Proactiveinvestors USA & Canada Excelsior Mining Corp https://ca.proactiveinvestors.com Proactiveinvestors USA & Canada Excelsior Mining Corp RSS feed en Fri, 14 Dec 2018 20:45:46 -0500 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Excelsior Mining closes US$9.4 million equity placement with Greenstone Resources ]]> https://ca.proactiveinvestors.com/companies/news/210708/excelsior-mining-closes-us94-million-equity-placement-with-greenstone-resources-210708.html Excelsior Mining Corp (TSE:MIN) (OTCMKTS: EXMGF) said it had completed the previously announced US$9.4 million equity placing with private equity fund and mining sector specialist Greenstone Resources.

The Arizona-focused copper mine developer issued Greenstone with over 13 million shares at a total subscription price of US$9.443 million, or equal to around C$0.95 per share.

Greenstone, founded in 2013, now holds around 48.56% of Excelsior's capital.

READ: Excelsior Mining poised and preparing for production next year at Gunnison

The Greenstone team has over 80 years' experience in the sector covering all aspects of mining projects and is acquiring the Excelsior shares for investment purposes.

The stock deal with Greenstone was related to a previously announced project financing package for Excelsior.

The financing, now closed, allowing it to begin building its Gunnison mine, is to be provided by Triple Flag Mining Finance Bermuda Ltd (Triple Flag), and consists of a US$65 million copper metal stream and concurrent US$10 million private placing of Excelsior shares.

Gunnison site on-track fo copper

Gunnison is an in-situ recovery copper project in Cochise County and is on track to be the next new copper producer in the United States.

A feasibility study projected an after-tax NPV (net present value) of US$ 807 million and an IRR (internal rate of return) of 40% using a US$ 2.75 per pound copper price and a 7.5% discount rate.

Excelsior shares stand at $0.97 at the time of writing.

 

Contact Giles at giles@proactiveinvestors.com

Follow him on Twitter @Gile74

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Thu, 06 Dec 2018 10:13:00 -0500 https://ca.proactiveinvestors.com/companies/news/210708/excelsior-mining-closes-us94-million-equity-placement-with-greenstone-resources-210708.html
<![CDATA[News - Excelsior Mining says Altius Royalty has exercised its final royalty option ]]> https://ca.proactiveinvestors.com/companies/news/210600/excelsior-mining-says-altius-royalty-has-exercised-its-final-royalty-option-210600.html Excelsior Mining Corp (TSE:MIN) (FSE:3XS) (OTCMKTS:EXMGF) announced Wednesday that Altius Royalty Corporation has exercised the final royalty option under the share purchase and royalty option agreement between the company and Altius.

As a result of the exercise of the final option, Altius has paid the Excelsior C$5 million and in return received an additional gross revenue royalty on the Gunnison Copper Project.

"This investment by one of the mining industry's foremost royalty companies is another significant endorsement for the Gunnison Copper Project," said Excelsior President and CEO Stephen Twyerould. 

"As we transition into the next new copper producer in the United States, we do so from a position of fiscal strength supported by excellent funding partners such as Altius."

READ: Excelsior Mining begins building Gunnison copper project in Arizona

On Friday, the group closed its US$75 million financing and promised it would start construction before year-end. First production is expected in the fourth quarter of 2019.

"We have been continually impressed by Excelsior's ability to overcome challenging conditions and to ultimately deliver the Gunnison Copper Project to this construction decision milestone. We offer our sincere congratulations to the team and look forward to Gunnison becoming the 16th paying royalty in our portfolio," said Brian Dalton, president and CEO of Altius.

The terms of the construction GRR are Altius has paid C$5.0 million for a gross revenue royalty that is equal to (i) 0.625% while the plant capacity of all the plants operated or constructed by the company or its affiliates for use in connection with the Gunnison Copper Project is less than 75 million lbs. of copper per annum; and (ii) 0.5% while the Plant Capacity is greater than or equal to 75 million lbs. of copper per annum.

Combined with the GRRs that Altius previously acquired, Altius now holds a 1.625% GRR on the Gunnison Copper Project while plant capacity is less than 75 million lbs. of copper per annum and 1.5% while the plant capacity is greater than or equal to 75 million lbs. of copper per annum.

 

Contact Katie Lewis at katie@proactiveinvestors.com

Follow her on Twitter: @kelewis

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Wed, 05 Dec 2018 09:10:00 -0500 https://ca.proactiveinvestors.com/companies/news/210600/excelsior-mining-says-altius-royalty-has-exercised-its-final-royalty-option-210600.html
<![CDATA[News - Excelsior Mining begins building Gunnison copper project in Arizona ]]> https://ca.proactiveinvestors.com/companies/news/210499/excelsior-mining-begins-building-gunnison-copper-project-in-arizona-210499.html Excelsior Mining Corp (TSE:MIN) continues to make great strides in Arizona and has now kicked off construction at its Gunnison copper mine, with drilling started on the production wellfield and accompanying compliance wells.

On Friday, the group closed its US$75 million financing and promised it would start construction before year-end. First production of the red metal is expected in the fourth quarter of 2019.

"Our ability to move quickly from the close of project financing to the initiation of construction at our Gunnison Copper Project is a demonstration of the operational capacity and experience of the Excelsior team,"  Stephen Twyerould, the president and CEO of Excelsior, told investors. "We look forward to updating all stakeholders as we move through the construction process."

