Check back later today for Daniel’s Den and visit the BMR comments section for updates and helpful information.
1. Gold has traded between $1,255 and $1,263 so far today…as of 7:00 am Pacific, bullion has climbed $6 an ounce to $1,261…Silver is up 3 cents to $16.09…a couple of good signs if you’re a contrarian – hedge funds and money managers cut their net long positions in COMEX Gold contracts in the week to December 12, while they switched to a net short stance in Silver for the first time in 5 months according to data released Friday…Gold appeared to bottom last week in the upper $1,230’s at key Fib. and RSI(14) support…Copper and Nickel have added slightly to their strong gains of last week with Copper at $3.11 and Nickel at $5.28…Crude Oil is flat at $57.33 while the U.S. Dollar Index has fallen one-tenth of a point to 93.91…American optimism on the economy is reaching new heights…homebuilder confidence was just reported at an 18-year high while the CNBC All-American Economic Survey has found that for the first time in at least 11 years, more than half of respondents to the survey rated the economy as good or excellent, while a near record 41% expected the economy to improve in the next year…
2. U.S. equity markets are hot to start the final week before Christmas with the street cheering a major Republican tax reform package about to be passed by Congress…the proposed $1.5 trillion tax cut, which should provide significant fiscal stimulus to the economy, is expected to be put into law by year-end as Republicans have the votes in both the Senate and House for passage…a slew of corporate deals also lifted sentiment this morning…as of 7:00 am Pacific, the Dow has soared 191 points…in Toronto, the TSX has climbed 125 points while the Venture has added 1 point to 802…Osisko Metals (OM, TSX-V) is acquiring Pine Point Mining (ZINC, TSX-V) in an all-stock transaction, solidifying Osisko’s position as one of the most aggressive base metal exploration and development companies at a strategic time in the base metal cycle…a spinco is also being created out of Pine Point’s project in the Northwest Territories…Skeena Resources (SKE, TSX-V) was halted just prior to open, pending news…another Venture mining deal, Canadian Mining (CNG, TSX-V), has been attracted to the marijuana sector, constituting a change of business for CNG as announced this morning…
3. Datametrex AI (DM, TSX-V) is on the move again this morning with the company announcing that its Graph Blockchain joint venture with San Francisco-based partner Bitnine Global has commenced building a prototype Blockchain and Graph Database solution to monitor data at electric vehicle charging stations…DM is active on multiple fronts with the stock doubling in value this month on huge volume following some key announcements…DM opened at 37.5 cents this morning and is up 5.5 cents at 40 cents through the first 30 minutes of trading…
4. Fintech Select (FTEC, TSX-V) announced this morning that the Beta testing of the Selectcoin platform has been successful, and the company will now officially begin launching the Selectcoin platform across its retail locations and other strategically positioned pop-up shops…upon the company’s approval of the Beta test and the pre-production cards last week, over 10,000 Selectcoin swipe cards have been printed…Fintech Select has also invited shareholders and the general public to its launch event this Thursday to view the Selectcoin platform in action…
5. Wolfden Resources (WLF, TSX-V) has commenced what should be an exciting drill program at its 100%-owned Pickett Mountain Project in northern Maine…the property comprises 6,871 acres of timberland and all mineral, mining, subsurface and surface rights and includes the Pickett Mountain historic VMS deposit which is believed to be one of the highest-grade undeveloped VMS deposits in North America, discovered by Getty Mines in the late 1970’s…it has been traced over a strike length of approximately 900 m and remains open along trend and at depth…Wolfden’s first phase exploration program will continue into 2018 and is expected to include some 10,000 m of delineation and expansion drilling…a large loop ground electromagnetic survey (EM) and downhole EM surveys will be completed concurrent with the drilling program to assist in targeting…
6. Cornerstone Metals (CCC, TSX-V) has commenced a verification diamond drilling program at its Carlin Vanadium Project in Nevada as the company works toward upgrading the historic resource to a current resource…in addition, Cornerstone requires material to conduct metallurgical testwork on Vanadium recoveries while it will also be investigating the presence and grade of other accompanying elements such as Zinc, Silver and Cobalt…the 20 vertical hole HQ core program is designed to infill the existing 132-hole drill pattern that currently defines the Vanadium deposit, resulting in an improved drill hole density of approximately 45 m spacing…Carlin contains one of the United States’ largest known primary deposits of Vanadium, an industrial mineral critical to industries ranging from steel to utility scale battery storage technology…the company’s analysis illustrates that the Nevada site’s vanadium deposit features a combination of high-quality grade and unsurpassed accessibility…
7. Orocobre (ORL, TSX) provided an update this morning on expected Lithium carbonate pricing, stating that tight market conditions have resulted in increased contract prices being negotiated, which, combined with orders carried over from 2017, are expected to result in pricing for the June half-year 2018 approximately 25% higher than prices received in the December half-year 2017…the company will meet previous pricing guidance for the December quarter of more than $11,000 (U.S.)/tonne…CEO Richard Seville commented, “Contract prices are rising in all markets and we expect this to continue in the foreseeable future as new demand for lithium chemicals exceeds new supply.”
