Mining Review 4th August 2024

Karora Resources has traded on the TSX for the last time, after the completion of its merger with Westgold.

Capricorn Metals announced their KGM with a positive upgrade.

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City Investors Circle Mining Review 4th August 2024

Karora Resources has traded on the TSX for the last time, after the completion of its merger with Westgold.

Capricorn Metals announced their KGM with a positive upgrade.

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Victoria Gold have finally found their voice and communicated witht he market, and are defiantly stating they will not cease trading, a statement I personally think is very optimistic.

With production stopped and the company incurring the cost of preventing pollution of the local waterways and the lenders having already declared a default on $250 million worth of loans, I cannot see how they will remain solvent in the longer term.

Whistleblowers have made accusations of lax policies on site, and the Yukon government are now participating in the pollution prevention work, and who will pay for that?

I am convinced Victoria Gold will not survive, the remediatiion work alone will have a massive cost, when it starts, and then the First Nations have to approve the resumption of mining, how long will that take?

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News from our watchlist companies last week is listed below, click on the link to be taken to the full story.

  Karora Resources and Westgold Complete Merger

  Capricorn Metals Expands KGP to 1.43 M Ounces of Gold

  Market Review July 2024

  Yukon Government Assisting at Victoria Gold disaster Site

  Gold Road Resources Quarterly Results Conference Call

  Mining Review 28th July 2024

Click here for all company news archives

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Market Data

Weekly price changes

(US$ unless stated)

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We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

Our audience is selected and invited individually to ensure interest and relevance for the presenting company.

Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.

We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.

If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com

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This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

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Westgold Resources (ASX: WGX)

Updated in relation to the proposal to acquire 100% of the issued and outstanding common shares of Karora Resources Inc. by way of a court-approved plan of arrangement under the Canada Business Corporations Act.

On 17 July 2024, Westgold received written confirmation from the FIRB that the AustralianGovernment has no objection to the Transaction under the Foreign Acquisitions and Takeovers Act 1975.

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FIRB Approval Received for Westgold and Karora Transaction

Westgold Resources Limited (ASX: WGX, OTCQX: WGXRF – Westgold or the Company) provides the following update in relation to the proposal to acquire 100% of the issued and outstanding common shares of Karora Resources Inc. (Karora) by way of a court-approved plan of arrangement under the Canada Business Corporations Act (Transaction).

On 17 July 2024, Westgold received written confirmation from the Foreign Investment Review Board (FIRB) that the Australian Commonwealth Government has no objection to the Transaction under the Foreign Acquisitions and Takeovers Act 1975 (Cth).

The FIRB approval condition contained in the definitive Arrangement Agreement between Westgold and Karora in respect of the Transaction has now been satisfied.

Pending approval by Karora shareholders at Karora’s upcoming annual general and special meeting of shareholders on 19 July 2024 and final court orders, Westgold targets completion of the Transaction on or about 31 July 2024.

The Transaction has been unanimously approved by the respective boards of directors of Westgold and Karora.

The Karora board of directors (Karora Board) has unanimously determined that the Transaction is in the best interests of Karora and is fair to Karora shareholders.

Accordingly, Westgold’s offer to acquire Karora pursuant to the Transaction is unanimously recommended by the Karora Board. All directors and senior officers of Karora entered into agreements with Westgold to vote in favour of the Transaction.

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Indicative Timetable

Event / Action Indicative Timing (Toronto)
Karora shareholder Meeting 19 July 2024
Final order court hearing 24 July 2024
Complete Transaction 31 July 2024

This announcement is authorised for release to the ASX by the Board.
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To read our full terms and conditions, please click HERE

Mining Review 14th July 2024

A disastrous week for Calidus Resources shareholders as the mine is put into care and maintenance, and all looks lost for investors.

Victoria Gold is holding its own despite having two million tons of leach pad strewn around the bottom of a mountain in the Yukon.

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Vincent-Luc Authier, Construction Manager at TZ with the First Gold Bar Poured at the Mine (CNW Group/G Mining Ventures Corp)

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City Investors Circle Mining Review 14th July 2024

A disastrous week for Calidus Resources shareholders as the mine is out into care and maintenance, and all looks lost for investors at his uncture, including myself, in my first ever total wipeout.

Victoria Gold is holding its own despite having two million tons of leach pad strewn around the bottom of a mountain in the Yukon.