READ: Excelsior Mining set to start construction at Gunnison before year-end as it closes US$75M financing package

Hydro Resources, an experienced in-situ recovery wellfield driller, currently has three drilling rigs on site with two additional rigs arriving in January. A total of 63 wells, including 41 production wells and 22 compliance wells totaling approximately 82,000 feet will be completed. Drilling of the production wellfield is expected to be finished in the second quarter of 2019.

The general contractor is Schmueser and Associates and building work will include the construction of an access road south of the 110 Highway.

There will be an upgrade to the Johnson Camp Mine plant to ensure Gunnison produces Grade A, 99.999% pure copper cathode. Also being built is a two-mile-long high-density polyethylene (HDPE) pipeline will transport solution to the JCM processing facilities.

Existing ponds are being modified to accommodate the copper solutions from the wellfield.

Additional pregnant leach solution (PLS) capacity is also being created at Gunnison to provide operational flexibility, said Excelsior.

"We look forward to working with Excelsior Mining Corp on this low cost, environmentally friendly, copper production process," said Larry Schmueser II, president of Schmueser & Associates.

Gunnison is an in-situ recovery copper project in Cochise County and is on track to be the next new copper producer in the United States.

A feasibility study projected an after-tax NPV (net present value) of US$ 807 million and an IRR (internal rate of return) of 40% using a US$ 2.75 per pound copper price and a 7.5% discount rate.

Shares in Toronto nudged up 1.03% to $0.98 each..

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Tue, 04 Dec 2018 09:44:00 -0500 https://ca.proactiveinvestors.com/companies/news/210499/excelsior-mining-begins-building-gunnison-copper-project-in-arizona-210499.html
<![CDATA[News - Excelsior Mining set to start construction at Gunnison before year-end as it closes US$75M financing package ]]> https://ca.proactiveinvestors.com/companies/news/210334/excelsior-mining-set-to-start-construction-at-gunnison-before-year-end-as-it-closes-us75m-financing-package-210334.html Shares in Excelsior Mining Corp (TSE:MIN) nudged up Friday as it said it had closed its US$75M financing for the Gunnison copper project in Arizona and will start construction before year-end.

Gunnison is an in-situ recovery copper project in Cochise County and is on track to be the next new copper producer in the United States

READ: Excelsior Mining poised and preparing for production next year at Gunnison

"With access to over US$75 million in capital, Excelsior is ideally positioned to start construction this year, and we are supremely confident in the ability of our management team to execute and maintain our construction schedule," said Mark Morabito, chairman of the group.

"I want to thank our project financing partners, Triple Flag and Greenstone Resources for their commitment and support as we now move towards first production in 2019."

At closing, Excelsior has now received initial gross proceeds of US$20 million, comprising US$10 million of the US$65 million deposit (the "Stage 1 upfront deposit") under the terms of the stream agreement, and US$10 million proceeds from the placing.

The balance of the Stage 1 deposit will be provided in instalments at the request of Excelsior as it goes through construction.

As per the placing component, Excelsior has issued to Triple Flag over 13.8 million shares at a total subscription price of US$10 million, or equal to around $0.95 per share at current exchange rates.

The shares are subject to a four-month hold period that expires on March 31 next year.

For the stream, Excelsior has also issued to Triple Flag 3.5 million five-year share purchase warrants, beginning on November 30, 2018, which allows Triple Flag to purchase 3.5 million Excelsior at a strike price of C$1.50 each.

Excelsior is expecting a further US$9.4 million in financing proceeds from affiliates of Greenstone Resources L.P. following the terms of a previously announced subscription agreement.

The feasibility for Gunnison projected an after-tax NPV (net present value) of US$ 807 million and an IRR (internal rate of return) of 40% using a US$ 2.75 per pound copper price and a 7.5% discount rate.

Excelsior shares added 3.26% in Toronto to $0.95.

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Fri, 30 Nov 2018 13:17:00 -0500 https://ca.proactiveinvestors.com/companies/news/210334/excelsior-mining-set-to-start-construction-at-gunnison-before-year-end-as-it-closes-us75m-financing-package-210334.html
<![CDATA[News - Excelsior Mining confirms US$9.4M equity placement to Greenstone Resources LP ]]> https://ca.proactiveinvestors.com/companies/news/209702/excelsior-mining-confirms-us94m-equity-placement-to-greenstone-resources-lp-209702.html Excelsior Mining Corp (TSE:MIN, OTCMKTS: EXMGF) unveiled encouraging news Wednesday as it announced that it has agreed to sell more than 13 million shares to London-based private equity firm Greenstone Resources LP for US$9.4 million.

The price is C$0.95 per share at current exchange rates.

Upon closing of the transaction and financing from Toronto-based Triple Flag Mining Finance Ltd, Greenstone will hold close to 114 million of Excelsior’s common shares, with a 48.56% stake.

Last month, Excelsior revealed a huge boost to the project, a US$75 million project financing package that sent shares surging.

Excelsior's flagship project is a fully-permitted, advanced staged, low cost, environmentally friendly in-situ recovery copper extraction project at the Gunnison Copper Project in Cochise County, Arizona.

READ: Excelsior Mining poised and preparing for production next year at Gunnison

The stock deal with Greenstone is related to a previously announced project financing package. It’s subject to Toronto Stock Exchange approval and the closing of the Triple Flag financing, according to the company.

Excelsior continues to push ahead with work at the Gunnison copper project in Cochise County, Arizona, where the company is poised to be a major long-term employer for the next 25 years.

Initial production from the US's next new copper producer is scheduled for 2019.

