Top-News of the week:
Sensational: Rye Patch Gold a producer from now on!
For a long time, the Rye Patch Gold shares quoted in the deep penny stock region, supported by Coeur Minings royalty payments and a few good results from Rye Patch Gold’s own nearby projects. But now, this seems to be all done forever! Last week, the company announced that it has signed a definitive agreement to acquire 100% of the Florida Canyon gold mine located in Pershing County, Nevada, for total consideration of 15 million US$ in cash and 20,000,000 common shares of the Company. The Company has also signed a commitment letter for a 27 million US$ credit with Macquarie Bank Limited to fund the proposed redevelopment of the Florida Canyon mine. The Florida Canyon gold mine is fully permitted, has been in continuous production since 1986 and is currently producing gold from its existing leach pad facilities. The Company proposes to redevelop the mine, including constructing a new heap leach pad and waste storage facility as well as mining a planned expansion of the Florida Canyon ore body. Rye Patch expects Florida Canyon to achieve commercial production from the new leach pad in Q1 2017. A Preliminary Economic Assessment with an effective date of March 16, 2016 assumes a post-tax IRR of very strong 34.4% for a gold price of only 1,000 US$ per ounce gold price for the first two years and a 1,150 US$ per ounce gold price for the remaining life of mine. The cash costs are estimated at 759 US$ per ounce, at an average production of approximately 75,000 ounces of gold per year for 8 years. Furthermore the company has executed a commitment letter with Macquarie Bank for a 27 million US$ Credit Facility to finance the planned refurbishment of the Florida Canyon mine.
A sensational and surprising deal for CEO Bill Howald and his team! In a phase of a strengthen gold price! Together with Coeur’s royalty payments, this should create an immense positive cash flow from 2017 on, which should lead to a much higher share price!
News: RPM buys Florida Gold Canyon Mine and is getting a producer
Video: Bill Howald speaks at ZURI INVEST event
Market Watch:
Lithium – The boom just begins!
Besides gold and silver there are a couple of other commodities to have a look at. We already mentioned the situation at the lithium market in February. At this time the price for lithium carbonate had jumped from 6,000 to 14,000 US$ within only a couple of months. By now, consumers pay more than 20,000 US$ for one ton! The reason for that is the assume that there may be a large supply deficit from 2017 on, when Tesla Motors will start the electro-vehicle production in its Gigafactory in Nevada. This most recent development of the lithium price has settled in a similar way at the development of many stocks of lithium producers and developers, although only a few companies already have a market capitalization of 20 million US$ or more. Besides the well-known producers SQM, FMC, Albemarle and Tianqi, there are also only a few companies which already have a standardized, non-historic resource. In Australia there are only four companies, which have a JORC-resource: Altura Mining, Galaxy Resources, Orocobre and Neometals. And there is no other picture on the American continent. Only a few companies like Lithium X, Pure Energy Minerals, Bacanora Minerals, Houston Lake Mining, Nemaska Lithium and Avalon Rare Metals already have a NI 43-101 resource. In conclusion that means, that the lithium boom seems to be right at the beginning and to have a lot more of potential!
People who do not want to invest in single stocks have the opportunity to invest in a pure lithium fund. The Structured Solutions - Lithium Index Strategie Fonds is a fund, which displays the most important lithium producers and developers.
In the next few weeks and months, we will accord you many more information to the lithium-sector and interesting companies.
Video: Lithium X interview from PDAC
Company News:
TerraX Minerals again with top drill results!
In the last weeks we continuously reported about excellent drill results from TerraX Minerals’ gold project Yellowknife City. E.g. from the Sam Otto gold zone, where the company intersected 40.85 m @ 1.03 g/t Au, including 20.90 m @ 1.56 g/t or the 15.91 m @ 1.78 g/t Au, 14.9 g/t Ag from Homer Lake. Only a few days ago TerraX Minerals announced some outstanding drill results from another gold zone named Hebert-Brent, which included 8.00 m @ 3.21 g/t Au and 1.85 m @ 15.08 g/t Au. It becomes more and more sensational how much gold deposits this project includes! We think that we will get some more outstanding drill results from one of the North-American gold projects with most potential!
News: TXR Top Drillnews from Hebert Brent and Homer Lake
Caledonia Mining: All directors confirmed
Last week, Caledonia Mining announced the results of the election of directors at its Annual Meeting held on May, the 20th, 2016. Thereby, all directors have been confirmed. Furthermore, KPMG Inc. was re-appointed as auditor of Caledonia for the fiscal year ending December 31, 2016. These results confirm the successful work of the directors, which will now find a continuation.
News: Caledonia AGM Results 2016
News Q1-2016: CAL - Q1-2016 good results
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