It’s hard to believe that people are still buying this stock whilst the lenders have called a default, the company has scrapped production guidance (It’s halted because of the leach pad failure), and the remediation team say it’s too risky to walk on what remains in place of the leach pad, nevr mind move any machinery onto it.

I dare say they will mount a plan but I fear it will be too late with production halted and lenders crying default. The next  few weeks will be interesting.

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The above examples highlight perfectly the dangers of investing in the mining sector.

In both cases mines were in production, with gold at an all time high, yet both have failed for different reasons. 

Calidus had just done a financial restructuring, so it beggars belief that they could call in administrators so soon afterwards. I am anoyed with myself for holding, as my head said sell, but was reassured after the resturcturing so resisted the temptation to halve my holding and buy more Ora Banda. how I regret that decision now!

Still other holdings have done well recently, and Calidus reporesented a very small percentage of my portfolio, but it still hurts.

Victoria Gold’s heap leach failure came out of the blue, although they had been aware of issues earlier this year. Two million tons of heap leached ore cascaded down the mountain, this will require a huge cleanup operation.

Priority is to ensure that cyanide does not leak into local waterways, and the First nations will need to be placated, so I don’t any hope for an earlry resumption of mining here, if at all, ever.

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Other stocks on our watchlist fared better than Calidus thankfully, and a selection of their news is listed below. Please click the link to be taken to the full story on our website.

  G Mining Announced Shareholder Approval of Reunion Gold Acquisition

  Ora Banda Sand King Approval Lifts Production Outlook

  Karora Shareholders Recommended to Approve The Westgold Arrangement

  Calidus Resources Warrawoona mine on C & M

  G Mining Ventures Announced the First Gold Pour at Tocantinzinho

  Calibre Mining Received Approval for the Operation of the Volcan Gold Deposit

  Victoria Gold Heap Leach Failure – Can it Survive?

  Mining Review 7th July 2024

Click here for all company news archives

Market Data

Weekly Price Changes

(US$ unless stated)

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We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

Our audience is selected and invited individually to ensure interest and relevance for the presenting company.

Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.

We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.

If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com

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This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

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Karora Resources Inc. (TSX: KRR)

Announced that Institutional Shareholder Services (“ISS”), a leading independent proxy advisory firm, released a repor recommending that Karora shareholders vote in favour of the previously announced statutory plan of arrangement with Westgold Resources Limited.

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Leading Independent Proxy Advisory Firm ISS Recommends Karora Resources Shareholders Approve The Proposed Arrangement With Westgold Resources

Monthly Review May 2024

Has been published by City Investors Circle.

The highlighted company is Ora Banda Mining, and featured companies include Aris Mining and Karora Resources, plus a potential takeover target in Australia.

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G Mining’s TZ project vista, Tapajos, Brazil.

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City Investors Circle Monthly Review May 2024

The highlighted company is Ora Banda Mining, in production in Western Australia, looking ot increase gold production  from 70,000 Oz PA to 100,000 Oz PA in 2025.

Ora banda has a 110 KM trend with a “string of pearls” of targets, and are looking to pivot to underground mining for higher grades and lower costs.

AISC is around A$2,400, and the gold price in Australia is currently A$3,550, so plenty of cashflow to expand exploration and develop their other projects..

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Other featured companies include Aris Mining and Karora Resources, plus a potential takeover target rumour from Australia..

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Precious and industrial metal prices in May were virtually all positive, and we list the gainers and very few losers monthly changes..

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All the company news from May 2024 is listed below, please click on the link to be taken to the full story on the website.chives

To subscribe to receive our complimentary monthly newsletter and invitations

to our free to attend events,

please email andrew@city-investors-circle.com

Karora Resources (TSX: KRR)

Announced financial and operating results for the Q1 2024. The Company’s unaudited condensed interim financial statements and MD&A are posted on SEDAR.

The company recorded record revenue despite a rain affected quarter causing production to fall 9%. AISC remain on track for 2024 guidance.

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KARORA REPORTS RECORD REVENUE AND STRONG CASH FLOW FOR Q1 2024

TORONTO, May 13, 2024 /CNW/ –Karora Resources Inc.(TSX: KRR) (“Karora” or the “Company”) today announced financial and operating results for the first quarter of 2024 (“Q1 2024”).

The Company’s unaudited condensed interim financial statements and management discussion & analysis (“MD&A) are available on SEDAR at www.sedarplus.ca and on the Company’s website at www.karoraresources.com. All dollar amounts are in Canadian dollars, unless otherwise noted.

