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Nov 15, 2021
I make it crystal clear in my investment books Nobody Knows Anything and Basic Investing in Resource Stocks that there is no magic to investing if you follow a reasonable set of rules. As I have so accurately pointed out just recently, predicting the future of any price movement can be fraught with problems. However looking at a map to see just where you are today is easy and important.
We had a low in gold, silver and the resource stocks right at the end of September. Since then the DSI has gone higher, the XAU over gold is higher and the Gold Miners Percentage Index is higher. All indicated a turn about six weeks ago. We can’t know when the metals and shares will top but those indicators will show us sentiment with great accuracy. That is just as true at tops as it is at bottoms. There is a lot of free information available that anyone can use to navigate their way through shoal waters.
(Click on images to enlarge)
There are other factors to the value of a particular stock than just the price of the commodity. We have entered the annual tax loss silly season where pissed off investors dump the shares they own that have gone down the most in order to claim the tax loss credit. It’s a lot like stealing because in their quest to unload unloved investments they often dump good stocks that will regain their prior price by February or March of the next year. Tax loss silly season begins now and will run until almost Christmas.
In addition, when markets are at new lows, volume dries up and often you have to make an appointment to give shares away. And there is the issue of stocks that investors have simply given up on because the companies made the cardinal mistake of boring shareholders.
Lion One Metals (LIO-V) made the mistake of doing all of those. Think of it as a trifecta of mining. Our saga really began in March of 2019 when Chairman and CEO Wally Berukoff appointed Quinton Hennigh as a technical advisor to Lion One. The shares were bouncing along at $.35 after years of quiet but slow progress on the 100% company owned gold project in Fiji.
Quinton started off with a surprising announcement. What they thought of as an epithermal gold system of limited potential in spite of the already defined 43-101 of over 900,000 ounces of gold wasn’t that at all. It wasn’t epithermal limited in size and grade; it was a far richer and more valuable alkaline gold system. All the company needed to do was to drill deeper.
Lion One did and in 2020 came up with results of 55 g/t Au over 12.7 meters in hole DDH 500 and 85.7 g/t Au over 3.3 meters driving the price of shares up to $2.67. Wisely, Wally went to the financing markets and raised over $65 million to begin construction of the mill and for further resource definition. But Covid began to take its toll even if we now realize what we call Covid is no more than a bad flu.
The managing director for Lion was operating out of Perth in Western Australia. Since the country had a long experience with being a prison colony they slammed the cell doors and imprisoned their entire population in order to fight a bad flu. He couldn’t leave Australia and no one could enter Fiji.
Of all of the bad events that can transpire with a junior resource company the worst is to bore shareholders. Even though the company bought new drills and had them shipped to Fiji they have no professional mining engineers or exploration geologists on site to supervise the local crews. And to be kind, Fiji is not Ontario or Nevada or even Mexico or Peru in terms of mining expertise.
On a regular but slow basis Lion One would announce drill results. In January of 2021 they announced 2.24 meters of 13.31 g/t Au along with 3.47 meters of 20.71 g/t gold. A month later on February 3rd they released results of 12.45 meters of 21.31 g/t Au and 3 meters of 114 g/t gold. March brought an announcement of two additional drill rigs being delivered. May brought excellent results from three more holes including 1.2 meters of 13.74 g/t Au near surface, 6 meters of 9.11 g/t Au and 6.47 meters of 17.9 g/t gold.
By now the company was up to a total of six drill rigs operational but was beginning to run out of the bandwidth of trying to operate remotely from Perth. Wisely, Wally made the decision to bring in some professional staff to be on site to move the company forward to production as the plan had been all along. That plan ran into the Covid stupidity. It took until August of 2021 to get Patrick Hickey into Fiji as COO and Sergio Cattalani in place as SVP for Exploration.
I’d like to say everything went smoothly but if I did, I would be lying. It took months for Fiji to open up and then the pair had to remain in quarantine for two weeks. Literally they only started cleaning up what was basically your garden-variety mess in September.
