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RESEARCH

Karora Resources Inc. (TSX:KRR) – Beta Hunt Royalty Reduced – Cue the Drills

Karora Resources announced that it has entered into an agreement with Maverix Metals Inc (TSX:MMX, Not Covered) to reduce the gold royalty from 7.5% to 4.75% at its 100%-owned Beta Hunt mine in Kamblada, Western Australia. In our view, while this transaction mildly improves profitability, it should result in a material increase in exploration news from Beta Hunt, where the higher grades could be game-changing.

SolGold plc (TSX: SOLG, LSE:SOLG) – SolGold Makes All-Share 11/1 Bid for Cornerstone

SolGold announced that it has commenced an unsolicited offer to acquire Cornerstone Capital Resources Inc. (TSXV:CGP, Not Covered) in an all-share transaction, that would consist of 11 ordinary shares of SolGold in exchange for each Cornerstone share. Cornerstone currently owns ~7.7% of SolGold, whereas SolGold already owns 5.3% of Cornerstone. This transaction would help consolidate SolGold’s ownership (currently 85%) of the Alpala project, as Cornerstone currently owns 15% of the project. We believe the contemplated transaction has strong benefits for both companies.

RECENT transactions

C$2.5 million

Pending
Co-Agent

C$12.0 million

February 2020
Finder

C$15.0 million

February 2019
Co-Agent

C$5.3 million

December 2019
Co-Agent

C$5.1 million

December 2019
Finder

C$11.5 million

December 2019
Co-Agent