The gold mining industry in the Western hemisphere continues to flourish. The increased demand for gold resulting from current worldwide perceived geo-political instability, and technological innovation requiring the use of gold, presents an opportunity that is self-evident.
GOLDMINING INC COM NPV (OTCMKTS:GLDLF) is positioning itself to capitalize on this opportunity by aggressively expanding throughout the Western hemisphere. The Company has recently made three major Gold mining acquisitions.
Before we get into the details, a little background on the Company. GoldMining Inc. (formerly Brazil Resources Inc.) is a public mineral exploration company focused on the acquisition and development of gold projects in the Americas. GoldMining is advancing its Titiribi and La Mina Gold-Copper Projects located in the Department of Antioquia, Colombia, its Cachoeira and São Jorge Gold Projects located in the State of Para, northeastern Brazil, its Whistler Gold-Copper Project located in the State of Alaska, United States of America, and its Rea Uranium Project in the western Athabasca Basin in northeast Alberta, Canada.
On May 30, 2017 GoldMining Inc. announced that it had completed its acquisition of Bellhaven and its La Mina Project in Colombia. With the acquisition, the Company consolidates its leading gold-copper porphyry portfolio in the underexplored Mid Cauca Belt of Colombia, with the addition of La Mina to its existing asset base that includes the Titiribi gold-copper project and adjacent concession applications.
La Mina hosts the Middle Zone and La Cantera deposits, as well as several high-priority prospects including La Garrucha, El Limon, El Oso, Media Luna and Buenavista. La Mina is located approximately 41 km southwest of the city of Medellin in the Department of Antioquia, in central Colombia and approximately 6 km southeast of GoldMiningꞌs Titiribi Project.
The Project is comprised of two concessions that cover an area of 32 km2. Northern Antioquia has seen steadily increasing activity over the last several years. The Company acquired Bellhaven for total consideration of 7,339,303 of its common shares. Amir Adnani, Chairman of GoldMining, commented:
“We are pleased to be closing our second major transaction in Colombia, which will further expand our significant land package within the Mid Cauca Belt, one of the most prospective and underexplored gold belts in the world.”
The second acquisition came on July 21, 2017 when GoldMining Inc. announced that it had completed the acquisition of 100% interest in Tyhee’s Yellowknife Gold Project (YPG), and nearby Big Sky Property covering approximately 35 km of the Yellowknife Greenstone Belt in the Northwest Territories, Canada. YGP is comprised of 19 mining leases and 5 mineral claims with an aggregate area of approximately 18,252 ha.
The Project includes five known deposits, being Nicholas, Ormsby, Bruce, Goodwin and Clan Lake, and is located 50 to 90 km north of the city of Yellowknife in the Northwest Territories. It includes a 50-person winterized camp and fuel storage and is accessible by winter road from Yellowknife or by air to a 1,000-m long gravel airstrip located on site. The properties are in the mining-friendly jurisdiction of the Northwest Territories, home to major mining operations run by DeBeers, Rio Tinto, and Dominion Diamonds.
GoldMining Inc. made the acquisition in exchange for 4,000,000 of its common shares. Such shares represent less than 3% dilution to GoldMining shareholders.
Most recently, GoldMining Inc. announced on Sept. 19, 2017 that it has entered into an agreement with Lupaka Gold Corp., to acquire a 100% interest in the Crucero Gold Project located in Southeastern Peru. The Project is comprised of three mining and five exploration concessions with an aggregate area of 4,600 hectares.
The exploration concessions are renewable on an indefinite basis through payment of annual fees to the Peruvian government. The three mining concessions are held indirectly by Lupaka through a 30-year assignment from a third party running until 2038 and are subject to certain royalty obligations.
Total consideration at closing will be 3,500,000 common shares and $750,000 in cash representing approximately 3% dilution to GoldMining shareholders. The acquisition is GoldMiningꞌs first in Peru, which is among the worldꞌs largest producers of gold, copper and silver, and ranks as one of the most attractive jurisdictions for mining investment in Latin America (Fraser Institute, 2016).
GLDLF stock has been trading in a range since late November of 2016 with a resistance level of about $1.60, and support at about $1.17. The stock is currently trading at $1.32. The most recent published quarterly financial reports indicate that the Company is pre-revenue. However, the balance sheet does show a strong cash position which the Company needs to continue its expansion strategy. Current market capitalization stands at $156.57 million, on 118.62 million shares outstanding as of October 11, 2017.
All three of the aforementioned acquisitions are in a testing phase that will determine the potential output of each mine. If the mines do meet the expectations of the Company, as these reports are publicized, the price of GLDLF stock will move accordingly. We will be updating our subscribers as soon as we know more. For the latest updates on GLDLF, sign up below!
Image courtesy of Neal Wellons via Flickr
Disclosure: We have no position in GLDLF and have not been compensated for this article.