They found a lot of issues. One of the most interesting was that a lot of the core clearly was mineralized but had never been assayed not withstanding the fact that Lion One owns the lab. Lion One had good people on site but trying to plan for construction of a mine and mill takes time and requires professional supervision. It is now in place and they are moving forward.
On November 2nd they came up with another press release showing excellent numbers including 3.9 meters of 33.4 g/t Au and 0.3 meters of 65 g/t Au and 0.3 meters of 112 g/t gold, with 0.6 meters of 48.7 g/t Au and 0.6 meters of 33.06 g/t Au. Clearly Lion One has the gold. It is high grade and there is a lot of it. The lookalike Vatukoula Gold Mine is located only 40 km from Tuvatu. Vatukoula has resources remaining of 4 million ounces of gold and has produced 7 million ounces already. Tuvatu has a similar footprint and every indication of similar grade and quantity of gold.
Wally’s plan all along has been to construction a 350 TPD mill using the existing near surface resource to produce 100,000 ounces of gold a year. As of today the company has a market cap of $151 million CAD with a total of $54 million in cash. Lion One has more than enough money to continue the six-drill rig exploration and development drill program and to move the plan for the mill into high speed.
The government of Fiji wants the mine to go into production. The potential tax revenue is an important part of their financial plan for the future. Investors want to see concrete action on the part of exploration and the start of construction for the long promised mill. Wally has 100% ownership of the project, a boatload of cash that makes the company more of a bank than a mining junior and two highly experienced mining professionals in position to move this puppy to production. It’s time for the company to shit or get off the pot.
I know of no company with a resource as real as Lion One’s and the cash they have on hand that is selling for pennies. Lion One has derisked the project. A move to production would convince investors that instead of what is probably $100 an ounce CAD today, the company would really be worth a whole lot more. Wally is in a position to ride the wave of gold higher to a multi-billion dollar market cap. He’s done it twice before and this is a whole lot better potential.
Lion One is an advertiser. The company is actually my largest share position in spite of having moved to a new low. I was buying shares in the open market as recently as Friday. I would love to see the company in production. I know a lot of investors feel the same way. Once in production the majors are going to be on this like white on rice. There will be a bidding war for the company when they actually begin to put the plan into operation.
Do your own due diligence.
Lion One Metals
LIO-V $.97 (Nov 12, 2021)
LOMLF OTCQX 156 million shares
Lion One website
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Bob Moriarty
President: 321gold
Archives
321gold Ltd
- Battery metal demand is rising, and the trend will continue
- New properties are in demand- Producers provide leverage to the metal prices, and exploration companies turbocharge the gearing- Location is critical
- Lithium Americas (LAC) looks to pick up a property
- Nevada Copper (NEVDF)- The trend is your friend, and increasing demand for EVs supports a continuation of the rally
Noram Lithium (NRVTF)- An undervalued battery metal play in Nevada, a desirable jurisdiction
In real estate, a property’s value always reflects its location. Any real estate professional understands that the three leading value factors are location-location-location.
Commodity producers face many regional issues. Raw materials can occur in local regions where political or economic forces make extraction challenging. The cost of production reflects local tax, royalty, logistical, and other factors.
Over the past year, the ascent of metals prices has caused many of the world’s leading producers to scramble to find new mining projects to meet the growing demand. One of the world’s leading diversified commodity producers, BHP is currently in talks with Ivanhoe Mines to acquire part of the Western Foreland exploration area in the Democratic Republic of the Congo (DRC). While DRC is the largest copper producer in Africa with the most substantial reserves, the country has a long history of corruption that has impeded its growth. The DRC is not an ideal location for mining companies, but the growing need for new output has put BHP in a position to consider the project. It takes up to ten years to bring a new copper mine into production, and producers are scouring the earth for projects that will meet the increasing demand.
