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The Mining and Exploration News in Mexico: Highlights on the Third Week of July, 2024

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Vuggy Quartz

By Miguel A Heredia

During the 29th week of the year (July 15th to July 21st 2024), at least 28 press releases were announced by companies working in Mexico, and 2 news published by the media, with ten disclosing deals and corporate issues, five announcing financing rounds, five communicating production and financial results, three commenting on Mexican issues, three reporting resources and development of their properties, two informing on exploration results, and two discussing social issues.   ON MEXICO ISSUES, Rafael Rebollar, general director of Industrias Peñoles, declared that the mining industry in Mexico has been affected due it awaits response on environmental permits. The Government of Mexico is preparing a preliminary report with arguments to declare that Vulcan Materials’ Calica mine in Quintana Roo is located within a “protected natural area”, which represents a possible expropriation of its land. Tocvan /Colibri reported the best drilling intercepts in Mexico on the third week of July, 2024. ON EXPLORATION, In Chihuahua, Kingsmen announced that it has completed an evaluation and interpretation of the ground magnetic data covering the entire Las Coloradas project area. In Durango, Silver Wolf provided an update on its Ana Maria project.  ON MINING, Americas Gold and Silver reported Q2, 2024 production results at its Cosalá operation mine in Sinaloa.Avino Silver & Gold Mines released production results for the Q2, 2024 at their Avino and La Preciosa mines in Durango. First Majestic announced Q2, 2024 production results from their Mexican operations, and provided an updated guidance for H2 and full year 2024. Bear Creek reported Q2, 2024 production results at its Mercedes mine in Sonora.  ON FINANCING, Aztec Minerals announced a non-brokered private placement financing for gross proceeds of up to CAD $1.5M (Cervantes project, Sonora). Garibaldi applied to the TSX Venture Exchange to extend warrant expiry dates (Tonichi project, Sonora). Regency Silver announced a non-brokered private placement financing for gross proceeds of up to CAD $2.5M (Dios Padre project, Sonora). Sailfish reported that the TSX Venture Exchange has accepted a notice filed by the Company of its intention to make a Normal Course Issuer Bid to be transacted through the facilities of the Exchange (Gavilanes project, Durango). Vizsla Royalties entered into a debt settlement agreement dated July 3, 2024 with Vizsla Silver Corp to settle outstanding debt of CAD $1,609,312 owing from Vizsla Royalties to Vizsla Silver (Panuco project, Sinaloa). ON RESOURCES AND DEVELOPMENT, Tocvan and its JV Colibri reported results of five RC drill holes from its El Pilar project in Sonora. Bendito Resources acquired a flotation plan and is finalizing economic studies for critical minerals production from its Oposura project, Sonora. ON DEALS AND CORPORATE ISSUES, Alamos Gold entered into a gold sale prepayment agreement for total consideration of USD $116 million in exchange for the delivery of 49,384 ounces in 2025 (Mulatos mine, Sonora). Golden Minerals announced that it has received payment in full of $2.5M plus VAT for the sale of its Velardeña Mine and associated facilities. Sierra Madre announced that it has secured a binding off-take agreement for 100% of concentrate sales from its La Guitarra mine, Mexico. US Antimony reported the appointment of its Vice President of the company´s Antimony Division (Los Juarez project, Queretaro). GR Silver closed the transaction to acquire 100% of the issued and outstanding shares of Marlin Gold Mining Ltd (Plomosas, Sinaloa).  Florida Canyon entered into a binding agreement to sell its interests in the San Agustin mine, El Castillo mine, La Colorada mine, Cerro del Gallo project and San Antonio project (collectively the “Mexican Business Unit”) to Heliostar Metals Ltd. Florida Canyon advised the market that processes are underway to review strategic alternatives to maximize shareholder value on the Mexican business unit (El Castillo mine, Durango). Florida Canyon announced it has commenced trading on the TSX Venture Exchange (El Castillo mine, Durango). Heliostar entered into a binding agreement with Florida Canyon Gold Inc (FCGI) to acquire a 100% interest in all of FCGI’s mining assets in Mexico for consideration of USD $5M. Sierra Metals announced the completion of the sale of the Cusi mine and surrounding mineral concessions located in Chihuahua. ON SOCIAL RESPONSIBILITY, SilverCrest and Alamos Gold released their 2023 ESG report (Las Chispas mine, Sonora and Mulatos mine, Sonora respectively).