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FIRST QUARTER 2024 HIGHLIGHTS

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GOLD PRODUCTION AND SALES

• Pre reported Q1 2024 production of 36,147 gold ounces decreased 9% from 39,827 ounces in the first quarter of 2023, and 10% compared to production of 40,295 ounces in the fourth quarter of 2023 (“the previous quarter”). Production was negatively impacted by wet weather experienced across all three operating sites during the quarter and a regional interruption to state grid power impacting the Lakewood mill and Beta Hunt mine, affecting gold ounces produced. Gold sales for Q1 2024 were strong at 40,343 ounces, an increase of 12% compared to Q1 2023 and 8% higher than the previous quarter.

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COSTS ON TRACK TO ACHEIVE WITH 2024 GUIDANCE

• Cash operating costs¹ and AISC¹ per ounce sold for Q1 2024 averaged US$1,193 and US$1,285, respectively, versus US$1,272 and US$1,435, respectively, for Q4 2023. The lower costs compared to the prior quarter primarily reflects the impact of higher nickel by-product credits ($2.91 million or US$54/oz nickel by-product credits in the current quarter compared to $0.3 million US$5/oz for the final quarter of 2023). The higher by-product credits reflect recommencement of nickel sales in the first quarter.

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RECORD QUARTERLY REVENUE

• Revenue in Q1 2024 totaled $115.5 million, a new quarterly record for the Company and 19% higher than the first quarter of 2023 and 14% from the previous quarter. The increase compared to both prior quarters reflected higher realized gold price and higher sales volumes.

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SOLID OPERATING CASH FLOW GENERATION

• Q1 2024 cash flow provided by operating activities of $42.6 million versus $20.9 million in the first quarter of 2023 and $32.1 million the previous quarter, driven by the improved gold sales volume and realized price.
• Cash at March 31, 2024 of $87.3 million was an increase of $4.8 million or 6% from $82.5 million at December 31, 2023.

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EARNINGS PERFORMANCE

• Net earnings for Q1 2024 of $2.1 million ($0.01 per share) compared to net loss of $2.9 million ($0.02 per share) for the same period in 2023 and net loss of $1.7 million ($0.01 per share) in the fourth quarter of 2023. The first quarter of 2024 was impacted by a non-cash $6.3 million loss on derivatives and $5.0 million foreign exchange loss.
• Adjusted earnings¹ for Q1 2024 of $13.3 million ($0.07 per share) compared to $4.8 million (0.03 per share) in the first quarter of 2023 and $3.3 million ($0.02 per share) for the previous quarter, reflecting higher sales volumes and prices as noted above.
• Adjusted EBITDA^1,2 for Q1 2024 of $40.5 million ($0.23 per share) was an increase of 42% from $28.6 million in the first quarter of 2023 and 63% higher than the $24.9 million in the fourth quarter of 2023.

Karora Resources (TSX: KRR)

Released a joint presentation with Westgold explaining the dynamics of their proposed agreed merger.

The new company will be well financed and a 400,000 Oz Au PA gold producer, with exploration potential.

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Karora Resources and Westgold Merger Presentation

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Karora Resources (TSX: KRR) released a joint presentation with Westgold explaining the dynamics of their proposed agreed merger.

The new company will be well financed and a 400,000 Oz Au PA gold producer, with exploration potential.

The new company will be listed on both the ASX and TSX.

The merger should be completed by mid-June.

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To view the merger presentation video, please click HERE

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We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

Our audience is selected and invited individually to ensure interest and relevance for the presenting company.

Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.

We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.

If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com

.

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,

This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

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Disclosure

At the time of writing the author holds shares in Karora Resources.

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Market Review April 2024

Featured new watchlist company Aris Mining, a gold producer based in Colombia with a plan to increase production to 500,000 Oz PA.

Three watchlist companies became involved in M & A activity, G Mining Ventures, Gold Road, and Karora Resources.

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City Investors Circle Market Review April 2024

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City Investors Circle Market Review April 2024 featured new watchlist company Aris Mining, a gold producer based in Colombia with a plan to increase production to 500,000 Oz PA.

Three watchlist companies became involved in M & A activity, G Mining Ventures, Gold Road Resources, and Karora Resources.

