Tag: Gold mining

Probe Gold Expands its Monique Gold Deposit with Key Acquisition

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Probe Gold acquires Bermont Claims to extend Monique Deposit’s strike length by 750 meters, adding exploration potential.
– Historical drilling identified high-grade gold zones, including intercepts of up to 30.9 g/t gold over 1.6 meters.
– The acquisition expands surface mine infrastructure, facilitating operational efficiencies and reduced costs.

Probe Gold Inc. has announced the acquisition of the Bermont Claims property, strategically located adjacent to its Monique Gold Deposit in Val-d’Or, Quebec. This move is poised to extend the strike length of the Monique Deposit by 750 meters, offering significant opportunities for resource expansion and exploration. The transaction aligns with Probe Gold’s commitment to maximizing the potential of its Novador Development Project and advancing high-quality gold resources.

The newly acquired property spans ten contiguous claims and adds critical exploration upside. Historical drilling has identified high-grade gold zones, including the Bermont and Adelemont zones, which remain open laterally and at depth. Despite limited exploration, previous results from the property demonstrate promising grades, such as 30.9 g/t gold over 1.6 meters and 5.7 g/t gold over 3.2 meters. Probe Gold plans to incorporate this land into its 2025 exploration and resource expansion programs, focusing on uncovering additional high-grade mineralization.

David Palmer, President and CEO of Probe Gold, emphasized the strategic value of this acquisition. “This new land enhances our Monique Deposit by increasing exploration potential by 30%, while also offering critical space for surface mine infrastructure,” Palmer stated. He further highlighted the acquisition’s potential to unlock new high-grade discoveries and contribute to an even more robust Novador Development Project.

The transaction includes an upfront payment of $3 million, split evenly between cash and common shares of Probe Gold. Additionally, a $1.5 million milestone payment, in cash or shares, will be made upon confirming a resource of at least 1 million ounces of gold on the property. Jadmine, the seller, will retain a 3.5% net smelter return royalty, of which 2.5% can be purchased by Probe Gold for $2.5 million.

The Bermont Claims property complements the Monique Deposit, which currently hosts 3.56 million ounces of measured and indicated resources and 677,300 ounces of inferred resources. Geological similarities between the Bermont Claims and Monique Deposit strengthen the potential for integrating new discoveries into Probe’s existing operations. Moreover, the property’s expanded surface area is expected to facilitate mine design improvements, reducing costs and increasing operational efficiency.

Since 2016, Probe Gold has been consolidating its position in the Val-d’Or mining district, known for its prolific gold production and mining-friendly environment. The Novador Development Project, which hosts four past-producing mines and accounts for 80% of the company’s gold resources, is central to Probe Gold’s strategy. This acquisition aligns with the company’s focus on advancing resource-rich properties in politically stable and low-cost regions.

The deal is expected to close in the coming weeks, subject to regulatory approvals and customary closing conditions. With an aggressive exploration plan set for 2025, Probe Gold aims to leverage this acquisition to enhance its production profile and create long-term value for shareholders.

As the Monique Deposit grows in scope and potential, Probe Gold solidifies its position as a leader in the Canadian gold mining industry, driving forward with a vision for sustainable growth and innovation.

Agnico Eagle to Acquire O3 Mining in Strategic $204 Million Transaction

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Agnico Eagle is acquiring O3 Mining for $204 million at a 58% premium to its recent share price.
– The deal integrates O3’s Marban Alliance project with Agnico’s Canadian Malartic complex to boost production.
– The transaction has full board approval and support from 22% of O3 shareholders.

Agnico Eagle Mines Limited has announced a definitive agreement to acquire O3 Mining Inc., a gold exploration and development company based in Québec, Canada. This $204 million all-cash transaction marks a pivotal step for both companies, with Agnico Eagle enhancing its regional strategy and O3 Mining securing substantial value for its shareholders.

Under the terms of the agreement, O3 Mining shareholders will receive $1.67 per share, representing a 58% premium to the company’s closing price as of December 11, 2024. The transaction has been unanimously endorsed by O3 Mining’s Board of Directors and Special Committee, with support from shareholders owning approximately 22% of the company’s outstanding shares.

This acquisition focuses on O3 Mining’s flagship property, the Marban Alliance project, located near Agnico Eagle’s Canadian Malartic complex in Québec’s Abitibi region. The Marban Alliance includes the Marban deposit, which boasts 1.7 million ounces of gold in indicated mineral resources and an additional 32,000 ounces in inferred resources. This advanced exploration project has the potential to support a large-scale open-pit mining operation, making it an ideal fit for Agnico Eagle’s existing infrastructure and expertise.

