Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Solitario Resources (TSXV: SLR) announced late on Wednesday that Newmont has become the company’s largest controlling shareholder following a strategic investment by one of the gold giant’s subsidiaries.
Through the purchase of an additional 4.17 million common shares at C$0.60 apiece, for a total value of C$2.5 million ($1.8m), Newmont has now upped its interest in Solitario to 9.95%. The transaction was made pursuant to a prior agreement between the two companies.
Shares of Solitario Resources closed the session 13.2% higher for a market capitalization of C$50.3 million ($37.7m).
According to Chris Herald, CEO of Solitario, this financing by Newmont, a long-term shareholder, would enhance the company’s existing cash and marketable securities balance to approximately $6.1 million.
Solitario is presently focused on high-quality zinc exploration projects across the Americas. Its portfolio is headlined by the Florida Canyon and Lik joint venture projects, located in Peru and Alaska, respectively.
The company is also focused on gold exploration, with a 100% interest in the 33,000-acre Golden Crest gold project in South Dakota.
