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Precious Metals

MILES FRANKLIN One Begins to Wonder . . . Will It Ever End?

David’s Commentary:
It should come as no surprise that gold and its sibling, silver, have been pulling back recently. I have written several articles recently that built the case that for gold to move up two things need to happen. The stock market has to fall and the dollar has to fall. For a while, they both did, in unison, and gold and silver moved up nicely. But recently both the stock market and the dollar have been “goosed” up a bit and the result is some profit taking and a pull back for our favorite precious metals. Should we be concerned? I would say yes, IF things have fundamentally changed, but they have NOT. If the stock market’s strength is based primarily on a new trade deal with China, whose economy is a basket case, I expect this will fall apart. If you combine our slowing economy with the problems China is facing, there will be little to support further stock market growth. My feelings that the stock market and the dollar will turn down shortly remain intact. And when that happens, gold and silver will get back on track. You can pick them up now, at a discount, or not. Your call.
Kyle Bass, founder of Hayman Capital Management, recently spoke with Real Vision to reiterate his concerns about the Chinese economy.
Kyle Bass on China’s dwindling FX reserves:
“We think the number is closer to $2 trillion, instead of $3.2 trillion, which is dangerously below adequate levels. The broad measure of credit in China’s financial system is $48 trillion worth of RMB (Chinese Yuan). They only have $2 trillion of reserves… In their last banking crisis, which was between 1998 and 2002, the loss given defaults were 80% of loans that defaulted and at one point in time… 35% of their entire system was non-paying.”
“What brings this to a head is the current account. When the current account goes negative and the reserve balance is going the other way (going negative), the rubber meets the road there. As long as that balance is increasing annual along with GDP in RMB terms, they can keep going… Now their fiscal balance is… -9.5%. Their current account balance goes negative, and its a secular negativity, then they have more money leaving then coming in and they have to desperately borrow and now they’re changing their laws. They’re saying ‘You know what? Now Westerners can own more than half of our banks. Not a problem…’ Without Western capital flowing into China, China can’t hold this all together… (Chinese President Xi) has made the West think somehow his economic model is superior to that of Western capitalism and it’s all a facade. The whole thing is a mirage. The whole thing is made up with a printing press, keeping a closed capital account, and hoping the world doesn’t notice it…”
This 10:11 minute video clip is a short excerpt from a Real Vision interview. I found it interesting — and although Kyle is 100 percent correct in what he says, he is talking his book, as he’s massively short their equity market, the yuan, or both. It was posted on the soundingline.com Internet site on Monday — and I thank Brad Robertson for sending it along. Another link to it is here.
And then this…
Back in 2017, we explained why the “fate of the world economy is in the hands of China’s housing bubble.” The answer was simple: for the Chinese population, and growing middle class, to keep spending vibrant and borrowing elevated, it had to feel comfortable and confident that its wealth would keep rising. However, unlike the U.S. where the stock market is the ultimate barometer of the confidence boosting “wealth effect”, in China it has always been about housing as three quarters of Chinese household assets are parked in real estate, compared to only 28% in the U.S., with the remainder invested in financial assets.
“Property accounts for roughly 70 per cent of urban Chinese families’ total assets – a home is both wealth and status. People don’t want prices to increase too fast, but they don’t want them to fall too quickly either,” said Shao Yu, chief economist at Oriental Securities. “People are so used to rising prices that it never occurred to them that they can fall too. We shouldn’t add to this illusion,” Shao added, echoing Ben Bernanke circa 2005.
The bottom line is that just like true price discovery for U.S. capital markets is prohibited (and sees Fed intervention any time there is an even modest, 10-20% drop in asset prices) or else the risk of an all out panic is all too real, in China true price discovery is also not permitted, however when it comes to the country’s all important, and wealth effect boosting, real estate.
Which is a problem, because whereas China suddenly appears to be suffering from all the conventional signs of deflation in the auto retail sector, where as we noted previously, neither lower prices nor easier loans have managed to put a dent the ongoing demand plunge…
… the same ominous price cuts – which are clearly meant to boost flagging demand — are starting to emerge in China’s housing sector.
Case in point, according to China’s Paper, Hui Ka Yan, the Chairman of Evergrande, China’s biggest property developer, and China’s second richest person announced it must ramp up home sales and to do that it would sell all its properties at a 10% discount after its home sales tumbled in January amid a cooling market.
Now that Evergrande is rushing to slash prices, it appears that runaway home prices are no longer a concern for Beijing, and in fact, a far greater concern is how Beijing may intervene to prevent what could soon be a price plunge spiral; many have already speculated that Beijing will have no choice but to bar Evergrande’s sales. If it doesn’t, or if homeowners have already figured out that their home prices are floating in the sky on a bubbly foundation that has now burst, the knock on effect could be devastating as instead of an asset, China’s most popular and aspirational “wealth effect” product could turn into a liability overnight.
If that happens, no amount of intervention by Beijing could stop the avalanche of selling that would ensue, not to mention the deflationary shock wave that a hard landing – i.e. crash – in China’s housing market would launch across the entire world…
No surprises here. This long but worthwhile chart-filled news story was posted on theZero Hedge website at 6:56 p.m. EST yesterday evening — and another link to it ishere. Another ZH article about China showed up on their website at 10:35 p.m. last night — and it’s headlined “Deflationary Red Alert: Chinese Car Dealers Are Slashing Prices, and It’s Not Helping“.
China’s auto industry remains in collapse but what is even more concerning is that new incentives and lower rates are failing to bring rural buyers into showrooms.
As usual, Ed Steer sheds light on the daily manipulation of all the market.
It was the second day in a row where the powers-that-be were very active in the Dow — and the precious metals. The Dow was turned higher around 1:10 p.m. EST — and the precious metals ran into more of Ted’s “night moves” in the thinly-traded afternoon trading session in the Far East. It was all down hill for them from there going into the afternoon gold fix in London…with the exception being palladium, where it ran into ‘something’ a few minutes before noon in New York.
Quoting Bill King from his King Report for today…”stocks tanked on Monday despite the WSJ story that many operators believe was another leak from Team Mnuchin. Perhaps, enough is enough with the U.S.-China trade deal hope and hype stories. They not only appear regularly, but seem to be released quite often on Sunday night near the time when the equity futures begin trading. Please note that over the past few weeks, when stocks are down sharply in the morning, someone appeared at midday or the early afternoon and forced ESHs higher.”
