbia–(Newsfile Corp. – September 28, 2021) – North American Nickel Inc. (TSXV: NAN) (OTCQB: WSCRF) (CUSIP: 65704T 108) (the "Company"…

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Vancouver, British Columbia--(Newsfile Corp. - September 28, 2021) - North American Nickel Inc. (TSXV: NAN) (OTCQB: WSCRF) (CUSIP: 65704T 108) (the "Company" or "NAN") is pleased to announce that Premium Nickel Resources ("PNR") has executed a definitive asset purchase agreement ("APA") with the Liquidator of BCL Limited ("BCL") to acquire the Selebi, and Selebi North (together the "Selebi Assets") nickel-copper-cobalt ("Ni-Cu-Co") assets and related infrastructure formerly operated by BCL. PNR has announced that they are now targeting the closing of this transaction, and transfer of ownership of the assets, within 120 days. PNR is also negotiating a separate asset purchase agreement to finalize terms for any prioritized Tati Nickel Mining Corporation ("TNMC") assets that may be purchased.

PNR submitted an indicative offer to the BCL and TNMC liquidators in June 2020 to acquire the assets of the former producing BCL Mining Complex and separately the TNMC operations located in north-eastern Botswana. On February 10, 2021, PNR was selected as the preferred bidder and on March 22, 2021, PNR entered into a memorandum of understanding providing for a six-month exclusivity period to complete additional work and negotiate the asset purchase agreements (see news release dated March 24, 2021).

NAN CEO, Keith Morrison commented, "During the exclusivity period, NAN's team has continued to support PNR in acquiring new information to support the economic feasibility of redeveloping a combination of the former BCL assets. This agreement will separate the Selebi deposits from the Phikwe mines and processing infrastructure. PNR will advance the redevelopment of the Selebi deposits using an alternative beneficiation process to produce commercial concentrates of Ni-Cu-Co. This business model will reduce the environmental impact of the processing, by using less power and less water, while employing the use of advanced modern technologies to safeguard the environment and minimize the carbon footprint. PNR will now complete additional exploration activities and drilling with the ambition to fully characterize the size and grade of the remaining resource, and redevelop the Selebi deposits as a leading environmental, social and corporate governance mining development project."

The Selebi Assets include two shafts and related infrastructure (rail, power and water). Shaft sinking and plant construction started in 1970. Mining concluded in October 2016 when the operations were placed on care and maintenance due to a failure in the processing facility. The redevelopment plan is based on the re-characterization of the remaining resources and the ability to produce both a Cu concentrate and a separate Ni-Co concentrate.

NAN maintains a 10% equity ownership position in PNR following their pro-rata participation in a recent private placement financing (see news release dated August 26, 2021). NAN also holds a 5-year Warrant effective as of February 26, 2020, to purchase an additional 15% undiluted equity interest in PNR for USD$10M and is providing the corporate management and technical expertise to PNR on a contractual basis.

There can be no assurance that PNR will move from exclusivity to successful completion of the proposed acquisition.

About North American Nickel

North American Nickel is a mineral exploration company with 100% owned properties in Maniitsoq, Greenland and Ontario, Canada. In 2019, the Company became a founding shareholder in Premium Nickel Resources ("PNR") a private Canadian company, to provide direct exposure to Ni-Cu-Co opportunities in the southern African region. PNR completed a Memorandum of Understanding to acquire the assets, in liquidation, formerly operated by BCL Limited in Botswana. In addition, the Company is expanding its area of exploration interest into Morocco and building a relationship with the Office National des Hydrocarbures et des Mines ("ONHYM"), the leading resource crown corporation and the single largest permit holder in Morocco.

The Maniitsoq property in Greenland is a Camp scale permitted exploration project comprising 3,048 square km covering numerous high-grade nickel-copper + cobalt sulphide occurrences associated with norite and other mafic-ultramafic intrusions of the Greenland Norite Belt (GNB). The >75km-long belt is situated along, and near, the southwest coast of Greenland and is accessible from the existing Seqi deep water port with an all-year-round shipping season and hydroelectric power potential from a quantified watershed.

The Post Creek/Halcyon property in Sudbury is strategically located adjacent to the past producing Podolsky copper-nickel-precious metal sulphide deposit of KGHM International Ltd. The property lies along the extension of the Whistle Offset dyke structure. Such geological structures host major Ni-Cu-PGM deposits and producing mines within the Sudbury Camp.

The Company acquired 100% ownership of property near the southern extent of the Lingman Lake Greenstone Belt in northwest Ontario known as Lingman Nickel and in the Quetico region near Thunder Bay Ontario. The acquisition of these properties is part of the Company's strategy to develop a pipeline of new nickel projects. The Company is evaluating direct and indirect nickel asset acquisition opportunities globally.

ON BEHALF OF THE BOARD OF DIRECTORS

Keith Morrison
Chief Executive Officer
North American Nickel Inc.

For more information contact:

North American Nickel Inc.
Jaclyn Ruptash
Corporate Communications
+1 (604) 770-4334

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" and "forward-looking information" under applicable Canadian securities legislation concerning the business, operations and financial performance and condition of the Company. Forward-looking statements and forward-looking information include, but is not limited to, statements about the future prospects of any assets or properties of the Company, the ability of the Company to successfully complete due diligence, the ability of the Company to access capital, any spending commitments, the success of exploration activities, the future economics of minerals including nickel and copper, the benefits of the development potential of the properties of the Company, the benefits of drilling and advancement of projects. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors, which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered if the property is developed.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/97938

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Monarch Mining Reports its Results for the Quarter and 232-Day Period Ended June 30, 2021

MONTREAL, Sept. 28, 2021 (GLOBE NEWSWIRE) — MONARCH MINING CORPORATION (“Monarch” or the “Corporation”) (TSX: GBAR) (OTCQX: GBARF) reported…

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MONTREAL, Sept. 28, 2021 (GLOBE NEWSWIRE) -- MONARCH MINING CORPORATION (“Monarch” or the “Corporation”) (TSX: GBAR) (OTCQX: GBARF) reported its results today for the quarter and 232-day period ended June 30, 2021. Amounts are in Canadian dollars unless otherwise indicated.

