Mining: Precious Metals Group

IBK Capital has raised a total of $1.3 million for Viscount Mining Corp. as part of a larger non-brokered $5.75 million private placement of units of common shares and warrants. IBK Capital was the lead order and the financial advisor to the company to complete the financing. Viscount Mining is now fully funded to launch phase one of a silver resource expansion at its Silver Cliff project in Colorado, USA. The program is expected to commence immediately and primarily consists of drilling. It is expected to continue over the next six to nine months in an effort to increase the current indicated resource of 5.6 million ounces of silver grading 84 grams per tonne (2.45 ounces per ton) and inferred resource of 7.1 million ounces of silver grading 70 grams per tonne (2.04 ounces per ton) to a phase one goal of 50 to 60 million ounces of silver. Once a 43-101 resource report is issued on phase one, the company expects to move to phase two of the resource expansion with a goal to increase the resource to 100 to 120 million ounces of silver. Viscount believes the upside potential on the project could be 400 million ounces of silver. The current resource is shallow, flat lying and considered an open pit style deposit. Therefore, the initial 3,000 metres of drilling is planned to consist of 50 metre holes with some deeper drilling where necessary. The company has also consolidated a 2,434-hectare property with historic gold and silver production in Cherry Creek, Nevada. A once fragmented district in Nevada, Cherry Creek is now controlled by Viscount Mining, bringing together multiple encouraging exploration targets for gold and silver discovery.

IBK Capital has raised a total of $6 million for Great Bear Resources Ltd. as part of a $10 million private placement of units of common shares and warrants. The $6 million was the lead order placed with Rob McEwen and his public company McEwen Mining. This financing saw a return to Red Lake for Rob McEwen who built Goldcorp to become a multi-billion-dollar public gold company by redirecting operations of its Red Lake mine to become one of the largest and richest gold mines in North America. Great Bear is lead by CEO Chris Taylor and is focused on the prolific Red Lake gold district in northwest Ontario where the company controls four projects. The flagship 9,140-hectare Dixie project is 100% owned by the company and is where the team has discovered a truly world-class, high-grade gold group of orebodies. The company has been tremendously successful in understanding the gold bearing structures on the Dixie project and continues to discover additional high-quality gold ounces in situ with every drill campaign. IBK Capital brokered the financing at a share price of $1.45 in September 2018. Shares of Great Bear trade at $18 as of September 2020.

IBK Capital raised $7.9 million for Minera Alamos Inc. for the development of its La Fortuna gold project and Los Verdes copper project in Mexico. Both projects are advanced and viewed as low capex, open pit potential producers.  Minera Alamos’ goal is to begin construction at La Fortuna first and it has acquired a 2,000 tonne per day mill in anticipation of a production decision.

IBK Capital raised $3.8 million for Augustine Ventures Inc. in units of flow-through shares and warrants, and units of common shares and warrants. Augustine (now Red Pine Exploration Inc.) has acquired 60% of the Wawa gold project in Wawa Ontario.  The company has defined over one million ounces of gold at Wawa in an NI 43-101 compliant resource calculation.

IBK Capital raised $16.1 million for Noront Resources Ltd. through the private placement of units of common shares and warrants and units of flow-through shares and warrants. The financings were used to fund Noront’s exploration program at its Windfall Lake property in Quebec which showed excellent results as it encountered three significant zones of gold mineralization at a depth of about 120 metres. The best zone covered a total width of 4.8 metres and assayed spectacular gold grades (52.3 ounces per ton, 23.33 ounces per ton, and 38.74 ounces per ton). Subsequently, Noront made a significant nickel, copper, and precious metals group discovery in the James Bay Lowlands. Please see the next section “Base Metals Group” for more details. Noront has since sold its interest in Windfall Lake to Eagle Hill Exploration Corporation. See Financial Advisory Services, Merger and Acquisition Assignments.

IBK Capital raised a total of $18.25 million for Eagle Hill Exploration Corporation (now Osisko Mining Inc.) in a series of private placements. Eagle Hill acquired the Windfall gold property in Quebec from Noront Resources and to date has released encouraging drill results including 19.6 grams per tonne gold over 33 metres and a NI 43-101 compliant resource of approximately 1.3 million ounces of gold.  Eagle Hill redefined the exploration model from localized high grade zones into a bulk tonnage deposit.  Osisko Mining is conducting a massive 400,000 metre drill project at Windfall to advance its principal project with the objective of moving the project to a production stage as quickly as possible.

IBK Capital raised a total of $3.2 million for High Desert Gold Corporation (now TriMetals Mining Inc.) in units of common shares and warrants and common shares. The company is focused on its Gold Springs project in Nevada/Utah.  Encouraging gold intercepts include 21 metres of 6.1 grams per tonne gold equivalent and 150 metres of 1 gram per tonne gold equivalent. The company is drilling “Round Mountain” style gold targets.