ON MEXICO ISSUE

  • Rafael Rebollar, general director of Industrias Peñoles, declared that the mining industry in Mexico has been affected due it awaits response on environmental permits that must be granted by the federal government for tailings deposits, a system that collects all the waste from the mining process, once the waste has been separated from minerals. Failure to grant it could lead to the suspension of operations of some mining units. For his part, Carlos Pavón Campos, general secretary of the Mining Metallurgical Union FRENTE, said that mines throughout the country face restrictions on tailings dams, which represents a risk. He cited the case of Fresnillo and Velardeña as an example. He commented that in Velardeña, there are around 600 unionized workers and that a fundamental part of the mines are the tailings dams.
  • The Government of Mexico is preparing a preliminary report with arguments to declare that Vulcan Materials’ Calica mine in Quintana Roo is located within a “protected natural area”, which represents a possible expropriation of its land. The report will be evaluated for 30 days by the governments of the state of Quintana Roo, as well as by social organizations, indigenous communities and universities, reported the Secretariat of Environment and Natural Resources (Semarnat) in a statement sent on Thursday. Vulcan Materials said in May that it received an offer from the Government of Mexico that “substantially undervalues” its property. According to Andres Manuel Lopez Obrador, the Administration offered to buy the firm’s assets on the Caribbean coast for USD $2B.  Last May, U.S. senators warned that Mexico’s expropriation of Vulcan land would force them to consider “all available resources” to prevent “the theft of this property,” according to a letter officials sent to the Mexican Foreign Minister Alicia Bárcena.
  • Tocvan Ventures Corp., and JV Colibri Resource Corp., reported the best drilling intercepts in Mexico on the third week of July, 2024. Details are shown in the table below:

ON EXPLORATION

  • Kingsmen Resources Ltd., announced that it has completed an evaluation and interpretation of the ground magnetic data covering the entire Las Coloradas project area in Chihuahua. It has identified two prominent magnetic bodies within a halo of weaker magnetics, and are interpreted to be shallow and probably linked to intrusives. Very positively, the structural picture appears to define a cymoid loop, a feature that generates multiple dilation zones that may host mineralization in both NW- and NE-trending zones along strike and at depth.  These will be targets for drill testing. The project is prospective for epithermal precious metal, skarn and porphyry mineralization.
  • Silver Wolf Exploration Ltd., provided an update on its Ana Maria project in Durango. The company has been planning the upcoming drill program at the El Soldado Claim at the Ana Maria project. “Activities that have been completed to date include: preparing and fine tuning the drill targets, finalizing drilling and QA/QC procedures, selecting a drill contractor to conduct the drilling work, updating and revising the drill budget to reflect the change in Mexican Peso and inflationary costs, finalizing access agreements with the local communities for drilling activities, staffing the appropriate positions to conduct the program with contractors and employees”.

ON MINING

  • Americas Gold and Silver Corporation reported Q2, 2024 production results at its Cosalá operation mine in Sinaloa. It focused on mining the Main Zone at the San Rafael Mine and produced approximately 170K Oz Ag, 8.9M Lb Zn, and 2.6M Lb Pb. Silver production from the Cosalá Operations is expected to increase quarter-over-quarter.
  • Avino Silver & Gold Mines Ltd., released production results for the Q2, 2024 at their Avino and La Preciosa mines in Durango. At Avino, the company processed 130,983 tonnes of 71 g/t Ag, 0.49 g/t Au, and 0.51% Cu with metallurgical recoveries of 88%, 70%, and 88% respectively, to produce 262.9K Oz Ag, 1,456 Oz Au, and 1.3M Lb Cu. At La Preciosa, it processed 9.951 tonnes of 133 g/t Ag and 0.28 g/t Au with metallurgical recoveries of 71% and 63% respectively, to produce 30.1K Oz Ag and 58 Oz Au.
  • First Majestic Silver Corp., announced Q2, 2024 production results from their Mexican operations. Table below shows mine by mine results:

The Company’s financial results for the second quarter of 2024 are scheduled to be released on Thursday, August 1, 2024. The company also provided an updated guidance for H2 and full year 2024. Tables below show mine by mine details:

  • Bear Creek Mining Corporation reported Q2, 2024 production results at its Mercedes mine in Sonora. The company processed 95,727 tonnes of 3.23 g/t Au, with a metallurgical recovery of 93% to produce 9,304 Oz Au and 40,893 Oz Ag.
  • Minera Alamos Inc., provided a brief operations update for its Santana gold mine in Sonora. The company initiated mining and stacking operations at the Nicho Main Zone of its Santana mine. As of the end of June, approximately 900 Oz Au have been stacked on the leach pad, with expectations to increase output to 1,300-1,500 ounces in the coming month. The company is improving access to the mineralization and plans to activate additional trucks to enhance operational efficiency. The average gold grade is around 0.9 g/t, and optimization efforts are underway to improve blasting and crushing processes. Overall, the operations are progressing well, with a focus on returning to a steady state of production as gold prices strengthen.

