Palm Beach, FL – June 14, 2022 – FinancialNewsMedia.com News Commentary – Experts expect to see more consolidation among mid-tier gold companies this year, as well as geographic and commodity diversification. Investingnews.com said that the gold sector saw an impressive US$21.3 billion spent on mergers and acquisitions (M&A) in 2021, a sharp uptick from 2020’s total, which was heavily impacted by COVID-19 restrictions. The year of multibillion-dollar deals was the second highest level on record and highest in the last decade, with roughly 44 separate deals made, accounting for 38 million ounces. Another article from IntelligentHQ added that: “The gold mining industry is gearing up for a busy year in 2022. Mergers and acquisitions (M&A) activity is expected to increase as miners seek to replenish depleted reserves while also maintaining production levels. With sustained gold prices, senior gold miners now have some of the lowest debt levels in years while gold development assets are currently valued as amongst the cheapest, they have been in some time. All of this points to a busy year ahead for M&A activity in the mining industry. Rising investment levels across the industry are set to benefit the junior mining space as investor inflows should boost stock prices for the industry. Gold prices were relatively stable throughout 2021, as the global economy recovered from the COVID-19 pandemic while interest rates remained low. As a result of this, mining companies have been able to invest in exploration and development but with limited success at the drill bit. While mining M&A activity was robust in 2021, 2022 is set for a further uptick in deal making. Gold prices are now trading well above the industry all-in cost average of $1,100/oz., and 2021 already began the recovery in M&A activity, with some $30 billion in deals.” Active companies in the markets this week include NevGold Corp. (OTCQX:NAUFF) (TSXV:NAU), Gold Fields Limited (NYSE: GFI), Yamana Gold Inc. (NYSE: AUY) (TSX: YRI), Dakota Gold Corp. (NYSE American: DC), Gold Standard Ventures Corp. (NYSE AMERICAN: GSV) (TSX: GSV).
IntelligentHQ continued: “Notwithstanding, mining companies are now cash-heavy due to a lower deal count over the past two years in general, and gold development assets may be found to be even cheaper than we’ve seen in some time. Mining M&A is expected to continue to rise in 2022 on the back of 2021’s recovery as miners seek to cash in on this favorable market environment while meeting investor demand for growing resource levels.”
NevGold Corp. (OTCQX:NAUFF) (TSXV:NAU) BREAKING NEWS: NevGold Executes Option To Acquire The Nutmeg Mountain Gold Project And Announces Strategic Investment By GoldMining Inc.– NevGold Corp. is pleased to announce execution of an option agreement (“the Option”) to acquire the advanced exploration stage Nutmeg Mountain Gold Project (“the Project” or “Nutmeg Mountain”, also known as Almaden) in Idaho from GoldMining Inc. (“GoldMining”) 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. CONTINUED… READ THIS FULL RELEASE AT https://nev-gold.com/news/
For additional Industry commentary please go to: https://www.equedia.com/could-this-stock-hand-you-1600-in-the-new-gold-supercycle/
Additional recent developments in the beverage market industry include:
Gold Fields Limited (NYSE: GFI) and Yamana Gold Inc. (NYSE: AUY) (TSX: YRI) recently announced that they have entered into a definitive agreement (the “Arrangement Agreement”), under which Gold Fields will acquire all of the outstanding common shares of Yamana (“Yamana Shares”) pursuant to a plan of arrangement (the “Transaction”).
Under the terms of the Transaction, all of the outstanding Yamana Shares will be exchanged at a ratio of 0.6 of an ordinary share in Gold Fields (each whole share, a “Gold Fields Share”) or 0.6 of a Gold Fields American depositary share (each whole American depositary share, a “Gold Fields ADS”) for each Yamana Share (the “Exchange Ratio”).
The Transaction implies a valuation for Yamana of US$6.7 billion and represents a premium of 33.8% to the 10-day Volume-Weighted Average Price (“VWAP”) of Yamana’s Shares of US$ 5.201 on Friday, May 27, 2022, being the last trading day on the NYSE prior to the date of this announcement, based on the 10-day VWAP of Gold Fields ADSs of US$ 11.592. Upon closing of the Transaction, it is anticipated that Gold Fields Shareholders and Yamana Shareholders will own approximately 61% and 39% of the Combined Group, respectively.
Dakota Gold Corp. (NYSE American: DC) recently announced the results of its first drill hole, MA22C-001, at the Maitland Gold Project located approximately three miles north and contiguous with the Homestake Mine. In addition Dakota Gold is mobilizing its third drill rig to test for gold mineralization on the eastern side of the Maitland corridor. To date, the Company has targeted nine holes at Maitland. MA22C-001 is the first hole drilled in the project area since 1994 when Homestake Mining Company ceased its exploration program outside of the Homestake Mine.
James M. Berry, Vice President of Exploration of Dakota Gold said, “We are excited to receive the assay results from our first drill hole at Maitland. The primary objective of this hole was to look for Homestake Formation host rock. We were very pleased to locate both Homestake-style gold mineralization and Tertiary-aged gold mineralization where we had targeted these initial holes of the campaign. This is a great start to our exploration program at Maitland. With the three drill rigs testing our Homestake District targets, we anticipate a continual flow of results throughout the rest of this year and are excited at the potential to advance the project areas towards a development path.”
Gold Standard Ventures Corp. (NYSE AMERICAN: GSV) (TSX: GSV) recently announced plans for its 2022 first stage exploration program on its +21,000 hectare land package in Nevada’s Carlin Trend. The first stage program includes approximately 5,700 meters of reverse-circulation (“RC”) and core drilling over 20 holes. Drilling is scheduled to start in May 2022. Based on the results of the first stage exploration program, the Company intends to develop a second stage exploration program to be completed in the Fall and Winter of 2022. https://goldstandardv.com/site/assets/files/6188/2022_exploration_program_graphics.pdf
Jason Attew, President and CEO, commented, “We are excited to initiate our 2022 drilling program. The focus of this year’s program is to test for oxide mineralization extensions at Pinion with the goal of enhancing the size of the Pinion pit and further extending the project life. We will also test the highly prospective LT target which is near Pinion and has the potential to develop into a satellite pit to the South Railroad Project in the future. Finally, after our new geological team spent the past year analyzing the historical drill database across our property package, we are excited to begin drilling for sulphide gold mineralization again. The Ranch prospect shows promise as a potential high-grade target north of the Dark Star oxide deposits. We will also revisit the North Bullion deposit in the north of our property package. North Bullion was the focus of exploration for the Company up until 2016 when the focus switched to drilling oxide mineralization at Dark Star and Pinion. Our team believes Carlin-type sulphide mineralization remains open to the northwest at North Bullion and we will test the area in the first half of our exploration season.”
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