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Junior Exploration Sector

Quebec junior Explor Resources exploring around Kidd Mine – Staff (Northern Ontario Business – May 17, 2016)

http://www.northernontariobusiness.com/

Glencore is wrapping up production at its Kidd Creek Mine in 2021, but a Rouyn-Noranda junior miner believes there’s more zinc and copper to be found.

Explor Resources has started a geophysical program to define targets on its properties, 20 kilometres north of Timmins, following by a 3,000-metre drilling program. The company’s group of properties – totalling 2,700 hectares – surround Glencore’s Kidd Creek Mine.

In a May 17 release, the company said exploration drilling to date has revealed a major fault structure running to the west of the Kidd Creek Mine in a northwest to southeast direction. Falconbridge had previously drilled to the southeast of the mine in 1998 with some encouraging results.

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Junior miners revolt against ASIC’s rules – by Paul Garvey (The Australian – May 16, 2016)

http://www.theaustralian.com.au/

The junior resources sector is preparing a revolt against the Australian Securities and Investments Commission, with the industry preparing to appeal directly to federal Resources Minister Josh Frydenberg for intervention over the regulator’s latest rule changes.

The Association of Mining and Exploration Companies, the peak body representing smaller resources players, will go directly to Canberra following the July election to argue against new ASIC restrictions on forward-looking statements.

ASIC last month released new guidelines that restrict what junior exploration companies can say about the economic potential of their discoveries. The crackdown has angered AMEC and a number of junior explorers, with the industry arguing that the changes will create a less transparent market and make it even harder to secure funding.

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Goldcorp Inc makes first move into Arctic with $520 million deal to buy Kaminak Gold Corp – by Peter Koven (Financial Post – May 13, 2016)

http://business.financialpost.com/

The $520-million sale of Kaminak Gold Corp. marks yet another success for mining entrepreneur Eira Thomas, whose companies have been on a major winning streak of late. “I’m really fortunate that I’ve had the opportunity to be involved in some terrific projects,” Kaminak’s chief executive said in an interview.

Ms. Thomas, 48, is known as the “Queen of Diamonds” because she discovered the Diavik diamond mine in the Northwest Territories in 1994. But her recent track record is just as notable.

She co-founded Lucara Diamond Corp., which made headlines around the world last year when it discovered the second-largest gem-quality diamond in history. Stornoway Diamond Corp., which she co-founded and led for several years, is close to bringing Quebec’s first diamond mine into production. They are two of the mining sector’s only bright spots of the past few years.

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Commentary: New takeover bid rules take effect in Canada – by Gesta Abols and Grant McGlaughlin (Northern Miner – May 9, 2016)

http://www.northernminer.com/

As of today, new takeover bid rules have taken effect across Canada. These new rules will undoubtedly have a significant impact on the Canadian mining sector, which accounts for approximately 40% of the number of listed companies on the Toronto Stock Exchange and TSX Venture Exchange.

The new rules are intended to enhance the quality and integrity of the takeover bid regime and rebalance the dynamic between bidders, target boards and target shareholders by facilitating target shareholders’ ability to make voluntary, informed and coordinated tender decisions; and providing target boards with additional time and discretion when responding to a takeover bid.

The key aspects of the new rules are:

• Bids must now be open for at least 105 days (up from 35 days) unless the target board (a) states in a news release that a shorter deposit period (not less than 35 days) is acceptable, or (b) has agreed to enter into, or determined to effect, an alternative transaction, in which case all contemporaneous takeover bids must remain open for a deposit period of at least 35 days.

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Nevsun Resources to buy Reservoir Minerals for $365 million (Reuters Canada – April 25, 2016)

http://ca.reuters.com/

(Reuters) – Canadian miner Nevsun Resources Ltd NSU.TO said it has agreed to buy Reservoir Minerals Inc RMC.V for about $365 million in cash and stock. Nevsun, which owns the Bisha copper-zinc mine in Eritrea, will pay two shares of Nevsun and $0.001 in cash for each Reservoir share, the company said on Sunday.