ON FINANCING

  • Aztec Minerals Corp., announced a non-brokered private placement financing of up to 8,333,334 units of the Company at a price of CAD $0.18 per unit for gross proceeds of up to CAD $1.5M. Part of the gross proceeds will be used to fund ongoing expenses at the Cervantes Project in Sonora, and for general working capital and corporate expenses.  
  • Garibaldi Resources Corp., applied to the TSX Venture Exchange to extend warrant expiry dates. The original term of the Warrants was two years, of which 2,664,472 warrants (the “FT Warrants”) currently expire on July 22, 2024 and 181,250 warrants (the “NFT Warrants”) currently expire on September 16, 2024.  The Company proposes to extend the expiry date for a one year period to July 22, 2025 for the FT Warrants and to September 16, 2025 for the NFT Warrants. None of the Warrants to be amended were issued to finders or agents.  No other terms of the Warrants are to be amended and the exercise price remains at $0.55 (Tonichi project, Sonora).
  • Regency Silver Corp., announced a non-brokered private placement financing for gross proceeds of up to CAD $2.5M, consisting of 16.6M units at a price of CAD $0.15 per unit. Gross proceeds will be used for the upcoming drill program on the company´s Dios Padre project in Sonora, and for general working capital.
  • Sailfish Royalty Corp., reported that the TSX Venture Exchange has accepted a notice filed by the Company of its intention to make a Normal Course Issuer Bid to be transacted through the facilities of the Exchange. The notice provides that the company may, during the 12-month period commencing July 22, 2024 and ending July 21, 2025, purchase up to 3,539,756 common shares of the company in total, being approximately 5% of the total number of shares outstanding as at July 16, 2024 (Gavilanes project, Durango).
  • Vizsla Royalties Corp., entered into a debt settlement agreement dated July 3, 2024 with Vizsla Silver Corp to settle outstanding debt of CAD $1,609,312 owing from Vizsla Royalties to Vizsla Silver by issuing 32,186,240 common shares of the company to Vizsla Silver at a deemed price of CAD $0.05 per common share (Panuco project, Sinaloa).

ON RESOURCES AND DEVELOPMENT

  • Tocvan Ventures Corp., and its JV Colibri Resource Corp., reported results of five RC drill holes from its El Pilar project in Sonora.  Drilling highlights include hole JES-24-95 with 0.15 g/t Au, 1 g/t Ag, and 0.4% Zn over 76.25m, including 0.19 g/t Au, 2 g/t Ag, and 1.49% Zn over 16.78m, including 0.16 g/t Au, 3 g/t Ag, and 2.78% Zn over 7.63m, plus 0.83 g/t Au,  1g/t Ag, and 0.12% Z over 5.09m, and hole JES-24-94 with 0.06 g/t Au and 2 g/t Ag over 120.48m, including 0.09 g/t Au, 3 g/t Ag, and 0.15% Zn over 64.05m, including 0.17 g/t Au, 5 g/t Ag, and 0.22% Zn over 24.04m, including 1.26 g(/t Au, 37 g/t Ag, 0.55% Pb, and 1.16% Zn over 1.53m, plus 0.46 g/t Au, 26 g/t Ag, 0.12% Pb, and 0.57% Zn over 1.52m, plus 0.37 g/t Au, 5 g/t Ag, 0.6% Pb, and 3.05% Zn over 3.05m. Results for three drillholes are currently pending analysis.
  • Bendito Resources Inc., acquired a flotation plan and is finalizing economic studies for critical minerals production from its Oposura project, Sonora. The company also acquired stationary and mobile equipment, including laboratory equipment, primary and secondary mining equipment, blast hole and exploration drills, and other necessary support equipment typically used at mine sites. “The general arrangement of the mine site and related agency approvals are ongoing ahead of anticipated earth and civil works later this year. It is expected that the plant will be operational at the Oposura site in the second half of 2025”.