Both basic and detailed engineering are complete, according to the company. 

Shares of Excelsior were at US$0.73 in OTC trading on Wednesday and at C$0.97 in Canada.


Contact Dennis Fitzgerald at dennis@proactiveinvestors.com

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Wed, 21 Nov 2018 12:52:00 -0500 https://ca.proactiveinvestors.com/companies/news/209702/excelsior-mining-confirms-us94m-equity-placement-to-greenstone-resources-lp-209702.html
<![CDATA[News - Excelsior Mining poised and preparing for production next year at Gunnison ]]> https://ca.proactiveinvestors.com/companies/news/209112/excelsior-mining-poised-and-preparing-for-production-next-year-at-gunnison-209112.html Excelsior Mining Corp (TSE:MIN) updated on pre-production progress at its exciting Gunnison Copper project in southeast Arizona, where the company is poised to be a major long-term employer for the next 25 years.

Last month, Excelsior revealed a huge boost to the project, a US$75 million project financing package that sent shares surging.

Initial production from the US's next new copper producer is scheduled for 2019.

Both basic and detailed engineering are complete, said Excelsior on Tuesday.

In addition, the project execution plan and construction plans are also complete.

READ: Excelsior Mining's Gunnison copper project receives huge boost

A general contractor has been selected and all other major contracts have now been concluded. Key corporate systems, such as safety and environmental, are now in place and implemented. All other corporate systems, such as the Enterprise Resource Planning (ERP) are nearing the completion of the implementation process.

Ramp-up activities at what's called the Johnson Camp Mine (JCM) have been running in parallel with the permitting process.

The number of employees now totals 31 at JCM, as Excelsior fills essential production related positions.

"The JCM offices have been fully refurbished in anticipation of start-up. In addition, the drilling contract for the well field is in place and the contractor is awaiting instructions to mobilize the drilling rigs," said the company. "Long lead items have been ordered and drill casing is currently on site and awaiting the arrival of the first drill rig. Additionally, early equipment and vehicles have been purchased."

Boussard tapped to run project

The resource group also said that Cregg Bossard has been brought aboard as senior project manager responsible for mine construction.

Bossard has more than 42 years' experience in the mining, environmental remediation, and construction industries.

He has worked in operations, research and development, technical sales, engineering, and construction.

"We want to assure all stakeholders that we will be ready to move into production next year as per our schedule," said Excelsior's chief operating officer Roland Goodgame. "During the permitting process, we have been ramping up activity at JCM so that we will be in a position to move seamlessly into the construction and production phases."

At the time the financing was announced, Stephen Twyerould, the president and chief executive of  Excelsior, had said the firm's "pathway to achieving producer status" was now clear, and "we look forward to bringing the USA's next new strategic metal producer online in 2019".

The financing will be provided by Triple Flag Mining Finance Bermuda Ltd (Triple Flag) and consists of a US$65 million copper metal stream and concurrent US$10 million private placing of Excelsior shares.

Excelsior says the funding solution will cover all expenditures and working capital related to the start-up of the mine and is not subject to interest payments, meaning future project debt financing could expand the project production capacity up to the targeted 125 million pounds per year.

Shares eased 1% to $0.99.

Reporting by Giles Gwinnett

giles@proactiveinvestors.com

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Tue, 13 Nov 2018 10:09:00 -0500 https://ca.proactiveinvestors.com/companies/news/209112/excelsior-mining-poised-and-preparing-for-production-next-year-at-gunnison-209112.html
<![CDATA[News - Excelsior Mining's Gunnison copper project receives huge boost - with a US$75M financing package ]]> https://ca.proactiveinvestors.com/companies/news/208247/excelsior-mining-s-gunnison-copper-project-receives-huge-boost-with-a-us75m-financing-package-208247.html Excelsior Mining Corp (TSE:MIN) revealed its Gunnison copper project in Arizona has received a huge boost - a US$75 million project financing package, sending shares surging.

"In today's challenging mining market, only quality projects are able to secure funding," said Stephen Twyerould, the president and chief executive of  Excelsior.

"This financing delivers superior long-term economics for shareholders and allows us to quickly move into construction this year.

"Excelsior's pathway to achieving producer status is now clear, and we look forward to bringing the USA's next new strategic metal producer online in 2019."

The financing will be provided by Triple Flag Mining Finance Bermuda Ltd (Triple Flag), and consists of a US$65 million copper metal stream and concurrent US$10 million private placing of Excelsior shares.

Excelsior says the funding solution will cover all expenditures and working capital related to the start-up of the mine and is not subject to interest payments, meaning future project debt financing could expand the project production capacity up to the targeted 125 million pounds per year.

The stream element allows Triple Flag to provide a further US$65 million in funding for the second stage expansion of Gunnison, while also preserving the right of Excelsior to buy-down 50% of the stream.

The financing comprises a number of elements including a metals purchase and sale agreement, in which Triple Flag will fund upfront a deposit of US$65 million against the future sale and delivery by Excelsior of a percentage of the refined copper production from the project.

Excelsior will sell to Triple Flag this percentage of refined copper at a price equal to 25% of the copper spot price.

"At full production of 125 million pounds per annum, and using the same US$2.75 copper price from our feasibility study, the stream would add just an additional 7 cents per pound to our industry-leading all-in-sustaining operating costs of US$1.23 per pound," noted  Twyerould.

"With this stream, the Gunnison copper project would still be one of the lowest cost pure copper producers in the United States, and one of the lowest capex per pound copper projects in the industry."