And as reader Mark Barooshian said in an e-mail to me yesterday…”Is this orchestrated sell-off over in the metals?… Why is it always baby steps up — and freight train on the way down?” The answer to the first question is…I don’t know, nor does anyone else. The answer to the second is that it’s what ‘da boyz’ do to maximize their profits…trapping as many Managed Money longs on the losing side as possible.
“There are no markets anymore…only interventions.”
David’s Commentary:
And here are reasons why I believe the recent dollar strength is about to come to an end. A little political pressure goes a long way.
President Donald Trump said Saturday that the U.S. dollar is too strong and took a swipe at Federal Reserve Chairman Jerome Powell as someone who “likes raising interest rates.”
The dollar was quoted lower against the euro and the yen in early Asia-Pacific trading hours on Monday after Trump’s comments.
The U.S. economy is doing well despite the actions of the central bank, Trump said during a wide-ranging speech at the Conservative Political Action Conference in National Harbor, Maryland.
“I want a strong dollar but I want a dollar that does great for our country, not a dollar that’s so strong that it makes it prohibitive for us to do business with other nations and take their business,” Trump said Saturday.
He didn’t mention Powell by name, but referenced “a gentleman that likes raising interest rates in the Fed, we have a gentleman that loves quantitative tightening in the Fed, we have a gentleman that likes a very strong dollar in the Fed.”
This Bloomberg story was posted on their Internet site on Saturday morning Pacific Standard Time — and updated about twenty-six hours later. I found it embedded in a GATA dispatch — and another link to it is here.
And this too… Dollar death by a thousand cuts.
BRICS Is Creating A Common Payment System
The BRICS states (Brazil, Russia, India, China and South Africa) are working on a common payment system BRICS Pay.
The Russian Direct Investment Fund, which coordinates Moscow’s working group on financial services of the BRICS Business Council, has shared the news with Izvestia.
A probable outcome of the project is creation of an online wallet that would combine the payment systems of all BRICS members.
The common wallet will work in the same way as the existing payment services such as Apple Pay or Samsung Pay. A cloud platform created specifically for this project will connect the national payment systems of BRICS countries.
Payment itself is expected to be made via a mobile application regardless of the national currency of the buyer. Countries without membership in BRICS will also be able to use the platform. The pilot project kicks off in South Africa in early April.
David’s Commentary:
This year is the first time in more than 50 years that Susan and I didn’t leave Minneapolis for at least a week or two over the winter. Our 15-year old dog can no longer travel, does not do well when left at a kennel and is way too much of a handful for our kids to manage. We feel a deep responsibility to her and it has marooned us in this unbelievable winter of snow and cold. February logged the most snow on record. Ever! We got over three feet in 28 days. And we are supposed to get more snow starting at the end of this week – five days in a row is possible. Our handyman is coming by tomorrow to shovel snow off of our flat roof. It is nearly two feet high now, before the new snow arrives. In addition to all that snow, it was accompanied by record cold, and countless days below zero. We can survive it, but what happens is that it forces you stay indoors most of the time.
I have to keep reminding myself that warmer weather is just around the corner – and so are higher prices for gold and silver. One really needs to take a longer view of both the weather and precious metals in order to survive the nasties that both can offer up.
I would like to believe that this recent pullback in gold and silver is the final “managed correction” before the big takeoff. The fundamentals that were so kind to the metals have not changed. As usual, it’s the buying and selling of future contracts by the big banks and hedge funds on Comex that move the markets in the short-term. If nothing fundamental has changed, then, like the lousy February in Minneapolis, things will soon get back to normal.
All of this harsh weather got me to thinking. How did the Indians endure Minnesota’s extreme weather? According to a recent article I read, meteorological studies suggest that from 1600 to 1850 the climate generally was colder and wetter than now. How did the half a dozen tribes that populated this area survive? They lived in houses made out of birch bark, which never molds. They would build a pit in the middle of the floor with rocks buried underneath the floor. When the rocks were heated, it would radiate the warmth throughout the house.
There were variations of houses on the reservations. The typical lodge style dwelling would be constructed with trees natural to their regions. Sharpened logs were thrust into the ground and then bent and tied similar to an upside-down basket. The framework was covered with bark, and animal skins were used to cover the door and chimney hole.
Pole wigwams in the form of teepees were also constructed. People greased themselves in oil and animal fat to protect against the sun and cold.
Native people also prepared for harsh storms by forecasting them. My wife uses the six o’clock weather report on Fox News. But for the Indians, if the wind brought clouds from the north, it meant a blizzard. Woodpeckers sharing a tree or nest meant a harsh winter was coming.
I have trouble surviving a 100-yard trek up our driveway every morning to get the paper – even dressed to the hilt in a winter parka and boots and gloves. It’s the mental part of surviving the winter that is the most difficult, just like it’s the mental part of surviving the constant take down of gold and silver. One begins to wonder, will it ever end? Yes, sunny days and warm weather will be here in a month and the gold and silver prices will rebound shortly as well. But when you are freezing your ass off, or wake up to see that gold is down $20 it is depressing.
As it so happens, I will have some extra money coming my way in a week. Like you, I ask myself, what should I do with it? That is a question that has different answers, depending on one’s age, finances and portfolio. In my case, I know this much – even though I have a large precious metals portfolio, I would still rather add to it, especially after a pull back like this one, than put it into a stretched-to-the-hilt stock market. Cash is good, but how much can you keep in cash? I think I’ll do the silver, gold and cash thing. I’ll spread it around a bit.
The five years Susan and I spent in Miami in the winter was great, at least weather wise, and I fully expect to bask in the sun of a precious metals bull market soon too. Everything cycles and the metals up-cycle is close at hand. All it will take is a dollar pullback and/or a stock market plunge, and I expect that both are coming. I wish it were here now – that would make this uncommonly harsh winter much easier to take.
My car in front of a snowdrift!
About Miles Franklin
Miles Franklin was founded in January, 1990 by David MILES Schectman. David’s son, Andy Schectman, our CEO, joined Miles Franklin in 1991. Miles Franklin’s primary focus from 1990 through 1998 was the Swiss Annuity and we were one of the two top firms in the industry. In November, 2000, we decided to de-emphasize our focus on off-shore investing and moved primarily into gold and silver, which we felt were about to enter into a long-term bull market cycle. Our timing and our new direction proved to be the right thing to do.
We are rated A+ by the BBB with zero complaints on our record. We are recommended by many prominent newsletter writers including Doug Casey, Jim Sinclair, David Morgan, Future Money Trends and the SGT Report.
For your protection, we are licensed, regulated, bonded and background checked per Minnesota State law.
Miles Franklin
801 Twelve Oaks Center Drive
Suite 834
Wayzata, MN 55391
1-800-822-8080
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Energy

