Gold prices are just beginning to pick up momentum. JPMorgan Chase advises investors to hedge their risk with gold. Even Bank of America just increased its 18-month price target on gold to $3,000. All as central banks around the world continue with endless money printing in an effort to prop up the global economy. The U.S. Federal Reserve, for example has pumped trillions of dollars of liquidity into markets. They even dropped the federal funds rate to a range of 0% to 0.25%.
Coupled with plenty of economic uncertainty on the heels of the coronavirus threat, tensions with China, and even upcoming U.S. elections, gold prices could accelerate higher. With safe haven demand increasing, some of the best performing companies with direct exposure to gold prices are those with royalties and streams on development-stage and producing gold assets. Some of the top companies to watch include Franco-Nevada Corporation (NYSE:FNV)(TSX:FNV), Royal Gold Inc. (NASDAQ:RGLD), Wheaton Precious Metals Corp. (NYSE:WPM)(TSX:WPM), Sandstorm Gold Ltd. (NYSE:SAND)(TSX:SSL) and GoldMining Inc. (OTC:GLDLF)(TSX:GOLD).
GoldMining Inc. (OTC:GLDLF)(TSX:GOLD) BREAKING NEWS: GoldMining Inc. announced the creation of Gold Royalty Corp., a newly incorporated wholly owned subsidiary, that will hold 14 newly created net smelter return royalties on its extensive gold-focused asset portfolio in the Americas. Amir Adnani, Chairman, commented: "Following a decade-long effort since forming the Company to assemble an extensive portfolio of gold projects in mining friendly jurisdictions in North and South America, we believe that the timing is right to create this royalty entity to impart an additional, and non-dilutive layer of value to existing shareholders. Over the long-term, we intend to explore potential value-enhancing transactions for Gold Royalty Corp., including a potential spin-off, initial public offering, sale, merger or other transactions that increase shareholder value."
Garnet Dawson, CEO, commented: "GoldMining's focus remains our two-pronged strategy of expanding our property portfolio through accretive transactions of resource stage gold projects and their advancement towards development. We believe Gold Royalty Corp. will be a complementary platform to GoldMining's future acquisition and development plans."
GRC's royalty portfolio is expected to comprise of 0.5% to 2.0% NSR royalties on the Company's interest in 14 existing projects with the opportunity to expand the royalty portfolio through the Company's buy-back rights on existing NSR royalties ranging from 0.5% to 5% held by third-parties on up to 5 of the 14 projects.
Other related developments from around the markets include:
Franco-Nevada Corporation (NYSE:FNV)(TSX:FNV) entered into an agreement with SolGold PLC to acquire a 1% net smelter royalty with reference to all minerals produced from the Alpala copper-gold project in northern Ecuador for $100 million. The Alpala project is owned by Exploraciones Novomining SA, which is held 85% by SolGold and 15% by Cornerstone Capital Resources Inc. The NSR will cover the 4,979 hectare Cascabel concession and closing of the acquisition is subject to on-site confirmatory due diligence which will be completed once COVID-19 travel restrictions are lifted. In the interim, the Corporation has agreed to provide SolGold with a bridge loan of $15 million for a period of up to 8 months. SolGold has the option to increase the size of the transaction to $150 million for a 1.5% NSR until January 11, 2021 and also has the option to buy-back 50% of the NSR for a period of time. Franco-Nevada is entitled to receive certain minimum royalty payments from 2028 and also has the option to convert the NSR to a gold NSR for a period of time after Alpala is producing. As part of the royalty arrangements, the Corporation has agreed to contribute $150,000 per year for three years after closing to one or more of SolGold’s local Ecuadorian environmental and social initiatives. SolGold has agreed to match or surpass such annual funding.
Royal Gold Inc. (NASDAQ:RGLD) announced that its Board of Directors has declared its third quarter dividend of US$0.28 per share of common stock. The dividend is payable on July 16, 2020, to shareholders of record at the close of business on July 2, 2020.
Wheaton Precious Metals Corp. (NYSE:WPM)(TSX:WPM) announced that its wholly-owned subsidiary, Wheaton Precious Metals International Ltd. has signed a non-binding term sheet with Caldas Gold Corp. to enter into a Precious Metals Purchase Agreement for the Marmato Project located in Colombia. The Marmato Project comprises an operating Upper Mine and the Marmato Deeps Zone development, both of which are covered by the Precious Metals Stream. "Wheaton is excited to partner with Caldas Gold in developing the Marmato Project. The strength and potential upside of this project was especially apparent during our onsite due diligence trip, prior to travel restrictions being put into place," said Randy Smallwood, President and Chief Executive Officer of Wheaton Precious Metals. "We remain unwavering in our focus on delivering the highest quality portfolio of precious metals production to our shareholders through our top tier asset base, strong organic growth profile and acquisition of accretive growth opportunities such as Marmato. As can be seen, Wheaton continues to be very active on the corporate development front despite limitations resulting from the current global COVID-19 pandemic."
Sandstorm Gold Ltd. (NYSE:SAND)(TSX:SSL) provided an asset update and announce the Company has filed the prospectus supplement for the previously announced at-the-market equity program. Recent infill drill results have been reported by Lidya Madencilik San. ve Tic. A.S., Sandstorm’s 70% partner at Hod Maden. A total of 2,864 metres in 24 drill holes have been completed in 2020 and once travel and work restrictions are lifted in Turkey, Lidya plans on continued infill, geotechnical, hydrological and exploration drilling on the project.
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. GoldMining Inc. has paid three thousand five hundred dollars for advertising and marketing services to be distributed by Winning Media. Winning Media is only compensated for its services in the form of cash-based compensation. Winning Media owns ZERO shares of GoldMining Inc. Please click here for full disclaimer.
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