The deal values Reservoir shares at C$9.401 each, representing a 35 percent premium to its last close, based on Nevsun stock’s Friday closing price. Nevsun will also provide $135 million in financing to Reservoir, by buying about 12.2 million of Reservoir shares for $90.3 million and providing an unsecured cash loan of $44.7 million to Reservoir.

Vancouver-based Reservoir is a mining exploration and development company. Its flagship venture is the Timok copper and gold project in Serbia, which it owns in a joint venture with U.S.-based miner Freeport McMoRan Inc FCX.N.

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How crowdfunding site Klondike Strike is changing the way junior miners raise money – by Peter Koven (Financial Post – April 18, 2016)

http://business.financialpost.com/

Robert McLeod jumped on the first opportunity he saw to raise exploration dollars through crowdfunding. “In any industry, you have to be innovative to survive. Getting in and trying something new is always a good thing,” the chief executive of IDM Mining Ltd. said in an interview.

IDM is poised to be the mining industry’s first major crowdfunding success story. The company is raising $10 million, in part through crowdfunding from retail investors, to fund a drilling program in northwest British Columbia.

There could be many more deals of this nature to come. Investment dealer Red Cloud Klondike Strike Inc. has set up a website to solicit funds for junior mining vehicles directly from retail investors. Klondike Strike has three other deals on the go in addition to IDM, and chief executive Chad Williams said there are numerous others in the pipeline.

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The Canadian Shield Could Host the Next Bonanza Discovery: Eric Lemieux – by Patrice Fusillo (The Gold Report – April 14, 2016)

https://www.theaureport.com/

Gold supply is getting tighter, deposits of quality are getting rarer and the project development timeline is getting longer. Enter Canada. The Canadian Shield still offers the possibility of break-out discoveries, says PearTree Securities analyst Eric Lemieux. The recent spate of M&A activity points to the potential of the region, and Lemieux discusses several companies that are well positioned to add value.

The Gold Report: In the month since the Prospectors & Developers Association of Canada convention (PDAC), the markets have been holding steady. Has the “PDAC curse”—where mining equities fall after the PDAC convention—been broken?

Eric Lemieux: I hope so, although it really is still too early to say. Perhaps at this stage, with the drop in copper prices and gold in the $1,240/ounce range, we’re in a gray zone. However, there’s a certain sense of optimism based on the fact that we’re in the last amplitudes of a bottom.

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NEWS RELEASE: Harte Gold announces First Shipments of Bulk Sample Ore to Barrick Gold Inc., Geophysical Survey and 5,000 meter Drill Program

Toronto – April 14, 2016 – HARTE GOLD CORP. (“Harte Gold”) (TSX: HRT / OTC: HRTFF / Frankfurt (FSE: H4O) Harte Gold announced today that it has begun shipping bulk sample ore to Barrick Gold Inc.’s Hemlo Mill for processing and has retained Crone Geophysics and Exploration Ltd. to conduct a deep geophysical survey to be followed by a 5,000 m drill program.

First Ore Shipments

Harte Gold is pleased to report that it has begun shipping bulk sample ore to Barrick Gold Corp. for processing at the Hemlo Mill. The shipments are part of Harte Gold’s 70,000 tonne advanced exploration bulk sample at the Sugar Zone property in northern Ontario. The Bulk Sample is on budget and on schedule, with completion expected prior to the end of the current year.

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TSX Venture Exchange rules out mass culling of ‘zombies’ – by Peter Koven (Financial Post – April 6, 2016)

http://business.financialpost.com/

Despite the hopes of some critics, a culling of the TSX Venture Exchange is not about to happen. Venture president John McCoach confirmed that while the exchange is looking at every possible option to “revitalize” its business model, a mass delisting has been ruled out.

“We did look at that very seriously,” he said in an interview. “We think there’s room for making our continued listings standards simpler. But as far as moving the bar up or down, we think it’s in about the right place.”

The Venture has simply been mauled by the commodity price collapse and lack of financing for junior resource firms. The S&P/TSX Venture Composite Index, despite rising 11 per cent this year, is down an astonishing 83 per cent from its 2007 peak.

