Impact: Positive The gold mining industry is notorious for dilutive mergers and destroying shareholder value. However, (too) rarely, a transaction occurs which actually makes complete and obvious sense and creates synergistic value. We believe that the merger of Bonterra and Metanor is one of those smart transactions and that “New” Bonterra will be a very attractive investment vehicle with plenty of news flow to attract attention from the market. We also expect the deal digestion to be relatively short and painless given the low complexity of the assets and obvious synergies between the two companies as detailed in this report. Another plus is that we estimate that the new company trades at a substantial discount to its peers as well.
Impact: Positive Pacton Gold has announced a binding LOI for the acquisition of another project in the Egina region of the Pilbara, which we view positively. The Golden Palms property adjoins Pacton’s Friendly Creek project adding 35 k𝑚2 to its growing land package in the Pilbara.
Impact: Positive Based on peers in the Cobalt Camp, we believe Brixton remains undervalued based on these assets alone. The company has demonstrated an ability to acquire prospective, undervalued assets and is working to surface value on all four its projects. In our view, continued exploration success in the Cobalt camp, along with planned work at the company’s other properties, should benefit shareholders through Brixton.
Impact: Mildly Positive Novo Resources has announced that it has entered into two property transactions in the Egina region of Western Australia, expanding its dominant land position, and bringing a new conglomerate are within the Pilbara into focus.
Impact: Mildly Positive Red Pine Exploration announced additional results for historic holes sampled as part of its 2018 Historic Core Sampling Program at its Wawa Gold Project, located in Wawa, Ontario. The goal of the historic program is to convert gaps in the historic resource, where drilling exists but the core was not assayed.
Impact: Positive Brixton Metals announced that it has completed field work at its Thorn Au-Ag project in the northern tip of the Golden Triangle in British Columbia, located 200km NW from Imperial Metals Red Chris Mine.
Orford Mining Corp. (TSXV:ORM) – Visual Results from Qiqavik Drilling Suggest Good News Could be on Horizon
Impact: Mildly Positive Orford Mining has announced the completion of its 2018 summer prospecting, mapping and drilling program at its Qiqavik property in Northern Quebec.
Impact: Positive Standard Lithium has provided an update on its progress in developing and constructing a large-scale Pilot Plant for deployment at its 30,000 acre project on the Smackover Formation in Southwestern Arkansas.
Impact: Positive NxGold has provided an update on its 2018 exploration program at the Mt. Roe Project in the Pilbara, which includes results from recently completed reconnaissance stream sediment sampling and assay results from th preliminary follow-up trenching/stripping program.
Impact: Mildly Positive De Grey Mining has reported additional infill drill results from the Mt. Berghaus Gold deposit within the company’s Pilbara Gold Project, which is located 60km south of Port Hedland, Western Australia.