Newsletter 06 /2019
This newsletter contains news on the following topics:
Share of the week: EnWave + MAG Silver + Cardinal Resources + Argonaut Gold + Vista Gold + First Majestic Silver + Gatling Exploration + VRIFY Technology + Pelangio Exploration + Orsu Metals + Agnico Eagle Mines + Oceana Gold + Osisko Gold Royalties + Aurora Cannabis + Gold and Silver under Pressure, but demand should continue to rise + Sibanye-Stillwater + Lonmin + GoldMining + Aurania Resources + Steppe Gold + Auryn Resources + Maple Gold Mines + First Cobalt + eCobalt + Bluestone Resources
New precious metal report online: Precious Metal Report 2019 + Updates + Additional Stocks
New Battery Metals Report online: Battery Metals Report 2019 - Update
New uranium report online: Uranium Report 2019 - Update
During the recent Zuri Invest investor fair in Zurich, interviews were conducted with some extremely interesting discussion partners. In addition, several interesting lectures were given.
MAG Silver: Juanicipio Development Receives Joint Approval - Construction Starts Immediately
Cardinal Resources: Working Towards Bankable Feasibility Study - To Be Released In Q3 2019
Argonaut Gold: Increasing Production Up To 500k Oz Gold Per Year
Vista Gold: Releasing Pre-Feasibility Stude In Summer 2019 For Huge Gold Project In Australia
First Majestic Silver: Strong Production Growth In 2019 - Highest Exposure To Silver Price
Gatling Exploration: New Company Exploring Gold Project In The Abitibi Greenstone Belt In Canada
VRIFY Technology: New Features For Visualisation Tool For Mining Companies
Pelangio Exploration: Acquisition Of Prospect Generator With Projects In Canada
Orsu Metals: 1.19M Oz Gold Resource Announced - Lots Of Room To Grow
Agnico Eagle Mines: 2018 Was The Year Of Transition For Future Growth & Cashflow
Oceana Gold: "We Are Building For The Future"
Osisko Gold Royalties: Growing Royalty Stream Business & Cashflowing Assets
Friedrich & Weik on the future of the automotive market & the necessity of tangible assets in the portfolio
Zuri Invest Gala Dinner April 2019 Impressions
Zuri Invest Gala Night: Introduction With Jochen Staiger
Zuri Invest Gala Dinner April 2019 Mining Panel
Zuri Invest Gala Presentation April 2019 With John Reade
Share of the week: EnWave
EnWave Grants Global Licenses to Aurora Cannabis and Announces US$10 Million Equity Interest
EnWave and Aurora Cannabis announced a few days ago that the companies have entered into a rights-managed commercial licensing agreement granting Aurora exclusive rights to EnWave's patented Radiant Energy Vacuum (REVTM) drying technology for the production of cannabis material in the European Union, with the exception of Portugal. Aurora has also secured exclusive licensing options for Australia and South America, with the exception of Peru, which can be exercised according to the minimum requirements of the machine order REV™. In addition, Aurora has signed a non-exclusive sublicense to use the REV™ technology in Canada. The companies also announced that Aurora has placed an order for two of EnWave's 120 kW REVTM dehydrogenation systems for its Aurora Sky and Aurora Sun turbines in Canada and intends to purchase a third 120 kW REVTM dehydrogenation system for its Aurora Nordic site in Denmark within sixty days.
Furthermore, both parties announced the conclusion of a share purchase agreement. Accordingly, Aurora acquired 5,302,227 common shares of EnWave's capital at a price of US$ 1.886 per share. As consideration for the EnWave shares, Aurora issued to EnWave 840,576 ordinary shares of Aurora's capital at an assumed price of US$ 11.8966 per share.
Another significant step by Enwave into the upcoming boom sector of cannabis! In addition, one secures a block of shares in Aurora Cannabis in order to participate directly in its success story.
EnWave with second machine sale to US Army
EnWave also announced that it has signed a purchase request with the United States Army Combat Capabilities Development Command Soldier Center to supply a second radiation energy vacuum machine ("REV™") to support development work to improve the quality of melee attack rations and their subsequent deployment. After a successful presentation at the Pentagon in May 2018 and a confirmed internal demand for REV™ dry rations, the CCDC Soldier Center purchased its first REV™ machine and followed the research and development necessary to implement it with melee soldiers. Since then, the CCDC Soldier Center has made significant progress in product development in several areas and has partnered with the U.S. Army's approved supplier network.
EnWave celebrates successful roadshow in Europe
EnWave recently presented itself in Europe and especially in German-speaking countries and was very well received with the latest news and current figures.
The following is a short research report: EnWave with large participation in roadshow in Frankfurt and write-up of the GLOB newsletter
Analysts Surpass with New Price Targets for EnWave Shares
Based on the continuing excellent corporate news, several buy recommendations for the EnWave share have recently been published. The analysts of Cormark Securities see the fair value of the share at 2.50 CA$. In their latest research report, iA Securities even added one more thing and gave a buy recommendation with a price target of 2.75 CA$.