On Excelsior expanding production capacity to an amount equal to or greater than 50 million pounds a year, Triple Flag will have the option to increase its stream participation by paying a further US$65 million.

Notably, Excelsior also has the option to reduce the amount of the stream by 50% by making a buy-down payment to Triple Flag.

In conjunction with the stream, Excelsior will complete the equity placing to raise proceeds of US$10 million, which will consist of issuing to Triple Flag a total of over 13.8 million Excelsior  shares at a total subscription price of US $10 million, or equal to around C$0.95 per share at current exchange rates.

In addition, affiliates of Greenstone Resources  retain a pre-emptive right over the issue of shares and the overall size of the placing may be increased up to $20 million dependent upon Greenstone's decision to exercise its pre-emptive right.

"Triple Flag is excited to partner with Excelsior to finance the Gunnison Copper Project. Our flexible and innovative financing will allow the Gunnison Copper Project to quickly proceed to construction and production over the next year, delivering a new, low-cost source of American copper," said Shaun Usmar, the chief executive at Triple Flag Mining Finance Ltd.

"We congratulate the Excelsior team for its impressive progress in advancing this project to fully funded status."

The Gunnison project is an advanced, low cost, environmentally friendly in-situ recovery copper project and remains on-track to be the next new copper producer in the United States, with initial production scheduled for 2019.

Excelsior shares zoomed up 16% to $1.08. 

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Wed, 31 Oct 2018 09:44:00 -0400 https://ca.proactiveinvestors.com/companies/news/208247/excelsior-mining-s-gunnison-copper-project-receives-huge-boost-with-a-us75m-financing-package-208247.html
<![CDATA[News - Excelsior Mining primed to press go on Gunnison project as it concludes permitting ]]> https://ca.proactiveinvestors.com/companies/news/207192/excelsior-mining-primed-to-press-go-on-gunnison-project-as-it-concludes-permitting-207192.html Excelsior Mining Corp (TSE:MIN) has concluded the permitting process for its key Gunnison copper mine in Arizona and its underground injection control  (UIC) permit is now active.

As reported earlier this month, an appeal on this permit was dismissed.

That permit means the project is now good for production of up to 125 million pounds of pure copper cathode a year.

"All required state and federal operating permits have now been successfully obtained," Excelsior said today.

It added that it was now "ready to commence construction" upon the completion of its project financing plan.

"With the appeal process officially exhausted, we now have a fully permitted project that is genuinely on the cusp of achieving low cost copper production through the most environmentally friendly process available within the industry today," said the chairman of Excelsior Mark Morabito.

"I congratulate the entire Excelsior team on achieving this positive outcome, and I look forward to seeing Excelsior unlock the true value of this tremendous asset."

Gunnison is an advanced, low cost, environmentally friendly in-situ recovery copper project and remains on-track to be the next new copper producer in the United States, with initial production scheduled for 2019.

A feasibility study projected an after-tax NPV (net present value) of US$807 million and an IRR (internal rate of return) of 40% using a US$2.75 per pound copper price and a 7.5% discount rate.

Shares added just over 2% to $1 in Toronto.

Reporting by Giles Gwinnett

giles@proactiveonvestors.com

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Tue, 16 Oct 2018 09:23:00 -0400 https://ca.proactiveinvestors.com/companies/news/207192/excelsior-mining-primed-to-press-go-on-gunnison-project-as-it-concludes-permitting-207192.html
<![CDATA[News - Excelsior Mining's Gunnison project boosted as permit appeal is set to be dismissed ]]> https://ca.proactiveinvestors.com/companies/news/206501/excelsior-mining-s-gunnison-project-boosted-as-permit-appeal-is-set-to-be-dismissed-206501.html Excelsior Mining Corp (TSE:MIN) is poised to begin construction at its key Gunnison copper project in Arizona after it confirmed that the appeal on the underground injection permit will be dismissed.

The firm said it had now settled an agreement, which will result in the dismissal of the appeal.

READ: Excelsior Mining believes appeal against Gunnison permit wil not succeed

In June, the company told investors it had received the long-awaited operating permit, the final one needed to get the mine up and running.

But an appeal was subsequently filed by a coalition of non-governmental organizations (the petitioners).

All appeals are reviewed by the Environmental Appeals Board (EAB), noted Excelsior in Friday's statement.

"As per the terms of the agreement, Excelsior, the EPA, and the petitioners have submitted to the EAB a joint stipulated motion to dismiss the appeal.

"It is anticipated that the EAB will accept the joint motion to dismiss the appeal which, subject to notice by the EAB, will prompt the EPA to lift the stay, thereby resulting in the UIC permit becoming effective with permanence."

READ: Excelsior Mining welcomes experienced project manager to board

The mining company added: "With all key permits in place and effective, Excelsior will be in a position to commence construction upon the completion of its project financing plan.

"Excelsior's Gunnison Copper project remains poised to be the next new copper producer in the United States."

The project is an advanced, low cost, environmentally friendly in-situ recovery copper project.

A feasibility study projected an after-tax NPV (net present value) of US$807 million and an IRR (internal rate of return) of 40% using a US$2.75 per pound copper price and a 7.5% discount rate.

Shares added over 10% to stand at $1.05.