Agnico Eagle President and CEO, Ammar Al-Joundi, described the acquisition as a continuation of the company’s regional strategy. “The Marban deposit complements our ‘Fill-the-Mill’ initiatives at the Canadian Malartic complex. With our operational expertise and established infrastructure, we aim to unlock the full potential of this asset while driving sustainable value for stakeholders.”

The integration of the Marban Alliance property into Agnico Eagle’s operations is expected to generate significant synergies by leveraging existing facilities, including the Canadian Malartic mill and equipment fleet. These efficiencies will enhance production capabilities, improve the overall production profile, and create long-term benefits for the region.

O3 Mining President and CEO, José Vizquerra, expressed enthusiasm about the transaction. “This offer provides exceptional value for our shareholders and validates the efforts of the O3 Mining team over the past five years. Agnico Eagle’s financial strength and commitment to stakeholder collaboration make it the ideal partner to advance the Marban Alliance project through permitting and construction.”

The transaction will formally commence with Agnico Eagle’s mailing of a takeover bid circular on December 19, 2024, and O3 Mining’s directors will respond with their recommendation. Shareholders have until January 23, 2025, to tender their shares. The agreement includes customary conditions, such as the approval of at least two-thirds of O3 Mining’s shareholders.

In addition to the Marban Alliance project, O3 Mining’s portfolio includes the Alpha and Kinebik properties, offering further exploration opportunities. The deal underscores Agnico Eagle’s position as a leader in the precious metals industry, with operations spanning Canada, Australia, Finland, and Mexico.

This acquisition signifies a major milestone in Agnico Eagle’s growth strategy and reinforces its commitment to sustainable mining practices, operational excellence, and community partnership. As the two companies move forward, the transaction is poised to unlock new opportunities and solidify Agnico Eagle’s leadership in the global gold mining sector.

Take a moment to take a look at more emerging growth metals & mining companies by taking a look at Noble Capital Markets’ Research Analyst Mark Reichman’s coverage list.

Orla Mining Expands into Canada with $810M Acquisition of Musselwhite Gold Mine

Posted on by slightbourne@noblecapitalmarkets.com
Key Points
– Orla acquires Musselwhite Gold Mine for $810M, doubling annual gold production to over 300,000 ounces.
– Musselwhite’s reserves and excess capacity position Orla for significant growth and resource expansion.
– The deal avoids equity dilution, backed by cornerstone investors and structured financing.

Orla Mining Ltd. (TSX: OLA; NYSE: ORLA) has announced its strategic acquisition of the Musselwhite Gold Mine in Ontario from Newmont Corporation for $810 million in cash, with an additional $40 million contingent on future gold prices. The move solidifies Orla’s transformation into a premier North America-focused, multi-asset gold producer, doubling its annual gold production to over 300,000 ounces and targeting growth to 500,000 ounces with the South Railroad Project in Nevada set to begin production by 2027.

This acquisition diversifies Orla’s portfolio, adding a tier-one jurisdiction to its operations. Located in Northwestern Ontario, Musselwhite is an underground mine with a proven track record, having produced nearly 6 million ounces of gold over its 25 years of operation. With 1.5 million ounces in proven and probable reserves and significant exploration potential, the mine represents a long-term growth opportunity for Orla.

The transaction is structured to avoid upfront equity dilution, financed through a mix of debt, gold prepayment, convertible notes, and cash. This includes commitments from cornerstone investors such as Fairfax Financial Holdings, Pierre Lassonde, and Trinity Capital Partners. The company’s robust financial position and support from existing shareholders enable it to capitalize on the acquisition without compromising shareholder value.

Orla’s management plans to leverage Musselwhite’s excess processing capacity and its extensive 65,000-hectare mining lease for exploration and resource expansion. The mine’s current recovery rates of 96% and its history of consistent reserve replenishment underscore its potential for long-term value creation.

CEO Jason Simpson emphasized the strategic significance of the acquisition: “This milestone more than doubles our production and establishes our presence in Ontario, a premier mining jurisdiction. We are committed to optimizing Musselwhite’s operations, exploring its vast potential, and maintaining strong relationships with local stakeholders and First Nations communities.”

The transaction is expected to close in early 2025, subject to shareholder and regulatory approvals. Orla’s board has unanimously recommended the deal, highlighting its alignment with the company’s growth strategy and significant accretion to key financial and operating metrics.

Musselwhite’s addition will generate over $150 million in average annual free cash flow, enabling Orla to self-fund its growth pipeline, including the Camino Rojo Sulphides project in Mexico and continued exploration in all operating regions.

With this acquisition, Orla strengthens its position as a leading North American gold producer, blending operational expertise with strategic financial planning to drive shareholder value and long-term growth.

Take a moment to take a look at other emerging growth natural resources companies by taking a look at Noble Capital Markets Research Analyst Mark Reichman’s coverage list.