LatAm junior miners advance nearly US$260mn of financing deals

Mining and exploration companies advanced financing deals worth US$257mn targeting Latin American projects in November, with gold and lithium assets attracting the biggest sums.

BNamericas registered eight deals announced, completed, expanded or advanced in the month, by junior exploration firms and small producers.

Deals worth less than US$1.5mn were excluded.

GOLD FOCUS

Five of the eight transactions, worth US$130mn, were aimed at primary gold projects, with one worth US$7.1mn for primary silver assets.

Precious metals miners and explorers have been boosted by a surge in prices, driven by economic stimulus packages by governments globally in response to the COVID-19 pandemic.

Gold averaged US$1,870/oz in London in November, with silver at US$24.04/oz.

One deal worth US$100mn was aimed at a lithium project, with one copper-focused financing worth US$19.4mn.

GEOGRAPHICAL SPREAD

Two deals worth US$70.8mn were aimed at Colombian projects, with one in Argentina worth US$100mn and one targeting a Mexican project worth US$50mn.

The remaining financings were focused on assets in Chile, Bolivia, Ecuador and Brazil.

TOP FINANCING DEALS

1. Lithium Americas – US$100mn

Target: Argentina, lithium

Lithium Americas completed a US$100mn at-the-market equity offering on November 30, issuing 9.3mn shares.

The company is now in a strong position to complete construction of its US$565mn Cauchari-Olaroz lithium project in Argentina, CEO Jon Evans said in a release.

2. Caldas Gold – US$65.5mn

Target: Colombia, gold

Caldas announced a planned Cdn$85.0mn private placement financing through which Gran Colombia Gold will become a 45% shareholder of the company.

Following completion, Gran Colombia will have the right to nominate two directors to the Caldas board, and the latter will change its name to Aris Gold Corporation, with Neil Woodyer becoming CEO.

Following the placement, Aris will be fully funded to complete its US$269mn Marmato underground project (or Marmato Deep Zone) in Colombia, Woodyer said.

3. Orla Mining – US$50mn

Target: Mexico, gold

Orla completed the second tranche drawdown of US$50mn on its previously announced US$125mn project finance facility, which will be used for the development of the US$123mn Camino Rojo gold project in Mexico.

All conditions needed for the drawdown have been satisfied, including the receipt of key permits for Camino Rojo, where construction started in November.

The company is advancing a revised feasibility study for the project.

4. Marimaca Copper – US$19.4mn

Target: Chile, copper

Marimaca signed an underwriting agreement with a syndicate of underwriters led by Canaccord Genuity to sell 8mn units for gross proceeds of Cdn$25.2mn.

The financing will be used to pay down about US$8.3mn of debt and advance the Marimaca copper project in Chile.

5. Silver Elephant Mining – US$7.1mn

Target: Bolivia, silver

Silver Elephant raised Cdn$9.2mn in a bought deal offering led by Mackie Research Capital on November 24.

Net proceeds will be used for exploration, development and improvement of the company’s projects and for working capital purposes.

Silver Elephant has the Pulacayo and Sunawayo primary silver assets and Triunfo gold project in Bolivia.

THE REST

6. Orosur Mining, 4mn British pounds (US$5.3mn)

Target: Columbia, gold

7. Cornerstone Capital Resources: Cdn$7.7mn

Target: Ecuador, Chile, gold

8. Cabral Gold: Cdn$4.5mn

Target: Brazil, gold