Juniors lever in cash as gold, silver surge

Latin America’s junior exploration companies pulled in Cdn$332mn (US$248mn) in financing deals for gold and silver assets in the past six weeks as prices of the metals surged.

Since the start of July, juniors announced at least 16 share offerings targeting primary silver projects in Latin America worth a combined US$167mn, with a further 13 deals worth US$166mn aimed at gold properties, according to data compiled by BNamericas.

The deals are private placements or bought deal offerings by non-producing companies. Deals smaller than US$1mn are excluded.

The region’s juniors pulled in US$213mn for gold and silver projects in June.

Gold moved above US$2,000/oz for the first time in August, with silver surging above US$28/oz, a seven-year high.

Precious metals prices have been buoyed by massive stimulus measures by governments around the world in the wake of the COVID-19 pandemic, aimed at propping up their struggling economies.

FINANCING TARGETS

In addition to gold and silver-focused deals, five placements in the period targeted primary copper assets, worth Cdn$112mn, while Sigma Lithium announced a Cdn$17.8mn placement aimed at funding advances at its Grota do Cirilo lithium project in Brazil.

In total, the region saw 35 deals worth a combined Cdn$462mn (US$345mn) in the period.

Mexico was the main jurisdiction targeted in the deals, accounting for 20 worth a combined Cdn$188mn.

Brazil saw four deals worth Cdn$88.6mn, with three in Peru (Cdn$9.4mn), two in Argentina (Cdn$48mn) and two in Nicaragua (Cdn$40mn).

The remainder were in Ecuador, Guatemala and the Guiana Shield.

TOP SILVER DEALS

1. Discovery Metals – Cdn$35mn

Discovery aims to advance exploration at its Cordero primary silver Coahuila projects in Mexico following the private placement, which includes Cdn$15mn by mining investor Eric Sprott.

2. Vizsla Resources – Cdn$30mn

Vizsla closed a bought deal private placement for proceeds of Cdn$30mn, including the exercise in full of the underwriters’ over-allotment option.

Funds will be used to advance the Panuco silver-gold project in Mexico.

3. AbraPlata Resource – Cdn$18mn

AbraPlata increased the size of non-brokered private placements from Cdn$15.0mn in August, with proceeds earmarked for exploration at its mineral properties.

AbraPlata is focused on advancing its Diablillos silver-gold project in Argentina.

GOLD DEALS

1. Amarillo Gold – Cdn$57.2mn

Amarillo signed an agreement with Mackie Research Capital for a Cdn$35.7mn underwritten private placement and Cdn$21.5mn bought deal public offering in July.

Net proceeds will be used to advance the Posse Gold and Lavras do Sul projects in Brazil.

2. Mako Mining – Cdn$28.4mn

Mako raised Cdn$28.4mn in a private placement in July, which will fund the remaining capex at its San Albino gold project in Nicaragua and be used for debt repayment.

3. Chesapeake Gold – Cdn$20mn

Chesapeake’s private placement is aimed at financing metallurgical test work and regional exploration at the Metates gold-silver-zinc project in Mexico, one of the world’ biggest undeveloped gold deposits.

Eric Sprott is the main participant, accounting for Cdn$15mn.

COPPER DEALS

1. Filo Mining – Cdn$41.7mn

Filo closed a bought deal financing and concurrent private placement, netting gross proceeds of Cdn$41.7mn.

Funds will be used for exploration and development of the Filo del Sol copper-gold-silver project in Chile, along with other items.

2. Adventus Mining – Cdn$35mn

Adventus plans to raise Cdn$35mn in a bought deal offering to fund exploration and development at the Curipamba copper-gold project in Ecuador.

The deal is with a syndicate of underwriters co-led by Raymond James, Haywood Securities and National Bank Financial. An over-allotment option could boost proceeds to Cdn$40.3mn.

3. Josemaria Resources – Cdn$30mn

Josemaria increased the size of a private placement by Cdn$5mn to Cdn$30mn in July, with proceeds earmarked for a feasibility study and other advances at it Josemaría copper-gold project in Argentina.

BMO Capital Markets is lead underwriter.