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Eric Sprott bets millions on a gold producer and 10 out of 10 analysts agree it’s a buy – by Brenda Bouw (Globe and Mail – April 6, 2016)

http://www.theglobeandmail.com/

Gold bug Eric Sprott’s increased stake in Newmarket Gold Inc. has renewed interest in the junior producer, which operates three mines in Australia. Investors are now looking for the Vancouver-based miner to fulfill its promise to boost production while controlling expenses and not overpaying for acquisitions, as the price of gold sits stubbornly at about $1,200 (U.S.) an ounce.

Shares of Newmarket, which merged with Crocodile Gold Corp. in July, have risen by about 13 per cent since the company said on Monday that Mr. Sprott bought 10 million shares to boost his ownership stake to 8.7 per cent. He purchased the stock from Luxor Capital Partners LP, which is still Newmarket’s largest shareholder, now with a 28.7-per-cent stake.

All 10 analysts who cover Newmarket have a “buy” recommendation. The analyst consensus price target over the next year is $3.03 (Canadian), which is about 23 per cent above its current price of $2.46. The stock is up about 82 per cent so far this year.

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Sudbury finding ‘positive’ — Wallbridge Mining – by Staff (Sudbury Star – April 5, 2016)

http://www.thesudburystar.com/

Wallbridge Mining Company Limited on Monday announced good results from a 12,000-metre drilling program on its flagship Parkin exploration project in Sudbury. One drill hole in particular uncovered nickel, copper, platinum, palladium, and gold at shallow depths.

“Wallbridge’s partner funded drilling in Sudbury continues to yield positive results,” Marz Kord, president and CEO of Wallbridge, said in a release, “In addition, following our recent success mining the Broken Hammer deposit, we are aggressively driving forward to identify our next mining opportunities.

“We see potential with continued drilling at Parkin for a near-term bulk sample pit and we continue to evaluate additional advanced stage projects in Ontario and Quebec with the objective of becoming an established and profitable producer,” Kord said.

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Flow-through shares offer lacklustre results, take toll on taxpayers – by Ian McGugan (Globe and Mail – April 4, 2016)

http://www.theglobeandmail.com/

The chief executive of a junior mining company was frank when we recently discussed the merits of flow-through shares.

He has depended for years on peddling these shares as a way to fund his fledgling enterprises. There’s nothing unusual about that: Flow-throughs offer tempting tax breaks to brave investors, and they have long been a favourite way for early-stage oil and mining companies to raise capital.

But I had never grasped one of the additional reasons why resource entrepreneurs have become so fond of the program. “It’s quiet money,” the miner told me. “I get funding and I just about never hear from these people again. What could be better than that?”

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Federal budget 2016 extends 15% mining exploration tax credit to March 2017, providing break for junior miners – by Drew Hasselback (Financial Post – March 23, 2016)

http://business.financialpost.com/

Canadian junior mining companies can breathe a sigh of relief as Budget 2016 extends a tax break for exploration companies that finance their exploration using so-called “flow-through” shares.

The federal government has extended the 15 per cent mineral exploration tax credit, which was slated to expire on March 31, until the end of March 2017.

“Given this is a challenging time for junior mining companies, the government proposes to support their mineral exploration efforts by extending the credit for an additional year,” the budget documents state.

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N.W.T. and Nunavut Chamber of Mines wants companies to stake online – by Guy Quenneville (CBC News North – March 15, 2016)

http://www.cbc.ca/news/canada/north/

The N.W.T. and Nunavut Chamber of Mines wants companies in the Northwest Territories to be able to stake mineral claims online, without having to go on the land.

The call comes as the territorial government prepares to set up its own rules — distinct from those inherited from the federal government after devolution — for how mineral claims are registered, explored and developed in the N.W.T.

The current regulations mean companies have to fly in and out of remote areas and mark the perimetre of their claims with a series of posts, a process deemed “onerous” by Tom Hoefer, the chamber of mines’ executive director.

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