True Gold Mining Inc. (TSX-V:TGM) has secured financing from Franco-Nevada Corp. (TSX:FNV) and Sandstorm Gold Inc. (TSX:SSL) in an agreement to finance the Karma mining project in West Africa.
Of the total funding value of US$100 million, 75% will come from Franco-Nevada and 25% from Sandstorm. The agreement will see True Gold delivering 20,000 ounces of gold per year for a total of five years, for which Franco-Nevada and Sandstorm will pay 20% of the spot price. A feasibility study for the Karma was announced in December 2013, and first gold pour is expected in 2015
Innergex inks hydro deal
Innergex Renewable Energy Inc. (TSX:INE) has signed a partnership agreement with the In-SHUCK-ch Nation for the development of six hydroelectric projects in British Columbia. The agreement calls for a 50-50 partnership in the development of six run-of-river hydroelectric projects on six creeks – Rogers Creek, Snowcap Creek, Gowan Creek, Kakila Creek, Tuwasus Creek and Billygoat Creek – located in the In-SHUCK-ch's traditional territories. Both parties are now in talks with the provincial government to evaluate the possibility of long-term power purchase agreements with BC Hydro.
Imperial gets eviction notice
The aftershocks from the Mount Polley mine disaster just keep coming for Imperial Metals (TSX:III), which is now being given an eviction notice by First Nations from an area north of Kamloops where the company is looking to develop a zinc-lead mine.
The Neskonlith Indian Band has issued an eviction notice to the company, which has been doing metallurgical testing on its Ruddock Creek property, 155 kilometres northeast of Kamloops.
Imperial owns 50% of the property. The balance is held by two Japanese companies, Mitsui Mining and Smelting Co. Ltd. and Itochu Corp.
Production costs lower in U.S.
Gold is being mined by many producers at costs higher than the price of the precious metal, several recent earnings reports have revealed.
But according to Forbes columnist Tim Treadgold, the one place where the trend seems to be going the opposite direction is in the U.S.
He takes AngloGold Ashanti's (NYSE:AU, JSE:ANG) Americas unit as an example . According to Bank of America Merrill Lynch, that division produced gold at $765 per ounce, almost $100 an ounce less than AngloGold's operations in South Africa.
– Mining.com
Miners outperform forecast
Canadian mining equities continued to show strong signs of improvement during the second quarter of the year, driven mainly by a recovery in metal prices, EY's latest Canadian Mining Eye, published August 12, shows.
The index – which tracks the sector performance of 100 TSX and TSX-V mid-tier and junior companies with market capitalizations between $1.4 billion and $55 million in the third quarter – gained 9% during Q2 2014, outperforming global indicators.
In comparison the S&P/TSX Composite index gained 6% and the London Metal Exchange index increased by 7% in the same period.
