Which US presidential candidate does gold prefer?
Gold loves chaos and should be hitting new highs, especially with inflation coming down and with it, two rate cuts likely before year’s end.
Québec-focused gold explorer O3 Mining (TSXV: OIII) announced Monday it has sold its Louvem property to a subsidiary of Eldorado Gold (TSX: ELD) for cash consideration of C$80,000 and the retention of a 0.5% net smelter return (NSR) royalty.
The Louvem property consists of 12 mining claims and is located 5 km east of Malartic, Québec. The project was originally acquired along with the Regcourt property under a March 2020 purchase agreement with Monarch Mining (TSX: GBAR).
O3 first acquired a 50% interest in the Louvem project by issuing 4,546 common stock and granting Monarch a 0.5% NSR royalty, and then acquired the remaining 50% by paying C$10,000 cash. The NSR has a buyback of C$300,000. Eldorado will now assume the obligation of this royalty.
As for the NSR royalty retained by O3, Eldorado is granted the right to repurchase half of that (equal to a 0.25% NSR interest) from O3 for an immediate payment of C$250,000, to be paid in a lump sum.
The sale provides O3 with additional funds to advance its portfolio of gold exploration assets in Val-d’Or, which span more than 650 sq. km. Together, these projects host 2.86 million gold ounces of measured and indicated resources at 1.18 g/t, and 770,000 gold ounces of inferred resources at 3.04 g/t.
Eldorado is owner of the Lamaque mine complex in Val-d’Or, consisting of the Triangle gold deposit located 2.5 km south of the historic world-class Lamaque and Sigma mines. It currently hosts proven and probable gold reserves of 877,000 ounces at 6.12 g/t gold to support a mine life of 11 years.
Shares of O3 Mining gained 1.4% to C$1.43 apiece by 2:20 p.m. ET. The company has a market capitalization of C$125.4 million. Eldorado Gold’s stock was up 0.4% at C$16.54 for a market capitalization of C$3.3 billion.
