Welcome to a roundup of some of our financing, exploration, and development stories on Theassay.com over the last week. To keep up to date with all the latest headlines, subscribe to our weekly newsletter.
Financing and M&A
Over the past week, Steppe Gold Ltd. (TSX: STGO | OTCQX: STPGF | FSE: 2J9) has provided an update on the pending transaction to acquire all of the issued and outstanding common shares of Boroo Gold LLC.
Shareholders of the company largely approved the acquisition of Boroo Gold pursuant to the share exchange agreement dated 11 April 2024, and the sale of the Tres Cruces Oxide Project to Boroo Singapore pursuant to the share purchase agreements dated 11 April 2024, for approximately CAD$12M in cash at the annual general and special meeting held in June.
Upon completion of the transaction, Steppe Gold will be the largest primary gold producer in Mongolia.
“We are incredibly pleased with the overwhelming shareholder support for our proposed transaction,” said Bataa Tumur-Ochir, chairman, and CEO of Steppe Gold. “This deal positions Steppe Gold to become a major force in the fast-growing Mongolian gold sector. Upon completion of the Transaction, we will be a multi-asset producer with robust cash flow, exciting exploration prospects, and a team of talented professionals poised to propel our continued growth. Importantly, this transaction increases our optionality for the financing for the ATO Gold Mine Phase 2 expansion and potential future acquisitions throughout Mongolia.”
Also, Paladin Energy (ASX: PDN | OTCQX: PALAF) and Fission Uranium Corp. (TSX: FCU | OTCQX: FCUUF | FSE:2FU) have entered into a definitive arrangement agreement, pursuant to which Paladin will acquire 100% of the issued and outstanding shares of Fission by way of a court approved plan of arrangement under the Canada Business Corporation Act.
Fission shareholders will receive 0.1076 fully paid shares of Paladin for each Fission share held at the closing of the Transaction.
The offer consideration represents:
- An implied value of C$1.30 per Fission Share
- An implied equity value of C$1.14B
- A 25.8% premium to the closing price of the Fission Shares on the TSX (C$1.03) on 21 June 2024
- A 30.0% premium to the 20-day volume weighted average price of the Fission Shares on 21 June 2024
New exploration and development
Larvotto Resources Limited (ASX: LRV) has announced an exploration target of between approximately 670,000 and 1.08Moz AuEq, ranging between approximately 7.4 and 9.46g/t AuEq for its Hillgrove mineral field in NSW. This is in addition to the existing significant mineral resource of 1.4Moz @ 6.1g/t AuEq.
The exploration target for the Hillgrove project is confined to potential mineralization located directly below areas of the current resources which are themselves below historic workings that have a known production history. The exploration target will be used as a guide to target ongoing exploration, while beginning to demonstrate the upside of the project area.
American Lithium Corp. (TSXV: LI | Nasdaq: AMLI | Frankfurt: 5LA1) has provided an update on the optimization of its Falchani processing flow-sheet. This update is based on recently completed and ongoing test work at Australian Nuclear Science and Technology Organization Laboratories in Sydney, Australia in conjunction with TECMMINE in Lima, Peru.
Simon Clarke, CEO of American Lithium stated, “We are very excited about recent flow-sheet work in which we continue to produce high purity LC exceeding battery grade thresholds in repeated full-cycle tests giving us confidence to start piloting later this year.”
The unique volcanic style of lithium mineralization at Falchani, combined with low impurity content allows its flowsheet to resemble more conventional mining/processing flowsheets versus most hard-rock lithium projects where concentrates are produced and then shipped elsewhere for further refining into higher quality products.
Drilling results
Meanwhile, Terra Metals Limited (ASX: TM1) has announced that results from a further 14 wide-spaced, first-pass reconnaissance drill holes at the Dante Reefs has confirmed the discovery of multiple Platreef-style copper-PGE sulphide reefs only 15km from BHP’s Nebo-Babel mine development.
Defined over 4.5km so far across Reef 1 and Reef 2, mineralization remains open along strike and downdip, with assays pending from a further 16 drillholes covering an additional 4.5km of strike at Reef 2.
The drilling results to date have confirmed that the Dante Reefs have the potential to host a large sulphide deposit containing copper, gold, PGEs, vanadium, and titanium, the first of its kind in Australia. Managing director and CEO, Thomas Line, commented, “We are excited to have discovered multiple Platreef-style copper-PGE sulphide reefs from a first pass-reconnaissance drilling programme at the Dante Project; the first of its kind in Australia. Our next step is to continue to replicate these results over the extensive strike at the Dante Reefs, ensuring we are well positioned for success.”