Gold Road bid for 40% of the new Greenstone Gold Mine in Canada, but then withdrew, and the 60% owner, Equinox Gold, stepped in and took the remaining 40% to become 100% owners of the mine.

G Mining Ventures is acquiring Reunion Gold based in Guyana, in the same shield as their Brazilian TZ mine, and a shield where they have experience of constructing four mines already.

This looks a good and logical fit in my opinion.

Karora Resources is being acquired by Western Australia based Westgold, to become a focused gold producer in WA, with substantial reserves and resources, and around a 400,000 Oz gold PA production.

This looks a good fit, but I am disappointed because I envisaged Karora becoming an acquirer, rather than being acquired.

Westgold also plan to dual list on the TSX.

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To read the April 2024 Market Review, please click HERE.

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To subscribe to our newsletter and to receive invitations to our free to attend company presentations and events, please email andrew@city-investors-circle.com

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To view our website please go to www.city-investors-circle.com 

We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

Our audience is selected and invited individually to ensure interest and relevance for the presenting company.

Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.

We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.

If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com

.

=======

,

This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

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Disclosure

At the time of writing the author holds shares in Aris Mining, G Mining Ventures, Gold Road Resources, and Karora Resources.

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Mining Review 14th April 2024

It was another exciting week for gold, with new all time highs being recorded, before a slight pullback late Friday evening.

The big news of the week was Karora Resources announcing a merger with ASX listed Westgold. Capricorn Metals and Orla Mining reported strong starts to 2024.

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Capricorn Metals Karlawinda Mine

City Investors Circle Mining Review 14th April 2024

It was another exciting week for gold, with new all time highs being recorded, before a slight pullback late Friday evening. Gold had topped out at $2431 at it’s high before the retrace.

Silver slipped back to just under $28 per ounce, after earlier being close to $30 intraday.

On the industrial side, copper had a quiet week after the recent charge, but nickel soared nearly 5%, after the recent long fall, and is now trading at $8.19, well above the recent $7.40 low.

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The big news of the week, and one that disappointed me a great deal, was Karora Resources announcing a merger with ASX listed Westgold.

I thought Karora would grow by acquisition, being in a strong financial position, and mining in Western Australia, where there are an abundance of opportunities to grow. So, I’m personally very disappointed they have taken this route, and I have sold over half my holding already, there are many other producers worth investing in at the moment, so I want to put my money to work somewhere positive.

Karora are offering the incentive of shares in a newco, but in my personal experience they don’t work out well, so I’m not allowing the offer of free shares to distract me from selling a stock that has hit the buffers for now, and putting the funds to work elsewhere.

Capricorn Metals and Orla Mining reported strong starts to 2024. These are well run companies growing by acquisition, and very successfully too. This is why I invested in Karora, as I expected them to follow this model.

I increased my holdings in both these companies this week, using some of the Karora funds.

Exploration companies are off my radar currently as the action is with the producers with the gold price spiking, but I did add a few Pacgold to my existing holding, to bring down my average cost. They seem to have a district scale project, so one I’m happy to buy and put in the bottom drawer whilst they continue to explore the Alice River region.

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Significant news from our watchlist companies this week is listed below, click the links to be taken to the full story.

  Orla Mining Started 2024 with Strong Operating Performance

  G Mining Ventures Provided a Tocantinzinho Project Update

  Calibre Mining’s Q1 Gold Production On Track To Deliver FY 2024 Guidance

  Karora Resurces Announced a Merger With Westgold

  Karora Resources Q1 Results Hampered by Wet Weather

  Capricorn’s Karlawinda Mine Delivers Strong Cashflow

  Mining Review 7th April 2024

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Market data

Weekly Price Changes

(US$ unless stated)

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We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

Our audience is selected and invited individually to ensure interest and relevance for the presenting company.

Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.

We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.

If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com

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This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

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Karora Resources. (TSX: KRR)

Karora and Westgold Resources Limited (ASX: WGX) have agreed to combine in a merger pursuant to which Westgold will acquire 100% of the issued and outstanding common shares of Karora by way of a statutory plan of arrangement under the Canada Business Corporations Act.

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Comment

I find this news incredibly disappointing, Karora was one of my favourite stocks, and I always felt they would become a predator of other projects in Western Australian, rather than allowing themselves to be picked off so easily.

I find the takeout price opportunistic, and I have sold down my holding by over 50% already.