ON DEALS AND CORPORATE ISSUES

  • Alamos Gold Inc., entered into a gold sale prepayment agreement for total consideration of USD $116 million in exchange for the delivery of 49,384 ounces in 2025. The proceeds of the gold prepayment were used to eliminate gold forward purchase contracts, previously entered into by Argonaut Gold, totalling 179,417 ounces in 2024 and 2025 with an average price of USD $1,838 per ounce. As part of the recently closed acquisition of Argonaut, Alamos inherited Argonaut’s hedge book which included gold forward purchase contracts totaling 329,417 ounces between 2024 and 2027. The average forward prices on the contracts ranged between USD $1,821 and USD $1,860 per ounce (Mulatos mine, Sonora).
  • Golden Minerals Company announced that it has received payment in full of $2.5M plus VAT for the sale of its Velardeña Mine and associated facilities and title has been transferred to a privately held Mexican company. Further and in connection with the Agreements, there has been a delay in the closing of the Minera William agreement entered into to sell the oxide processing plant and the water wells, located in Durango State, Mexico. To date, the Company has received partial payments in the amount of $373,000 for these assets. The remaining $2,627,000, plus VAT on the full sale price, was due on July 1.
  • Sierra Madre Gold and Silver Ltd., announced that it has secured a binding off-take agreement with Swiss-based global minerals trader MRI Trading AG for 100% of concentrate sales from its La Guitarra mine, Mexico.
  • US Antimony Corporation reported the appointment of its Vice President of the company´s Antimony Division (Los Juarez project, Queretaro).
  • GR Silver Mining Ltd., closed the transaction to acquire 100% of the issued and outstanding shares of Marlin Gold Mining Ltd. Marlin is a private British Columbia company which owns, amongst other assets, Oro Gold de Mexico, S.A. de C.V., a private Mexican company that owns 100% of nine concessions, including the past producing La Trinidad mine, located adjacent to the Company’s core Plomosas project, Sinaloa.
  • Florida Canyon Gold Inc., entered into a binding agreement to sell its interests in the San Agustin mine, El Castillo mine, La Colorada mine, Cerro del Gallo project and San Antonio project (collectively the “Mexican Business Unit”) to Heliostar Metals Ltd. At closing, Heliostar will pay cash consideration of USD $5M to the Corporation. In addition, the Corporation is entitled to cash generated by the Mexican Business Unit prior to July 11, 2024 and cash of USD $5M generated from operating cash flow after July 16, 2024, subject to a minimum of USD $2M of net working capital being left in the Mexican Business Unit on closing.
  • Florida Canyon Gold Inc., advised the market that processes are underway to review strategic alternatives to maximize shareholder value on the Mexican business unit (El Castillo mine, Durango).
  • Florida Canyon Gold Inc., announced it has commenced trading on the TSX Venture Exchange. Common shares of the company will commence trading on the TSXV at the opening of the market on July 16, 2024, under the symbol “FCGV” (El Castillo mine, Durango).
  • Heliostar Metals Ltd., entered into a binding agreement with Florida Canyon Gold Inc (FCGI) to acquire a 100% interest in all of FCGI’s mining assets in Mexico for consideration of USD $5M. The projects being acquired were recently spun out from Argonaut Gold Inc. Pursuant to the transaction, Heliostar will acquire those FCGI subsidiaries which collectively own 100% of the following properties: La Colorada Mine, located in Sonora, producing gold from residual leaching of gold while on care and maintenance; San Agustin Mine (formerly the El Castillo Complex), an open pit heap leach gold mine, San Agustin, and a closed open pit heap leach gold mine, El Castillo, located in Durango; Cerro del Gallo, an advanced gold development project located in Guanajuato; and San Antonio, an advanced gold development project located in Baja California Sur. The transaction is expected to close in October 2024.  “As a condition to closing of the transaction, Heliostar and FCGI will enter into an agreement eliminating (a) up to USD $20M in contingent payments, which become payable to FCGI pursuant to the agreement under which Heliostar acquired the Ana Paula Project, and (b) up to USD $150M in conditional option payments and the issuance of a 2% net smelter returns royalty on the San Antonio Project, which might have become payable pursuant to the agreement under which Heliostar acquired an option on the San Antonio Project”. 
  • Sierra Metals Inc., announced the completion of the sale of the Cusi mine and surrounding mineral concessions located in Chihuahua to Minera San Bernabé, S.A. de C.V., a subsidiary of Silverco Mining Corp. (SMC). The company sold the Cusi Mine for USD $2.5M in cash and a 2.0% net smelter royalty in respect of the Cusi Mine granted in favour of Sierra Metals. SMC has the right to purchase one-half of the royalty at any time in exchange for a cash payment to Sierra Metals of USD $5.0M.

ON SOCIAL RESPONSIBILITY

  • SilverCrest Metals Inc., released its 2023 ESG report, which primarily focuses on its Las Chispas mine in Sonora, and also encompasses the surrounding communities in which it operates.
  • Alamos Gold Inc., released its 2023 ESG report, which outlines the company’s progress on its ESG performance in 2023 across its operations, projects and offices (Mulatos mine, Sonora).