Goldman Sachs called copper “the new oil” because of its role in decarbonization. Three-month LME copper was trading at the $9,518 per ton level on November 5, with the December COMEX copper futures at the $4.3430 per pound level. Goldman projects that copper prices could rise to the $15,000 per ton level by 2025, putting COMEX copper futures north of the $6.80 per pound level.
Meanwhile, lithium is another commodity that is experiencing growing demand. The success of addressing climate change through decarbonization relies on ample supplies of battery metals that can replace fossil fuels.
While BHP is looking to the DRC for new copper deposits, other mining and exploration companies are developing battery metal deposits. Friendlier and less challenging jurisdictions are likely to attract significant premiums over the coming months and years.
In the US, Nevada, the silver state, has a long history as one of the most favorable mining jurisdictions on the earth. When it comes to location, it does not get much better than Nevada.
Battery metal demand is rising, and the trend will continue
Climate change is not a US issue; it is a worldwide trend. Addressing climate change involves replacing the hydrocarbons that currently power the world with alternative, renewable energy sources. While batteries power only around one percent of the cars on roads today, the demand for EVs is growing by leaps and bounds. Hertz recently announced they are purchasing 100,000 Tesla model-3 EVs in a $4.2 billion deal. EVs will make up 20% of the Hertz fleet by the end of 2022. Hertz will also install thousands of charging stations in its locations in the US and Europe.
EV’s require twice the copper as internal combustion engines. The batteries require other metals and minerals including, lithium, nickel, cobalt, zinc, aluminum, manganese, graphite, and potassium. Tesla’s batteries currently use lithium-nickel-cobalt-aluminum chemistry. However, the company is working on a set of cobalt-free or reduced batteries drawing on lithium-iron-phosphate technology and chemistries that rely more heavily on nickel. The three-month nickel price on the London Metals Exchange closed 2020 at the $16,600 per ton level. As of November 4, the price was over $19,400 after reaching over $20,500 during the year. Copper futures on COMEX may have corrected from the May 2021 all-time high at nearly $4.90 per pound, but they remain appreciably higher than at the end of 2020.
Source: CQG
The monthly chart shows that copper closed 2020 at the $3.52 level. At the $4.3430 per pound level in early November 2021, copper futures were over 23% higher. The price action in the lithium carbonate market has been even more bullish.
Source: Trading Economics
The chart shows the rise from below $33,000 per ton in 2020 to the current price at the $194,500 level, an increase of nearly six times. Lithium’s ascent is more like a cryptocurrency than a commodity as the demand for the metal for EV production grows.
New properties are in demand- Producers provide leverage to the metal prices, and exploration companies turbocharge the gearing- Location is critical
Mining companies make substantial capital investments to extract raw materials from the earth’s crust. The leading mining companies profit handsomely when market prices exceed production costs, creating leverage. Mining companies often outperform the commodities they produce on the upside but underperform when prices decline.
Meanwhile, exploration companies provide even more leverage. Since rewards are always a function of the risks, companies that search for commodities tend to experience incredible gains when they find them and begin production or sell the properties to the more established mining companies that can take projects to the next production and processing levels.
The mining industry reflects economies of scale. The leading companies like BHP, Rio Tinto, Anglo American, Glencore, and others have made significant capital investments and spread production risks over a diversified portfolio of mining properties. They tend to allow exploration companies to make the finds and then take the mining properties to the next steps.
When it comes to investing, exploration companies can offer attractive returns that often outpace the underlying commodity and the established miners on a percentage basis. If the BHP’s offer leverage, exploration companies turbocharge that gearing.
Lithium Americas (LAC) looks to pick up a property
Lithium Americas Corporation (LAC) operates as a resource company in the United States. The company explores for lithium deposits. LAC owns interests in the Cauchari-Olaroz Project in the Jujuy province of Argentina and the Thacker Pass project in north-western Humboldt County, Nevada. Thacker Pass recently increased its Phase 1 capacity to target 40,000 tpa lithium carbonate.