IBK Capital raised a total of $919,000 for Antioquia Gold Inc. in units of common shares and warrants. Antioquia is exploring for gold and developing a gold mine on a large land package in Colombia. The mine is expected to produce about 30,000 ounces of gold per year beginning in 2017.

IBK Capital raised a total of $29.9 million for RX Exploration Inc. in multiple tranches of units of flow-through shares and warrants, units of common shares and warrants, and common shares.  RX Exploration Inc. (now Americas Silver Corporation.) produced gold and silver from the Drumlummon high grade gold mine in Montana, USA.  It has identified multiple high grade gold and silver veins on the property. The company’s main assets are silver and base metal mines in Idaho, USA and Mexico.  Total annual production in 2016 was over 5 million silver equivalent ounces.

IBK Capital raised $19.34 million for Capital Gold Corporation in private placements of units of common shares and warrants.  Capital Gold Corporation was a US-based gold producer that owned the El Chanate mine located in the state of Sonora, Mexico.  The El Chanate mine is one of the lowest cost gold producers and produced 49,921 ounces of gold in 2009 at cash costs of US$271.  Capital Gold Corporation was acquired by Gammon Gold Inc. for US$420 million.

IBK Capital raised $1.1 million for Murgor Resources Inc. through the private placement of units of common shares and warrants. Murgor worked closely with Eagle Hill Exploration Corporation on the Windfall Lake property in Quebec, Canada.

IBK Capital raised a total of $21.4 million in six transactions for Brazilian Resources, Inc. Through strategic relationships in Brazil and institutional support in North America and Europe, the company has been involved in a number of attractive projects including gold exploration, energy concessions for the development of small hydroelectric plants and the development and operation of irradiation plants for food and other materials.  IBK Capital also raised $320,000 to complete the formation of Jaguar Mining Inc. to handle the operations of the multiple joint venture gold projects between Brazilian Resources and IMS Empreendimentos Ltda.  The projects are located in Brazil’s most prolific mining camp known as the Quadrilatero Ferrifero (“Iron Ore Quadrangle”), which is host to many world-class gold deposits in banded iron formations.

IBK Capital raised $2.98 million for Gold Reserve Corporation, a company listed on the TSX and NASDAQ, to fund exploration work on its Las Brisas project, a gold deposit located in the Kilometre 88 gold camp of Venezuela.  Drilling to date on the property indicated a gold resource of over 12 million ounces.

IBK Capital raised $3.7 million for Pelangio Mines Limited through the private placement of flow-through shares to fund exploration programs and from Franco Nevada Corporation to establish a joint venture. Pelangio acquired all of Placer Dome’s exploration property interests in the Detour Lake greenstone belt in North-Eastern Ontario, including Placer’s Detour Lake mine property.  The Detour gold camp has demonstrated the value of shifting from a high grade gold model to a bulk tonnage open pit resource.

IBK Capital has completed thirteen equity financings raising a total of $37.4 million for South American Gold and Copper Company Limited (now Cerro Grande Mining Corporation), a mineral exploration company with gold, copper and industrial minerals properties in Chile and Peru.

IBK Capital raised $6.9 million for Sulliden Exploration Inc. through two private placements of equity.  Sulliden’s Shahuindo gold property in Peru is between Newmont’s Yanacocha (32 million ounces of gold) and Barrick’s Alta Chicama (7.3 million ounces of gold).

IBK Capital raised $1.4 million for U.S. Gold Corporation (now McEwen Mining Inc.) through a private placement of common shares.  Headed by Rob McEwen, one of Canada’s leading mining executives, U.S. Gold Corporation grew into an exploration powerhouse in one of Nevada’s premier mining regions with the goal of becoming Nevada’s premier exploration company.  U.S. Gold Corporation merged with Minera Andes Inc. to form McEwen Mining Inc.

IBK Capital raised $2 million for Virginia Gold Mines, Inc. through the private placement of flow through common shares.  Virginia Gold was one of the most successful and active exploration companies in Quebec.

IBK Capital raised $15.5 million in 2004 to help create a new gold mining company,Western Goldfields, Inc. (now New Gold Inc.), through the purchase of the Mesquite Mine from Newmont. In February 2006, with the advice of IBK Capital, the company appointed Randall Oliphant as Chairman who brought in a new management team and closed a US$6.9 million financing.  IBK Capital was instrumental in bringing in this new team to facilitate the closing of the strategic financing.  In 2009, Western Goldfields was acquired by New Gold Inc.