New Deals, 1.7 Billion
Acquisition and 52 Week high make news for Mexico’s Miners; @AsiaBroadband -
Stocks Mentioned; (OTC: $AABB),
(NYSE: $CDE), (TSX:$SIL.TO) (NYSE American: $SILV), (TSXV: $HSTR.V) (OTCQX: $HSTXF)
October 9 2024
- Investorideas.com, a global investor news source covering
mining and metals stocks releases a news snapshot featuring Asia Broadband Inc.
(OTC: AABB), a resource company focused on the
production of precious metals and the accumulation of physical gold holdings.
Other
Mexico miner stocks mentioned include Coeur Mining, Inc.
(NYSE:
CDE), SilverCrest Metals Inc. (TSX:
SIL) (NYSE American: SILV)
and Heliostar Metals Ltd. (TSXV: HSTR) (OTCQX:
HSTXF).
Paid News Dissemination of behalf of
AABB
Read this article, featuring AABB in full at https://www.investorideas.com/news/2024/mining/10091Mexico-Miners.asp
According to Identec Solutions, “Mexico's mining market was worth USD 1.83
billion in 2022 and is expected to grow at a compound annual growth rate of
2.9% from 2023 to 2030.”
“Gold mining in Mexico is a significant sector within the country's
mining industry, contributing to its position as one of the world's top
producers of precious metals.”
“74% of Mexico's mining concessions are owned by Canadian companies.
Some of the most notable mining companies are Industrias Peñoles, Fresnillo
PLC, Grupo Mexico, Torex Gold, Newmont, Southern Silver Exploration, Ganfeng
Lithium, Fortuna Silver Mines, Alamos Gold, Hochschild Mining, and Excellon
Resources.”
Asia Broadband Inc. (OTC: AABB) uses its geographic expertise, experience and extensive industry
contacts to facilitate the expansion of precious metals property holdings and
production in Mexico. Current mining and production projects include Acaponeta, Bonanza, Tequila, La
Guadalupe, Buen Pais, Zodiac, La Paz, Etzatlan and the Etzatlan Processing Plant.
Asia
Broadband just announced that the Company’s new
processing facility site in Etzatlan, Mexico continues the installation process
with an expected completion date in Q1 2025. The plant will be primarily
dedicated to processing a large-scale surface ore stockpile per the Company’s
exclusive agreement. Previously, the
plant construction and installation target completion estimate was the second
half of 2024, but several of the major equipment and supporting accessories
deliveries were delayed by the Asian suppliers, beyond the Company’s control.
Additionally, the plant construction team has worked through delays caused by
permitting processes and severe weather conditions. In the coming months, the
last remaining equipment necessary to complete the plant will be delivered,
installed and tested for integration into the plant system processes.
The Company continues with its on-site lab
testing campaign by utilizing recently gathered data and the stockpile
evaluation technical report to extrapolate the highest mineral concentration
targets for evaluation and confirmation for prioritized processing. The on-site
analysis lab is an efficiency tool that expedites the production target
identification process with rapid test results and extensive testing capacity.
The lab and testing program accelerates the new processing facility operations
with reduced costs and maximized plant revenues.
AABB’s new plant is designed to utilize
advanced mining equipment automation and efficiencies to maximize processing
throughput and metals extraction and minimize the production costs.
Additionally, the new facility will be built with expanded processing
capability that will be implemented after the initial production levels have
been established.
In December 2022, AABB completed the land purchase for the site of the
new processing facility to be constructed with respect to the terms of the
historic and long-term processing and production agreement signed previously
for a large-scale gold and silver ore stockpile located in Las Jimenez,
Etzatlan, Jalisco, Mexico. The agreement allows the Company exclusivity to purchase
the 4 million ton ore stockpile at an economically feasible price point. An
evaluation report has estimated the stockpile to represent over $1 billion in
total gold and silver value. The stockpile processing project is the largest
high-yield asset addition for the Company to date in its strategic expansion
initiative to acquire gold production and increase AABB’s physical gold
holdings.
Las Jimenez Stockpile Mineral Evaluation
Report:
https://asiabroadbandinc.com/la-paz-etzatlan/
The 4.94 hectare processing plant land parcel, that includes a water
concession, is located approximately 5.8 miles from the ore stockpile in
Etzatlan, Mexico, and 48 miles from the AABB Buenavista mining warehouse. The
new facility build-out is budgeted for a $3 million cost and is initially
planned to have a 200 ton per day (tpd) processing capacity. At this first level of processing, the mill
is estimated to generate over $11 million in revenue annually. However, the
Company will also be accelerating a mill expansion installation to increase the
processing capacity 5 fold to 1,000 tpd, once the initial processing level of
the mill is consistently at capacity.
