Namibia Critical 2.65-million-share private placement
The TSX Venture Exchange has accepted for filing documentation with respect to a non-brokered private placement as announced in news releases dated March 3, 2021, and March 8, 2021.Read More
Number of securities: 2.65 million common shares
Purchase price: 25 cents per common share
Warrants: 2.65 million common share purchase warrants to purchase 2.65 million shares
Warrant exercise price: 35 cents until March 12, 2022
Number of placees: 10 placees
Insider/pro group participation: none
Finders’ fees: PI Financial Corp. and Echelon Wealth Partners Inc. received cash commissions totalling $6,750.
The company has confirmed the closing of the private placement in a news release dated March 12, 2021.
Garibaldi Resources 3,388,666-unit private placement
The TSX Venture Exchange has accepted for filing documentation with respect to a non-brokered private placement announced on Nov. 16, 2020.Read More
Number of flow-through (FT) units: 3,388,666 flow-through units (Each FT unit will consist of one flow-through common share and one-half of one common share purchase warrant.)
Purchase price: 60 cents per FT unit
Warrants: 1,694,333 whole share purchase warrants to purchase 1,694,333 shares
Warrant exercise price: 75 cents for a two-year period
Number of placees: eight placees
Insiders: Steve Regoci, 45,000; Raymond Goldie, 7,000
Finder’s fee: $105,000 cash and 175,000 agent’s warrants payable to Qwest Investment Fund Management Ltd. (Each agent’s warrant will be exercisable for one common share of the company at an exercise price of 60 cents for two years from the date of issuance.)
Evergold private placement
The TSX Venture Exchange has accepted for filing documentation with respect to a brokered private placement announced on Feb. 1, 2021.Read More
Number of shares: 20,454,546 flow-through common shares; 17.5 million non-flow-through common shares
Purchase price: 22 cents per flow-through common share; 20 cents per non-flow-through common share
Warrants: 27,727,273 share purchase warrants to purchase 27,727,273 shares
Warrant exercise price: 30 cents for a 36-month period
Number of placees: 111 placees
Insiders: Darwin Green, 20,000; C.J. Greig Holdings Ltd. (Charles Greig), 125,000
Total pro group involvement: 1,228,000 (three placees)
Broker’s commission: $469,598 in cash and 2,203,353 non-transferable broker warrants payable to Canaccord Genuity Corp. (Each broker warrant entitles the holder to acquire one common share at 22 cents for a 24-month period.)
Note that in certain circumstances the exchange may later extend the expiry date of the warrants, if they are less than the maximum permitted term.
Bonterra increases private placement to $13-million
In connection with its previously announced best efforts private placement financing, Bonterra Resources Inc. and a syndicate of agents led by Cormark Securities Inc. have agreed to increase the size of the offering. Under the revised terms of the offering, the company has agreed to issue 9.03 million common shares of the company on a flow-through basis for gross proceeds of $13,003,200 at a price of $1.44 per FT share, and two million common shares of the company for gross proceeds of $2.1-million at a price of $1.05 per common share.Read More
The company and the agents have also agreed to increase the option granted to the agents, exercisable in whole or in part at any time up to 48 hours prior to closing of the offering, which will allow the agents to sell up to an additional 1.39 million FT shares and up to an additional 350,000 common shares, in each case, on the same terms as the offering.
The gross proceeds from the issuance of the FT shares will be used for Canadian exploration expenses and will qualify as flow-through mining expenditures, as defined in subsection 127(9) of the Income Tax Act (Canada), which will be incurred on or before Dec. 31, 2022, and renounced to the subscribers with an effective date no later than Dec. 31, 2021, in an aggregate amount not less than the gross proceeds raised from the issue of the offered securities, as applicable, and, if the qualifying expenditures are reduced by the Canada Revenue Agency, the company will indemnify each FT share subscriber for any additional taxes payable by such subscriber as a result of the company’s failure to renounce the qualifying expenditures as agreed.
The net proceeds from the issuance of the common shares will be used for working capital and general corporate purposes.
The offering is expected to close on or about April 7, 2021, and is subject to certain closing conditions including, but not limited to, the receipt of all necessary approvals, including the acceptance of the TSX Venture Exchange. The offering is being made by way of private placement in Canada. The securities issued under the offering will be subject to a hold period in Canada expiring four months and one day from the closing date of the offering.
About Bonterra Resources Inc.
Bonterra is a Canadian gold exploration company with a large portfolio of advanced exploration assets anchored by a central milling facility in Quebec, Canada. The company has three main assets, Gladiator, Barry and Moroy, that collectively have a total of 698,000 ounces in the measured and indicated categories, and 1.4 million ounces in the inferred category. Approximately 130,000 metres of drilling will be used to update this resource shortly. Importantly, the company owns the only permitted and operational gold mill in the region that is currently two-thirds the way through the permitting process to expand from 800 to 2,400 tonnes-per-day. Bonterra is focused on graduating from advanced exploration to a development company over the next 18 months to deliver shareholder value.
