On October 7th, Kootenay Silver announced a $2-million investment from Sprott Asset Management through a non-brokered private placement of 7.7 million units at $0.26 per unit. Management has been able to reduce the cash cost per silver ounce by more than 50% by focusing on cost control and operating efficiencies. The Complex was acquired through the business combination with U.S. The property hosts three active shafts and two process facilities, the Galena mill which currently produces a silver-lead concentrate and the Coeur mill which is on care-and-maintenance. The Company’s claim holdings cover nearly 9,000 hectares. The 100%-owned Galena Complex is located in Idaho’s prolific Silver Valley, a district famous for producing silver, lead, zinc, and copper from such well-known operations as the Bunker Hill, Sunshine, and Lucky Friday mines. Sprott committed up to US$20 million to fund capital improvements and operations for the first year to earn a 40 percent interest in the Company’s Galena Complex. Eric Sprott to recapitalize the mining operations at the Galena Complex, located in the Silver Valley of Northwest Idaho. On Sept 19th, 2019, Americas Gold and Silver Corporation announced a strategic joint venture agreement with Mr. Without further adieu, here are 7 junior silver miners where Eric Sprott decided to invest his own money in 2019… Sprott is probably making other investments that aren’t required to be disclosed until they reach the 10% ownership threshold. In particular, we will focus on silver junior mining stocks that Eric Sprott has purchased during 2019. But he does have an impressive track record, so we think it is worth taking a closer look at the companies he has been investing in lately. Just because Eric is investing in certain junior mining stocks does not necessarily mean they will be winners or that you should follow him. The upside potential is huge compared to the downside risk, setting up an incredible asymmetric investment opportunity. An 8x move in the silver price is going to translate into 20x or more for many junior silver companies. Assuming a gold/silver ratio of 60, this implies a silver price of at least $130. We recently made the case for $8,000 gold over the next 5 to 6 years. Sprott’s investments have the potential to increase by multiples. He has since been busy redeploying a portion of those massive gains into junior gold and silver miners at deeply discounted prices. Sprott retired from Kirkland Lake and sold a small portion of his investment. Owning 10% of a $10 billion company must be nice! Suffice it to say that Eric Sprott did very well on his equity position in the company.īut we suspect his greatest gains are still ahead. Kirkland Lake’s share price went up roughly 15x from 2015 to 2019, hitting a market cap of around $10 billion. He also served as the chairman of the board since November 2016 and was the chair of Kirkland Lake Gold Inc since February 2015. Finally, a maiden lithium resource by a neighbor adds more entrants into the James Bay Region, which helps a grassroots explorer.He invested heavily in Kirkland Lake Gold, holding roughly 10% of outstanding shares in 2019. A Top Pick precious and base metal explorer and developer delivers another high-grade intersection. A Top Pick royalty generator got a significant boost from a recent announcement by a major producer in Nevada. A Finland-focused explorer got help from its JV partner to remove a royalty overhang on its properties, while a royalty generator partnered with a major royalty company to acquire more assets in an environment of elevated financing risk for juniors.Ī lot to cover in Stock Talk this week as I am divesting a palladium-copper development project in Ontario to make room for a copper-gold explorer in southeast Australia. The upgrading of copper to medium-term critical mineral status should help investor sentiment, but the industry did not need any prodding before consolidating assets. The Exploration Insights Portfolio outperformed the resource equity ETFs led by a recently minted spinco. While both precious and base metals and the equities levered to them took a step back. Oil was the best-performing commodity last week due to cuts by two major producers. In the Weekly Market Digest, a major rating agency’s downgrading of the US credit rating hurt the markets. A US House Oversight subcommittee elevated the dialogue around unidentified anomalous phenomena (UAPs), formerly known as UFOs, to another level after conducting interviews with military intelligence whistleblowers, sparking global interest and a lot of online chatter. Although the truth may still be out there, apparently, it is classified.
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