Report 2: iA Securities gives buy recommendation for EnWave after Aurora Cannabis deal and target price CAD 2.75
Gold and silver under pressure, but demand should continue to rise
Gold and silver have once again been put under pressure in recent days by means of dubious contracts on the Comex. Several billion-dollar contracts were launched on the market within a very short space of time. It remains to be seen when one of the buyers will finally insist on the physical delivery of the short contracts, some of which cover entire annual productions.
Gold is different from other assets, attractive to investors and consumers. In most cases it is a diversification and long-term investment instrument.
Gold jewelry is a status symbol. Growth phases support gold purchases, and gold is increasingly being used in technology applications. Uncertainties of a political nature and risks such as the creeping depreciation of money and the paper money inflation of the central banks are increasing the demand for the precious metal, the keyword being "safe haven gold".
Globally, an estimated 4,370 tonnes of gold will be in demand in 2019 - first and foremost from the central banks and above all from China, India and Russia. In 2018 the figure was still 4,364 tonnes, which is an upward trend. There are enough trouble spots, so one might wonder why the price of gold is not higher. The answer probably lies in this: gold is not so much a crisis metal, of course, but rather an insurance in the form of a currency. And there was no crash in 2018. Therefore, many are still waiting to hedge with the help of gold.
Physical gold is never bad, but to get more return it is worth taking a look at the stocks of gold companies. Not only the development of the raw material market is decisive for their success, but also company-specific factors. These are important for the successful progress of gold companies, which makes this investment more speculative than physical gold. Some of these promising gold stocks can be found in this newsletter.
AMCU ends strike in Sibanye-Stillwater’s Gold Mines
Sibanye-Stillwater announced a few days ago that the five-month strike of the Association of Mineworkers and Construction Union (AMCU) at the South African gold mines had ended. Both parties have confirmed that it is in their interest to redefine and develop the relationship for the future. The parties agree that by recognizing the need for constructive cooperation, they will promote safe and sustainable business operations that create value for all stakeholders.
News: Sibanye-Stillwater and AMCU conclude gold strike
Video: Sibanye-Stillwater: Reducing Debt & Positioning For "The New World"
Sibanye-Stillwater increases offer for Lonmin
Sibanye-Stillwater recently announced that Lonmin shareholders have the right to receive one new Sibanye-Stillwater Share for each Lonmin Share held by them, representing an increase of 3.4% (or an additional increase of 0.033 new Sibanye-Stillwater Shares per Lonmin Share held) over the exchange ratio of 0.967 new Sibanye-Stillwater Shares for each Lonmin Share held announced December 14, 2017. The boards of Sibanye-Stillwater and Lonmin believe that the increased offer for Lonmin reflects the recent recovery of the PGM price environment compared to the fact that Lonmin remains financially constrained and unable to finance the significant investments necessary to maintain its business and related operations.
After the agreement with the AMCU, the takeover of Lonmin will now be completed as soon as possible.
News: Sibanye-Stillwater posts circular and notice of General meeting to shareholders
Interview: Sibanye-Stillwater: Reducing Debt & Positioning For "The New World"
GoldMining receives water license and land use permit
GoldMining recently announced that the Company has received a five-year Type B Water Licence and Type A Land Use Permit from the Mackenzie Valley Land and Water Board ("MVLWB") for the Nicholas Lake-Ormsby property. This property is part of the wholly owned Yellowknife Gold Project, 12,120 hectares, in the Northwest Territories, Canada.
The WL and LUP will allow the Company to carry out advanced exploration work including core drilling, underground development and operation of the existing camp, runway and winter road. In addition, the MVLWB extended two LUPs on the Goodwin Lake and Clan Lake properties for two years.
Aurania Resources receives new CFO and million-dollar loan from CEO
A few days ago, Aurania Resources announced the appointment of Tony Wood as Chief Financial Officer ("CFO") and the signing of a loan agreement with Dr Keith Barron.
Tony Wood has extensive experience in the commodities sector and a proven track record of leading mineral exploration companies through the various stages of evolution from exploration to development to production. Over the past 20 years, he has successfully completed nearly $1 billion in financing and M&A transactions in the mining industry.
The loan of up to US$ 3,000,000 will be provided by CEO Dr Keith Barron. It is unsecured, has a term of two years, bears interest at 2% p.a. and is not convertible into Aurania shares. The main purpose of the loan will be to advance the Company's exploration strategy following the recently completed rights offering.
An unsecured loan with a 2% interest rate - CEO Barron seems to know exactly what he will find on the Lost Cities project.