Roscan Gold arranges overnight public offering
Roscan Gold Corp. has launched an overnight marketed public offering of common shares of the company. The offering will be conducted through a syndicate of agents led by Clarus Securities Inc.Read More
The size of the offering and the issue price of the common shares will be determined in the context of the market prior to the filing of the final short form prospectus in respect of the offering.
The company intends to use the proceeds raised from the offering to finance its continuing exploration program in Mali and to finance working capital and other general corporate purposes.
The agents will be paid a cash commission equal to 6 per cent of the gross proceeds of the offering. As additional consideration, the agents will be issued that number of non-transferable common share purchase warrants as is equal to 6 per cent of the aggregate common shares sold under the offering.
The offering is subject to a number of conditions, including receipt of all necessary securities regulatory approvals and the approval of the TSX Venture Exchange.
About Roscan Gold Corp.
Roscan Gold is a Canadian gold exploration company focused on the exploration and acquisition of gold properties in West Africa. The company has assembled a significant land position of 100-per-cent-owned permits in an area of producing gold mines (including B2 Gold’s Fekola mine which lies in a contiguous property to the west of Kandiole) and major gold deposits, located both north and south of its Kandiole project in West Mali.
Erdene Resource loses $13.12-million in 2020
Erdene Resource Development Corp. has released financial results for the year ended Dec. 31, 2020, and provided an update on its Bayan Khundii gold project. This release should be read in conjunction with the company’s 2020 financial statements, and management discussion and analysis, available on the company’s website or SEDAR.Read More
Quotes from the company
“Despite the impact of COVID-19 on the global economy over the past year, our company made significant progress executing on our two-pronged strategy of advancing the Bayan Khundii gold project towards development while expanding high-grade gold resources in our Khundii gold district,” said Peter Akerley, Erdene’s president and chief executive officer.
“Based on the strong economics of the high-grade, open-pit, BK gold project, outlined in the feasibility study delivered in August, we have commenced project finance and construction readiness,” continued Mr. Akerley. “In October we signed a mandate letter with Export Development Canada to provide the majority of the capital required to build the mine and due diligence is progressing well. Construction readiness activities including detailed engineering continues as we seek to fast track this foundational project. A construction decision is expected in mid-2021, contingent upon the impact of the COVID-19 pandemic.
“Exploration results from our 2020 Khundii district gold drill program were very positive,” added Mr. Akerley. “We intersected multiple zones of high-grade gold around the BK economic pit that are being incorporated into an updated resource, scheduled to be finalized in Q2 2021.
“Most importantly, drilling at our newly defined Dark Horse prospect in late 2020 intersected broad zones of gold mineralization in a previously untested portion of the Khundii mining licence,” concluded Mr. Akerley. “We have traced mineralization along a 1.2-kilometre north-south-trending structure, confirming Dark Horse as the most significant zone of gold mineralization in the Khundii gold district since the discovery of Bayan Khundii. We completed a 1,900-metre scout drilling program at Dark Horse in late February, 2021, and are scheduled to launch a much larger exploration program at Dark Horse in the coming weeks as we seek to further unlock the mineral potential in the Khundii gold district.”
2020 highlights and subsequent events
Bayan Khundii gold project — 100 per cent Erdene
- Announced positive results of the BK BFS in July, 2020 (results at $1,400 (U.S.) per ounces gold price, unless noted):
- Aftertax net present value of $100-million (U.S.)(NPV5%) and 42-per-cent internal rate of return (IRR), increasing to $216-million (U.S.) and 77-per-cent IRR, respectively, at a gold price of $1,800 (U.S.) per oz;
- Life of mine earnings before interest, taxes and depreciation of $257-million (U.S.), increasing to $400-million (U.S.) at a $1,800 (U.S.)/oz gold price;
- 381,700 ounces gold recovered over the initial phase of the Khundii gold district development;
- All-in sustaining cost of $733 (U.S.)/oz and upfront capital expenditure of $59-million (U.S.);
- Measured and indicated resources of 521,000 ounces gold at an average grade of 3.16 g/t gold;
- Proven and probable reserves of 409,000 ounces gold at an average grade of 3.71 g/t gold;
- Average annual gold production of 63,500 ounces, including 77,600 ounces in year two;
- Eight-year project, including one-year preproduction, six-year operating life and one-year closure;
- Payback period of less than two years;
- Adjacent high-grade resources and recent discoveries provide excellent growth opportunities; and
- Significant benefits to Mongolia, including life of mine royalties and taxes of $103-million (U.S.) and approximately 400 new direct jobs in Bayankhongor province.
