As of 9:45 a.m. EDT Monday, AbraSilver’s shares fell by 5.1% to C$0.37, still close to a 52-week high of C$0.42. The company has a market capitalization of C$209.3 million ($152.4m).
Upon closing, Kinross and Central Puerto will each own approximately 4% of AbraSilver’s equity capital, and will have standard anti-dilution rights to maintain their respective interests. Also, AbraSilver will consolidate its shares on a one-to-five basis following completion of the financing.
Through this transaction, the company is now well funded for a dual strategy to aggressively advance the Diablillos project towards a production decision, AbraSilver CEO John Miniotis said, adding that the company will gain access to the deep technical expertise in mineral exploration, mine development and power generation.
The project recently advanced to the pre-feasibility stage, with the technical report outlining a 13-year open-pit operation with average annual production of 7.7 million oz. silver and 71,000 oz. gold. During the first five years, its silver production could reach 14.5 million oz. annually.
The projected production figures, on a silver-equivalent basis, would make Diablillos one of the top 10 primary silver mines in the world, AbraSilver noted in a March 25 news release. “Unlike many other silver projects, the PFS highlights that Diablillos is a true primary silver project, with a substantial amount of gold and no base metals,” Miniotis said.
At base-case metal prices of $1,850/oz. gold and $23.50/oz. silver, its after-tax net present value is calculated at $494 million (discounted at 5% per annum), with an internal rate of return of 25.6% and payback of 2.4 years.
AbraSilver is also evaluating several opportunities to further enhance and optimize the PFS economics ahead of delivering a feasibility study for Diablillos. These include mining the mineralized material below cut-off grade, which is treated as waste in the PFS, through low-cost processing technologies (i.e. heap leaching), and expanding the mineral reserves through additional drilling at the existing deposits.
The property currently hosts multiple near-surface deposits: Oculto, JAC, Fantasma and Laderas. Together, these deposits hold proven and probable mineral reserves totalling 210 million oz. of silver equivalent metal (42.3 million tonnes at 91 g/t silver and 0.81 g/t gold).
To date, more than 130,000 metres of drilling have been completed within the 79 km2 area of the property, accumulating expenditures of over $55 million.
AbraSilver’s investor rights agreement with Kinross will also lead to a regional partnership to jointly explore for and acquire new mining projects in Argentina, focusing on silver, gold and copper.
Earlier this year, the company farmed out its other major project in Argentina, La Coipita, to Teck Resources, granting it the option to buy 80% of the copper-gold project.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