LAC announced it submitted an unconditional offer to Millennial Lithium Corporation to acquire all of the outstanding shares for approximately $400 million.
Source: Barchart
The chart shows LAC’s ascent from a low of $1.92 per share in March 2020 to its most recent high of $33.42 on November 4. At the $32.67 per share level, LAC’s market cap was over $3.919 billion. An average of over five million shares changes hands each day. Lithium has been a hot commodity that has moved nearly six times since 2020. LAC shares have moved over seventeen times higher over the period as the successful mining company turbocharged the commodity’s percentage gain.
Nevada Copper (NEVDF)- The trend is your friend, and increasing demand for EVs supports a continuation of the rally
Nevada Copper is an exploration company in the silver state of Nevada. The company owns a 100% interest in the Pumpkin Hollow property that contains copper, gold, and silver reserves. The most recent operations update highlighted accelerated stope turnover rates, management team changes that strengthened the company, productivity improvements, and processing of ore averaging approximately 1.5% copper delivered to the mill. Since the May high, copper’s price has dropped at nearly $4.90 per pound on the nearby COMEX futures contract. NEVDF is an exploration company, so its share performance tends to outperform the commodity on the upside and underperform on the downside. Copper rose from $3.52 per pound at the end of 2020 to a high of $4.8985 in May or 39.2%. On November 5, the price was at the $4.3430 level, 11.3% below the May peak. NEVDF shares closed 2020 at the $1.14 level.
Source: Barchart
The chart highlights that NEVDF shares reached a high of $2.71 when copper peaked and traded at 67.00 cents per share on November 5. NEVDF shares rallied by 137.7% and from the end of 2020 to the May 2021 high and were 75.3% lower than the peak as of November 5. Like many exploration companies, NEVDF turbocharged the price action in copper, outperforming the metal on the upside and underperforming on the downside.
As the demand for copper will rise over the coming years, and Goldman Sachs expects the price to increase dramatically, now could be the perfect time to consider this exploration company.
Noram Lithium (NRVTF)- Another battery metal play in Nevada, a desirable jurisdiction
Norman Lithium (NRVTF) is an exploration company that develops mineral properties in the United States.
The company owns interests in the Zeus Lithium Project in Clayton Valley, Nevada. Noram’s property is next door to Albemarle Corporation’s (ALB) Silver Peak Lithium Mine in Nevada.
Noram’s latest highlights include:
- A 70% increase in measured and indicated resources
- A 369% increase in inferred resources
- Deposits near the surface, reducing production costs
- The potential to increase the deposit size via deeper drilling
- An environmentally friendly footprint
- A Preliminary Economic Assessment (PEA) in the coming weeks – Advancing the project closer to its’ production target
At the 67.15 cents per share level, NRVTF has a market cap at the $50.701 million level. An average of 56,780 shares changes hands each day.
Source: Barchart
The chart shows NRVTF shares closed at the 40.26 cents level on December 31, 2020. At 66.87 on November 5, they were 66.1% higher. NRVTF shares reached a high of 98.78 cents on January 14, 2021, which is the stock’s current technical target. The shares have traded in a bullish trend since mid-April 2021.
With the spotlight on lithium, Norman could be an excellent exploration company to consider. Success in the Zeus project could attract interest from companies like Lithium Americas Corporation (LAC) that is currently buying Millennial Lithium Corporation’s shares for $400 million, nearly eight times higher than NRVTF’s current market cap.
Exploration companies are risky, but the potential for substantial rewards always involves an elevated risk level. Meanwhile, Nevada Copper and Noram Lithium have location on their sides as Nevada is a highly desirable mining jurisdiction in a world hungry for copper and lithium supplies.
Written By: Andrew Hecht, on behalf of Maurice Jackson of Proven and Probable.
Any investment involves substantial risks, including, but not limited to, pricing volatility, inadequate liquidity, and the potential complete loss of principal. This document does not in any way constitute an offer or solicitation of an offer to buy or sell any investment, security, or commodity discussed herein, or any security in any jurisdiction in which such an offer would be unlawful under the securities laws of such jurisdiction.