 

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Fri, 05 Oct 2018 10:24:00 -0400 https://ca.proactiveinvestors.com/companies/news/206501/excelsior-mining-s-gunnison-project-boosted-as-permit-appeal-is-set-to-be-dismissed-206501.html
<![CDATA[News - Excelsior Mining welcomes experienced project manager to board ]]> https://ca.proactiveinvestors.com/companies/news/203325/excelsior-mining-welcomes-experienced-project-manager-to-board-203325.html Arizona-focused mine developer Excelsior Mining Corp (TSE:MIN) has made another board change, ahead of it becoming a commercial copper producer.

Experienced executive Stephen Axcell has now joined the board. Axcell will also join the firm's project steering committee, it said.

"Mr. Axcell is an executive leader with 38 years of experience with strengths in mining operations management and project management execution, including process plant design and construction management; with industry expertise in mining and minerals, pharmaceutical, and hydrocarbon projects," Excelsior said in a regulatory release.

"He has vast experience in international design and construction projects. Experience includes management and oversight of large and small projects, complex process facilities in both green-fields and retro-fit (brownfields) environments."

Mark J. Morabito, chairman of Excelsior, added: "His vast array of experience in project management, process plant design, and construction management will bring valuable input to the team and we look forward to his contributions as our world-class management team drives the company forward to production targeted for 2019."

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Tue, 21 Aug 2018 09:56:00 -0400 https://ca.proactiveinvestors.com/companies/news/203325/excelsior-mining-welcomes-experienced-project-manager-to-board-203325.html
<![CDATA[News - Excelsior Mining names new finance chief as it transitions to producer ]]> https://ca.proactiveinvestors.com/companies/news/202977/excelsior-mining-names-new-finance-chief-as-it-transitions-to-producer-202977.html Arizona-focused mine developer Excelsior Mining Corp (TSE:MIN) has a new finance chief - Barry Dahl.

He is seasoned CFO in the mining sector, the company said, and he will focus on financial strategies and core internal operations as Excelsior grows, it added.

Dahl replaces Carlo Valente who has served as the company's interim chief financial officer. The executive shift is part of a larger ongoing transition of Excelsior from developer to producer as its Gunnison copper project targets commercial production in 2019. 

Dahl spent the last five years as CFO of Klondex Mines, which was recently acquired for US$462mln. Before that, Dahl was CFO (chief financial officer) of Argonaut Gold.

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Wed, 15 Aug 2018 10:36:00 -0400 https://ca.proactiveinvestors.com/companies/news/202977/excelsior-mining-names-new-finance-chief-as-it-transitions-to-producer-202977.html
<![CDATA[News - Excelsior Mining provides update on permitting process ]]> https://ca.proactiveinvestors.com/companies/news/202402/excelsior-mining-provides-update-on-permitting-process-202402.html Excelsior Mining Corp (TSE:MIN) announced Tuesday that the 30-day appeal period for its underground injection control area permit for the Gunnison copper project in Arizona has officially ended. 

The company said two appeals were filed with the environmental appeals board; however, one of these appeals was subsequently withdrawn prior to the termination of the appeal period.

The remaining appeal raises no new objections that were not previously addressed as part of the comprehensive permit review process that was undertaken by the United States Environmental Protection Agency.

READ: Excelsior Mining remains on track to open North America’s next copper mine

The company said in its view, this lone appeal will not be successful, and it intends to use all available legal means to have this appeal dismissed as soon as possible.

Appeals are reviewed by the environmental appeals board. In order to be successful, the petitioner must demonstrate either a finding of fact or conclusion of law that is clearly erroneous, or an exercise of discretion on an important policy consideration that the environmental appeals board should, in its discretion, review.

The petitioner also must identify where in the record the issue was raised, or explain why it was not previously raised, and explain why the EPA's response to the comment was clearly erroneous or otherwise warrants review.

Given the thoroughness of the process over the past 30 months, this is a difficult hurdle to meet and prevail.

Shares of Excelsior were down 1.2% at C$0.84. 

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Tue, 07 Aug 2018 11:49:00 -0400 https://ca.proactiveinvestors.com/companies/news/202402/excelsior-mining-provides-update-on-permitting-process-202402.html
<![CDATA[News - Excelsior Mining believes appeal against Gunnison permit wil not succeed ]]> https://ca.proactiveinvestors.com/companies/news/200782/excelsior-mining-believes-appeal-against-gunnison-permit-wil-not-succeed-200782.html Excelsior Mining Corp (TSE:MIN) believes an appeal that has been filed on its recently awarded underground injection control area permit for the Gunnison copper project in Arizona will not be successful.

As reported on June 30, this was the final operating permit needed to start getting the mine into production.

"The completion of this key milestone brings us one step closer to initiating low-cost in-situ copper production at one of the most environmentally friendly and economically compelling mine sites in the United States," Stephen Twyerould, the president and chief executive at Excelsior, had said.

In a brief statement today, Excelsior said: "Excelsior's view is that this appeal will not be successful as it does not meet the high bar required for an appeal.

"Excelsior intends to use all available legal means to have this appeal dismissed as soon as possible."

The mining group noted that all comments raised in the appeal were addressed on the permit review process by the United States Environmental Protection Agency (EPA).

"In order to be successful, the petitioner must demonstrate either a finding of fact or conclusion of law that is clearly erroneous, or an exercise of discretion on an important policy consideration that the Environmental Appeals Board should, in its discretion, review," it added.

Shares shed 4.67% to C$1.02 in Toronto.