TORONTO, April 7, 2024 /CNW/ – Karora Resources Inc. (TSX: KRR) (OTCQX: KRRGF) (“Karora”) and Westgold Resources Limited (ASX: WGX) (OTCQX: WGXRF) (“Westgold”) have agreed to combine in a merger pursuant to which Westgold will acquire 100% of the issued and outstanding common shares of Karora (“Karora Shares”) by way of a statutory plan of arrangement under the Canada Business Corporations Act (“CBCA”) (“Transaction”).

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Transaction Highlights:

• Karora shareholders will receive 2.5241 Westgold fully paid ordinary shares (“Westgold Shares“), A$0.68 (C$0.61¹) in cash and 0.30 of a share in a new company to be spun-out from Karora (“SpinCo“) for each Karora Share held at the closing of the Transaction (“Offer Consideration“). The Offer Consideration represents approximately A$6.60 (C$5.90²) per Karora Share based on Westgold’s closing share price on the ASX of A$2.28 on 5 April 2024.
• SpinCo’s assets will comprise Karora’s existing 22.1% interest in Kali Metals Limited (ASX:KM1) (“Kali“), a 1% lithium royalty on certain mining interests held by Kali, the right to receive a deferred consideration payment due to Karora relating to the on-sale of the Dumont asset and A$6 million (C$5 million²) in cash. SpinCo will be owned 100% by existing Karora shareholders.
• The Offer Consideration represents a 10.1% premium to Karora’s closing share price on the Toronto Stock Exchange (“TSX“) of A$5.995 (C$5.360²) on 5 April 2024 and a 25.3% premium to Karora’s and Westgold’s 20-day volume weighed average price (“VWAP“) on the TSX of A$5.552 (C$4.964²) and on the ASX of A$2.421 (C$2.164²) up to and including 5 April 2024.
• Upon completion of the Transaction, Westgold shareholders will own approximately 50.1% of the combined company (Westgold after completion of the Transaction referred to as “Enlarged Westgold“) and former Karora shareholders will own approximately 49.9%.
• Enlarged Westgold will have a market capitalization of approximately A$2.2 billion² (C$1.9 billion²).
• Enlarged Westgold will have a portfolio of assets from an exclusively Western Australian asset base, a clear pipeline of growth projects and high-quality exploration targets.
• The Enlarged Westgold intends to apply for quotation of its Westgold Shares on the TSX on completion of the Transaction.
• The Transaction has been unanimously approved by the boards of directors of Westgold and Karora, and Karora’s board of directors will recommend that the shareholders vote in favour of the Transaction.
• Directors and members of senior management of Karora holding approximately 1.2% of Karora Shares have entered into voting support agreements pursuant to vote their Karora Shares in favour of the Transaction at the meeting of shareholders to be called by Karora to approve the Transaction (“VSAs“). In addition, key institutional shareholders with a combined shareholding of approximately 9% including Eric Sprott have signed VSAs or otherwise have indicated they would support the Transaction.
• The Transaction represents a transformational step change in growth for both Westgold and Karora shareholders:
  • Creates a globally investable, mid-tier gold producer operating exclusively in Western Australia with a highly complementary combination of mining and processing assets, people and balance sheet;
  • Top 5 largest, ASX listed Australian gold producer based on the pro forma market capitalization;
  • One of the largest unhedged Australian gold producers on completion of the Transaction providing investors with full exposure to the gold price^3;
  • Combined pipeline of advanced organic growth options and exploration targets across Karora’s Beta Hunt and Higginsville properties and Westgold’s Murchison and Bryah properties;
  • Estimated operating synergies⁴ of A$209 million (C$187 million²) and estimated corporate savings⁵ of A$281 million (C$251 million²);
  • Robust balance sheet with financial resources of circa A$160 million (C$143 million²) in cash and liquidity through Westgold’s existing corporate revolver facility (subject to requisite consents) and following full repayment of Karora’s existing A$44 million (C$39 million²) revolving facility to support an accelerated resource development program at the Beta Hunt Fletcher Zone and Bluebird-South Junction;
  • Enhanced capital markets profile with increased scale, trading liquidity and quality to be attractive to both gold and generalist investors across ASX, TSX and OTCQX;
  • Significant re-rating potential via increased scale and increased index weighting, such as the GDX and GDXJ indices; and
  • Combined board of directors comprising experienced mining professionals with a proven track record of maximizing value for shareholders.