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GGI – thx Canaccord! whacked out 400K , looks to be based on their PP from 4 mths ago.
Comment by david — December 18, 2017 @ 9:23 am
I believe you’re correct on that, David…Sprott took half the financing, so none of that is going to be coming out…so there would be very little left to absorb…
Comment by Jon - BMR — December 18, 2017 @ 9:31 am
Hi Jon, do you think AIS will make its move this week? I am heavily invested there but the lack of volume and news is making me question my investments. There are a lot of other stocks moving now and my cash is pretty much sitting and doing nothing there. Give us some insight please…
Comment by Lady — December 18, 2017 @ 9:46 am
Good it could turn any time now, Jon some rumblings of the rest of the holes coming out this week, what are the chances of that happening. Not really a rumour guy, but curious.
Comment by Laddy — December 18, 2017 @ 9:52 am
Takeout on LIX at $2.61 per share (approx. $250 million)…certainly shows how cheap AIS currently is…
NEXTVIEW TO ACQUIRE LITHIUM X ENERGY CORP.
Lithium X Energy Corp. and Nextview New Energy Lion Hong Kong Ltd. have entered into a definitive agreement, pursuant to which Nextview has agreed to acquire all of the issued and outstanding common shares and warrants of Lithium X. Lithium X’s flagship project, Sal de los Angeles lithium brine project, as well as Arizaro Lithium Brine Project are located in the prolific “Lithium Triangle” in mining friendly Salta province, Argentina.
Transaction highlights:
Cash offer of $2.61 per share
Directors and officers of Lithium X holding approximately 6% of the outstanding Lithium X shares have entered into voting agreements to support the transaction
Under the terms of the Arrangement Agreement, each common share of Lithium X will be purchased by NextView at a price of $2.61 per share (the “Share Consideration”), and each warrant of Lithium X will be purchased by NextView at a price of $0.01 per warrant (the “Warrant Consideration”). The consideration to be received by the Lithium X shareholders pursuant to the Arrangement represents a premium of 29.4% to the 20-day volume-weighted average trading price of the Lithium X shares on the TSX Venture Exchange ending on December 15, 2017 and a 22.5% premium to the closing price of the Lithium X shares on the TSX Venture Exchange on December 15, 2017. The Warrant Consideration is nominal, reflecting the fact that the value of the warrants is being crystalized at an amount less than their $2.75 strike price. On completion of the Arrangement, all options to purchase Lithium X shares that have not been exercised will be automatically terminated under the terms of Lithium X’s option plan. All restricted share units will be redeemed for a cash amount per RSU equal to the Share Consideration.