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the picture above, vuggy silica in a high sulphidation epithermal system in a project in Jalisco, Mexico. Photo taken by Miguel A Heredia.

The Mining and Exploration News in Mexico: Highlights on the First Week of June, 2024

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Quartz-goethite stockwork veining with malachite stains

By Miguel A Heredia

During the 23th week of the year (June 3rd to June 9th, 2024), at least 28 press releases were announced by companies working in Mexico, and 1 news published by the media, with eleven announcing financing rounds, ten disclosing deals and corporate issues, four reporting resources and developments of their properties, two commenting on Mexican issues, one informing on exploration results, and one discussing social issues.  ON MEXICO ISSUES, Claudia Sheinbaum won the election with a significant majority and is likely to maintain restrictions on mining. Tocvan/Colibri and Atacama Copper reported the best drilling intercepts in Mexico on the first week of June, 2024. ON EXPLORATION, In Nayarit, Angel Wings reported results for two recently completed geophysical surveys at its La Reyna project.  ON MINING, no relevant news. ON FINANCING, Fortuna Silver declared that it is offering convertible senior notes due 2029 in an aggregate principal amount of USD $150M, and later on, it announced pricing of convertible senior Notes (San Jose mine, Oaxaca). Sierra Metals reported the refinancing of its $75M long-term debt facility and the entering into a new $95 million facility with new covenants, payment terms, and a 5-year term (Bolivar mine, Chihuahua).  Solaris filed a final short form prospectus to qualify the distribution of 7,150,000 common shares of the company at a price of $4.90 per common share and an additional 1,072,500 common shares at the offering price pursuant to an over-allotment option (La Verde project, Michoacan). Aura declared and approved the payment of dividend for the six month ending June, 2024 (Aranzazu mine, Zacatecas). Infinitum Copper closed its previously announced non-brokered private placement for gross proceeds of CAD $450K (La Adelita project, Sonora).  Silver Spruce announced that the TSX has granted an extension to the closing of the second tranche of its previously announced private placement (Pino de Plata project, Chihuahua). Orex closed the final tranche of its non-brokered private placement for gross proceeds of $662,992 (Sandra project, Durango). Starcore closed its non-brokered private placement, raising $500K in gross proceeds (San Martin mine, Queretaro).   Oroco completed its previously announced non-brokered private placement for gross proceeds of $6.3M (Santo Tomás project, Sinaloa). Dyna Resource extended its USD $4M commercial offtake agreement with Ocean Partners,  increased a revolving credit line to USD $12.5M, and announced that a major shareholder is set to purchase USD $2.5M shares of common stock of Dyna Resource (San Jose de Gracia mine, Sinaloa). ON RESOURCES AND DEVELOPMENT, Tocvan and its JV partner Colibri released results from its 2024 RC drilling program from its Pilar project in Sonora. Silver Storm added a second drill rig to commence a phase 2 drill program at its La Parrilla mine, Durango. Atacama Copper released results from five holes of a 10,000m diamond drilling program at its Cristina project, Chihuahua. ON DEALS AND CORPORATE ISSUES, Colibri announced the listing of its common shares on the Frankfurt Stock Exchange (Pilar project, Sonora). Discovery Silver notified the appointment of its Vice President, Investor Relations (Cordero project, Chihuahua). Sierra Metals filed its management information circular in connection with the company´s upcoming annual meeting of shareholders (Bolivar mine, Chihuahua). Sonoran Desert reported that it has been delayed in filing its audited annual financial statement for its financial year ended December 31, 2023, and the related Management’s Discussion and Analysis and Certifications by the Chief Executive Officer and Chief Financial Officer (Cuatro Hermanos project, Sonora). Bear Creek reported voting results from its annual general meeting of shareholders and announced the appointment of officers (Mercedes mine, Sonora).  Chesapeake reported that that it and Alderley Gold Corp., the Company’s wholly-owned subsidiary, have completed the acquisition of the patents, patent applications and certain other technology rights and assets for the sulphide leaching technology from Hycroft Mining Holding Corporation and its wholly-owned subsidiaries (Metates project, Durango). Angel Wing granted stock options to employees and consultants of the company (La Reyna, Nayarit).  Gatos Silver presented voting results from its annual general meeting of shareholders (Cerro Los Gatos mine, Chihuahua). DynaResource announced the appointment of its President, CEO, Interim CFO and Director (San Jose de Gracia mine, Sinaloa). Vizsla Silver announced that the independent proxy advisory firms ISS and Glass Lewis recommended that Vizsla Silver shareholders vote for the proposed arrangement with Vizsla Royalties Corp at the upcoming special meeting of shareholders. ON SOCIAL RESPONSIBILITY, Gold Royalty published its 2023 Sustainability Report an Asset Handbook (Cozamin mine, Zacatecas).