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Fri, 13 Jul 2018 10:37:00 -0400 https://ca.proactiveinvestors.com/companies/news/200782/excelsior-mining-believes-appeal-against-gunnison-permit-wil-not-succeed-200782.html
<![CDATA[News - Excelsior Mining reaches major milestone at Gunnison - receives final operating permit ]]> https://ca.proactiveinvestors.com/companies/news/199503/excelsior-mining-reaches-major-milestone-at-gunnison-receives-final-operating-permit-199503.html Excelsior Mining Corp (TSE:MIN) has received the long awaited operating permit, namely the underground injection control (UIC) permit, firing the starting gun on its  Gunnison copper project in southeastern Arizona.

"The completion of this key milestone brings us one step closer to initiating low-cost in-situ copper production at one of the most environmentally friendly and economically compelling mine sites in the United States," said Stephen Twyerould, the president and chief executive at Excelsior.

This was the final operating permit needed to get the mine into production.

The US environmental authority has issued the permit with an effective date of 1 August 2018.

This allows output of of up to 125 million pounds per year.

Milestone

Last year, the Arizona Department of Environmental Quality issued an amended aquifer protection permit for the Johnson Camp Mine, and an aquifer protection permit for Gunnison.

"There has not been a new copper mine permitted within the state of Arizona in over a decade; I congratulate the Excelsior management team for achieving this important milestone that keeps Excelsior Mining on schedule to become the next new copper producer in the United States," said Mark Morabito, Exclesior chairman.

"In addition to generating significant economic benefits, the Gunnison Copper Project genuinely represents a more environmentally-friendly era of mining for Arizona.”

At a copper price of US$2.75 per pound, Gunnison’s net present value (NPV), calculated by discounting future cash flows of all envisioned phases back at a predetermined interest rate (in Gunnison’s case, a reasonable 7.5%), is US$807mln. 

With copper trading at around US$3.10, and many experts calling for it to move significantly higher, the mine looks to be at the right place at the right time.

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Mon, 25 Jun 2018 08:36:00 -0400 https://ca.proactiveinvestors.com/companies/news/199503/excelsior-mining-reaches-major-milestone-at-gunnison-receives-final-operating-permit-199503.html
<![CDATA[News - Excelsior Mining closing in on operating permit for Gunnison copper project ]]> https://ca.proactiveinvestors.com/companies/news/199080/excelsior-mining-closing-in-on-operating-permit-for-gunnison-copper-project-199080.html The finish line is drawing near for Excelsior Mining Corp (TSE:MIN), which announced today that its permitting timetable remains on track for its Gunnison copper project in Arizona's Cochise County.

The company, which has been meeting with the United States Environmental Protection Agency said it expects to receive an operating permit, the Underground Injection Control permit, for the Gunnison copper project, before the end of the second quarter of 2018.

The completion of permitting would represent a major milestone for Excelsior, and serve as a boost to Arizona’s mining industry. Copper mining remains a key economic driver for the state. 

Excelsior Mining remains on track to open North America’s next copper mine

The Gunnison copper project is located approximately 105km east of Tucson, Arizona, within the historic Johnson Camp Mining District. The project covers an area of approximately 9,560 acres. 

Shares of Excelsior Mining were at C$1.27 on Monday afternoon. 

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Mon, 18 Jun 2018 16:04:00 -0400 https://ca.proactiveinvestors.com/companies/news/199080/excelsior-mining-closing-in-on-operating-permit-for-gunnison-copper-project-199080.html
<![CDATA[News - Featured Investment: Excelsior Mining (TSXV:MIN) ]]> https://ca.proactiveinvestors.com/companies/news/125908/featured-investment-excelsior-mining-tsxvmin-125908.html Excelsior Mining is a copper development company with the PFS-stage Gunnison Project in Arizona. At the current implied project value of $35m USD, Excelsior shares present significant value from a risk-adjusted NPV perspective. One could make a conservative case that expected fair value per share is 100-200% above current levels.

Risk-adjusted NPV investments only succeed if the company in question makes it into production within a reasonable time window. Excelsior seems to have a realistic chance of reaching production in early 2018, after taking into account the following:

(1) the excellent projected NPV, IRR, and payback period announced in last month’s Updated Prefeasibility Study

(2) the company’s opportunistic December 2015 acquisition of the neighboring Johnson Camp Mine, significantly reducing initial capex and shortening expected construction time

(3) the current mkt cap to initial capex ratio indicates that the company could be able to finance mine construction themselves without severe dilution

In April 2014 I was given an extensive tour of Excelsior operations by Executive VP Roland Goodgame – we visited the company’s core shed and the Gunnison project itself, located 65 miles SE of Tucson. The Partnership initiated a position shortly thereafter and we’ve added since, with an average cost of $0.24 CAD per share.  As of April 29th, MIN was trading at $0.34 CAD. While the gains have been modest, those involved in the junior resource space can testify that positive share price performers over the trailing 24 months are few and far in between.

One possible explanation for the discrepancy between the current share price and expected risk-adjusted fair value is market skepticism over the economics of Excelsior’s proposed In-Situ Recovery (ISR) mining method. I start this Featured Investment piece by discussing the history of ISR copper mining in Arizona – as the state has already seen has already seen 40+ years of production between multiple IRS mines.

Next comes the chief risk that the Gunnison Project faces: permitting. Taseko Mines owns the other advanced-stage ISR copper development project in Arizona, which has struggled to receive permits in a timely manner. I’ll highlight the key differences between the Florence and Gunnison projects.

We conclude with the investment thesis for Excelsior, covering the company’s background, management team, and other company essentials. I then discuss three key assumptions I’m making as an investor, MIN’s upside as an investment, and expected company milestones over the coming two years.