- Commenced construction readiness activities for the Bayan Khundii gold project:
- Detailed design and engineering for the carbon-in-pulp processing plant and mine support infrastructure is under way and expected to be submitted for approval in Q1 2021;
- The balance of the technical drawings for site infrastructure are expected to be submitted for approval by Q1 2021, allowing for a rapid construction ramp-up beginning mid-2021;
- Tender and contracting for critical facilities and services has been initiated;
- Environmental monitoring stations were installed in Q4 2020 and are currently operating; and
- Constructability review, value engineering and HAZOPS development are also under way.
- Continued stakeholder engagement for the ESIA and the Mongolian statutory detailed environmental impact assessment:
- European Bank for Reconstruction and Development ESIA public disclosure period satisfactorily completed in Q3 2020;
- Additional baseline studies are continuing, collecting targeted social and environmental data in line with the ESIA commitments; and
- Public consultations are continuing for the Mongolian DEIA.
- Obtained certain key permits and advanced regulatory approvals required for mine development:
- Land use permits issued, granting access to an initial approximately 100-hectare area required to construct the BK open pit and associated surface infrastructure; and
- Completed regulatory review of the site general arrangement.
- Closed $20-million financing led by $15-million strategic investment from Eric Sprott on Aug. 11, 2020:
- Proceeds will be used to advance exploration of the Khundii gold district and development of the Bayan Khundii gold project, and for working capital and general corporate purposes.
- Announced conversion of $5-million (U.S.) convertible loan held by the EBRD on Oct. 9, 2020:
- EBRD, one of the largest foreign investors in Mongolia, now holds a significant equity interest.
- Executed a mandate letter with EDC for the Bayan Khundii project finance:
- Contemplates a senior secured debt facility of up to $55-million (U.S.), subject to satisfactory completion of due diligence and documentation;
- Diligence is well under way and progressing largely to schedule.
- Acquired 100-per-cent interest in the Ulaan licence, adjacent to Bayan Khundii, in December, 2020:
- Consolidates 100-per-cent interest in the majority of the Khundii-Ulaan alteration system hosting multiple epithermal gold and porphyry copper-gold targets.
- Recorded a net loss of $13,116,358 for the year ended Dec. 31, 2020, compared with a net loss of $2,683,292 for the year ended Dec. 31, 2019:
- Exploration and evaluation expenditures, including capitalized expenditures, totalled $9,276,028 for the year ended Dec. 31, 2020, compared with $6,694,914 for the year ended Dec. 31, 2019, largely due to increased exploration work as the company drilled over 15,000 metres in the current year, compared with approximately 5,000 metres in the prior year. Additionally, expenditures on the Bayan Khundii feasibility study, detailed engineering, and design and construction readiness activities exceeded those on the prefeasibility study in the prior year;
- Corporate and administrative expenses totalled $1,868,905 for the year ended Dec. 31, 2020, compared with $1,615,724 for the year ended Dec. 31, 2019, due to higher administrative salaries, expanded investor relations costs and increased non-cash, share-based compensation costs; and
- Non-cash, change in fair value expenses of $8,412,081 and interest expense of $1,661,960 in the current year related to the EBRD convertible loan, which was converted in October, 2020.
In late January, 2020, the government of Mongolia instituted limitations on public gatherings, suspended in-person classroom learning and implemented international border controls in response to COVID-19. The Canadian government adopted similar measures in March, 2020, as have most governments globally during 2020. Furthermore, on Nov. 12, 2020, following the first instances of community spread of COVID-19, the Mongolian government announced restrictions on the movement of people within the country.
In response, Erdene implemented operational changes to ensure the safety and productivity of its people. In the field, daily health and safety briefings, body temperature checks, enhanced hygiene protocols, and additional personal protective equipment have been instituted. With these measures, the company’s team delivered an injury-free field exploration and technical program, completing approximately 15,000 metres of drilling in 2020. The company’s corporate and administrative teams adopted remote working practices and enhanced hygiene measures during 2020 that allowed operations to continue without significant disruption.
Though the impact of COVID-19 on the company’s operations has been modest to date, the COVID-19 pandemic continues to evolve. The company will monitor the impact of COVID-19 on its operations in 2021, particularly potential disruptions to the Bayan Khundii gold project schedule or budget prior to reaching a construction decision, which is expected in mid-2021.
About Erdene Resource Development Corp.
Erdene Resource Development is a Canada-based resource company focused on the acquisition, exploration and development of precious and base metals in underexplored and highly prospective Mongolia. Erdene’s deposits are located in southwestern Mongolia’s Edren Terrane, within the central Asian orogenic belt, host to some of the world’s largest gold and copper-gold deposits. The company has been the leader in exploration in the region over the past decade and is responsible for the discovery of the Khundii gold district with interests in three mining licences and two exploration licences hosting multiple high-grade gold and gold/base metal prospects, two of which are being considered for development: the 100-per-cent-owned Bayan Khundii and Altan Nar gold deposits.