ON MEXICO ISSUE

  • Claudia Sheinbaum won the Mexican election with a significant majority and is likely to maintain restrictions on mining, including a de facto ban on new open pit mines. Sheinbaum secured the most ballots on Sunday in the nation’s 200-year democratic history, as much as 61% of the vote, according to a sample count by the country’s electoral authority. Challenges for her presidency include Mexico’s security situation, fiscal deficit, and strengthening currency. Sheinbaum’s technocratic approach and alignment with her mentor, outgoing President López Obrador, raise questions about her independence and ability to address key issues facing Mexico.
  • Tocvan Ventures Corp/Colibri Resources Corporation and Atacama Copper Corporation reported the best drilling intercepts in Mexico on the first week of June, 2024. Details are shown in the table below:

ON EXPLORATION

  • Angel Wing Metals Inc., reported results for two recently completed geophysical surveys at its La Reyna project, Nayarit. Results from the initial Induced Polarization (IP) survey and Hybrid Controlled Source Audio Magneto-Telluric (HSAMT) survey have provided valuable information to improve the company’s understanding of this priority target area. “Multiple anomalies were identified by the IP survey for follow up drilling, the strongest of which underlies outcrop exposures of mineralized and altered rocks that host anomalous disseminated gold. IP has also identified or confirmed several new prospects for drilling that correlate well with noted mineralization along structural trends at surface including La Feña, El Zorillo, San Ramon, Dolorosa, El Polo, Celeste, and La Reyna 2. The HSAMT survey has successfully refined the location and attitude of several important structural controls to mineralization that were observed at surface. In addition, it has identified several buried anomalies between a depth of 50 to 300m and has identified the location of a potential intrusion and feeder zone that may be of importance to the district scale mineralization”.

ON MINING

  • No relevant news.

ON FINANCING

  • Fortuna Silver Mines Inc., announced that it is offering convertible senior notes due 2029 in an aggregate principal amount of USD $150M. The Company expects to grant the initial purchasers of the Notes an option for a period of 15 days to purchase up to an additional USD $22.5M aggregate principal amount of Notes. Net proceeds will be used to repay bank indebtedness, to fund working capital requirements, for general corporate purposes and to fund the repayment of its existing 4.65% senior subordinated unsecured convertible debentures, to the extent that such debentures are not converted into shares prior to the redemption date. Later on, the company notified that it has priced its previously announced offering of convertible senior notes due 2029. The company has granted the initial purchasers of the Notes an option for a period of 15 days to purchase up to an additional USD $22.5 million aggregate principal amount of Notes. The Notes will be issued at par value.  The Notes will bear cash interest semi-annually at a rate of 3.75% per annum. The initial conversion rate for the Notes will be 151.7220 common shares of Fortuna per USD $1,000 principal amount of Notes, equivalent to an initial conversion price of approximately USD $6.59 per share. The initial conversion rate represents a premium of approximately 30% relative to today’s closing sale price of the shares and is subject to adjustment in certain events (San Jose mine, Oaxaca).
  • Sierra Metals Inc., reported the refinancing of its $75M long-term debt facility and the entering into a new $95 million facility with new covenants, payment terms, and a 5-year term. The New Facility of $95M will be used to repay the existing $75M loan and the additional $20M will be earmarked for high-return capital projects as well as for transaction fees and expenses. Capital expenditures include the development below the 1120 level and the completion of the shaft at the Yauricocha mine in Peru, as well as for mine developments of over 8,000 meters, a new ore pass, and the initial engineering works on a new tailings dam facility at the Bolivar mine in Chihuahua, Mexico.
  • Solaris Resources Inc., filed a final short form prospectus dated June 3, 2024 to qualify the distribution of 7,150,000 common shares of the company at a price of $4.90 per common share and an additional 1,072,500 common shares at the offering price pursuant to an over-allotment option (La Verde property, Michoacan).
  • Aura Minerals Inc., declared and approved the payment of a dividend of USD $0.35 per common share (approximately USD $25.4M in total) for the six month ending June, 2024. The dividend will be paid in dividend in US dollars on June 28, 2024, to shareholders of record as of the close of business on June 20, 2024 (Aranzazu mine, Zacatecas).
  • Infinitum Copper Corp., closed its previously announced non-brokered private placement for gross proceeds of CAD $450K for the sale of 11,250,000 units at a price of CAD $0.04 per unit. Gross proceeds will be used to re-commencing operations at La Adelita project, Sonora. The company plans to clear a path to the existing adit at Cerro Grande and commence the construction of a short 3m x 3m drive to access the mineralized body identified in earlier drilling campaigns.   
  • Silver Spruce Resources Inc., announced that the TSX has granted an extension to the closing of the second tranche of its previously announced private placement. The company is now required to close the second tranche of the private placement on or before June 14, 2024, but expects to do so in advance thereof (Pino de Plata project, Chihuahua).
  • Orex Minerals Inc., closed the final tranche of its non-brokered private placement for gross proceeds of $662,992. The final tranche was comprised of 4,419,951 units of the company issued at a price of $0.15 per unit. In total, the company raised $1M pursuant to the offering, having previously closed a tranche on May 10, 2024, that raised an aggregate of $337K. The company intends to use the net proceeds from the offering for working capital requirements and other general corporate purposes, which includes legal and financing fees as part of this offering (Sandra project, Durango).
  • Starcore International Mines Ltd., closed its non-brokered private placement, raising $500K in gross proceeds through the issuance of 3,333,333 units at a price of $0.15 per unit. Gross proceeds will be used primarily to conduct metallurgical testing of the carbonaceous ore at Starcore’s San Martin Mine operations in Queretaro.
  • Oroco Resources Corp., completed its previously announced non-brokered private placement for gross proceeds of $6.3M by the issuance of 14,051,127 units of the company at a price of $0.45 per unit. Oroco will use the net proceeds to advance its Santo Tomás project in Sinaloa, as well as working capital and other general corporate purposes.
  • Dyna Resource extended its commercial offtake agreement of USD $4M with Ocean Partners through December 2028 with revised terms including a temporary additional credit line and to increase revolving credit line to USD $12.5M. Additionally, major shareholder Golden Post LLC is set to purchase USD $2.5M shares at a price of USD $1.61 per share. These developments are expected to provide financial support and opportunities for DynaResource´s growth and operations.

