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Environmental Permit Approved! Okay.. and....
Wingman
January 23, 2024
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.
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the Ministry of Environment, Water, and Energy Transition of the Government of Ecuador ("MAATE") has granted the Environmental License for the construction and operation of the El Domo-Curipamba project ("Environmental License").
The El Domo project is a significant asset in Ecuador, and this approval marks a significant milestone for the company.
Events like these warrant substantial rerates, but oddly, $ADZN closed with a rather indifferent response, ending at C$0.29 ⬆️ 0.02 (7.4%). Salazar Resources has exposure to El Domo and closed at a much more favourable C$0.08 ⬆️ 0.025 (45.5%).
Perhaps this is due to the recent Luminex transaction which looks to close this Thursday.
Perhaps there is a fear that some Luminex shareholders will sell the news and cap the upside in Adventus. Alternatively, it might just be taking a day or two for this news to marinate.
Ecuador has been in the headlines due to the recent escalating cartel-related violence. Regardless, this is a significant achievement for the company and looks promising for this high-grade copper play. We have no position.
Other things in the news
The first company, expected to be named "Sugarloaf Gold Corp.", will be transferred shares of the Company's wholly-owned subsidiary, which holds Arizona Metals' Sugarloaf Peak Gold Project. Sugarloaf has a historic estimate of 1,500,000 ounces of gold (defined in 1982). The deposit is open for expansion in all directions and recent metallurgical testing has demonstrated the potential for excellent recoveries in both oxide and sulphide mineralization.
The second company, expected to be named "Arizona Royalties Corp.", will hold a newly-created 2% net smelter royalty ("NSR") on any potential future mineral production at Arizona Metals' Kay Mine Deposit, as well as a newly-created 2% NSR royalty on all future potential mineral production from any new deposits discovered through Arizona Metals' ongoing exploration activities at the Kay Mine Project (collectively the "Royalties").
It is expected that Arizona Metals will retain a 19.9% ownership in shares of Sugarloaf Gold Corp. and Arizona Royalties Corp. (collectively the “Spin-Outs”) with the remaining shares being distributed to the Company’s shareholders on a pro rata basis. Arizona Metals remains focused on rapidly growing and advancing its Kay Mine Project in Arizona, while Arizona Royalties Corp. and Sugarloaf Gold Corp. will allow shareholders to capture additional long-term value with the shares received from the Spin-Outs. There will be no change in shareholders' holdings in Arizona Metals as a result of the Spin-Outs.
That’s a nice way to create some value. Great job.
In terms of exploration companies, this one is producing result after result. The chart is looking pretty spectacular, and they have the goods. We have no position, but one can't knock anyone for being in this exciting zinc play.
We are now in position to be able to drill this winter and begin uncovering the full extent of the Bégin-Lamarche high-purity igneous rock phosphate horizon at only 70 km from the deep-sea Port of Saguenay. In our experience, proximity to port and access to infrastructure and workforce are the single largest determinants for the economic viability of any phosphate project. Bégin-Lamarche has all these strong requisites. We feel that it could become one of the first phosphate mines to see production in Quebec as we are now in a position to accelerate its development.”
There we go. Nice!
Hercules Silver had a roller-coaster kind of day, but in the end, it finished really strong, closing at C$0.79 ⬆️ 0.02 (2.6%).
Speaking of roller-coasters…
We will see what comes of this story.
Two news releases from these guys yesterday.
About Boroo Gold
Established in 1997, Boroo Gold LLC is a leading gold producer in Mongolia with over 50,000 tons per day mining fleet, 5,500 tons per day mill and carbon-in-leach circuit gold processing plant, 3,000,000 tons per annum heap leach and carbon-in-columns plant, with a workforce of over 500 people. Boroo Gold LLC operates Boroo mine in Selenge province, as well as owning and operating the adjacent Ulaanbulag mine in Mongolia.
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