Monday, 30 July 2018

TNR Gold's Shotgun Project: Mining M&A - NovaGold’s Laser-focused Strategy Of Unlocking The Value Of Donlin Gold In Alaska After Newmont Buys Out Share Of Galore Creek.



This is why I am calling TNR Gold's Shotgun Gold project location in Alaska "Gold in Alaskan Elephant Country":

“This transaction is a win-win for all parties,” said Thomas Kaplan, NovaGold’s chairman. “For NovaGold’s shareholders, it is the continuation of a laser-focused strategy of unlocking the value of its assets and transforming the company into a pure play on Donlin gold, which we believe is the most important gold development story in the industry.”




Now Nova Gold has more capital to advance Donlin Gold and Alaska is getting back into mining business with the new wave of M&A activity in mining. The driving force for the next wave of consolidation in mining will be the lack of available exploration capital for the mining juniors due to the down cycle in the Gold market and smaller and smaller returns on the invested capital with the exploration in the green fields. 





To put it simply: it is harder and harder to find the promising projects with the initial confirmed resource, blue sky exploration potential, and stable mining jurisdiction to capitalize on the major gold discovery. I believe, that TNR Gold's Shotgun project is well placed in this part of the cycle in order to attract the major strategic partner for its development.




InvestorIntel: TNR Gold Fine Tuning Royalty Model For Green Energy Metals.


"The third major component in TNR’s portfolio is the Shotgun gold project, located close to NovaGold and Barrick Gold’s Donlin project in Alaska. Early resource numbers suggest the project holds 20.7 million tons of ore with an average gold grade of 1.06 grams a ton, with a 0.5 g/t cut-off grade. Barrick and NovaGold’s project obtained a key environmental approval from the U.S. Army Corps of Engineers in April, indicating the government of Donald Trump is more amenable to mining in Alaska. Once again, external factors are moving in TNR Gold’s favor. 
Klip’s next step with Shotgun is to find an exploration partner of the same caliber as McEwen. One of TNR’s board members, Greg Johnson, founded NovaGold and was instrumental in the discovery of Donlin. He is entrusted with the task of finding that partner, Klip said. Don’t bet against TNR repeating the success it has had so far in ILC and Los Azules."



Alaska is coming back in play as the best jurisdiction for the elephant style Gold deposits on the American soil. Barrick and Nova Gold are moving forward the giant Donlin Gold deposit and now the whole region play will bring the reevaluation for all players involved. 




LEGAL DISCLAIMER

Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.

LEGAL DISCLAIMER

Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.


TNR Gold Shotgun Gold Project: Gold In Alaskan Elephant Country - NovaGold And Barrick Hit 130.5m At 5.93g/t Gold.






This major Gold discovery in Alaska by NovaGold and Barrick Gold will not only put Alaska back on the radar screens of gold bugs and investors but can bring the long-expected turn around for the whole sector of gold mining and exploration companies.


Mining News:

TNR LOOKING TO JV SHOTGUN GOLD PROPERTY

"TNR Gold Corp. Feb. 2 said it is seeking a major gold mining company to become a joint venture partner on its Shotgun gold project in Alaska. 
Located about 110 miles of Donlin Gold and about the same distance northeast of Pebble, this property lies at the intersection of two trends known to host big deposits. 
TNR optioned Shotgun from Novagold Resources Inc. in 2002 and gained full ownership of..."



LEGAL DISCLAIMER

Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.



CIMMagazine:

Newmont buys out NovaGold’s share of Galore Creek

Newmont purchase of stake in Galore Creek comes as multiple miners look to acquire copper assets


Newmont Mining will buy NovaGold Resources’ 50 per cent interest in the joint-venture Galore Creek copper-gold-silver project for US$275 million, making it Teck Resources’ new partner on the project.
Galore Creek, located 150 kilometres northwest of Stewart, B.C. in the Tahltan Nation’s traditional territory, has Proven and Probable Reserves of 69 million tonnes at 0.59 per cent copper and 0.32 grams per tonne (g/t) gold.
Under the terms of the deal, Newmont will pay NovaGold US$100 million upfront, US$75 million after Newmont and Teck complete an updated prefeasibility study, and a further US$25 million after the completion of a feasibility study. Both Teck and Newmont have agreed to each spend between US$10-15 million annually on updating the prefeasibility study, which they anticipate will be completed in the next three to four years.
The final US$75-million payment is contingent upon Teck and Newmont’s decision to develop the project.
“Galore Creek holds the potential to support decades of profitable copper and gold production in a favorable mining jurisdiction, in line with our strategy to create long-term value for our stakeholders,” Newmont CEO Gary Goldberg said in a press release. “Partnering with Teck allows us to bring both organizations’ considerable technical, financial and sustainability strengths to bear in evaluating and refining development plans for Galore Creek, and to build on the strong relationships Teck has established with the Tahltan First Nation and British Columbia.”
Interest in copper projects has been growing among major mining companies. This year Lundin Mining made repeated offers to acquire Nevsun Resources’ Timok copper-gold project in Serbia, most recently earlier this month, and Rio Tinto is reportedly on the hunt for a “prime” copper asset.  
Copper is expected to be in continued high demand thanks to its role in batteries for electric vehicles and renewable energy. London-based CRU Group expects 15 per cent of copper demand growth between 2016 and 2021 to come from the automotive sector.
NovaGold said offloading its share of Galore Creek will help improve its balance sheet as it looks to invest in its Donlin gold project in Alaska in partnership with Barrick Gold.
“This transaction is a win-win for all parties,” said Thomas Kaplan, NovaGold’s chairman. “For NovaGold’s shareholders, it is the continuation of a laser-focused strategy of unlocking the value of its assets and transforming the company into a pure play on Donlin gold, which we believe is the most important gold development story in the industry.”