DNI METALS – Update

TORONTO, ON / ACCESSWIRE / March 6, 2019 / DNI Metals Inc. (DNI: CSE; DNMKF: OTC) (“DNI” or the “Company”) is pleased to provide the following update:

Environmental Licenses

The Public consultation meetings for DNI’s Vohitsara and Marofody projects were held on February 22nd and 23rd.

DNI and the Office National pour l’Environnement Madagascar, (“ONE”), completed two days of technical reviews at Vohitsara and Marofody properties on December 6 and 7.

As per DNI’s press releases on November 8 and 20, 2018 the ONE must complete two site visits, a Technical review, and a Public consultation, both now have been completed.

The ONE group comprised of a panel of four people, from the following government offices;

  1. ONE coordinator
  2. Ministry of Mines
  3. Ministry of Water
  4. Bureau des Directions Régionales de la Population (DRPPSPF)

Additional government officials that attended the meetings.

  1. L’Adjoint au Chef District
  2. Mayor of the Commune
  3. Two Counsellors
  4. The President’s of both Marofody and Vohitsara

As part of the technical review, the ONE sent an official letter to DNI, asking for clarity on certain items. DNI has responded to all the technical questions.

DNI has entered into property purchase negotiations with selected Vohitsara land stakeholders required for mine development. Ninety-Nine percent of the people in the area want to see DNI develop a mine.

It was also decided at the public consultation meetings, that a committee would be formed to order to set the land lease prices, the compensation for crops and compensation for any residences that need to be moved. The Committee will be made up of representatives from the local villages, DNI, and government officials from the ministries of Land and agriculture.

Resource Estimate

Micon completed a site visit Jan. 28th through February 2nd, 2019.

During the site visit, it was realized that channel samples taken from trench 3, located approximately 500 metres north-east of the most northernly drilled holes, had never been sent to the laboratory for testing. From February 5th through the 8th, 83 samples from trench 3, and an additional 218 samples that had been misplaced from road cuttings and the drilling were split, and prepped, under the supervision of DNI’s consulting geologist and qualified person (“QP”), Jannie Leeuwner. Dan Weir, DNI’s CEO, and Raymond Borida, DNI’s CSR consultant, prepared all the documents for exportation. The samples were shipped to AGAT Laboratories in Mississauga, Ontario, Canada for assaying on February the 18th. AGAT has completed the testing on a rush basis, and the results are in the process of being compiled, by Jannie and Micon.

This additional data will be used in the Resource estimation.

Surrender of part of Mining Claim in Alberta

A new Biodiversity Stewardship Area (“BSA”)- Wildland Provincial Park, is being created in Alberta. DNI received $500,000 in compensation for the surrendering of part of permit no 930806412. Please see the link below for information on the new park.

https://www.albertaparks.ca/albertaparksca/about-us/public-consultations/archives/bsa-wildland-provincial-park/

DNI owns 5 permits in Alberta, numbers 930806406, 930806407, 930806408, 930806410, and 930806412. Information on the DNI’s Alberta permits can be found at:

https://www.energy.alberta.ca/AU/Services/Pages/InteractiveMaps.aspx

Sale of Utah Gold Royalty

DNI has sold its Utah gold royalty for U$50,000, the money will be wired to DNI shortly.

DNI owned a 0.05% NSR on certain mining claims in Utah, USA.

DNI – CSE

DMNKF – OTC

Issued: 122,398,403

For further information, contact:

DNI Metals Inc. – Dan Weir, CEO 416-595-1195

DanWeir@dnimetals.com

Also visit www.dnimetals.com

Forward-looking Statements

This press release contains forward-looking statements, including statements that relate to, among other things, the following: (i) the geological characteristics of the projects; (ii) the potential to discover additional mineralization and to extend the area of mineralization; (iii) the potential to raise additional financing; and (iv) the potential to expand and upgrade the resource estimate of the projects. Forward-looking information is subject to the risks, uncertainties and other important factors that could cause the Company’s actual performance to differ materially from that expressed in or implied by such statements. Such factors include, but are not limited to volatility and sensitivity to market metal prices, impact of change in foreign exchange rates, interest rates, imprecision in resource estimates, imprecision in opinions on geology, environmental risks including increased regulatory burdens, unexpected geological conditions, adverse mining conditions, changes in government regulations and policies, including laws and policies; and failure to obtain necessary permits and approvals from government authorities, and other development and operating risks, and can generally be identified by the use of words such as “may”, “will”, “could”, “should”, “would”, “likely”, “possible”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “objective”, “hope” and “continue” (or the negative thereof) and words and expressions of similar import. Although DNI believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Additional information about material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the Company’s most recent annual and interim Management’s Discussion and Analysis under “Risk and Uncertainties” as well as in other public disclosure documents filed with Canadian securities regulatory authorities. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. The Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE: DNI Metals Inc.

View source version on accesswire.com:
https://www.accesswire.com/538192/DNI-Metals–Update

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Junior Mining

CORRECTION FROM SOURCE: Minera Alamos Announces Closing of $4.9 Million Financing and Increase in Institutional Ownership

Toronto, Ontario and Vancouver, British Columbia–(Newsfile Corp. – March 5, 2019) – Minera Alamos Inc. (TSXV: MAI) (OTC Pink: MAIFF) (the “Company“) is issuing a correction to its previously disseminated press release dated March 4, 2019 (the “Initial Press Release“). The Initial Press Release announced the closing of the previously announced non-brokered private placement for aggregate proceeds of $4,934,750 through the issuance of 49,347,500 common shares of the Company (“Common Shares“), as well as payment of cash commissions totaling $276,600 and the issuance of 2,862,000 6finder’s warrants exercisable for Common Shares (the “Finder’s Warrants“). In fact, the Company raised aggregate proceeds of $4,994,750 through the issuance of 49,947,500 Common Shares, paid cash commissions of $280,200 and issued 2,898,000 Finder’s Warrants.

The corrected press release follows in full below:

*****

Toronto, Ontario and Vancouver, British Columbia–(March 4, 2019)– Minera Alamos Inc. (TSXV: MAI) (OTC Pink: MAIFF) (the “Company” or “Minera Alamos“) is pleased to announce, further to its press release dated February 26, 2019, that it has closed the non-brokered private placement offering of 49,947,500 common shares of the Company (the “Common Shares“) at a price of $0.10 per Common Share (the “Offering Price“) for aggregate gross proceeds of $4,994,750 (the “Offering“).

The Offering included participation of existing institutional investors. As a result, the Donald Smith Value Fund increased its ownership in the Company to ~9.8% and the Aegis Value Fund increased its ownership to ~4.9%.

“Minera appreciates the ongoing support of both Donald Smith and Aegis as well as the other participants in the Offering as we begin a transformational year leading toward construction decisions at our Santana and Fortuna gold projects” stated Doug Ramshaw, President of Minera Alamos.

Minera Alamos intends to use the net proceeds of the Offering for exploration and development of the Company’s Santana Project in Sonora, Mexico, and for working capital and general corporate purposes.

In connection with the Offering, the Company paid cash finder’s fees of $280,200 and issued 2,898,000 finder’s warrants (the “Finder’s Warrants“). The Finder’s Warrants will each be exercisable for one Common Share at the Offering Price for a period of two years following the closing of the Offering.

All securities issued under the Offering will be subject to a four month hold period from the closing date under applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada. The Offering is subject to TSX Venture Exchange acceptance of requisite regulatory filings.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Minera Alamos

Minera Alamos is an advanced-stage exploration and development company with a growing portfolio of high-quality Mexican assets, including the La Fortuna open-pit gold project in Durango with positive PEA completed, the Santana open-pit heapleach development project in Sonora with test mining and processing completed and the Guadalupe de Los Reyes open-pit gold-silver project in Sinaloa with mine planning in progress. The Company is awaiting the pending approval of permit applications related to the commercial production of gold at both the Santana and Fortuna projects.

