LatAm-focused juniors pull in US$313mn despite COVID turmoil

Junior miners active in Latin America advanced financing deals worth US$313mn in June, despite market volatility related to the COVID-19 pandemic.

BNamericas recorded 34 deals targeting Latin American assets, of which 28 with a combined value of US$213mn were aimed at gold and silver projects.

The remaining transactions were focused on copper (four, worth US$52.9mn), lithium (two, US$46.1mn) and tantalum and niobium (one deal, US$1.2mn).

Exploration firms in the region advanced deals worth a combined US$230mn in April and May, when lockdowns were in place in some Latin American countries.

Only transactions by non-producing explorers were counted. Deals worth less than Cdn$1.0mn (US$738,000) were excluded.

REGIONAL BREAKDOWN

Mexico was the main focus of the financing, with 14 deals worth US$125mn.

Brazil was second by value, with four deals worth US$54.5mn, followed by Ecuador (three deals, US$45.5mn), Nicaragua (one deal worth US$21.0mn), Colombia (two deals, US$20.1mn) and Bolivia (two deals, US$19.5mn).

Three deals were targeted at Peruvian assets, with combined a value of US$11.1mn.

Chile, the Dominican Republic, Guatemala, Argentina and Guyana each saw one deal in June, with values ranging from US$1.1-4.4mn.

TOP 10 DEALS

1. MAG SILVER: US$50mn

Country: Mexico

MAG announced a US$50mn at-the-market offering on June 29.

The bulk of net proceeds will be used for construction of the US$440mn Juanicipio silver-gold project in Mexico, a 44:56 JV with Fresnillo.

Raymond James is lead agent.

2. SIGMA LITHIUM: US$45mn

Country: Brazil

Sigma signed a term sheet for a US$45mn project finance facility, which will fund construction and development of the US$74mn Grota de Cirilo lithium project in Brazil.

The loan will be led by Société Générale.

3. SOLGOLD: US$33.6mn

Country: Ecuador

SolGold raised 26.1mn British pounds in a placement and a further 1.0mn pounds in a separate offering in early June.

Funds will be used to advance a feasibility study at the Alpala copper-gold project and advance exploration at other targets in Ecuador.

4. MAKO MINING: US$21.0mn

Country: Nicaragua

Mako plans to raise Cdn$28.4mn in a bought deal offering, led by Stifel GMP.

Proceeds will be used to fund the remaining capex at the San Albino gold project in Nicaragua, and for debt repayment, exploration, working capital and general corporate purposes.

5. DISCOVERY METALS: US$18.4mn

Country: Mexico

Discovery raised Cdn$25.0mn in a private placement, which will mainly be used to fund exploration at the Cordero project in Mexico, one of the region’s biggest undeveloped silver deposits.

6. NEW PACIFIC METALS: US$18.4mn

Country: Bolivia

New Pacific raised Cdn$25.0mn in a bought deal offering, underwritten by BMO Capital Markets.

Proceeds are earmarked for exploration and development at Silver Sand and other projects in Bolivia.

7. CORDOBA MINERALS: US$15.9mn

Country: Colombia

Cordoba raised Cdn$21.5mn in a rights offering.

Part of the proceeds will be used to complete the final US$13.0mn option payment required to secure a 100% interest in the Alacrán primary copper project in Colombia.

8. TELSON MINING: US$12.0mn

Country: Mexico

Mexican bank Accendo will provide a US$12.0mn loan to Telson, which will be used to complete construction of the US$32.2mn Tahuehueto primary gold project in Mexico.

9. LUMINEX RESOURCES: US$9.6mn

Country: Ecuador

Luminex raised Cdn$13.0mn in two private placement offerings, to fund exploration and development of its Ecuadoran projects and for general corporate purposes.

Luminex’s assets include the Cóndor gold project.

10. Candelaria Mining: US$9.0mn

Candelaria aims to advance construction of its Pinos gold project in Mexico after securing US$9.0mn in a loan from Accendo.

SMALLER DEALS

Other deals which advanced in June include Cdn$10.0mn financings by Prime Mining and Kuya Silver, targeting the Los Reyes gold-silver project in Mexico and Bethania silver property in Peru, respectively.

GR Silver secured Cdn$9.15mn for exploration at its Plomosas and San Marcial primary silver projects in Mexico, with Southern Silver aiming to raise at least Cdn$7.0mn to fund the acquisition of the remaining interest in the Cerro Las Minitas silver property, also in Mexico.

And TriStar Gold plans to raise Cdn$8.0mn in a bought deal offering to advance its Castelo de Sonhos gold project in Brazil.