“As we continue to receive the remaining
pieces of equipment for installation and testing over the coming months, we
will remain focused on the utilizing the high-grade testing results completed
by our technical team from the ore stockpile to create prioritized target zones
for production. With our own mineral testing lab on the facility site, we can
identify the highest mineral concentration priority targets in a very short
period of time instead of having to rely on outside mineral analysis services.
The efficiency and quality advantage with our processing lab will allow us to
achieve the greatest value throughput to maximize and expand revenues when stockpile
production begins,” explained Chris Torres, AABB President and CEO.
According to Statista.com,
“In 2022 Mexico produced more than 199 million ounces of silver and therefore,
was the world's largest silver producing country.”
Silver mining in Mexico made big headlines
last week with news that Coeur Mining is buying Silvercrest in a $1.7 billion
deal. Coeur Mining, Inc. (NYSE: CDE)
and SilverCrest Metals Inc. (TSX: SIL)
( NYSE
American: SILV) announced
that they have entered into a definitive agreement (the "Agreement")
whereby, a wholly-owned subsidiary of Coeur will acquire all of the issued and
outstanding shares of SilverCrest pursuant to a court-approved plan of
arrangement.
From
the news: Under the terms of the Agreement,
SilverCrest shareholders will receive 1.6022 Coeur common shares for each
SilverCrest common share. The Exchange Ratio implies consideration of $11.34
per SilverCrest common share, based on the closing price of Coeur common shares
on the New York Stock Exchange ("NYSE") on October 3, 2024. This
represents an 18% premium based on 20-day volume-weighted average prices of
Coeur and SilverCrest each as at October 3, 2024 on the NYSE and NYSE American,
respectively, and a 22% premium to the October 3, 2024 closing price of
SilverCrest on the NYSE American. This implies a total equity value of
approximately $1.7 billion based on SilverCrest's common shares outstanding.
Upon completion of the Transaction, existing Coeur stockholders and SilverCrest
shareholders will own approximately 63% and 37% of the outstanding common stock
of the combined company, respectively.
"The acquisition of SilverCrest
creates a leading global silver company by adding low-cost silver and gold
production and significant free cash flow to our rapidly growing production and
cash flow driven by the recent expansion of our Rochester silver and gold mine
in Nevada," said Mitchell J. Krebs, Chairman, President and Chief
Executive Officer of Coeur. "Together with SilverCrest's large and growing
cash balance and no debt, our balance sheet is expected to be materially
strengthened on day one. This immediate deleveraging, along with the
significant combined expected free cash flow, will allow for rapid debt
repayment and investment in other organic growth opportunities while offering
shareholders an unparalleled re-rating opportunity. With over 15 years of experience
operating our Palmarejo underground silver and gold operation next door in
Chihuahua, we look forward to adding the high-quality Las Chispas mine to
create a leading global silver company at a time when the demand for silver in
renewable energy and a wide range of electrification end uses is rapidly
rising."
Heliostar
Metals Ltd. (TSXV:
HSTR) (OTCQX: HSTXF) hit a 52 week high this week on news of a $6M financing with Eric Sprott.
Heliostar
aims to grow to become a mid-tier gold producer. The Company is focused on
developing the 100% owned Ana Paula Project in Guerrero, Mexico and has
recently entered into an agreement to acquire a portfolio of production and
development assets in Mexico.
According to a recent
article, “Gold mining sweeping mining
industry changes passed into law by Mexico in 2023 under President Andrés
Manuel López Obrador have yet to cause any significant decreases in production
but have caused concern among investors and mining companies.”
“Mexican gold mine production dropped
notably after the 2023 Mining Law passed, showing a decrease of about 2.5
metric tons, or 20%, of the gold output following approval in May 2023.”
“However, gold production numbers quickly
recovered, and by December 2023, they were mirroring production from 2022, a
trend that continued through February 2024, according to data from Statista.”
Although changes are on the wind, the
future still shines bright for miners in Mexico.
Research more
gold and mining stocks at Investorideas.com https://www.investorideas.com/Gold_Stocks/Stocks_List.asp
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