Benefits to Lithium X Shareholders
Provides immediate liquidity to common shareholders in the form of $2.61 per share
Represents premium to shareholders of 29.4% based on the 20-day VWAP ending on December 15, 2017
Removes future financing, dilution, commodity, construction, execution and country risk
Transaction represents a premium of 37.4% over the highest price at which Lithium X has completed a financing ($1.90) since becoming a lithium explorer and developer
Lithium X Chairman, Paul Matysek and Brian Paes-Braga, Founder, CEO and Director, stated: “Today’s announcement successfully delivers on our team’s commitment to maximize value for our shareholders. Lithium X was founded at a minimal market value and went public two years ago, with a mission to help wean the world off fossil fuels through the development of high quality lithium deposits. We believe this $265 million transaction puts our flagship asset, Sal de los Angeles, in the hands of a well-funded, technically capable team. We thank NextView and its partners for their commitment to this transaction and provide our best wishes in their continuing efforts to complete on our mission.”
Mr. Yaping He, Managing Partner of NextView, stated: “The acquisition of Lithium X’s wholly owned flagship project, the Sal de los Angeles lithium project (the “SDLA Project”) represents a key cornerstone investment in NextView’s strategy of developing a leading global player in the new energy sector. The SDLA Project has a mineral resource exceeding 2 million tonnes of lithium carbonate equivalent (“LCE”).”
Comment by Jon - BMR — December 18, 2017 @ 10:26 am
Jon, do you think we hear from Steve before Xmas or does he wait for the New Year to give us an update.
Comment by pole — December 18, 2017 @ 10:48 am
Makes sense that we would hear something, pole…
Comment by Jon - BMR — December 18, 2017 @ 10:49 am
Thanks Jon. A NR before the holidays would be great.
Comment by pole — December 18, 2017 @ 10:58 am
Strong day for WHM, definitely some significant accumulation going on there as per Daniel’s reporting.
Comment by Jon - BMR — December 18, 2017 @ 11:53 am
Have to agree … WHM has everything the market is looking for as Daniel pointed out.
Comment by Weatheritout80 — December 18, 2017 @ 12:03 pm
AIS – bought more this morning. Nice to see a lithium takeover today. Should bold well for AIS.
Comment by Dan1 — December 18, 2017 @ 12:06 pm
A little volume on IMR today as well. Venture stocks are really waking up. Hopefully they do get the drill turning by February.
Comment by Dan1 — December 18, 2017 @ 12:12 pm
Jon,there’s been such a huge lid or wall on the CSR in the .30 cent range.Can you explain why?
Why dump with all the positives BMR has outlined?
Thank you.
Comment by GoldenFalcons — December 18, 2017 @ 12:22 pm
IMR waking up… half million volume
Comment by johnz — December 18, 2017 @ 12:28 pm
BMR:
Awesome call on the WHM.
Comment by GoldenFalcons — December 18, 2017 @ 12:28 pm
Just normal technical trading, GoldenFalcons…the great thing about “walls” is that when they come down, kaboom…
Comment by Jon - BMR — December 18, 2017 @ 12:38 pm
Don’t mean to be a broken record on CSR. We saw amazing grades of cobalt in the samples. Any thoughts as to what type of grades will make the market happy via assays?
Comment by flyinthruu — December 18, 2017 @ 1:02 pm
The market is very happy with those numbers, flyinthru, as they are stellar and the stock is up 50% this month…it’s other triggers that are coming together, such as the name change, continued underground work and the technology component (Re-2OX) of this play, that will soon alter the dynamics
Comment by Jon - BMR — December 18, 2017 @ 1:08 pm
The market is very happy with those numbers, flyinthru, as they are stellar and the stock is up 50% this month…it’s other triggers that are coming together, such as the name change, continued underground work and the technology component (Re-2OX) of this play, that will soon alter the dynamics…
Comment by BMR — December 18, 2017 @ 1:08 pm
I had to go back to the news release and realized I missed some key information based on what you’ve presented – “The remainder of the sampled material will be submitted to SGS Laboratories in Lakefield, Ontario to use the Re-2OX process to develop samples for evaluation for the Asian battery market.” Yeah, I can see why you’re excited…thanks again.
Comment by flyinthruu — December 18, 2017 @ 1:33 pm
Jon:
I hope your reference to “kaboom” translates into “cha ching”.
We wait and hope that the future for the company is a bright one.
Thank you.
Comment by GoldenFalcons — December 18, 2017 @ 2:02 pm
Very interesting, imagine what this could mean for the district – Eskay Creek going back into production??