In-Situ Copper Mining in Arizona

In-Situ Recovery (ISR) is an alternate mining method that differs from traditional “open pit” or “underground” mines. ISR involves leaving the ore where it is in the ground, and recovering the minerals from it by dissolving them and pumping the pregnant solution to the surface where the minerals can be recovered. Consequently there is little surface disturbance and no tailings or waste rock generated. The orebody needs to be permeable to the solutions used and below the water table for this method to work.

ISR is much more prevalent in the uranium industry – it is estimated that 30% of global uranium production comes from this style of mining. ISR is a far less significant portion of global copper production, but it has still known to be a commercially viable technique for at least three decades.

Arizona itself has a rich history in ISR copper production. The San Manuel copper mine, owned by BHP Billiton, was a successful operation that integrated ISR methods with open pit and underground mining and produced approximately 3.25 billion pounds of copper in 14 years of production. Another project owned by BHP, Pinot Valley, also used ISR to extract copper. Excelsior’s proposed ISR operation at Gunnison is nothing out of the ordinary for the state of Arizona.

Permitting: Gunnison vs. Florence

The Gunnison Project is often compared with the Florence Project – an Arizona-based ISR copper project that was bought in November 2014 by Taseko Mines (a $130m USD mid-tier copper producer). The Florence Project has been stalled for a few years now – quoting the company’s website “only two outstanding permits required to move forward with the Phase 1 Test Facility”. Unfortunately those two permits have been elusive thus far for Taseko.

The key question for Excelsior shareholders is whether or not Gunnison will face the same permitting headwinds that Taseko’s Florence has experienced. This is the key risk for Excelsior currently – if the company is not able to receive permits in a timely manner, then shareholders will be left disappointed.

My belief is that Excelsior will surprise the market with a relatively smooth permitting process. There are some massive differences (in terms of permitting) between Taseko’s Florence and Excelsior’s Gunnison Project. I’ve highlighted a few key differentiators below:

The Florence Project is zoned within the Florence city limits and is located two miles from downtown Florence, Arizona (pop. 25,000). Gunnison is located about four miles north of an unincorporated town– Dragoon. The difference here is that Dragoon has a population that that is only 1% of Florence’s total– at 209 residents. I visited the Gunnison in April 2014 and can attest to the project’s remoteness. The below images nicely juxtapose these two projects; the first is Taseko’s Florence (notice the town of Florence in the immediate background) followed by Excelsior’s Gunnison.

ISR operations use a sulfuric acid solution to separate the economic metal from its host rock. A key environmental worry is that this solution will escape the hydraulic barrier and contaminate local groundwater. Both the Gunnison and Florence deposits are located near groundwater aquifers, but with very different circumstances.
Gunnison is located in a basin where the aquifer is not “actively managed” by any county, state, or federal agency. This is due to the basin’s minuscule population and lack of economic activity. In essence, no one is using this water. For this reason, the Dragoon Water Company is in full support of the Gunnison Project – a massive vote of confidence given the nature of ISR operations.

The Florence Project, on the other hand, is located in a very populous basin. The aquifer in this instance is used for existing agricultural operations, is “actively managed” by at least one government agency, and is located near one of the main sources of water for Phoenix (the Gila River). For this reason, the Florence Water Company is in vehement opposition to the construction of the project. This opposition will continue to shape public opinion and hamper Taseko’s continued efforts to acquire the remaining two permits.

After Excelsior’s opportunistic acquisition of the neighboring Johnson Camp Mine closed in December 2015, the Gunnison project in essence became a “brownfield project”. This means that the company can utilize existing mining infrastructure to both reduce capex and the operation’s environmental footprint. Indeed, the Johnson Camp includes the existing copper processing infrastructure: “a 4,500 gallon per minute solvent extraction plant, a tank farm, an electrowinning plant with 88 electrowinning cells with capacity for 25 million pounds of copper cathode per annum, solution storage ponds, a truck shop, core storage building, offices, warehouse, laboratory, mechanical shop, a primary and secondary crusher, and various other equipment.” All of this infrastructure has already been built, and can be utilized be Excelsior in their mining plan (versus sitting idle, as it has since the Johnson Camp halted operations in 2010).
This contrasts with Taseko’s Florence Project, which would fully be considered a “greenfield” operation. This means that the proposed mine is NOT located near existing mining infrastructure, and the company will have to construct their mine from scratch. Intuitively, greenfield operations can be difficult to permit – locals who are not used to nearby mining operations are more likely to balk at proposed mines.

In conclusion, permitting remains the key risk for Excelsior shareholders. Additionally, it is clear that Taseko’s struggles at Florence have turned off potential investors from backing Excelsior. The three points provided above demonstrate that the Gunnison Project differs in many ways from the beleaguered Florence Project, and I think permitting is far more likely than the market currently expects.

Excelsior shareholders should have an answer to this “permitting question” by mid 2017. According to an April 26th news release from the company:

Administrative Completeness Review (ACR) (“Administrative Review”) has been achieved for both the Federal Underground Injection Control (UIC) Permit and for the State Aquifer Protection Permit (APP). The UIC is issued by the Environmental Protection Agency (EPA) under the Safe Drinking Water Act; whereas the APP is issued by the Arizona Department of Environmental Quality (ADEQ) under the Environmental Quality Act. Administrative Review is the first stage of the permitting process. It confirms that the permitting application is administratively complete, meaning that all the required documentation and technical data are present. Excelsior is working closely with the State and Federal regulatory agencies to help advance the issuance of draft permits, which Excelsior expects will occur early next year. Excelsior has now entered the technical review component of the permitting process.