Karora Chairman and CEO, Paul Huet commented:

“For the last two years, Karora has watched Mr. Bramwell and the team consistently unlock material value for shareholders at Westgold.

“One of the more unique aspects of this transaction is a very strong cultural fit between both companies which will serve shareholders of the enlarged company well for a very long time.

“The merger is estimated to unlock approximately A$490 million of operational, G&A and capex synergies while shareholders will become proud owners of the largest unhedged gold producer in Australia at completion of the Transaction – certainly a compelling opportunity in the current gold price environment.

“The team at Karora have worked diligently to execute on our strategy to build the next +200 kozpa Australian gold producer.

“We have delivered value to shareholders through a disciplined growth approach by investing in our cornerstone asset in Beta Hunt, which will be fully ramped up to 2 Mtpa⁷ later this year, our pipeline of projects at Higginsville and through strategic asset acquisitions such as the Lakewood Mill and Spargos Gold Mine to establish the next emerging junior gold producer in the Western Australia gold fields.

“With the combination of Westgold and Karora, we are taking the next step by combining two highly complementary, free cash flow generating asset bases in one of the world’s finest mining jurisdictions to create a premier Western Australian mid-tier gold producer.

“Karora shareholders will benefit from having very meaningful ownership in a larger, more diversified gold producer with a highly experienced management team located entirely in Western Australia.

“The prospects for the combined company are tremendous, with over 3,200km² of combined exploration tenements in Australia’s most prospective gold mining regions coupled with a significantly enhanced balance sheet poised and ready to deploy into a highly compelling combined growth and exploration strategy.

“The combination provides Karora shareholders with significant exposure to one of the largest Australian gold producers with significant potential for an eventual share price re-rate as the operational synergies and enhanced scale of the combined portfolio are realized.”

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To read the full news release please click HERE

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Live spot metal prices can be found HERE

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To read our full terms and conditions, please click HERE

Karora Resources Inc. (TSX: KRR)

Announced consolidated gold production of 36,147 ounces and sales of 40,343 ounces for the first quarter of 2024.

Production was negatively impacted by wet weather during the quarter. 

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Karora Announces First Quarter 2024 Gold Production Of 36,147 Ounces, Gold Sales Of 40,343 Ounces And Cash Position Of $87.3 Million

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City Investors Circle

The Market Review for March 2024 has been published.

The company highlight features Galiano Gold, and companies reporting significant news were Calidus Resources, Karora Resources, and Orla Mining.

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Calidus Resources Warrawoona Mine Plant, WA

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City Investors Circle Market Review for March 2024 Published

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City Investors Circle – London

The Market Review for March 2024 has been published.

The company highlight features Galiano Gold, a gold production company located in Ghana, West Africa.

Watchlist companies reporting significant news in March were Calidus Resources, Karora Resources, and Orla Mining.

The main news is the rise in the price of gold during March, and the news that this has pushed up the price of producing miners, and in time this will flow through to the junior explorers when the priducers are more fully valued.

The big hope is that investors become excited about the mining sector again and flock back, as trading volumes have been low, and the record price of gold may act as the long awaited catalyst to attract and excite investors once again.

The top performing stocks this month were Galiano Gold in the gold producers, and Thesis Gold in the exploration juniors.

To read the March 2024 Market Review, please click HERE.

To subsribe to our newsletter and to receive invitations to our free to attend company presentations and events, please email andrew@city-investors-circle.com

To view our website please go to www.city-investors-circle.com 

We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

Our audience is selected and invited individually to ensure interest and relevance for the presenting company.

Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.

We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.

If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com

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This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

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Disclosure

At the time of writing the author holds shares in CAlidus Resources, Karora Resources, and Orla Mining.

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Karora Resources (TSX: KRR)

Notes the announcement today by Ramelius Resources Ltd (ASX: RMS) that it is no longer in exclusive discussions with Karora regarding a potential transaction. Karora confirms that it has exited such discussions.

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Karora Resources Provides Update On Exclusive Discussions

 Karora Resources (TSX: KRR)

Announced financial and operating results for the fourth quarter (“Q4 2023”) and full-year of 2023.

Production was a record 160,492 ounces, increased 20% from 133,887 ounces for 2023, driven by a 37% increase gold produced from the Beta Hunt Mine. The Company exceeded 2023 production guidance.

