Image credits: Mika Baumeister
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Weekly Roundups

Investments and Financing Reach a Maximum Score in May

By Paloma Duran | Thu, 05/13/2021 - 18:07

Grupo México's new investment will improve its metals refining in Sonora and boost energy investment in the Baja California peninsula. GoGold Resources announced it has closed a deal offering to further develop the Los Ricos North and Southern projects. In addition, Capitan Mining announced that it has closed a non-brokered private placement, which will further develop its Peñoles Project in Durango. Finally, silver and gold are expected to continue to perform well in 2021.

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Grupo Mexico’s New Investment

Grupo México announced it plans to invest US$3.1 billion in metal refining in Sonora and electrical infrastructure for its El Arco copper mine, which will bring less expensive electricity to the Baja California peninsula. The six-year investment includes US$2.3 billion to further increase its smelting capacity and US$815 million to install new power lines.

Grupo México Vice Chairman, Xavier García de Quevedo, said the  US$2.8 billion investment for its El Arco copper mine would also promote additional investments in Baja California. "Baja California's huge potential can't be developed without electricity," Quevedo said. Grupo México's electrical infrastructure will include a 500 km transmission line that will run through half of the peninsula.

GoGold Closes US$23.70 Million Deal Financing

GoGold Resources (GoGold) reports  it has closed the bought deal offering of CAD$28.75 million (US$23.70 million), which will be used to further develop Los Ricos North and Southern projects in Jalisco, reported mining.com. The offering was for 10 thousand common shares at a price of CAD$2.59 (US$2.13) per share for a gross profit of CAD$25 million (US$20.61 million). The deal was led by BMO Capital Markets, along with a syndicate called Underwriters that includes Sprott Capital Partners, PI Financial Corp., Eight Capital, Echelon Wealth Partners Inc., and Desjardins Securities.

New Financing Aims to Boost Peñoles Gold-Silver Project

Capitan Mining (Capitan) announced it has closed a US$3.2 million non-brokered private placement, which will be used to further develop its Peñoles Project in Durango. To close the deal, Capitan had to issue 16 million common shares at C$0.20 (US$0.16) each, which gave it a gross profit of C$3.2 million (US$2.63 million). The strategic investment was provided by Michael Gentile, CFA, and will be used primarily to further explore and develop the Peñoles project and for capital and corporate purposes.

Ganfeng Lithium to Acquire 100 Percent of Bacanora’s Shares

Ganfeng Lithium (Ganfeng) has issued an offer to acquire the shares of Bacanora Lithium (Bacanora) for US$264 million, a company with which it is developing the first lithium mine in Mexico. The two companies have discussed the attractive offer that would increase Ganfeng's 50 percent stake in the Sonora Lithium project to 100 percent by acquiring the remaining shares. Bacanora said that the offer is very attractive because it would strengthen the project, since they will have more financing, making it more viable and less risky.

The offer is EUR$67.5 (US$95.39) per share and still requires the approval of the regulatory authorities and the boards of directors of both companies.

GR Silver Mining Acquires San Marcial Silver Project

GR Silver Mining has made the final US$2 million payment and issued 1.5 million common shares to SSR Mining Ltd to complete the 100 percent acquisition of the San Marcial Silver Project. Since acquiring the option three years ago, GR Silver Mining has invested over US$3.7 million in exploration expenditures on the project, increasing resources by 57 percent and inferred resources by 126 percent. Marcio Fonseca, President and CEO of GR Silver Mining, said in a press release, "we are very pleased to have completed the acquisition of 100 percent of the San Marcial Project. While a number of companies have reviewed this project over the past 20 years, GR Silver Mining is the first to recognize its significant potential.”

New Zealand to Share Innovative Practices with Mexico

New Zealand and the Sonora Mining Cluster are organizing a three-day online event called “New Perspective from New Zealand,” which will provide innovative solutions to the Mexican mining sector in the areas of technology, health, safety, social, environmental and governance. The forum will be held from May 11 to 13.

Key stakeholders are expected to meet with representatives from the 11 participating New Zealand companies, who will showcase the strategies and resources they are using to increase their sustainability and productivity as they transition to mining 4.0.

2021 Precious Metal: Gold or Silver?

In 2020, gold and silver had their best year since 2010 amid market volatility caused by the COVID-19 pandemic and US political uncertainty. Both metals are expected to continue doing well in 2021, especially given the current market environment and their essential role in the transition from fossil fuels to renewable energy. However, which metal will be the winner in 2021?

 

The data used in this article was sourced from:  
Reuters, GoGold, MBN, Mining.com
Photo by:   Mika Baumeister
Paloma Duran Paloma Duran Junior Journalist and Industry Analyst