The Company’s strategy is to develop low capex assets while expanding the project resources and pursue complementary strategic acquisitions.

CONTACT INFORMATION:

Minera Alamos Inc.
Doug Ramshaw, President
604-600-4423
dramshaw@mineraalamos.com
www.mineraalamos.com

Caution Regarding Forward-Looking Statements 

This news release may contain forward-looking information and Minera Alamos cautions readers that forward-looking information is based on certain assumptions and risk factors that could cause actual results to differ materially from the expectations of Minera Alamos included in this news release. This news release includes certain “forward-looking statements”, which often, but not always, can be identified by the use of words such as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. These statements are based on information currently available to Minera Alamos and Minera Alamos provides no assurance that actual results will meet management’s expectations. Forward-looking statements include estimates and statements with respect to Minera Alamos’ future plans, objectives or goals, to the effect that Minera Alamos or management expects a stated condition or result to occur and the expected timing. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Such statements reflect the Company’s current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in the Company’s public disclosure documents. Many factors could cause the Company’s actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. This list is not exhaustive of the factors that may affect any of Minera Alamos’ forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on Minera Alamos’ forward-looking statements. Minera Alamos does not undertake to update any forward-looking statement that may be made from time to time by Minera Alamos or on its behalf, except in accordance with applicable securities laws.

NEITHER 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 RELEASE.

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/43247

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Blog

MINERA ALAMOS Announces Closing of $4.9 Million Financing and Increase in Institutional Ownership

Toronto, Ontario and Vancouver, British Columbia–(Newsfile Corp. – March 4, 2019) – Minera Alamos Inc. (TSXV: MAI) (OTC Pink: MAIFF) (the “Company” or “Minera Alamos“) is pleased to announce, further to its press release dated February 26, 2019, that it has closed the non-brokered private placement offering of 49,347,500 common shares of the Company (the “Common Shares“) at a price of $0.10 per Common Share (the “Offering Price“) for aggregate gross proceeds of $4,934,750 (the “Offering“).

The Offering included participation of existing institutional investors. As a result, the Donald Smith Value Fund increased its ownership in the Company to ~9.8% and the Aegis Value Fund increased its ownership to ~4.9%.

“Minera appreciates the ongoing support of both Donald Smith and Aegis as well as the other participants in the Offering as we begin a transformational year leading toward construction decisions at our Santana and Fortuna gold projects” stated Doug Ramshaw, President of Minera Alamos.

Minera Alamos intends to use the net proceeds of the Offering for exploration and development of the Company’s Santana Project in Sonora, Mexico, and for working capital and general corporate purposes.

In connection with the Offering, the Company paid cash finder’s fees of $276,600 and issued 2,862,000 finder’s warrants (the “Finder’s Warrants”). The Finder’s Warrants will each be exercisable for one Share at the Offering Price for a period of two years following the closing of the Offering.

All securities issued under the Offering will be subject to a four month hold period from the closing date under applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada. The Offering is subject to TSX Venture Exchange acceptance of requisite regulatory filings.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Minera Alamos

Minera Alamos is an advanced-stage exploration and development company with a growing portfolio of high-quality Mexican assets, including the La Fortuna open-pit gold project in Durango with positive PEA completed, the Santana open-pit heapleach development project in Sonora with test mining and processing completed and the Guadalupe de Los Reyes open-pit gold-silver project in Sinaloa with mine planning in progress. The Company is awaiting the pending approval of permit applications related to the commercial production of gold at both the Santana and Fortuna projects.

The Company’s strategy is to develop low capex assets while expanding the project resources and pursue complementary strategic acquisitions.

CONTACT INFORMATION:

Minera Alamos Inc
Doug Ramshaw, President
604-600-4423
dramshaw@mineraalamos.com

www.mineraalamos.com

Caution Regarding Forward-Looking Statements 

This news release may contain forward-looking information and Minera Alamos cautions readers that forward-looking information is based on certain assumptions and risk factors that could cause actual results to differ materially from the expectations of Minera Alamos included in this news release. This news release includes certain “forward-looking statements”, which often, but not always, can be identified by the use of words such as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. These statements are based on information currently available to Minera Alamos and Minera Alamos provides no assurance that actual results will meet management’s expectations. Forward-looking statements include estimates and statements with respect to Minera Alamos’ future plans, objectives or goals, to the effect that Minera Alamos or management expects a stated condition or result to occur and the expected timing. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Such statements reflect the Company’s current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in the Company’s public disclosure documents. Many factors could cause the Company’s actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. This list is not exhaustive of the factors that may affect any of Minera Alamos’ forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on Minera Alamos’ forward-looking statements. Minera Alamos does not undertake to update any forward-looking statement that may be made from time to time by Minera Alamos or on its behalf, except in accordance with applicable securities laws.

NEITHER 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 RELEASE.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/43218