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Gold in drill core from Beta Hunt mine, Western Australia

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KARORA RESOURCES REPORTS RECORD PRODUCTION, REVENUE AND CASH FLOW FOR 2023

Karora Resources  (TSX: KRR)

Announced updated 2024 gold production guidance of 170,000 – 185,000 ounces and all-in sustaining cost cost guidance of US$1,250–US$1,375 per ounce sold.

Karora’s updated guidance incorporates optimized 2024 mine and development plans across its operations.

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Karora Resources – Beta Hunt Mine Specimen Stone

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Karora Announces Consolidated 2024 Gold Production Guidance Of 170,000 – 185,000 Ounces At AISC Of US$1,250 – US$1,375 Per Ounce Sold

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Karora Resources (TSX: KRR)

Notes the recent press speculation in relation to a potential transaction involving Ramelius Resources Ltd (ASX: RMS) and Karora.

Karora confirms that it is currently in exclusive discussions with Ramelius regarding a potential business combination.

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Karora Resources Responds To Media Speculation

Karora Resources (TSX: KRR)

Announced further significant results from gold exploration and infill drilling at the Beta Hunt Mine.

Highlights were hole WF380ACC-09AE at 3.8 g/t over 33.0 metres and 5 g/t over 9.0 metres.

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New Sandvik DD422i Twin Boom Jumbo Drill at the Beta Hunt Mine

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Karora Resources Announces New Fletcher Zone Gold Drilling Results of 3.8 g/t over 33.0 metres and 34.6 g/t over 2.0 metres at Beta Hunt

TORONTO, Feb. 22, 2024 /CNW/ – Karora Resources Inc. (TSX: KRR) (“Karora” or the “Corporation”) is pleased to announce further significant results from gold exploration and infill drilling at the Beta Hunt Mine:

• The first set of assay results from the Stage 2 infill program targeting the north end of Fletcher South produced high grade mineralized intersections that support the interpretation of a significant mineralized system west of the Western Flanks Mineral Resource.
• Fletcher results highlighted by drill hole WF380ACC-09AE which intersected 3.8 g/t over 33.0 metres.
• At Larkin, infill drilling targeting both gold and nickel mineralization delivered results that support the recently updated Larkin Gold Mineral Resource.

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Intersection highlights are summarised below:

Fletcher²

• WF380ACC-09AE: 3.8 g/t over 33.0 metres and 5 g/t over 9.0 m
• WF380ACC-12AE: 15.2 g/t over 3.3 metres and 3.8 g/t over 6.8 m
• WF380ACC-16AE: 34.6 g/t over 2.0 metres

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Larkin Central

• B30-19-34NR¹: 6.7 g/t over 9.4 metres
• B20-1826-08NR²: 13.7 g/t over 3.5 metres
• B30-19-41NR¹: 4.0 g/t over 4.7metres

1. Estimated True Widths
2. Interval lengths are downhole widths. Estimated true widths cannot be determined with available information.

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Paul Andre Huet, Karora Resources Chairman & CEO, commented:

“The aggressive drilling program at our flagship Beta Hunt mine, designed to add gold ounces and upgrade resources, continues to yield results from the growing Fletcher Zone as well as the Larkin zone.

 

“Today’s results from the Fletcher Zone include a very long intercept of 3.8 g/t over 33.0 metres and high-grade intercepts of 34.6 g/t over 2.0 metres and 15.2 g/t over 3.3 metres.

 

“These results support both extending and increasing confidence in the Fletcher South Zone with the ultimate goal of completing sufficient drilling to produce a maiden Mineral Resource for the Fletcher Zone.

 

“At Larkin, new drilling returned 6.7 g/t over 9.4 metres and 13.7 g/t over 3.5 metres from the central portion of the zone which will support the 2023 update of the Mineral Resource Model.

 

“On the development and mining front, I am very encouraged with the continued productivity gains since the completion of the second decline and primary ventilation upgrades.

 

“This has been further bolstered by the delivery of two new twin boom jumbo Sandvik DD4422i drills in December 2023 and the recent delivery of two new CAT AD63 underground trucks and a new CAT R2900 underground loader during second half of 2023.

 

“Our expansion work in 2024 at Beta Hunt is focused on increasing development rates to deliver the additional mining faces required for us to reach 2.0M tpa by the end of the year, including new mining areas in the Larkin and Mason zones on top of the current established mining areas of Western Flanks and A Zone.

 

“Our new equipment and ventilation upgrades have us in excellent position to achieve our targets.

