Barrick to divest stake in Canada’s Skeena Resources for $105m

Barrick Gold has agreed to sell a 12.9% stake in Canadian precious metals developer Skeena Resources to an undisclosed Canadian investment dealer for approximately $105.525m (C$132.5m).

Under the agreement, the dealer will purchase 8,831,250 common shares of Skeena from Barrick for resale on a bought deal basis.

From 1994 to 2008, the Eskay Creek open-pit mine produced 3.3 million ounces (Moz) of gold and 160Moz of silver at average grades of 45 grams per tonne (g/t) gold and 2,224g/t silver.

According to the estimates, the mine will have an annual production capacity of 352,000oz AuEq, the mine is expected to have an operational life of more than nine years.

In a press statement, Barrick said: “Depending on market conditions and other factors, including Skeena’s business and financial condition, Barrick may acquire securities of Skeena or dispose of some or all of the securities of Skeena that it may own at such time.”

Sulliden Mining to acquire Canadian uranium mining concessions

Canadian firm Sulliden Mining Capital has agreed to acquire all of the issued and outstanding common shares of Ontario-based Privco from its shareholders.

According to the share exchange agreement, Sulliden will issue 25 million of its common shares to the shareholders of Privco. Each Sulliden share would carry a value of $0.125 for an aggregate consideration of $3.12m, and the transaction is expected to be completed in April this year.

According to the estimates, the consolidated project holds a historical mineral resource of 586,000 tonnes at 0.954% U₃O₈ of indicated material and 1.686 million tonnes at 0.442% U₃O₈ of inferred material.

In October 2021, Sulliden Mining Capital agreed to acquire all of the issued and outstanding common shares of Salt Cay Horizons from the latter’s shareholders.

In a press statement, Sulliden said: “The acquisition is an arm’s length transaction for purposes of the policies of the Toronto Stock Exchange."

Lion Copper and Gold finalises earn-in agreement with Rio Tinto

Canada-based Lion Copper and Gold (Lion CG) has signed an earn-in deal with Rio Tinto America for a stake in copper assets in Mason Valley, Nevada.

According to the agreement, Rio Tinto will have the option to earn a 65% interest in the Canadian firm’s copper assets. These assets include 34,494 acres of land comprising the Yerington mine, greenfield MacArthur Project, Wassuk property, the Bear deposit, and associated water rights.

Rio Tinto will make a $4m payment for an exclusive earn-in option and for study and evaluation work at the Mason Valley project. The agreement requires the study to be completed by Lion CG no later than 31 December 2022.

A further $40m of project financing costs can be funded by Rio Tinto in exchange for an additional 5% stake increase in its ownership.

Lion CG CEO Travis Naugle said: “The agreement offers the potential to both increase the scope and scale of our development and accelerate the path to first production.

“Should Rio Tinto exercise its earn-in option, we are confident that it will bring its own level of quality to progress the development of the mining assets."

Nevada firm Hycroft Mining receives $56m equity investment

Nevada-based precious metals development company Hycroft Mining has announced a $56m equity investment from precious metals investor Eric Sprott and AMC Entertainment Holdings.

Sprott and AMC will each invest $27.9m in cash in the mining firm in return for 23.4 million units, with each unit comprising one common share of Hycroft and one common share purchase warrant. These units are each priced at $1.193.

Hycroft plans to use the net proceeds from the placement for general corporate purposes, working capital or capital expenditures, and advance the initial assessment in the 2022 Technical Report Summary to a pre-feasibility or feasibility study.

Commenting on the investment, Hycroft acting chairman, CEO and president Daine Garrett said: “Collectively, their investment dramatically improves Hycroft’s liquidity position and provides years of financial runway.

"Additionally, their confidence underscores the world-class nature of Hycroft’s gold and silver deposit and our potential to unlock value at a pivotal moment in its development.

Endeavour sells Burkina Faso gold mine to Néré Mining

UK-based Endeavour Mining has closed the divestment of its 90% stake in its non-core Karma mine in Burkina Faso to Néré Mining in a deal worth up to $25m.

Before the deal closure, Néré Mining paid $10m to Endeavour in the form of a reimbursement of historical shareholder loans.

In addition, Néré Mining will make $5m in deferred cash payment six months after the closing of the transaction.

A contingent payment of up to $10m will also be payable by Néré Mining to Endeavour by 12 months after closing.

This will be based on a sliding scale, linked to the average spot gold price.

Furthermore, Endeavour will receive a 2.5% net smelter return royalty on the project, on all ounces produced more than 160koz of recovered gold, effective from New Year’s Day this year.

The State of Burkina Faso owns the remaining 10% stake in the Karma low-grade heap leach operation, which comprise several shallow, low strip ratio, free-dig open-pit gold deposits.

Endeavour president and CEO Sébastien de Montessus said: “The sale of our non-core Karma mine to Néré Mining is in line with our strategy of actively managing our portfolio to focus management efforts on high margin, long-life and low all-in sustaining cost, core assets.

“A key consideration in the sale process was the selection of a party that will maintain our trusted partnerships in Burkina Faso, by committing to operate the mine in the best interests of our employees and local stakeholders.”

First Uranium intends to take over US-based Southwind

First Uranium Resources has signed a binding letter of intent (LOI) to acquire all of the shares of US-based Southwind Corporation.

According to the LOI, First Uranium will have the option to pick a 100% stake in the US-based firm, by issuing up to 20 million of its shares.

Furthermore, First Uranium will incur at least $3m in work expenditures within the first year from the completion of the technical report.

Upon exercising the option, First Uranium will pay up to two million shares in finder’s fees.

The company also unveiled private placement of up to $6m in subscription receipts.

Proceeds of the placement, which is planned to close on or about 31 March 2022, will be used for the firm to fund exploration and development work on its Arkansas project.

Southwind CEO Paul Barrett said: “We are delighted to be partnering with First Uranium on this exciting project, with combined potential for two vital commodity streams – phosphates and rare earths.

“First Uranium’s participation will accelerate the development of this near-surface stratiform deposit, situated in the heart of the US Midwest, which has excellent potential to feed into the agricultural and high-tech metals sectors, both of which are experiencing sustained and long-term growth in feedstock demand.”