ON RESOURCES AND DEVELOPMENT

  • Tocvan Ventures Corp., and its JV partner Colibri Resource Corporation released results from its 2024 RC drilling program from its Pilar project in Sonora. Drilling highlights are shown in the table below:

Over 2,700 meters have been drilled to date for the 2024 program. Results for eight drill holes are currently pending analysis. Drilling is ongoing at Pilar project in Sonora.  

  • Silver Storm Mining Ltd., added a second drill rig to commence a phase 2 drill program at its La Parrilla mine, Durango. The Phase 2 diamond drill program will consist of 7,500m and will be completed over the next three months following up on the initial holes drilled with the aim of converting inferred mineralization to indicated resources.
  • Atacama Copper Corporation released results from five holes of a 10,000m diamond drilling program at its Cristina project in Chihuahua. Drilling highlights (true widths reported) , all from the eastern portion of the Main Guadalupe Vein System include holes ACD24-226 with 0.63 g/t Au, 60 g/t Ag, 1.4% Zn, 0.6% Pb, and 0.04% Cu (2.5 g/t AuEq) over 22m, including 1.08 g/t Au, 283 g/t Ag, 3.8% Zn, 1.5% Pb, and 0.17% Cu (7.87 g/t AuEq) over 1.3m, plus 1.36 g/t Au, 87 g/t Ag, 3.3% Zn, 1.8% Pb, and 0.06% Cu (5.09 g/t AuEq) over 2.7m; hole ACD24-229 with 0.93 g/t Au, 114 g/t Ag, 2.6% Zn, 1.4% Pb, and 0.23% Cu (4.76 g/t AuEq) over 3.8m, including 0.77 g/t Au, 214 g/t Ag, 5.2% Zn, 2.4% Pb, and 0.45% Cu (8.1% AuEq) over 1.8m, plus 1.49 g/t Au, 31 g/t Ag, 0.8% Zn, 0.2% Pb, and 0.02% Cu (2.49 g/t AuEq) over 14.5m, including 3.32 g/t Au, 46 g/t Ag, 0.9% Zn, 0.3% Pb, and 0.01% Cu (14.88 g/t AuEq) over 5m, including 13.8 g/t Au, 30 g/t Ag, 1% Zn, 0.4% Pb, and 0.01% Cu (5.54 g/t AuEq) over 0.8m; and hole ACD24-230 with 0.62 g/t Au, 300 g/t Ag, 1.1% Zn, 0.4% Pb, and 0.01% Cu (5.54 g/t AuEq) over 2.4m, including 0.76 g/t Au, 867 g/t Ag, 2.1% Zn, 0.6% Pb, and 0.01% Cu (14.13 g/t AuEq) over 0.8m, plus 0.53 g/t Au, 13 g/t Ag, 0.9% Zn, 0.3% Pb, and 0.04% Cu (1.32 g/t AuEq) over 49m, including 4.11 g/t Au, 49 g/t Ag, 1.1% Zn, 0.2% Pb, and 0.03% Cu (5.48 g/t AuEq) over 2.70m, including 11.05 g/t Au, 65 g/t Ag, 1.2% Zn, 0.3% Pb, and 0.03% Cu (12.73 g/t AuEq) over 0.8m, and including 1.65 g/t Au, 50 g/t Ag, 5.7% Zn, 0.9% Pb, and 0.26% Cu (6.11 g/t AuEq) over 2.6m. “These latest holes continue to support our goal of delineating and expanding the known higher-grade zones within the Guadalupe vein system to define a robust underground resource at Cristina. Not only are we seeing the expected higher-grade zones, but these are frequently set within broader intervals of lower grade material that may be amenable to bulk underground mining as is carried out successfully at Fresnillo’s nearby San Julian mine.”

