LatAm mining: Firms push ahead with close to US$210mn in financing deals

Exploration companies and small miners pushed ahead with financing deals in May worth Cdn$250mn (US$208mn) that targeted Latin American assets, with around half destined for Mexican primary silver projects.

Companies announced, advanced or closed 24 financings aimed wholly or partly at LatAm projects, according to figures compiled by BNamericas.

Deals worth less than Cdn$2mn were excluded.

The US$208mn figure is the lowest of 2021, down from US$283mn in April, US$219mn in March, US$480mn the previous month and US$335mn in January.

The decline comes despite metal price improvements, with gold averaging around US$1,848/oz in May, up from US$1,759/oz the previous month, and silver rising to US$27.46/oz from US$25.64/oz, while copper hit record highs above US$4.50/lb during the month.

Ten deals were closed in the month, accounting for Cdn$93.2mn, with the remainder being new announcements or upsizing of previously announced deals.

MEXICO FOCUS

More than half of the total financing raised is targeted at Mexican assets, with nine deals worth Cdn$135mn advanced in the month.

Four deals were aimed at Peruvian projects, worth Cdn$21.5mn, with three focused on Argentina and Chile each, worth Cdn$26.9mn and Cdn$21.6mn, respectively.

Two financings were for Guyana projects, worth Cdn$23.1mn, with single deals targeting assets in Colombia, Ecuador and the South American region.

SILVER DEALS

Six financing deals accounting for half of the total were focused on primary silver assets, with nine worth a combined Cdn$66mn targeting primary gold projects.

Copper assets were the target of five deals totaling Cdn$39.1mn, with the remaining four split between lithium, uranium and zinc.

TOP MAY DEALS

1. Vizsla Silver: Cdn$60mn

Target: Mexico, silver

Vizsla Silver’s Cdn$60mn bought deal financing was the biggest of the month.

Proceeds are earmarked for exploration and development of the Panuco silver-gold project in Mexico, where Vizsla aims to complete one of the country’s biggest 2021 drill programs, with up to 100,000m planned.

The financing deal, which is expected to close in early June, is being led by Canaccord Genuity on behalf of a syndicate of underwriters.

2. GoGold Resources: Cdn$28.7mn

Target: Mexico, silver

GoGold Resources closed a bought deal offering announced in April, raising Cdn$28.7mn, including Cdn$3.75mn in an over-allotment option, which was exercised in full.

Net proceeds will be used to advance the company’s Los Ricos North and South deposits, which form the Los Ricos silver-gold project in Mexico, and for general corporate purposes.

3. Battery Mineral Resources: Cdn$15mn

Target: Chile, copper

Battery Mineral Resources announced a planned Cdn$15mn private placement financing on May 12.

Proceeds will be used to partially fund the acquisition of the past-producing Punitaqui copper-gold mine in Chile, and for exploration, development and restart activities.

Part of the funds will also be used for exploration at the company’s Canadian cobalt-silver projects, and for working capital and general corporate purposes.

4. Goldsource Mines: Cdn$12.6mn

Target: Guyana, gold

Goldsource completed a bought deal offering for gross proceeds of Cdn$12.6mn, including the exercise in full of an over-allotment option.

Funds raised will be used for exploration and prefeasibility work at the company’s Eagle Mountain gold project in Guyana, as well as working capital and general corporate purposes.

5. Luminex Resources: Cdn$12.5mn

Target: Ecuador, gold

Luminex raised Cdn$12.5mn in private placement financings, which included brokered and non-brokered offerings.

Proceeds will be used for drilling and PEA work at the company’s Condor gold project in Ecuador, as well as exploration at the Cascas copper-gold asset in the country, and for general corporate purposes.

6. Southern Silver: Cdn$12mn

Target: Mexico, silver

Southern Silver increased the size of previously announced brokered and non-brokered offerings, to a combined total of Cdn$12mn, in response to significant demand.

Proceeds are earmarked for exploration and development of the company’s Cerro Las Minitas primary silver asset in Mexico, as well as general working capital purposes.