Irving Resources
Would Black Lives Matter, affirmative action policies, multi-culturalism and the demand for diversity have emerged had the concept of honor still been a part of the backbone of the West? Here are my thoughts:
On Investments
Recently, I had a linked conversation with Cory Fleck and Shad Marquitz about three companies that had not gone up with the general resources market.
Here are some more names with my limit buy-prices:
- Gran Colombia Warrants (GCM.WT.B; C$3)
- Silver Dollar (SLV; C$0.66)
- Baru Gold (BARU; C$0.09)
- Irving Resources (IRV; C$0.92)
- Signature Resources (SGU; C$0.065)
- Maritime Resources (MAE; C$0.13)
- Aztec Minerals (AZT; C$0.27)
- Montage Gold (MAU; C$0.65)
- Newcore Gold (NCAU; C$0.54)
- Valterra Resources (VQA; C$0.03)
You cannot have liberty in a society where a critical mass of people is not morally conscious. A society lacking moral consciousness will invariably produce goons and tyrants. Your perfect constitution will come to naught in such a society. So, the first step should always be to develop a critical mass of morally conscious people. That is what Capitalism & Morality strives to achieve, which, if our rulers allow, will be held on 30th July 2022.
Vancouver, British Columbia–(Newsfile Corp. – November 12, 2021) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the “Company” or “EMX”) is pleased to report results for the quarter ended September 30, 2021 (“Q3-2021”). The Company’s filings for Q3-2021 are available on SEDAR at www.sedar.com, on the U.S. Securities and Exchange Commission’s website at www.sec.gov, and on EMX’s website at www.EMXroyalty.com. Financial results were prepared in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board.
HIGHLIGHTS FOR Q3-2021
Significant Acquisitions
- EMX closed the acquisition of a portfolio of royalty interests and deferred payments from SSR Mining Inc. and certain of its subsidiaries (“SSR Mining“) (see EMX news release dated October 21, 2021). The Portfolio consists of 16 geographically diverse base and precious metals royalties, with four royalty assets at advanced stages of project development, and also includes US $18 million in future cash payments. EMX has paid US $33 million in cash and issued 12,323,048 common shares of the Company valued at US $32.5 million to SSR Mining. SSR Mining now owns an approximate 12% undiluted equity interest in EMX. EMX will also make deferred and contingent payments to SSR Mining of up to US $34 million if certain project advancement milestones are achieved.
- EMX completed the acquisition of an effective 0.418% NSR royalty on the Caserones Copper-Molybdenum Mine located in northern Chile for US$34.1 million in cash (see EMX news release dated September 3, 2021). Caserones is a significant porphyry copper-molybdenum mining operation in a top tier mining jurisdiction. The Caserones acquisition brings immediate cashflow to EMX’s portfolio. Through the quarter end, EMX has realized an initial payment of US $951,000 from the second quarter (i.e., April – June) royalty distributions.
Financial Update
Dollar amounts are in CDN unless otherwise noted.
- As at September 30, 2021, EMX ended the quarter with a working capital balance of $13,889,000 including cash and cash equivalents of $46,735,000, investments, strategic investments, and receivables and loan receivables totaling $27,034,000, and debt of $54,134,000.
- To facilitate the Caserones and SSR royalty acquisitions, as well as to supplement working capital, the Company has entered into three financing transactions including a US$44,000,000 credit facility with Sprott Private Resource Lending II (Collector), LP, a Vendor-take-back note of US$7.85 million with SSR Mining, and the closing of the first tranche of a private placement for gross proceeds of $20,913,000.
- For the three months ended September 30, 2021, EMX had revenue and other income of $1,504,000. EMX also received or accrued from its effective royalty interest on the Caserones mine its first quarterly payment of approximately US$950,000.
- Royalty generation costs for the three months ended September 30, 2021 totaled $3,882,000 including share-based compensation of $45,000, of which the Company recovered $1,792,000 from partners.
