The Federal Reserve is failing to contain inflation, according to Greenlight Capital hedge fund manager, David Einhorn. As a result, gold prices could move even higher. “The Fed is bluffing,” Einhorn said, as quoted by Kitco.com. “The Fed doesn’t really have the tools to stop the inflation. When the Fed has to choose between fighting inflation and supporting the Treasury, I think it has to pick the Treasury. At that point, it’s best to have some gold.” In addition, “Einhorn has been a long-time proponent of physical gold, which represents a significant position in his fund. According to Reuters, Greenlight Capital’s fund is up 20.9% this year due to its gold investment and macro trade,” added Kitco.com. All could be solid catalysts for stocks, such as
NevGold Corp.
(TSXV: NAU) (OTCQX: NAUFF),
Barrick Gold Corporation
(NYSE: GOLD) (TSX: ABX)
, Newmont Corporation
(NYSE: NEM) (TSX: NGT)
, B2Gold Corp.
(TSX: BTO) (NYSE: BTG)
,
and
Equinox Gold Corp.
(TSX: EQX) (NYSE: EQX).
Look at
NevGold Corp. (TSXV: NAU) (OTCQX: NAUFF)
NevGold Corp.
just announced execution of an option agreement to acquire the advanced exploration stage Nutmeg Mountain Gold Project in Idaho from GoldMining Inc. which hosts a historical resource completed in 2020 of 910,000 Indicated ounces of gold, and 160,000 Inferred ounces of gold. GoldMining will also make a strategic investment (“the Investment”) in NevGold of C$1 million on closing of the option agreement, and further has committed to a lead order of C$1.25 million in a future financing.
Key Highlights
Under a binding option agreement among NevGold, GoldMining, and their respective U.S. subsidiaries:
– In consideration for the grant of the Option, NevGold will issue 4,444,444 common shares to GoldMining at a price of $0.675 per share, representing C$3 million of value based on the 30-day volume-weighted average price of NevGold shares. GoldMining will become a large, cornerstone, strategic investor of NevGold with an approximate 10.6% interest;
– Concurrently with the above issuance, GoldMining will make the initial Investment of $1 million, subscribing for 1,481,481 NevGold shares at a price of $0.675 per share, and commits to a further lead order in an amount up to C$1.25 million in a future financing by NevGold completed by November 30, 2022;
– In order to exercise the option, NevGold will pay the following amounts, or at its discretion, issue shares to GoldMining with an equivalent value, on the following schedule:
January 1, 2023: C$1.5 million
July 1, 2023: C$1.5 million
January 1, 2024: C$3.0 million
– In order to exercise the Option, NevGold will also be required to make qualifying expenditures on the Project totalling C$2.25 million:
$1.5 million on or before June 1, 2023
a further $0.75 million on or before December 31, 2023
– On completion of the total C$9.0 million in equity issuances and/or payments to GoldMining and total C$2.25 million in qualifying expenditures by January 1, 2024, NevGold would own 100% of the Nutmeg Mountain Gold Project
– NevGold commits to a schedule of future success-based contingent payments totalling C$7.5 million to GoldMining, payable in cash or shares at the election of NevGold:
C$0.5 million on completion of a Preliminary Economic Assessment (PEA) on the Project
C$2.5 million on completion of a Preliminary Feasibility Study (PFS) on the Project
C$4.5 million on completion of a Feasibility Study (FS) on the Project
– NevGold will enter into an Investor Rights Agreement with GoldMining with customary rights including pre-emptive equity participation rights and a right to appoint a Board member
NevGold CEO, Brandon Bonifacio, comments:
“NevGold is extremely pleased to enter the option agreement to acquire Nutmeg Mountain. The asset has attractive scale with a historical resource completed in 2020 of 910,000 Indicated ounces of gold, and 160,000 Inferred ounces of gold starting at surface, and significant exploration upside, while also being located in a premier jurisdiction with excellent infrastructure near site. We see many opportunities to extract value at Nutmeg Mountain like we have at Limousine Butte over the past 12 months, and we see the value extraction roadmap as being very similar. This transaction also adds the benefits of a new strategic partner and investor, especially with a long-term growth focused, well-established team like GoldMining. We look forward to the next chapter of NevGold with GoldMining as a large shareholder as we continue to build one of the marquee gold resource and exploration platforms in the Western USA.”
GoldMining CEO, Alastair Still, comments:
“We are excited to have formed a partnership with NevGold to share in the potential benefits as they conduct work to grow and develop the Nutmeg Mountain Project. GoldMining is also encouraged by the continued exploration success at Limousine Butte in Nevada, and the upside potential of the other assets within the NevGold portfolio.”
Closing of the grant of the Option is expected to be in June-2022, subject to customary regulatory approvals, including the approval of the TSX Venture Exchange. All securities issued in connection with the Option and the Investment will be subject to a hold period ending four months and one day after issuance. Under a 2021 Investor Rights Agreement executed with McEwen Mining Inc. (“McEwen Mining”), McEwen Mining has the pro-rata participation right to maintain its current 10% share interest in NevGold after the issuance of shares pursuant to the Option and the Investment within 10 business days.