Categories
Precious Metals

MILES FRANKLIN The Magic Money Tree

The Magic Money Tree
Miles Franklin sponsored this article by Gary Christenson. The opinions are his.
Our Current Financial Circumstances:
1)   The U.S. is $22 trillion in debt and burdened with $100 – $200 trillion more in unfunded liabilities. Just to pay the interest the U.S. must borrow. Debt is rapidly rising and cannot be paid unless “they” default or hyper-inflate the dollar.
2)   Chairman Jerome Powell stated, “The U.S. federal government is on an unsustainable path.” Even the Fed admits what everyone should realize.
3)   Global debt is $250 trillion. Some countries have descended farther down the debt-paved road to economic hell than the U.S.
4)   Pensions are under-funded, student debt is a disaster, the main street economy is weak, real estate prices and sales are falling, retail sales are down, real wages have been stagnant since the 1970s, and no credible plan exists to fix debt, deficits or devaluations.
5)   The political and financial elite profit from wars, inflation, devaluation, strip-mining assets, and income inequality.
6)   It’s an ugly picture with no easy answers.
MAGIC MONEY TREE ECONOMICS & MMT.
Global central banks have created over $20 trillion in “funny money” to bail out commercial banks, purchase stocks and ETFs, buy sovereign bonds, levitate stock markets and force interest rates lower. They implemented the central bank version of magic money tree economics.
MMT—Modern Monetary Theory—supporters claim that “printing” dollars enables huge expenditures and makes excessive debt irrelevant.
MMT might be nonsense, but so are most of the current central bank policies and practices. If central banking and economic policies were sensible and effective, how did the United States (and world) sink into such a deep financial hole?
***
Indulging in fantasy accounting, delusional economics and speculation, we suggest…
Mortgage relief: The Treasury should issue vouchers that reduce mortgages (mostly government agency loans) on single-family homes by half. Individuals mail the vouchers to their lenders who cut their outstanding balance in half – non-taxable – and paid by the Treasury. Home owners will feel wealthier and less overwhelmed.
Student Debt: Current and former students are drowning in student loan debt. Use similar vouchers to reduce student loan debt by two-thirds. Debtors will mail the voucher to their loan administrator and receive a non-taxable debt reduction. Student loan payments decrease.
Credit Cards: Apply similar vouchers for credit card debt that reduces it by half, also non-taxable. People will spend more and boost the retail economy.
Income Taxes: Americans, like many others, pay too much in taxes and need more spendable income. The IRS should refund 100% of taxes paid by individuals for tax years 2016 and 2017. Most people will spend the refunds on consumer goods and stimulate the non-financial economy. Politicians will be heroes.
Universal Basic Income: Encourage Americans to apply for a UBI through the Social Security Administration. No social security number – no UBI! This UBI will put extra currency into circulation and stimulate the economy.
Dream On!
IN FAVOR OF MAGIC MONEY TREE PROGRAMS:
1)  These programs will offer needed debt relief to individuals. The Federal Reserve provided $ trillions to bail out banks in the past decade. However, the above debt relief programs will directly help individuals, which is fair considering the banker bailouts.
2)  Corporations and the wealthy received the Trump tax breaks. The government should now aid the bottom 90% of Americans.
3)  With less debt individuals, will spend more and increase savings, both of which will benefit the economy.
4) Dollars are backed by nothing and have value only because we believe they have value. The banking cartel creates $trillions each year from “thin air.” The above MMT programs do for the individual what the banking cartel does for bankers.
5) People will love these programs and politicians can promise something for nothing to buy votes.
ARGUMENTS AGAINST MAGIC MONEY TREE PROGRAMS:
1)  The programs aren’t fair. Some people benefit more than others, but our current system is also unfair. Nothing new here.
2)  Who pays for these programs? Nobody directly pays, the money is created (like now) but fed into the economy through individuals, not the banks. Helicopter money! We pay via inflation.
3)  It will increase consumer price inflation. Yes, but the current financial system is already inflationary, which someday will require a reset.
4)  The political and financial elite don’t receive a payoff from these programs. Correct—the programs must be tweaked to feed dollars into the hands of the elite, or they’ll block the programs. Bring on the lobbyists…
5)  People might realize that dollars are fake money when trillions are created from nothing and used to reduce individual debt. (However, facing the truth is good.)
***
For perspective on Washington D.C. and Wall Street, we listen to wisdom and wit from Bill Bonner:
“We look at the passing parade in Washington through a cynical lens…
No situation is so hopeless… so absurd… or so disastrous that the feds can’t make it worse. No policy is too stupid… too counterproductive… or too corrupt that it can’t become the law of the land.
And no man is too craven… too degenerate… or too much of an imbecile to be disqualified from public office.”
The public officials described above make the rules and will create more debt, larger deficits, and possibly use MMT. Are you prepared for the ugly consequences?
***
CONCLUSIONS:
  • MMT or Modern Monetary Theory or Magic Money Tree economics may be an excuse for free-spending politicians.
  • However, dire consequences will besiege us if we continue current central banking and debt policies. Which will be worse, current policies or MMT?
  • With or without MMT programs, the U.S. is spending itself into an economic disaster. Increasing consumer price inflation, continual devaluation, and exponentially increasing debt are the best-case scenarios.
  • Under those best-case scenarios, we should own silver, gold and hard assets to insure our savings, retirement, and purchasing power.
  • Under far worse scenarios, we must own silver and gold to protect ourselves from what our politicians, delusional programs, central bankers, and predatory government will do to increase their revenues.
Miles Franklin sells silver and gold. Call 1-800-822-8080 and tell them you agree with the Deviant Investor about silver, devaluations and delusional programs.
Hoping for a return to economic, financial and political sanity…
Gary Christenson
About Miles Franklin
Miles Franklin was founded in January, 1990 by David MILES Schectman. David’s son, Andy Schectman, our CEO, joined Miles Franklin in 1991. Miles Franklin’s primary focus from 1990 through 1998 was the Swiss Annuity and we were one of the two top firms in the industry. In November, 2000, we decided to de-emphasize our focus on off-shore investing and moved primarily into gold and silver, which we felt were about to enter into a long-term bull market cycle. Our timing and our new direction proved to be the right thing to do.
We are rated A+ by the BBB with zero complaints on our record. We are recommended by many prominent newsletter writers including Doug Casey, Jim Sinclair, David Morgan, Future Money Trends and the SGT Report.
For your protection, we are licensed, regulated, bonded and background checked per Minnesota State law.
Miles Franklin
801 Twelve Oaks Center Drive
Suite 834
Wayzata, MN 55391
1-800-822-8080
Copyright © 2019. All Rights Reserved.
Categories
Blog

MISES INSTITUTE The Great Murray Rothbard

Original Source: https://mises.org/wire/great-murray-rothbard
rothbard2.JPG
Today would have been Murray Rothbard’s 93nd birthday. He was an unforgettable friend, whose immense knowledge of many different fields was unsurpassed in my experience. In a lecture on the Austrian Theory of the Business Cycle, he mentioned the common objection that the expansion of bank credit might have no effect, if investors anticipated trouble. After the lecture, I asked whether Mises had answered this point. He said, “See his response to Lachmann inEconomica, 1943.” I often went to used bookstores with him, in both Palo Alto and Manhattan, and listened to him as he commented on nearly every book on the shelves. When he was a student at Columbia, he admired the philosopher Ernest Nagel, who he said would always encourage students to do new work. Murray was like this himself. He constantly encouraged students to work on Austrian and libertarian topics.  His support for me was never failing, and I owe him everything. If only he were still here now, to guide and instruct us!
David Gordon is Senior Fellow at the Mises Institute, and editor of The Mises Review.
Contact David Gordon
Categories
Blog

ADRIAN DAY | The Fed Blinked — Expect Easier Monetary Policy

Excerpts:

Adrian Day | The Fed Blinked — Expect Easier Monetary Policy

By Remy Blaire   Adrian Day, CEO of Adrian Day Asset Management.   Wall Street waltzed into the New Year with unlikely bravado. After a dismal end to the year the stock market rebounded and pushed the U.S. equity averages to notch nine consecutive weekly gains. In fact, the Dow Industrials is having […]
Read on »
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Generally, natural resources investments are more volatile on a daily basis and have higher headline risk than other sectors as they tend to be more sensitive to economic data, political and regulatory events as well as underlying commodity prices. Natural resource investments are influenced by the price of underlying commodities like oil, gas, metals, coal, etc.; several of which trade on various exchanges and have price fluctuations based on short-term dynamics partly driven by demand/supply and also by investment flows. Natural resource investments tend to react more sensitively to global events and economic data than other sectors, whether it is a natural disaster like an earthquake, political upheaval in the Middle East or release of employment data in the U.S. Low priced securities can be very risky and may result in the loss of part or all of your investment.  Because of significant volatility,  large dealer spreads and very limited market liquidity, typically you will  not be able to sell a low priced security immediately back to the dealer at the same price it sold the stock to you. In some cases, the stock may fall quickly in value. Investing in foreign markets may entail greater risks than those normally associated with domestic markets, such as political, currency, economic and market risks. You should carefully consider whether trading in low priced and international securities is suitable for you in light of your circumstances and financial resources. Past performance is no guarantee of future returns. Sprott Global, entities that it controls, family, friends, employees, associates, and others may hold positions in the securities it recommends to clients, and may sell the same at any time.
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Categories
Project Generators

