#Ghana’s #Agyapa #Gold Royalties Deal is Fraught with Risk and May Not Lead to the Rewards Expected

- Ghana government will allocate 75.6 percent of royalties from 16 areas under production or development

- The fund plans to then raise capital by selling 49% of these shares for an approximately USD 500 million on both the London and Ghana stock exchanges in an initial public offering (IPO).

- By offering as much as 49 percent in the IPO, the government also loses the potential benefit of selling additional shares later at a higher price while retaining majority ownership.

Risk and Reward in Ghana's Agyapa Gold Royalties Deal: Eight Points for Consideration

From the Natural Resource Governance Institute

1 October 2020

Key messages

• Under the plan, the government has created a royalty company and assigned a substantial portion of its future gold royalties to this company. It hopes to raise non-debt cash up front by floating almost half its shares in this company on the London and Ghana stock exchanges.
• Further consideration and public consultation might create the opportunity to strengthen the deal for the benefit of Ghana.

Osisko #Gold Royalties $OR.to will it ever recover?

Osisko Gold Royalties posted record GEO production this quarter. However, the company indicated a substantial non-cash impairment that was surprising. The stock has suffered a massive selloff with the acquisition of the Bakerville Gold mine starting in September 2019.

Then, the weak diamond market at Renard and the sale of the Brucejack offtake were the main issues that pushed the company to revise down the 2019 guidance.

The combination of those factors triggered a "correction." Despite the gold price increase, now reaching a multi-year high, the stock was not able to regain strength and has languished since then in the $8s range.

...

OR experienced a support breakout of its ascending channel pattern at the end of February and dropped to nearly $8.00, which is now line support. The new trend that I see is a descending channel pattern with line support at $8.00 and line resistance at $9.60.

My recommendation is to buy at or below $8.00 and take profit at or above $9.60.

See the whole post on Seeking Alpha: https://seekingalpha.com/article/4330549-osisko-gold-royalties-too-early-to-call
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MasterMetals
@MasterMetals

3% #Nickel, about 2% #Copper and a little bit less than 1% of #Cobalt: #VoiseysBay 'exquisite,

"Most people don't find something as exquisite as this in their lifetime" 

Mineral deposits at Voisey's Bay 'exquisite,' says geology professor

Terry Roberts · CBC News · Posted: Jun 19, 2018 6:00 AM NT | Last Updated: June 19

5-6 minutes

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Questions about the fate of mining operations at Voisey's Bay over the past year have been replaced by unbridled hope and enthusiasm.

A green light for a multibillion-dollar underground expansion, a lifespan extended by many years, a workforce that will nearly double, and an operation poised to capitalize on what many expect will be an explosion in the demand for electric vehicles in the coming years.

Every nickel explorer's dream

You only need to pick up a metallurgical core sample from Voisey's Bay to understand what all the hype is about, and you don't need to be a geologist to know you're holding something unique.

Many times heavier than a similar-sized rock, these samples were drilled to test the ore body, and the first people to cast their eyes on them were likely very impressed.

Red areas indicate the location of confirmed mineral deposits at Voisey's Bay in Labrador. Underground mining operations are being established at Reid Brook and Eastern Deeps. The famous 'Ovoid' surface mine is expected to be exhausted in four or five years. (Wheaton Precious Metals)

"They probably went out and bought a lot of shares," Wilton joked.

The sample is rich in pentlandite and chalcopyrite. In more simple terms, it's every nickel explorer's dream, and a jaw-dropper if you're looking for copper and cobalt.

"Most people don't find something as exquisite as this in their lifetime," Wilton added.

• Al Chislett, co-discoverer of Voisey's Bay, dies at 69

Voisey's Bay was discovered by prospectors Al Chislett and Chris Verbiski in 1993. They were exploring for a company called Diamond Field Resources. 

Three years later, the discovery was sold to Inco, a Canadian mining company, for $4.3 billion. 

The mine opened in 2005, and a year later Inco was swallowed up in a massive $18.2-billion takeover by Vale, a Brazilian company.

A core sample from Voisey's Bay that was drilled to test the ore body of the Labrador discovery is described by Memorial University earth sciences professor Derek Wilton as 'exquisite.' (Terry Roberts/CBC)

Since mining began, some $15 billion in minerals has been hauled out of the famous Ovoid in northern Labrador, at very low cost.

"Usually in the Canadian context with mining operations it takes 10 years, maybe a little bit more, to pay back the amount of money that you put in there to start the mining operation," said Wilton.

"So apparently they paid this back within two or three years, which is just phenomenal. [That will] give you an idea how rich the ore was."

Going underground

But the surface mine will be exhausted in about four years.

So Vale is going underground, where ore bodies about the same size as the Ovoid have been found. And there's significant upside on the exploration front, with the potential for more expansion in the future.