- General and administrative expenses totaled $1,807,000. The increase from Q3-2020 is largely the result of increased due diligence costs related to the Caserones acquisition and other prospective royalty assets.
- For the three months ended September 30, 2021, the Company had a net loss from operations of $10,866,000. In addition to operating items noted above, included in net loss from operations was $759,000 in depletion, depreciation, and direct royalty taxes, and $1,206,000 in share-based compensation. Other items affecting net loss in Q3-2021 include a gain from the Company’s investments in associated entities of $1,138,000 primarily related to its effective royalty interest in the Caserones mine, a fair value loss on investments of $3,731,000, and a foreign exchange gain of $1,301,000. The Company also recorded impairment charges of $4,178,000 including $4,022,000 related to its investment in Rawhide Acquisition Holding LLC (“RAH” or “Rawhide”). The foreign exchange gain was primarily related to the Company holding cash and net assets denominated in US.
Operational Update
EMX’s royalty and mineral property portfolio totals over 280 projects on five continents. The following summarizes the work conducted in Q3-2021, as well as subsequent events, by the Company and its partners.
- In North America, EMX received provisional payments of approximately US$641,000 from the sale of 364 gold ounces produced at the Leeville royalty property in Nevada’s Northern Carlin Trend. Leeville’s Q3 performance ensures that 2021 will be a year of increased payments due to robust production contributions from Carlin East and Four Corners. On the royalty generation front, EMX continued to evaluate and add new gold and copper projects to the portfolio by staking open ground. Partner companies continued to build value in the portfolio with their summer field exploration programs. In particular, partner Ridgeline Minerals’ successes at Swift resulted in the Carlin-type gold project being optioned to Nevada Gold Mines. Ridgeline also reported additional encouraging drill results from the Selena sediment-hosted silver-gold project.
EMX’s royalty and mineral asset portfolio in key mining districts of Ontario and Quebec, including the Red Lake camp, generated $75,000 in cash and fair value equity payments. EMX’s initiatives in Canada included staking prospective open ground, as well as expanding land positions at several existing properties. - In Serbia, Timok operator Zijin Mining Group Co. Ltd. (“Zijin”) received the final operating licenses and is in the trial production stage at the Upper Zone copper-gold project, which is covered by an EMX 0.5% NSR royalty. The Company filed an amended and restated Technical Report titled “NI 43-101 Technical Report – Timok Copper-Gold Project Royalty, Serbia” on SEDAR dated July 21, 2021 authored by Mineral Resource Management LLC.
- In Fennoscandia, EMX executed an agreement for the sale of its Svärdsjö polymetallic project in Sweden to District Metals Corp. (TSX-V: DMX) for share equity, AAR payments, and retained royalty interests to EMX’s benefit. Subsequently EMX executed an option agreement for the sale of five battery metals projects in Sweden to Swedish Nickel Pty. Ltd. for share equity, AAR payments, retained royalty interests in the projects, work commitments and other consideration. As these six new deals were completed, partner companies continued to advance EMX’s royalty properties, which included further encouraging results from District’s drill program at the Tomtebo polymetallic project in Sweden’s Bergslagen mining district.
- In Australia, the Company was granted the Copperhole Creek exploration license in the Georgetown Region of North Queensland. The Copperhole Creek project is available for partnership.
Corporate Update
EMX is monitoring developments regarding the ongoing coronavirus pandemic (“COVID-19”), with a focus on the jurisdictions in which the Company operates. EMX has implemented COVID-19 prevention, monitoring and response plans following the guidelines of international agencies and the governments and regulatory agencies of each country in which it operates. EMX’s priority is to safeguard the health and safety of its personnel and host communities, support government actions to slow the spread of COVID-19, and assess and mitigate the risks to business continuity. Although various levels of restrictions remain in place for some jurisdictions where the Company operates (e.g., travel restrictions, etc.), EMX’s field programs are up-and-running with in-country based staff.