MIRASOL Reports on Nico Drilling Results

VANCOUVER , March 4, 2019 /CNW/ – Mirasol Resources Ltd. (TSX-V: MRZ, OTCPK: MRZLF) (the “Company” or “Mirasol“) reported that it has completed the self-funded drill program on the Nico property in Santa Cruz , Argentina, as was described in the news release dated November 20, 2018 . The majority of the assay results have been received and are generally low grade. The drill program included 27 holes for a total of 1,610m , including 17 reverse circulation holes ( 907m ) and 10 diamond drill holes ( 703m ). Assay results have been received for 22 drill holes with results pending for the remaining 5 diamond drill holes.

A further detailed news release will be issued following receipt of the balance of the assays and the results have been fully interpreted. No further drilling at Nico is contemplated at this time.

About Mirasol Resources Ltd.

Mirasol is a premier project generation company that is focused on the discovery and development of profitable precious metal and copper deposits, operating via a hybrid joint venture and self-funded drilling business model. Strategic joint ventures with precious metal producers have enabled Mirasol to maintain a tight share structure while advancing its priority projects that are focused in high-potential regions in Chile and Argentina. Mirasol employs an integrated generative and on-ground exploration approach, combining leading-edge technologies and experienced exploration geoscientists to maximize the potential for discovery. Mirasol is in a strong financial position and has a significant portfolio of exploration projects located within the Tertiary Age Mineral belts of Chile and the Jurassic age Au+Ag district of Santa Cruz Province Argentina .

Forward Looking Statements: The information in this news release contains forward looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward-looking statements. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, change in government and changes to regulations affecting the mining industry. Forward-looking statements in this release include statements regarding future exploration programs, operation plans, geological interpretations, mineral tenure issues and mineral recovery processes. Although we believe the expectations reflected in our forward-looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements. Mirasol disclaims any obligations to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable law.

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 release.

SOURCE Mirasol Resources Ltd.

View original content: http://www.newswire.ca/en/releases/archive/March2019/04/c9102.html

Categories
Junior Mining

AETHON MINERALS and ABRAPLATA RESOURCE Execute Letter Agreement in Respect of the High Grade Diablillos Silver-Gold Project

TORONTO , March 1, 2019 /CNW/ – Aethon Minerals Corp. (“Aethon”) (AET.V) and AbraPlata Resource Corp. (“AbraPlata”) (TSX-V: ABRA & OTCPK: ABBRF) are pleased to announce that they have entered into a binding letter agreement (the “Agreement”), whereby Aethon will have the exclusive right for a period of approximately five months to (i) perform technical due diligence on AbraPlata’s Diablillos silver-gold project (the “Project”) in Argentina and (ii) negotiate with AbraPlata the terms of an option or other transaction whereby Aethon could acquire a 50% or greater interest in the Project.  SSR Mining Inc. (“SSRM”) (SSRM) (SSRM.TO), the original vendor of the Project to AbraPlata, has indicated its intention to support in principle the transactions to be negotiated by the parties pursuant to the Agreement.

The Diablillos project is located in the mining-friendly province of Salta in northwestern Argentina , approximately 150 km southwest of the city of Salta.  The Project comprises nine mineral leases acquired by AbraPlata in 2016 from SSRM (formerly Silver Standard Resources Inc.), with multiple known occurrences of epithermal gold-silver mineralization.  Exploration work, conducted by a number of operators over the history of the Project, includes approximately 88,000 meters of diamond and reverse circulation drilling in over 475 holes.  This drilling has delineated the Oculto and Fantasma deposits, which are weathered high-sulphidation epithermal gold-silver deposits.

Historical Mineral Resource estimates for the Oculto and Fantasma deposits on the Diablillos property, based on a technical report dated April 16, 2018 , are summarized in Table 1. For purposes of Aethon, the Company is reporting the mineral resource as a Historical Estimate per NI 43-101 – Standards of Disclosure for Mineral Projects. A qualified person for Aethon has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves.  Aethon is not treating the historical estimate as current mineral resources or mineral reserves

Table 1 – Diablillos Historical Mineral Resource Estimates

Category

Deposit

Tonnage
(000t)

Ag
(g/t)

Au
(g/t)

Contained Ag
(000 oz Ag)

Contained Au
(000 oz Au)

Indicated

Oculto

26,850

93.0

0.85

80,300

732

Indicated

Fantasma

200

98.3

–

650

–

Total Indicated

27,100

93.1

0.84

80,940

732

Inferred

Oculto

1,000

46.8

0.89

1,510

29

Inferred

Fantasma

80

75.3

–

190

–

Total Inferred

1,100

48.8

0.83

1,690

29

Notes:

1.

Full details of the historical mineral resource estimates can be found in a report by RPA Inc. titled “Technical Report on the Diablillos Project, Salta Province, Argentina” dated April 16, 2018.  This report can be found under AbraPlata’s profile on www.SEDAR.com.  It is believed that minimal work would be required to upgrade or verify the historical estimate as current mineral resources.

2.

CIM definitions were followed for Mineral Resources.

3.

Mineral Resources are estimated at a cut off grade of 40 g/t AgEq for Oculto and 40 g/t Ag for Fantasma.

4.

Mineral Resources are estimated using long-term metal prices of US$1,500/oz Au and US$23/oz Ag.

5.

Average bulk density is 2.22 t/m3 for the Indicated category and 2.29 t/m3 for Inferred for Oculto and 2.00 t/m3 for both Indicated and Inferred categories for Fantasma.

6.

The estimate was constrained by pit shells for both Oculto and Fantasma.

Highlights of the Project

  • The Diablillos project contains a historical estimate of Measured and Indicated Resources of over 80 million ounces of silver and 730,000 ounces of gold, or 142 million silver-equivalent ounces at spot prices.  Mineralization remains open at depth with excellent potential for extensions of high grade mineralization.
  • Aethon and AbraPlata believe exploration potential exists to increase resources significantly, especially gold resources.  Hydrothermal breccias at Oculto extend into the basement and have strong potential for high grade gold mineralization and to date have been largely untested.
  • With funding from Aethon, the main Oculto deposit at Diablillos will be categorized into geometallurgical domains based on re-logging and structural geology work done by AbraPlata.  A metallurgical test work program will be conducted on existing samples with the aim of optimizing the flowsheet for the Project and estimating silver and gold recoveries.  This work is expected to take three to four months.

