The Junior Mining Charts Of The Week
Five notable junior charts that saw eventful price action and news flow last week
The junior mining sector had a tough go of it during the holiday-shortened Labor Day week. We begin with the good news stories, including an M&A transaction between Cunningham Mining and American Creek Resources (TSX-V:AMK). Cunningham has agreed to acquire all of the issued and outstanding common shares of American Creek at a price of $0.43 per share, in an arm's-length, all-cash transaction valued at approximately C$207 million on a fully diluted basis.
Junior mining speculators cheered the news and sent AMK shares soaring 81.6% higher during Friday’s trading session:
AMK.V (Daily)
Billionaire investor Eric Sprott owns 65,000,000 million AMK shares and is supportive of the deal. Mr. Sprott has agreed to vote his 14.5% stake in favor of the transaction.
Idaho gold & antimony developer Perpetua Resources (NYSE:PPTA, TSX:PPTA) received its much awaited federal permits from the U.S. Forest Service for its Stibnite Gold Project. PPTA shares initially spiked 20% on the morning of the news release. However, substantial profit taking Thursday afternoon and Friday still left PPTA -4% on the week:
PPTA (Daily)
Namibian copper developer Koryx Copper (TSX-V:KRY) experienced a 12.6% rise during an otherwise dreadful week for copper miners.
KRY.V (Daily)
The proximate cause for KRY’s share price appreciation was news that Osino founders Heye Daun and Alan Friedman were appointed to leadership roles at Koryx. Investors tend to follow management teams who have treated their capital with respect.
Heye Daun, incoming Executive Chairman stated: “After investing our own capital into Koryx earlier in 2024, we are delighted to now be joining the Board of Directors and to be taking a leading role in re-positioning Koryx as a successful Namibian copper developer with very significant scale potential. Our track record and experience, particularly in Namibia, in founding Osino and leading its rapid advancement from discovery to construction is a great example of our vision for Koryx Copper. That vision is to demonstrate the technical and economic feasibility of the Haib Copper Project (“Haib” or “the Project”) as the next great copper development asset in Africa. We plan to achieve this by financing the company, assembling a quality management team and then to permit and advance the project to construction readiness in as short a timeframe as possible.”
In the bad news department, Amex exploration (TSX-V:AMX), delivered a long overdue maiden resource estimate that came in about a million ounces of gold on the light side. The MRE for Amex’s Perron Project in the northwestern Abitibi region of Quebec demonstrated an open pit and underground stope constrained 594,100 of measured and indicated ounces at 4.28 g/t Au and 1,049,650 of inferred ounces at 3.80 g/t Au.
Investors sent AMX shares 40% lower on the news:
AMX.V (Daily)
Finally, the mining disaster du jour came from British Columbia gold/silver producer Ascot Resources (TSX:AOT). On Friday morning, after a troubled mine ramp-up process, Ascot told the market that it had made the decision to place its Premier Gold Mine on care & maintenance.
AOT.TO (Daily)
Ascot intends to spend 3-6 months on further mine development in order to open up more stoping areas at Premier. Further mine development and additional stoping areas are necessary in order to provide more ore feed to the mill. The company also hinted that more capital raising will be necessary, and there can be no assurance it will be able to raise the necessary funds to resume mining operations.
This week, I will be attending the 2024 Precious Metals Summit in Beaver Creek, Colorado. You can count on an update from me at Beaver Creek later in the week, followed by a full conference report video that will be published for premium subscribers next weekend.
DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, corporate presentations and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. This video is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.