SKEENA SECURES OPTION TO ACQUIRE ESKAY CREEK & ANNOUNCES STRATEGIC INVESTMENT FROM BARRICK
Skeena Resources Ltd. has signed an agreement with Barrick Gold Inc. granting an option for the company to acquire a 100-per-cent interest in the past-producing Eskay Creek property, located in the Golden Triangle of northwest British Columbia. Barrick Gold will also complete a strategic investment with the company for gross proceeds of $1-million.
Skeena’s chief executive officer, Walter Coles Jr., commented: “Eskay Creek was a remarkable discovery that became an extraordinary mine. It produced 3.3 million ounces of gold and 160 million ounces of silver from 2.2 million tonnes of ore from 1994 until closure in 2008. We are honoured that Barrick has given us an opportunity to investigate and potentially revitalize one of Canada’s highest-grade past-producing mines.”
Under the terms of the option agreement, Skeena may acquire a 100-per-cent interest in Eskay in consideration for:
– Incurring $3.5-million in exploration expenditures on the property prior to Dec. 18, 2020, of which $1.5-million must be incurred prior to Dec. 18, 2019;
– Payment to Barrick of $10-million once: (i) the exploration requirement has been met; (ii) all regulatory approvals have been received; and (iii) all permit transfers and underlying agreement consents have been obtained;
– Reimbursing Barrick for: (i) reclamation expenditures incurred during the option period; and (ii) assuming the bond amount on the property, collectively up to a maximum amount of $7.7-million, provided that the purchase price will be reduced if those amounts, in aggregate, exceed $7.7-million.
Barrick will retain a 1.0-per-cent net smelter return (NSR) on all parts of the property which are not already subject to royalties. In addition, Barrick will maintain a back-in right to purchase a 51-per-cent interest in the property. The back-in right may only be exercised by Barrick for a 12-month period following notification by Skeena of a National Instrument 43-101 resource on the property of at least 1.5 million ounces of contained gold (or equivalent). To exercise the back-in right, Barrick will pay Skeena up to three times its cumulative expense on the property. As part of the back-in, Barrick would also reimburse to Skeena the purchase price and assume any bonding requirement for its proportionate interest, following which the parties will form a joint venture.
In connection with the strategic investment, Skeena will issue 1.25 million flow-through common shares at a price of 80 cents per share for gross proceeds of $1-million, subject to approval by the TSX Venture Exchange. The net proceeds of the financing will be used to incur Canadian exploration expenses. All the securities issued under this financing will be subject to a hold period of four months and one day from the closing date of the offering. Barrick Gold will be the end purchaser of the shares.
Eskay Creek overview
Discovered in the Golden Triangle in 1988, the former Eskay Creek mine produced approximately 3.3 million ounces of gold and 160 million ounces of silver at average grades of 45 grams per tonne (g/t) gold and 2,224 g/t silver, and was once the world’s highest-grade gold mine and fifth-largest silver mine by volume.
A precious-and-base-metal-rich volcanogenic massive sulphide (VMS) deposit, the Eskay mineralization has been the focus of considerable exploration activity dating back to 1932. Exploration drilling in 1988 led to the discovery of the 21A and 21B zones, followed by underground development of the 21B zone starting in 1990, with the official opening of the Eskay Creek mine in 1994. Over the 14-year life of the mine, approximately 2.2 million tonnes of ore were mined with cut-off grades ranging from 12 to 15 g/t gold equivalent for mill ore and 30 g/t gold equivalent for smelter ore.
Eskay is endowed with excellent infrastructure, including all-weather road access and proximity to the new 287-kilovolt Northwest Transmission Line. The property consists of eight mineral leases, two surface leases and several unpatented mining claims totalling 6,151 hectares.
Eskay is in the traditional territory of the Tahltan Nation. Skeena has a positive working relationship with the Tahltan central government (TCG) and recently signed exploration and communication agreements with the TCG that cover the company’s other projects in Tahltan territory (see new releases dated Sept. 25, 2017, and Jan. 24, 2017).