Summary of financial results

(In dollars, except per share data)

232-DAY PERIOD ENDED
JUNE 30,
2021
 THREE MONTHS ENDED
JUNE 30,
2021
 
Administration1,761,466 1,176,022 
Care and maintenance2,757,758 1,794,899 
Exploration3,471,155 2,229,013 
Income tax recovery deferred mining taxes(1,766,907) (1,790,126) 
Net loss(5,598,402) (2,837,751) 
Net loss per share, basic and diluted(0.12) (0.04) 

“Since being listed on January 26 as the new entity Monarch Mining Corporation, we have made great progress and are now well on our way to restarting operations at the Beaufor Mine, aiming to increase the mine’s previous annual production,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarch. “At the moment, we are getting the Beaufor Mine and Beacon Mill ready to start the pre-production phase start this fall, and we are continuing to recruit personnel to that we can start commercial production by June 2022. On the exploration side, the 42,500-metre drilling program is ongoing at Beaufor, with four underground drills currently on site, and we are extremely pleased with the results to date.”

“Thanks to strategic financings undertaken during the year, we have managed to increase our cash and balance-of-sale-receivable position to approximately $38 million as at September 15, 2021, while minimizing share dilution for our shareholders. We also continue to move work forward on our other advanced projects, McKenzie Break and Croinor Gold, which both have excellent exploration potential,” concluded Mr. Lacoste.

About Monarch
Monarch Mining Corporation (TSX: GBAR) is a fully integrated mining company that owns four advanced projects, including the fully permitted past-producing Beaufor Mine, which has produced more than 1 million ounces of gold over the last 30 years. Other advanced assets include the Croinor Gold, McKenzie Break and Swanson properties, all located near Monarch’s wholly owned and fully permitted Beacon 750 tpd mill. Monarch owns 28,702 hectares (287 km2) of mining assets in the prolific Abitibi mining camp that host 714,982 ounces of combined measured and indicated gold resources and 421,793 ounces of combined inferred resources.

Forward-Looking Statements
The forward-looking statements in this press release involve known and unknown risks, uncertainties and other factors that may cause Monarch’s actual results, performance and achievements to be materially different from the results, performance or achievements expressed or implied therein. Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this press release.

FOR MORE INFORMATION:

Jean-Marc Lacoste1-888-994-4465
President and Chief Executive Officerjm.lacoste@monarchmining.com
  
Mathieu Séguin1-888-994-4465
Vice President, Corporate Developmentm.seguin@monarchmining.com
  
Elisabeth Tremblay1-888-994-4465
Senior Geologist – Communications Specialiste.tremblay@monarchmining.com
  
www.monarchmining.com 
 

Table 1: Monarch combined gold resources

 Tonnes
(metric)
Grade
(g/t Au)
Ounces
Beaufor Mine1   
Measured Resources328,5005.759,900
Indicated Resources956,4005.2159,300
Total Measured and Indicated1,284,9005.3219,200
Total Inferred818,9004.7122,500
Croinor Gold2   
Measured Resources80,1008.4421,700
Indicated Resources724,5009.20214,300
Total Measured and Indicated804,6009.12236,000
Total Inferred160,8007.4238,400
McKenzie Break3   
In-pit   
Total Indicated1,441,3771.8083,305
Total Inferred2,243,5621.44104,038
Underground   
Total Indicated387,7205.0362,677
Total Inferred1,083,5034.21146,555
Swanson4   
In-pit   
Total Indicated1,864,0001.76105,400
Total Inferred29,0002.462,300
Underground   
Total Indicated91,0002.868,400
Total Inferred87,0002.878,000
TOTAL COMBINED5
Measured and Indicated Resources
Inferred Resources
  714,982
421,793
 
1 Source: Mineral Resource Estimate of the Beaufor Mine Project, July 23, 2021, Val-d’Or, Québec, Canada, Charlotte Athurion, P. Geo., Clovis Auger, P. Geo. and Dario Evangelista P. Eng., BBA Inc.
2 Source: Monarch Gold prefeasibility study (January 19, 2018) and resource estimate (January 8, 2016). This resource estimate was prepared for Monarch Gold and has not been reviewed by a qualified person for Monarch Mining as required under National Instrument 43-101 and is thus considered as an historical estimate.
3 Source: NI 43-101 Technical Evaluation Report on the McKenzie Break Property, February 1, 2021, Val-d’Or, Québec, Canada, Alain-Jean Beauregard, P.Geo., Daniel Gaudreault, P.Eng., Geologica Groupe-Conseil Inc., and Merouane Rachidi, P.Geo., Claude Duplessis, P.Eng., GoldMinds GeoServices Inc.
4 Source: NI 43-101 Technical Report and Mineral Resource Estimate for the Swanson Project, January 22, 2021, Val-d’Or, Québec, Canada, Christine Beausoleil, P. Geo. and Alain Carrier, P. Geo., InnovExplo Inc.
5 Numbers may not add up due to rounding.

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