Upon completion of this transaction, NevGold’s portfolio will include:
Nutmeg Mountain, Idaho (option to acquire 100%):
recent 2020 historical resource estimate of 910,000 Indicated ounces of gold, plus 160,000 Inferred ounces of gold in a favorable jurisdiction.
Limousine Butte, Nevada (100%):
advanced exploration project with a historical gold resource showing positive, consistent oxide gold intercepts and an expanding mineralized footprint. (see February 8, March 8, April 6, 2022, and June 2, 2022 News Releases)
Cedar Wash, Nevada (100%):
large under-explored land position in southeast Nevada with positive, near-surface, oxide gold from historical shallow drilling.
Ptarmigan, British Columbia (100%):
high grade silver-base metal property in Southeast BC.
Nutmeg Mountain Gold Project
The Nutmeg Mountain Gold Project is located in Western Idaho approximately 80 kilometers north-northwest of Boise and approximately 20 kilometers east of Weiser, Idaho. (Figure 1) The Project has seen over 70,000 meters of historical drilling with 934 core, RC, and rotary holes. The Project is a low-sulphidation epithermal gold-silver deposit with similar geology to several other Western USA epithermal deposits. Historical drilling at the Project focused on defining the disseminated mineralization that starts at surface and did not test for the high-grade vein structures at depth. The last active drill program at the project occurred in 2012.
Project Development Plan
Post-closing, NevGold has comprehensive plans for advancing the Project. These include:
– Compilation and re-analysis of the historic Project exploration database using modern exploration technologies
– Preparing a current mineral resource estimate
– Development of new drill targets with the objective of expanding the mineral resource laterally and at depth
– Targeting the higher-grade feeder system typically seen in low-sulphidation epithermal deposits; the high-grade feeder system has not been tested by prior operators and is an exceptional exploration target
– Detailed metallurgical program to characterize the deposit and determine the optimal gold recovery process
– Permitting to allow for baseline environmental surveys
The information developed from the above programs will guide the development of parameters to be used in a near-term engineering study on the project with targeted completion in 2023.
More detailed transaction disclosure, including a detailed presentation, has been uploaded onto our corporate website at
www.nev-gold.com
.
Other related developments from around the markets include:
Barrick Gold Corporation
announced a
$0.20 per share quarterly dividend
, the first to include a $0.10 per share performance component in line with its new dividend policy. President and chief executive Mark Bristow said the Company’s net cash balance at the end of Q1 stood at $743 million, reflecting cash flow from the operations, the continuing sale of non-core assets, and its share of a further $0.6 billion in cash distributions by Kibali.
Newmont Corporation
announced
first quarter 2022 results
. “Newmont delivered a solid first quarter performance with $1.4 billion in adjusted EBITDA as we safely managed through the Omicron surge. The strength of our proven operating model and global portfolio in the world’s best mining jurisdictions is the foundation of Newmont’s clear and consistent strategy to create value and improve lives through sustainable and responsible mining. In April, we published our 18th Annual Sustainability Report, which provides a transparent look at our ESG performance and the issues and metrics that matter most to our stakeholders. As a values-based organization and the gold sector’s recognized sustainability leader, Newmont has a long history of leading change in our approach to ESG and our core values are fundamental to how we run our business and where we choose to operate,” as noted by Tom Palmer, Newmont President and Chief Executive Officer.
B2Gold Corp.
announced that it has entered into a definitive Scheme Implementation Agreement with
Oklo Resources Limited
pursuant to which B2Gold has agreed to acquire 100% of the fully paid ordinary shares of Oklo in consideration for 0.0206 of a common share of B2Gold and A$0.0525 in cash for each Oklo Share held. The Scheme Consideration represents a purchase price of approximately A$0.1725 for each Oklo Share and values the transaction at approximately A$91.3 million (including up to approximately A$27.4 million cash consideration). The transaction as contemplated by the Agreement will be implemented by way of a scheme of arrangement pursuant to Part 5.1 of the Australian
Corporations Act 2001 (Cth)
. Upon implementation of the Scheme, in addition to the cash consideration, B2Gold expects to issue up to 10,754,284 B2Gold Shares to Oklo shareholders, representing approximately 1% of the B2Gold Shares on an undiluted basis.
Equinox Gold Corp.
announced that further to its press release dated May 16, 2022, approval for the
tailings storage facility
raise at its RDM Mine in Brazil has been received. The TSF raise contractor is mobilizing equipment to begin the raise in early June. Equinox Gold expects that full operations will resume by mid-July. Equinox Gold will update RDM guidance with its Q2 2022 disclosures in the first week of August.
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for NevGold Corp. by NevGold Corp. We own ZERO shares of NevGold Corp.
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