Mr. John Miniotis , Interim CEO of Aethon, commented, “This transaction represents an outstanding opportunity for Aethon to become involved in a high-quality, advanced exploration project.  In addition to the already substantial defined silver and gold historic resource at Diablillos, the Project hosts several under-explored targets that we believe offer excellent opportunities for new discoveries in a favourable mining jurisdiction.  Opportunities of this nature are few and far between, and we look forward to working with AbraPlata with the aim of creating value for our respective shareholders.”

Mr. Hernan Zaballa , Chairman of AbraPlata, commented, “We are excited to be entering into this agreement with Aethon, which brings additional technical expertise and financial resources that can help us advance the Diablillos project.  Also, in the event that we are successful in negotiating with Aethon, in the coming months, arrangements that will permit our respective shareholders to jointly participate in the rewards that will come from combining our efforts and resources in the further exploration and advancement of the Project, we take comfort that SSRM has indicated a willingness to consider deferring the due dates of scheduled property payments so that we can maximize the funds available for exploring and advancing the Project.  We wish to thank SSRM for its flexibility and support.”

Transaction Summary

The following is a summary of the principal terms of the Agreement:

  • Aethon shall have the exclusive right until July 26, 2019 (the “Exclusivity Period”), to complete its due diligence and negotiate the terms of, and enter into an option agreement (the “Option Agreement”) with AbraPlata, pursuant to which Aethon can earn a 50% interest in the Project.
  • In consideration for the Exclusivity Period, Aethon agrees to make an upfront payment of USD$50,000 to AbraPlata.
  • By June 28, 2019 , Period, Aethon will spend a minimum of USD$150,000 on expenditures in connection with a metallurgical testing program and other related test work to be carried out on the Project.

If Aethon fulfills the above covenants and elects to exercise the Option by fulfilling the conditions, Aethon and AbraPlata shall negotiate the Option Agreement.  On exercise of the Option, Aethon shall:

  • issue to AbraPlata the number of Aethon common shares that would result in AbraPlata owning 9.9% of the then issued and outstanding Aethon shares; and
  • subscribe, by way of a private placement, for a number of AbraPlata common shares that would result in Aethon owning 9.9% of the then issued and outstanding AbraPlata shares.  The subscription price per AbraPlata share to be issued shall be equal to the greater of (i) the closing market price of AbraPlata on the day that the Option is exercised, and (ii) CAD$0.06 .

AbraPlata also has written assurances from SSRM that it will forbear from enforcing payment of an outstanding NSR royalty payment until October 31, 2019 , provided no further event of default occurs, and that it would consider providing its agreement to delay property payments of USD$5 million and USD$7 million by up to four years under certain circumstances, including a merger of Aethon and AbraPlata, provided that it is satisfied with the definitive transaction terms and the provision of such security and other assurances as it determines to be necessary or desirable to protect and preserve its rights and interests, and it receives certain additional consideration.

Investors are cautioned that there is no assurance that Aethon and AbraPlata will successfully negotiate an Option Agreement or other transaction whereby Aethon would acquire an interest in the Project or that any such transaction, if successfully negotiated, would ultimately be consummated.

Next Steps

Aethon’s first phase program on the Diablillos Project will have several objectives, including:

  • A review of the drill data on the Oculto zone to determine how representative the sampling for metallurgical testing of the open pit resource silver dominant zone has been.  This review will determine whether additional sampling/metallurgical testing is required for the open pit scenario and, if so, additional test-work will be completed;
  • A review of additional epithermal style gold dominant resources within the Diablillos project area in preparation for future reconnaissance drilling; and
  • A review of historical drill data to determine if higher grade silver and gold zones could potentially be exploited using underground mining methods.

AbraPlata Management Change and Issuance of Stock Options

AbraPlata announces that Willem Fuchter has resigned as President and CEO, effective immediately.  Mr. Fuchter will continue to serve as a director of AbraPlata and will provide additional services under a consulting agreement.  The board of directors of AbraPlata thanks Mr. Fuchter for his role in creating the company and advancing the understanding of the Diablillos project.  Robert Bruggeman , a director of AbraPlata, has been appointed Interim Chief Executive Officer.  Mr. Bruggeman has more than 20 years of corporate development and financial markets experience and has worked with AbraPlata since November 2017 .

AbraPlata also announces that a total of 1,200,000 incentive stock options have been granted to directors, officers, employees and consultants of the company. The stock options have an exercise price of $0.065 per share and are exercisable for a period of five years from the date of grant. The stock options vest 25% immediately, 25% after six months, 25% after twelve months and 25% after eighteen months.

Qualified Persons

All scientific and technical information in this news release has been approved by Willem Fuchter , PhD PGeo, director of AbraPlata Resource Corp and a qualified person as defined by National Instrument 43-101.

About Aethon Minerals
Aethon Minerals is a mineral exploration company focused on creating shareholder value. Aethon has a large prospective land position consisting of over 100,000 hectares along prolific mining belts located in the Antofagasta and Maricunga regions of northern Chile . Aethon believes it is uniquely positioned for growth and is actively pursuing selective exploration-stage growth opportunities.  Aethon is based in Toronto, Canada , and is listed on the TSX-V under the symbol “AET”.

About AbraPlata
AbraPlata is a junior mining exploration company focused on unlocking mineral value in Argentina . AbraPlata has assembled an outstanding portfolio of gold, silver and copper exploration assets, and is focused on exploring and advancing its flagship Diablillos silver-gold property. In addition, AbraPlata owns the highly prospective Cerro Amarillo property with its cluster of five mineralized Cu-(Mo-Au) porphyry intrusions located in a mining camp hosting the behemoth El Teniente, Los Bronces, and Los Pelambres porphyry Cu-Mo deposits. As well, AbraPlata is exploring Aguas Perdidas, its wholly owned Patagonia-style epithermal Au-Ag property. AbraPlata is based in Vancouver, Canada , and is listed on the TSX-V under the symbol “ABRA”.

Cautionary Statements

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.

This press release contains “forward -looking information” within the meaning of applicable Canadian securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as “believes”, “anticipates”, “expects”, “is expected”, “scheduled”, “estimates”, “pending”, “intends”, “plans”, “forecasts”, “targets”, or “hopes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “will”, “should” “might”, “will be taken”, or “occur” and similar expressions) are not statements of historical fact and may be forward-looking statements. Forward-looking information herein includes, but is not limited to, statements that address activities, events or developments that Aethon and AbraPlata expect or anticipate will or may occur in the future, such as opportunities to grow the size of the Diablillos project and to improve the IRR thereof; the exploration potential to expand the Diablillos deposit and to find additional high grade mineralization; the completion of a more comprehensive metallurgical test work program with the aim of improving the design basis for the process plant; and the entering into of the Option Agreement.

