Source: The Gold Report 06/13/2017Two well-known mining companies are combining efforts to bring a mine into production in Argentina, currently a mining hot spot.
Golden Arrow Resources Corp. (GRG:TSX.V; GAC:FSE; GARWF:OTCQB) and Silver Standard Resources Inc.'s (SSO:TSX; SSRI:NASDAQ) joint venture in Argentina was announced in April. The two companies joining forces has allowed Golden Arrow to add "mining and operations" to its company description and has given the junior more capital to invest in itself and other projects.
On May 31, Golden Arrow announced the official closing of the JV transaction, forming "a joint venture called Puna Operations Inc., which combines the Chinchillas project with the producing Pirquitas operation. The joint venture is owned on a 75% / 25% basis by Silver Standard and Golden Arrow, respectively. Silver Standard will be the operator."
At the recent International Metal Writers Conference, Golden Arrow's VP of Exploration and Development, Brian McEwan, highlighted that Golden Arrow is "valued at CA$100 million" with accrued earnings of $20 million since signing the deal with Silver Standard.
McEwan went on to note that Silver Standard has years of production experience and has "beat their guidance year after year." He stated that the junior venture deal with Silver Standard is the best option for Golden Arrow to break into the production side of mining.
The full video of Brian McEwan's talk at the conference is available here.
In a May 24 article, "How Undervalued is Golden Arrow Resources?", Peter Epstein supported Golden Arrow's view on why the JV deal with Silver Standard has upside. He highlighted the $20 million the company will receive once the JV deal closes and the "additional C$7M from in-the-money options & warrants, plus an estimated C$11M stretching out into mid-2018 from its share of cash flow from processing stockpiles at the Pirquitas mine" will contribute to funding both Chinchillas and other projects.
Epstein concluded that "the JV interest is arguably worth more to a suitor with multiple mines, as it would serve to diversify its asset portfolio and the suitor could more efficiently spread overhead expenses across the entire enterprise."
Read what other experts are saying about:
Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.
1) Melissa Farley compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: Golden Arrow Resources Corp. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.
( Companies Mentioned: GRG:TSX.V; GAC:FSE; GARWF:OTCQB, )
from Streetwise Reports - Exclusive Articles https://www.streetwisereports.com/pub/na/17503