Outlook
With the closing of the SSR and Caserones acquisitions, EMX continues to significantly strengthen its global portfolio of royalties. Gediktepe is one of several EMX royalty properties that are expected to commence production during late Q4, 2021 and early 2022. The others include the Timok development project in Serbia, where the Cukaru Peki high grade copper-gold deposit is being put into production by Zijin Mining Group Co. Ltd., and Balya North, a polymetallic Carbonate Replacement Deposit (“CRD”) in western Turkey being developed by Esan Eczacibaşi Endüstriyel Hammaddeler San. ve Tic. A.Ş., a private Turkish company.
EMX’s Leeville royalty in Nevada has delivered increased cash flows in recent months, with royalty production proceeds now being received from the Four Corners and Carlin East mining areas in addition to other areas on the royalty property. Together with cash flow already being received from its recently purchased Caserones copper-molybdenum royalty in Chile, EMX anticipates a significant increase in royalty revenue in 2022 from multiple assets that span four continents. See the EMX website (www.EMXroyalty.com) for further project and portfolio details.
The SSR royalty portfolio acquisition is an example of EMX’s corporate growth strategy, whereby the Company leveraged its in-region expertise to identify opportunities in jurisdictions where EMX already has a strategic presence, and hence a competitive advantage. This approach leads to value creation for the Company as well as synergies with existing EMX initiatives around the world. The Company is continuing with its assessments of royalty acquisition opportunities to continue growing the portfolio.
Meanwhile the Company’s royalty generation initiatives continued moving forward during Q3, which provided deal flow momentum moving into Q4. EMX partnered six projects in Fennoscandia for retained royalty interests, cash payments, and equity interests while continuing with field programs to add new projects to the royalty generation portfolio. In Australia, despite the challenges of COVID-19 lockdowns, the Company was successful in its efforts to add the Copperhole Creek project to the royalty generation portfolio. In the southwestern U.S., Regional Strategic Alliance (“RSA”) generative funds from South32 paid for identifying new copper properties for potential acquisitions. Elsewhere, multiple new precious-metals projects were staked by the Company in Idaho and Nevada which are now available for partnership. EMX is steadily building its generative portfolio in key mineral belts of the western U.S. and is now the third largest holder of mineral rights in Arizona and the second largest in Idaho. Fennoscandia, Australia, and the U.S. are stable exploration and mining jurisdictions, and EMX’s royalty generation assets provide prime opportunities for new partnerships.
EMX’s established partner companies continue to add value to the portfolio with encouraging drill results and other important advancements. In Fennoscandia, most notable were District’s drill success at Tomtebo (Norway) and further expansion of PGE-Ni-Cu mineralized zones at the Kaukua South project by Palladium One. In the western U.S. advancements included Ridgeline Minerals’ encouraging drill results from the Selena precious metals project on the Carlin Trend, and a joint venture agreement with Nevada Gold Mines for the Cortez Trend’s Swift gold project. EMX’s partners continued creating value on these assets, as well as others, at no cost to the Company. This trend of ongoing partner funded work expenditures is expected to carry forward, if not increase, going into Q4.
The Company will continue to strengthen its balance sheet through increased cashflows from royalties, deferred royalty payments, sale of investments, and other income. As part of this effort to strengthen working capital, in November 2021, the Company completed the first tranche of a $21.45 million private placement by the issuance of 6,337,347 units at $3.30 each for gross proceeds of $20.9 million. Increases to EMX’s treasury will allow it to continue project generation and royalty acquisition activities, thereby further building shareholder value (See Liquidity and Capital discussions below).
QUALIFIED PERSONS
Michael P. Sheehan, CPG, a Qualified Person as defined by NI 43-101 and employee of the Company, has reviewed, verified, and approved the above technical disclosure on North America. Eric P. Jensen, CPG, a Qualified Person as defined by NI 43-101 and employee of the Company, has reviewed, verified, and approved the above technical disclosure on Significant Acquisitions, Serbia, Fennoscandia, and Australia.