ON DEALS AND CORPORATE ISSUES

  • Colibri Resource Corporation announces the listing of its common shares on the Frankfurt Stock Exchange (FSE) under the trading symbol “2CO1” (Pilar project, Sonora).
  • Discovery Silver Corp., notified the appointment of its Vice President, Investor Relations effective immediately (Cordero project, Chihuahua).
  • Sierra Metals Inc., filed its management information circular in connection with the company´s upcoming annual meeting of shareholders. The Meeting will be held on Tuesday, June 25, 2024 at 10:00 a.m. Eastern Time (Bolivar mine, Chihuahua).
  • Sonoran Desert Copper Corporation reported that it has been delayed in filing its audited annual financial statement for its financial year ended December 31, 2023, and the related Management’s Discussion and Analysis and Certifications by the Chief Executive Officer and Chief Financial Officer. The Issuer therefore applied to the British Columbia Securities Commission, the Alberta Securities Commission, and the Autorite des marches financiers (Quebec) pursuant to Part 4 of the National Policy 12-203 for a Management Cease Trade Order as an alternative to a general Cease Trade Order in connection with the Default of the Required Filings. (Cuatro Hermanos project, Sonora).
  • Bear Creek Mining Corporation reported voting results from its annual general meeting of shareholders and announced the appointment of officers (Mercedes mine, Sonora).
  • Chesapeake Gold Corp., reported that that it and Alderley Gold Corp., the Company’s wholly-owned subsidiary, have completed the acquisition of the patents, patent applications and certain other technology rights and assets for the sulphide leaching technology from Hycroft Mining Holding Corporation and its wholly-owned subsidiaries. On closing, Chesapeake paid $2M in cash and issued 1,026,518 common shares of the company at a deemed share price of $2.92 per share (Metates project, Durango).
  • Angel Wing Metals Inc., granted stock options to employees and consultants of the company. It granted 1,055,000 stock options at an exercise price of $0.15 (La Reyna, Nayarit).
  • Gatos Silver Inc., presented voting results from its annual general meeting of shareholders (Cerro Los Gatos mine, Chihuahua).
  • DynaResource Inc., announced the appointment of its President, CEO, Interim CFO and Director. It also announced that the former President and CEO resigned and will continue to assume the role of Chairman of the Board of Directors (San Jose de Gracia mine, Sinaloa).
  • Vizsla Silver Corp., announced that the independent proxy advisory firms ISS and Glass Lewis recommended that Vizsla Silver shareholders vote for the proposed arrangement with Vizsla Royalties Corp at the upcoming special meeting of shareholders. This spinout by way of a plan of arrangement is seen as a valuable opportunity for shareholders to create additional exposure to the Panuco district and potential new discoveries. The meeting is scheduled for June 17, 2024, in Vancouver, British Columbia.

ON SOCIAL RESPONSIBILITY

  • Gold Royalty Corp., published its 2023 Sustainability Report an Asset Handbook. Highlights include an announced inaugural sustainability-linked-co-investment of $300K provided to enhance the sustainability impact in one their mines; its portfolio had a carbon intensity of 0.25 T CO2E/GEO, representing one of the lowest carbon intensities in the royalty and streaming sector; its contribution to diverse communities causes, including arts, culture, scholarships, and mental health; and the 100% review of new royalty and streaming agreements and opportunities through their enhanced ESG due diligence process (Cozamine mine., Zacatecas).

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the picture above, quartz-goethite stockwork veining with malachite stains in an IOCG system in a project in Sonora, Mexico. Photo taken by Miguel A Heredia.