Juniors raise US$133mn for LatAm projects in June

Junior mining companies advanced financing deals worth US$133mn for Latin American assets in June, with the bulk earmarked for projects in Guyana and Mexico.

Explorers and small producers announced, advanced or closed at least 27 financings in the month, up from 15 worth US$111mn in May.

The June figure was down from US$235mn in April, spread over 13 deals, and from the March peak of US$966mn, across 25 deals.

Financings worth US$385mn were advanced in February, following the low of US$60.5mn in the first month of the year.

The financings include share offerings and loans, with deals worth less than Cdn$2.0mn (US$1.6mn) excluded.

The deals were aimed at funding exploration, asset acquisitions and an international arbitration claim.

GUYANA, MEXICO FOCUS

Mexico was the main target of 10 of the 27 financings in June, worth US$42.7mn, with five aimed at assets in Guyana, worth US$48.0mn.

The remaining deals were spread over Peru, Colombia and Chile, with two each, and single financings aimed at properties in Argentina, Brazil, Ecuador and Nicaragua.

Two deals were for multiple or undefined locations.

GOLD SHINES

More than half (17) of the deals were aimed at primary gold projects worth US$78.9mn, which was followed by silver assets, with four deals worth US$27.8mn.

The remaining financings were for copper, lithium, uranium and phosphate projects.

TOP JUNE FINANCINGS

1. Reunion Gold: Cdn$30.0mn (US$23.3mn) plus Cdn$5.9mn (US$4.6mn)

Target: Guyana, gold

Quebec-based Reunion Gold’s Cdn$20.0mn bought deal financing was upsized to Cdn$30.0mn the day it was announced, under a revised agreement with Sprott Capital Partners, on behalf of a syndicate of underwriters.

The company also confirmed it expects Dundee Resources to elect to purchase units under the same terms as the bought deal offering to maintain its 16.5% interest, through a concurrent non-brokered placement of Cdn$5.9mn.

Net proceeds will be used for exploration on Reunion’s projects, which include Oko West in Guyana, and for general corporate and working capital purposes.

2. Odyssey Marine Exploration: US$15mn

Target: Mexico, phosphate sands

Odyssey announced in June that it had raised US$15.0mn in a direct offering of equity securities.

The company is currently pursuing an arbitration claim against Mexico after authorities rejected an environmental permit application for its ExO (formerly Don Diego) phosphate sands seabed mining project off the Baja California Sur coast.

“We expect this financing to carry Odyssey through a decision on our Nafta arbitration and provide the cash to self-fund a portion of the Nafta litigation,” CEO Mark Gordon said in a release.

3. Guanajuato Silver: US$14.0mn

Target: Mexico, silver

Guanajuato Silver announced a US$14.0mn debt and equity financing package which will help fund the company’s US$14.7mn acquisition of Mexican primary silver assets from Great Panther Mining.

The package comprises a US$5.0mn loan from Ocean Partners (UK) and Cdn$11.6mn (US$9.0mn) equity financing, which will be used for the purchase of Great Panther’s Mexican assets and to fund ongoing mining operations and for general corporate and working capital purposes.

Research Capital Corporation and Canaccord Genuity will act as joint bookrunners on behalf of a syndicate of agents in the equity financing.

4. G2 Goldfields, Cdn$14.4mn (US$11.2mn)

Target: Guyana, gold

G2 Goldfields plans to raise Cdn$14.4mn in an upsized non-brokered private placement, which will be used to advance exploration at its Oko project in Guyana (in picture), and for general corporate purposes.

The company plans to mobilize two additional diamond drill rigs to the property, taking the total to five, and commit additional resources to an ongoing greenfield exploration program.