 

“Overall, exploration and development work underway at Beta Hunt is progressing on track with our plans to reach an annualized 2.0 M tpa by the end of 2024, demonstrating the tremendous potential we saw in this asset several years ago.

 

“While we are executing on this plan, we will continue to drill test new areas such as Fletcher in order to add potential ounces and flexibility to our mining plan.”

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To read the full news release, please click HERE

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To read our full terms and conditions, please click HERE

Karora Resources (TSX: KRR)

Announced record annual consolidated 2023 gold production of 160,492 ounces from its Beta Hunt and Higginsville mines in Western Australia.

Gold sales were also a record, totaling 157,034 ounces during 2023.

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Gold in drill core from Karora Resources’ Beta Hunt mine, Western Australia

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Karora Exceeds High End Of 2023 Gold Production Guidance With Record Annual Gold Production Of 160,492 Ounces And Record Gold Sales Of 157,034 Ounces

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TORONTO, Jan. 15, 2024 /CNW/ – Karora Resources Inc. (TSX: KRR) (“Karora” or the “Corporation”) is pleased to announce record annual consolidated 2023 gold production of 160,492 ounces from its Beta Hunt and Higginsville mines in Western Australia.

Gold sales were also a record, totaling 157,034 ounces during 2023.

For the fourth quarter of 2023, gold production was a strong 40,295 ounces and sales were 37,439 ounces.

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Paul Andre Huet, Karora Chairman & CEO, commented:

“I am extremely pleased to announce Karora’s seventh consecutive year of production growth.

 

“We produced a record 160,492 ounces of gold for 2023, exceeding 2022 production by over 26,000 ounces and beating the high end of our full year 2023 guidance range of 145,000 – 160,000 ounces.

 

“Gold production in the fourth quarter was a very strong 40,295 ounces, the second highest quarterly result on record.

 

“Due to the timing of sales, gold sold during the fourth quarter was 2,856 ounces lower than produced, contributing to a slight decrease in our quarter over quarter cash balance which will be recovered in sales during the first quarter of 2024.

 

“Our cash balance remains robust at $82.5 million and in line with our scheduled capital deployment program across our operations.

 

“With significant investments made in 2023, 2024’s capital program will focus on infrastructure and stope development required to ramp up our Beta Hunt operations to 2 Mtpa by the end of the year.

 

“I am proud of our team for once again delivering on our operational plan and exceeding our targeted production level for 2023.

 

“Overall, I am very pleased with our performance in 2023 and I look forward to continued growth in 2024 and beyond as we execute on the final year of our threeyear growth plan.

 

“Full year 2023 audited financial results are scheduled to be reported in mid-March 2024.”

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To read the full news release, please click HERE

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Market Review November 2023

Has been published today, featuring Calibre Mining, and also mentions G Mining Ventures, Karora Resources, West Red Lake Gold Mines, and Cabral Gold.

We discuss the expanding resource nationalism, and name the small pool of trusted countries we still feel safe investing in.

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Chris Berlet, CEO of Canuc Resources presents to the Global Mining Finance Conference in London.

City Investors Circle Market Review November 2023

Has been published today, featuring Calibre Mining, and also mentions G Mining Ventures, Karora Resources, West Red Lake Gold Mines, and Cabral Gold.

We discuss the expanding resource nationalism, and name the small pool of trusted countries we still feel safe investing in.

As the year end approaches we make a couple of sales from our portfolio and some adjustements to our watchlists, to reflect delivery against expectations, and anticipated newsflow in the coming year.

There have been a couple of disappointments, and we name the companies coming into the watchlist to replace those leaving.

We are looking for vibant companies with good management, in safe jurisictions, well financed, and expecting plenty of newsflow.

To Read the November 2023 Market Review, please click HERE

To subscribe to receive our newsletter and onvitations to our free to attend company events, please email andrew@city-investors-circle.com

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Karora Resources (TSX: KRR)

Announced financial and operating results for Q3 2023 and YTD 2023.

YTD 2023 production of 120,197 ounces increased 24% from 96,578 ounces for the same period in 2022, with the Company ending Q3 well positioned to achieve full-year 2023 production guidance of 145,000 – 160,000 ounces.

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KARORA RESOURCES REPORTS STRONG PRODUCTION, REVENUE, EARNINGS

AND CASH FLOW GROWTH IN THIRD QUARTER 2023

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To read the full news release, please click HERE

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