ABOUT EMX
EMX is a precious, base, and battery metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and the TSX Venture Exchange under the symbol EMX, as well as on the Frankfurt exchange under the symbol 6E9. See www.EMXroyalty.com for more information.
For further information contact:
David M. Cole
President and Chief Executive Officer
Phone: (303) 979-666
Dave@EMXroyalty.com
Scott Close
Director of Investor Relations
Phone: (303) 973-8585
SClose@EMXroyalty.com
Isabel Belger
Investor Relations (Europe)
Phone: +49 178 4909039
IBelger@EMXroyalty.com
Neither the 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.
Forward-Looking Statements
This news release may contain “forward looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding perceived merit of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,” “intend,” “expect,” “anticipate,” “will”, “believe”, “potential” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to: unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the quarter ended September 30, 2021 (the “MD&A”), and the most recently filed Annual Information Form (“AIF”) for the year ended December 31, 2020, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR at www.sedar.com and on the SEC’s EDGAR website at www.sec.gov.
Thunder Bay, Ontario–(Newsfile Corp. – November 12, 2021) – Kesselrun Resources Ltd. (TSXV: KES) (OTC Pink: KSSRF) (“Kesselrun” or the “Company“) is pleased to announce a non-brokered private placement for gross proceeds of up to C$3,000,000 from the sale of any combination of flow-through units of the Company (the “FT Units“) at a price of C$0.175 per FT Unit and FT Units to be sold to charitable purchasers (the “Charity FT Units“) at a price of C$0.21 per Charity FT Unit (collectively, the “Offering“). The FT Units and Charity FT Units shall be collectively referred to as the “Offered Securities“. Red Cloud Securities Inc. is acting as a finder in connection with the Offering.
Each FT Unit and Charity FT Unit shall be comprised of one common share of the Company to be issued as a “flow-through share” within the meaning of the Income Tax Act (Canada) (each, a “FT Shares“) and one half of one common share purchase warrant (each full warrant, a “Warrant“). Each Warrant shall be exercisable into one common share of the Company (each, a “Warrant Share“) at a price of C$0.23 at any time on or before the date which is 24 months after the closing date of the Offering.
The Company intends to use the proceeds from the offering for the exploration of the Company’s Huronian Gold Project in northwestern Ontario. Proceeds from the sale of FT Shares will be used to incur “Canadian exploration expenses” as defined in subsection 66.1(6) of the Income Tax Act and “flow through mining expenditures” as defined in subsection 127(9) of the Income Tax Act (“Qualifying Expenditures“). Such proceeds will be renounced to the subscribers with an effective date not later than December 31, 2021, in the aggregate amount of not less than the total amount of gross proceeds raised from the issue of Offered Securities.
The Offering is scheduled to close on or about November 30, 2021 and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the listing of the FT Shares and Warrant Shares on the TSX Venture Exchange (the “TSXV“). The FT Shares and Warrant Shares will be subject to a hold period of four months and one day in accordance with applicable securities laws.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Offered Securities, nor shall there be any sale of the Offered Securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. The Offered Securities being offered will not be, and have not been, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, a U.S. person.
About Kesselrun Resources Ltd.
Kesselrun Resources is a Thunder Bay, Ontario-based mineral exploration company focused on growth through property acquisitions and discoveries. Kesselrun’s management team possesses strong geological and exploration expertise in Northwest Ontario. For more information about Kesselrun Resources, please visit www.kesselrunresources.com.
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 or accuracy of this news release.
For additional information please contact:
Kesselrun Resources Ltd.
Michael Thompson, P.Geo., President & CEO
807.285.3323
michaelt@kesselrunresources.com
Corporate Communications
1.866.416.7941
information@kesselrunresources.com
Forward-Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Kesselrun, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, dependence upon regulatory approvals, the execution of definitive documentation, the availability of financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
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