Statements of mineral resources also constitute forward-looking information to the extent they represent estimates of mineralization that will be encountered on a property and/or estimates regarding future costs, revenues and other matters. Such forward-looking information is based on a number of material factors and assumptions, including but not limited to, the ability to arrange financing; risks related to carrying on business in an emerging market such as possible government instability and civil turmoil and economic instability; the nature, quality and quantity of any mineral deposits that may be located; metal prices; other prices and costs; currency exchange rates; the ability to obtain any necessary permits, consents or authorizations required for activities on a timely basis; deficient or vulnerable title to mining concessions and surface rights; shortages of resources, such as labour, and the dependence on key personnel; risks associated with community relationships; risks related to contractor performance and labor disruptions; risks related to unreliable infrastructure; difficulty complying with changing government regulations and policies, including without limitation, compliance with environment, health and safety regulations, and the cost of compliance or failure to comply with applicable laws; and other risk factors described in Aethon’s and AbraPlata’s disclosure documents on the SEDAR website at www.sedar.com.

Although Aethon and AbraPlata have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Neither Aethon nor AbraPlata undertakes to update any forward-looking information except in accordance with applicable securities laws.

SOURCE Aethon Minerals

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/March2019/01/c8559.html

Categories
Base Metals Energy Junior Mining Project Generators

EMX ROYALTY Options the Røstvangen and Vakkerlien Properties in Norway to Playfair Mining

March 4, 2019
Vancouver, British Columbia, March 4, 2019 (TSX Venture: EMX; NYSE American: EMX) – EMX Royalty Corporation (the “Company” or “EMX”) is pleased to announce the execution of an exploration and option agreement (the “Agreement”) for the Røstvangen volcanogenic massive sulfide (“VMS”) property and Vakkerlien nickel-copper-cobalt property in Norway (collectively the “Project”) with Playfair Mining Ltd. (“Playfair”) (TSX Venture: PLY). The Agreement provides EMX with immediate share equity in Playfair, and upon Playfair’s completion of the option terms and other consideration, a 9.9% interest in Playfair, a 3% net smelter return (“NSR”) royalty on the Project, and advance royalty payments.
The Røstvangen property hosts a >30 kilometer long trend of geophysical anomalies and VMS-type mineralization, as well as the Kvikne copper deposits, that occur in one of Norway’s oldest mining districts. On the directly adjoining Vakkerlien property, nickel mineralization was discovered in the 1870s, and was the subject of drill campaigns from the 1970s through the early 2000s that led to the discovery of nickel-copper-cobalt mineralization.
Commercial Terms Overview. Pursuant to the Agreement, Playfair can earn 100% interest in the Project by the issuance of shares to EMX and performance of work during the one-year option period, as described below (all dollar amounts in CDN):

  • On signing the Agreement, subject to TSX Venture Exchange acceptance, Playfair will issue to EMX 3 million common shares of Playfair stock.
  • As a condition to the exercise of the option, Playfair must complete work commitments of at least $250,000 on the Project, and must raise such capital by May 15, 2019.

Upon exercise of the option, Playfair will issue to EMX an additional 3 million shares of Playfair stock, and EMX will receive a 3% NSR royalty on the properties comprising the Project. Within six years of the execution of the Agreement, Playfair may purchase 1% of the NSR royalty in 0.5% increments for a total of $3,000,000, leaving EMX with a 2.0% NSR royalty. EMX will also receive annual advance royalty (“AAR”) payments of $30,000 commencing on the second anniversary of the option exercise, with the AAR payments increasing by $5,000 per year until reaching $80,000 per year. AARs may be paid in cash or Playfair shares, subject to certain conditions.
After the exercise of the option, further conditions of the Agreement include:

  • Playfair will use commercially reasonable efforts to raise an additional $2,750,000 for advancement of the Project and other activities, and will drill at least 2,000 meters on the Project before the third anniversary of the Agreement effective date.
  • Within two years of the execution date, Playfair will issue to EMX that number of common shares of Playfair that will increase EMX’s equity ownership in Playfair to 9.9%. Thereafter, Playfair will have the continuing obligation to issue additional shares of Playfair to EMX to maintain its 9.9% interest in Playfair, at no additional cost to EMX, until Playfair has raised a cumulative $3,000,000 in equity; thereafter EMX will have the right to participate pro-rata in future financings at its own cost to maintain its 9.9% interest in Playfair.
  • Playfair will issue the equivalent of $250,000 in common shares of Playfair to EMX upon the earlier of:
    • the filing of a Preliminary Economic Assessment technical report,
    • the filing of an initial Resource Estimate technical report,
    • the fifth anniversary of the option exercise date.
  • The issuance of additional shares of Playfair to EMX will be limited to a maximum 9.9% equity ownership in Playfair by EMX.

The issuance of Playfair shares to EMX as set forth in the Agreement is subject to receipt of TSX Venture Exchange approval.
Overview of Project. The Røstvangen property is located approximately 300 kilometers north of Oslo, and hosts the “Kvikne Copper Works”, one of Norway’s oldest base metal mining districts. Copper mineralization was discovered at Kvikne in 1629, followed by 150 years of mineral production. The mineralization at Kvikne is VMS-type, with enrichments of copper and gold. The Kvikne deposits are positioned along a >30 kilometer long trend of geophysical anomalies and VMS-type mineral occurrences that form multiple parallel belts across the property. These belts have seen little modern exploration work, and only a few historic drill holes, despite the widespread VMS occurrences and historic mining activities.
The Vakkerlien nickel-copper-cobalt property directly adjoins the Røstvangen exploration licenses. Nickel was discovered on the property in the 1870s, when small scale mining was conducted in the district. Further exploration by Falconbridge Limited and Blackstone Ventures Inc. from 1975 through the early 2000s led to the drilling and discovery of nickel-copper-cobalt mineralization to the southeast of the historic workings. The mineralization is associated with, and hosted by, a mid-Proterozoic gabbroic intrusive complex, and is interpreted to be a magmatic sulfide deposit type. Gold and platinum group element (“PGE”) content remains poorly understood and in need of further assessment.
EMX and Playfair are planning to commence exploration programs in the upcoming spring and summer months, which will include property-scale sampling, reconnaissance mapping and geophysical surveys. The intent of the programs is to rapidly identify additional exploration targets for drill testing.
Dr. Eric P. Jensen, CPG, a Qualified Person as defined by National Instrument 43-101 and employee of the Company, has reviewed, verified and approved the disclosure of the technical information contained in this news release.
About EMX. EMX leverages asset ownership and exploration insight into partnerships that advance our mineral properties, with EMX receiving pre-production payments and retaining royalty interests. EMX complements its royalty generation initiatives with royalty acquisitions and strategic investments. Please see www.EMXroyalty.com for more information.

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For further information contact:
David M. Cole
President and Chief Executive Officer
Phone: (303) 979-6666
Email: Dave@EMXroyalty.com
Scott Close
Director of Investor Relations
Phone: (303) 973-8585
Email:SClose@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 merits 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 nine month period that ended on September 30, 2018 (the “MD&A”), and the most recently filed Form 20-F for the year that ended on December 31, 2017, actual events may differ materially from current expectations.  More information about the Company, including the MD&A, the 20-F 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.

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