TSX Venture rises, May 13-17: Atlantic Gold, SilverCrest; Maverix, Midland Exploration

The S&P/TSX Venture Composite Index rose 9.67 points, or 1.61%, to finish the May 13 to 17 trading week at 609.15.

News of the acquisition of Atlantic Gold by Australian gold producer St Barbara sent Atlantic’s shares up 89¢ to $2.89. St Barbara’s offer represented a 40.8% premium to the company’s 30-day volume weighted average price. The offer consisted of $2.90 per share in cash plus a spin-out company that will hold Atlantic’s interest in Velocity Minerals (TSXV: VLC) valued at 5¢ per share for a total consideration of C$2.95 per share. The C$2.90 per share cash consideration implies a total equity value for Atlantic of C$722 million and a total enterprise value of C$802 million.

Results from a preliminary economic assessment (PEA) of SilverCrest Metals’ Las Chispas project in Sonora, Mexico, sent the company’s shares up 23¢ to $4.50. The PEA outlined an initial mine life of eight and a half years, a production rate of 1,250 tonnes per day, and average annual production of 5.38 million oz. silver and 55,700 oz. gold, or 9.6 million silver-equivalent ounces. Life-of-mine all-in sustaining costs (AISCs) are estimated at US$7.52 per silver-equivalent ounce. Initial capex is forecast to run to US$100.5 million for a payback of nine months. The study estimated an after-tax internal rate of return of 78% and net present value of US$406.9 million. The study used a silver price of US$16.68 per oz. and a gold price of US$1,269 per ounce.

Shares of gold royalty and streaming company Maverix Metals rose 13¢ to $2.74 per share. The company reported first-quarter revenue of C$7.5 million, up from C$6.8 million in the first quarter of 2018. Net income in the three months ended March 31 set a record of C$1.5 million, or 1¢ per share, compared with C$1.2 million, or 1¢ per share, in the year-ago quarter. Average cash costs per attributable gold-equivalent oz. sold was C$202 million, resulting in cash operating margins of C$1,527 per ounce. During the quarter Maverix acquired a 22.5% life-of-mine silver stream on Ascendant Resources’ El Mochito mine.

Midland Exploration’s shares fell 12¢ to $1.05. The company reported drill results from its Mythril project in Quebec. The highlight was drill hole MYT-19-06, which cut an intercept of 13 metres grading 1.07% copper, 0.37 gram gold per tonne and 8.87 grams silver per tonne for a copper-equivalent grade of 1.41% from 92 metres downhole, including 3.03% copper, 1.03 grams gold and 24.63 grams silver for 3.94% copper-equivalent over 4 metres and 11.8% copper, 3.96 grams gold and 81.30 grams silver for a 15.16% copper-equivalent over 1 metre.