News: Aurania Announces the Appointment of Tony Wood as CFO & Enters into a $3 Million Loan Agreement with Chairman and CEO
Steppe Gold makes good progress with mine development and announces funding
Steppe has been mining gold since November 2018 and has completed Phase I mining with 230,000 tons. The company is now rapidly moving to the completion of the ADR plant in order to be able to cast the first gold in the second half of 2019. Most of the investments have been made and the project is even below budget. As of April 1, 2019, the Company had approximately US$ 2.7 million (CA$ 3.64 million) of cash on hand. In order to ensure that the company is properly capitalised until production, the company considers it reasonable to strengthen the balance sheet. Accordingly, the Company recently announced that it is conducting a non-brokered private placement of at least US$5.0 million (US$6.75 million) of the total principal amount of unsecured convertible bonds. This financing will enable Steppe Gold to conduct a summer exploration program for the ATO-4 Mungu Trend and the trenching and drilling program for the four discoveries on our highly prospective Uudam-Khundii project in Bayankhongor Province in the southwest of the country.
Steppe Gold already has a firm commitment from European investors for US$ 5 million.
News: Steppe Gold Ltd: Development and Financing Update
Video update from construction: Steppe Gold: Mongolias Next Gold Producer - Corporate Video
Auryn Resources Examines Historic Drill Cores
Auryn Resources recently announced access to drill cores from 8 historic drill holes totaling 988 meters in length from the Fierrazo target at the Sombrero Project in southern Peru. Drilling has ranged from 51 metres to 217 metres in depth and is located in the area where Auryn recently extracted 232 metres of 0.55% copper equivalent (0.47% copper and 0.13 g/t gold) on surface.
The results from these cores will provide a critical first look at the mineralization on the Sombrero project and rapidly improve the understanding of the technical teams for controlling the copper-gold mineralization on the project.
News: Auryn to Sample Historical Drill Core at Sombrero
Maple Gold Mines Drilling More Than Planned
Maple Gold Mines recently reported that the drilling program for winter 2019 has been completed. This was more extensive than initially planned with approximately 6,050 metres in 15 holes distributed across the Nika, Porphyry, 531 and Exploration Target areas. Several of the holes were drilled to greater depths than planned due to visually significant sulphide mineralization at the originally planned depths. The results are expected to be published after receipt within the next 8-10 weeks.
News:Maple Gold completes 6,050 metre drill campaign at Douay
First Cobalt buys from eCobalt
First Cobalt recently announced that it has acquired a total of 9,640,500 common shares of eCobalt Solutions Inc. at a price of CA$0.375 per common share through a private share purchase agreement. This corresponds to approximately 6 % of the issued and outstanding ordinary shares. In conjunction with the private share purchase agreement, the Company intends to issue 21,265,809 common shares of First Cobalt at CA$0.17 per share.
It remains to be seen to what extent this capital measure is related to the recently announced acquisition intentions of Jervois and eCobalt.
News: First Cobalt Announces Investment in eCobalt Shares
Bluestone Resources delivers top drilling results
Bluestone Resources recently announced high grade intercepts from a further five infill holes at the Cerro Blanco gold project. These include 5.5 metres at 12.5 g/t Au and 30 g/t Ag and 6.5 metres at 10.5 g/t Au and 18 g/t Ag. Two LM-75 diamond drills are currently within the Cerro Blanco underground pits and one drill rig is drilling from surface and targeting key veins in the upper portion of the Cerro Blanco resource. The Cerro Blanco Feasibility Study identified approximately 357,000 ounces of inferred resources (1.4 million tonnes at 8.1 g/t Au) that could potentially be converted into measured and indicated resources by infill drilling.
News: Drilling at Cerro Blanco Delivers 5.5 meters of 12.5 g/t Au and 30 g/t Ag, and 6.5 meters of 10.5 g/t Au and 18 g/t Ag
Swiss Resource Capital AG and the authors of Swiss Resource Capital AG currently hold or intend to hold shares in the following values mentioned in this issue Share of the Week: EnWave + MAG Silver + Cardinal Resources + Argonaut Gold + Vista Gold + First Majestic Silver + Gatling Exploration + VRIFY Technology + Pelangio Exploration + Orsu Metals + Agnico Eagle Mines + Oceana Gold + Osisko Gold Royalties + Aurora Cannabis + Sibanye-Stillwater + Lonmin + GoldMining + Aurania Resources + Steppe Gold + Auryn Resources + Maple Gold Mines + First Cobalt + eCobalt + Bluestone Resources + VRIFY Technology.
Swiss Resource Capital AG has concluded IR consulting agreements with the following companies mentioned in this issue: Share of the week: EnWave + MAG Silver + Osisko Gold Royalties + Sibanye-Stillwater + GoldMining + Aurania Resources + Steppe Gold + Auryn Resources + Maple Gold Mines + First Cobalt + Bluestone Resources.
This publication is based on Swiss Resource Capital AG's detailed risk warnings, limitations of liability and disclaimers, which can be viewed here: Disclosure and Disclaimer