Proposed work
Barrick’s proprietary Eskay database has been held confidentially since the mine closed in 2008. The Skeena technical team is currently compiling and reviewing more than 20 years of exploration and production information, with the aim of building upon the previous geological understanding to develop an upgraded geological model. Of utmost importance will be the reconciliation of mined material to determine the exploration potential of remnant zones. In an effort to expedite a first phase of confirmation drilling on the property, the company is initiating surface drill permitting.
Qualified persons
The scientific and technical information contained in this news release has been reviewed and approved by Skeena’s vice-president of exploration, Rupert Allan, PGeol, a qualified person as defined by National Instrument 43-101.
About Skeena Resources Ltd.
Skeena is a junior Canadian mining exploration company focused on developing prospective precious and base metal properties in the Golden Triangle of northwest British Columbia, Canada. The company’s primary activities are the exploration and development of the past-producing Snip gold mine, acquired from Barrick, and the past-producing Porter Idaho silver mine. The company also recently announced preliminary economic assessment results for the Spectrum-GJ copper-gold porphyry project.
We seek Safe Harbor.
Comment by Jon - BMR — December 18, 2017 @ 3:41 pm
Hey NJ Jon, maybe I’ll finally ask a challenging question(s). CSR Re-2ox is proprietary. How long does that last for? Is it like a patent where it only lasts for “x-amount” of years? In addition, any estimate how much % of revenue the company could generate converting the used batteries to re-usable material?
Comment by flyinthruu — December 18, 2017 @ 4:43 pm
Big news on Skeena, yes I will finally get paid! Lol I almost sold off my shares last night… something said wait! And DM holly jack pot. Jon, how far do you think this could run? I’m thinking it can easily double yet again! Thoughts? Things are rolling along wonderfully!!!
Comment by Patrick Lamane — December 18, 2017 @ 8:45 pm
A.I.S. Resources Makes Significant Progress with Pilot Plant Production Chemistry
VANCOUVER, British Columbia, Dec. 19, 2017 /CNW/ — A.I.S. Resources Limited (TSX-V: AIS) (OTCQB: AISSF) (the “Company” or “AIS”) announces it has completed the mass balance chemistry and process engineering that will be used to determine the raw materials used to purify the lithium brines from its Guayatayoc project. This process engineering information will be used in the design, engineering, and construction of an 8-10,000 tonne lithium carbonate plant.
The analysis used fractional crystallization and ion exchange resins to purify the lithium carbonate to higher than 99.5% Lithium Carbonate. The work was conducted in Salta and will be replicated at Guayatayoc at a later stage to ensure that the reduction in air pressure has no material impact.
The project is located in Jujuy Province along highway 11, 15 kilometres from the town of Abralaite in the Puna plateau at 3,412m. The completion of this work allows the project team led by Phil Thomas, COO to focus on drilling, and production geohydrology when permits are issued.
This concentrate will be converted into lithium carbonate samples for customers globally to begin qualifying AIS’s lithium products. Samples will be provided to those companies that have expressed interest in buying the lithium carbonate for their assessment. The pilot plants we have access to have a production capacity of approximately 500kg per week. Full sample production will commence in the new year.
Phil Thomas stated “This is a significant milestone we’ve achieved. We now have proof of process, that can be scaled up to 10,000 tonnes. The data we have is extremely valuable covering all the phases in the process, and after pumping tests are completed will allow us to go to design, engineering and construction. We are making good progress on our drilling application and will commence drilling Guayatayoc as soon as it is granted. Having immediate access to large pilot plants and a laboratory has saved many hours of downtime and allowed us to complete raw material calculations and manage various brine concentrations. We are delighted with our results.”
Qualified Person
Phillip Thomas, BSc Geol, MBusM, MAIG, MAIMVA, (CMV), a Qualified Person as defined under NI 43-101 regulations, has reviewed the technical information that forms the basis for portions of this news release, and has approved the disclosure herein. Mr. Thomas is not independent of the Company as he is an officer and shareholder.
On Behalf of the Board of Directors,
A.I.S. Resources Limited
Marc Enright-Morin
President and CEO
Comment by Jon - BMR — December 19, 2017 @ 5:35 am