I expect the company to receive their APP and UIC permits in Q1 2017, and final operating permits in Q2 2017. Should they be able to acquire these permits in a timely manner, construction would commence in Q3 2017 – as well as a massive re-rating of Excelsior’s share price.

Investment Thesis for Excelsior Mining

Excelsior Mining is a copper development company focused on advancing their PFS-stage Gunnison Copper Project. The project has been the company’s sole focus for over seven years, and CEO Stephen Twyerould and Executive VP Roland Goodgame have been involved the entire time. Both are obsessed with the prospect of Gunnison reaching production. The two have done a commendable job in proactively to mitigating environmental and social risks. A recent example: In 2014, the company commissioned an independent study to demonstrate the economic benefits to Cochise County if the proposed Gunnison Mine is indeed built. The study was conducted by researchers from Arizona State University, the Seidman Research Institute, and the WP Carey School of Business; further details can be found here: http://goo.gl/4JZAiT

At current prices MIN shares present tremendous risk-adjusted expected value. What does this mean exactly? Here’s a simple hypothetical to demonstrate the point…

How much would you pay for a 50% chance to win $100?

On first glance, as long as you don’t pay more than $50 in the scenario outlined above, then you aren’t getting ripped off. That is absolutely correct. However, I presume that Benjamin Graham (the father of value investing) would provide a slightly more nuanced answer – $33 or less. Graham looked for a Margin of Safety of at least 33% in all of his investments to mitigate human error; while it is possible for a discerning investor to know the approximate chance of something occurring, it doesn’t take a genius to understand that real life probabilities cannot be predicted with the same accuracy of a coin flip. Hence, Graham’s insistence on a Margin of Safety.

The above hypothetical is relevant to Excelsior Mining due to the permitting scenario that Gunnison faces. In essence, this is a binary outcome similar in some ways to a coin flip – if Excelsior gets their permit then investors get their $100, if not investors get $0.

To go a bit deeper, below are three assumptions that I’m making as an Excelsior shareholder:

If permitted, this mine will be fast-tracked to production, will be profitable at current copper prices, and will be a lowest-quartile producer. This story will not fail due to management ineptitude or project economics.
If not permitted, the company’s market cap will drop to $0. This is not entirely accurate, but out of conservatism it is worth assuming entire loss of capital if things don’t work out.
The chances of Gunnison being permitted are between 40-60%, as the amount of money and effort that has been put into the project suggests that there is at least a reasonable chance of a successful permitting issuance. Out of conservatism, I’ll use a 40% chance of SUCCESS for the rest of this piece.
Before I address the above points, I want to emphasize something that should be obvious at this point. Due to the nature of this investment, an investment in Excelsior should only take up a small percentage of one’s portfolio and would ideally be coupled with 10-15 unrelated investments that offer similar risk-adjusted expected value. Now on to the assumptions.

If permitted, this mine will be fast-tracked to production, will be profitable at current copper prices, and will be a lowest-quartile producer. This story will not fail due to management ineptitude or project economics.

As outlined in the introduction, Gunnison has the potential to be the next low-cost copper producer to reach production in the United States. Permitting worries aside, the project has a tremendous amount going for it:

(a) The company released an Updated Prefeasibility Study in February 2016 with stellar economics. This PFS was commissioned primarily to illustrate the tremendous impact that the Johnson Camp acquisition has on Gunnison’s economics, and also to adjust for the lower copper prices we have seen since Gunnison’s original PFS in Feb 2014. The main highlight of the study was that the project’s initial capex estimate dropped from $284m to $50m – a decrease of over 80%. Other headline numbers included an $829m post-tax NPV (using $2.75 copper and a 7.5% discount rate), an after-tax IRR of 26% at $2 copper, and projected All-In Cost of $1.24/lb.

(b) The company’s opportunistic December 2015 acquisition of the neighboring Johnson Camp Mine for a total of $8.4m. As mentioned above, this significantly reduces capex and in essence turns Gunnison into a brownfield operation. Another under looked benefit is that the construction time now estimated by management is a mere 9 months – 25% less than the 12 months projected in the original PFS. This near term production potential improves project payback and is another reason why Excelsior’s market cap should be much closer to Gunnison’s projected NPV.

(c) Excelsior’s current market capitalization of $36m USD is pretty close to Gunnison’s initial capex of $50m USD. This ratio indicates that the company could potentially finance Gunnison’s construction themselves without severe dilution. As a hypothetical, if the MIN’s share price rises by 50% between now and construction financing, the company could finance Gunnison 50% debt/50% equity and only dilute shareholders by 30%. Yes 30% dilution is not pretty – but the beauty of this optimistic scenario is that MIN shareholders can keep Gunnison’s value fully to themselves as the mine races towards production.

If not permitted, the company’s market cap will drop to $0. This is not entirely accurate, but out of conservatism it is worth assuming entire loss of capital if things don’t work out.

This assumption is admittedly conservative. For the sake of conversation, if permits are not granted for ISR production, the company still does have a large amount of copper in the ground that could be mined through traditional practices. However, in order to make the economics work, significantly higher copper prices would be needed and the value placed on MIN shares in this scenario would be significantly lower than where they are now.

The chances of Gunnison being permitted are between 40-60%, as the amount of money and effort that has been put into the project suggests that there is at least a reasonable chance of a successful permitting issuance.

Permitting is the biggest risk to this investment. There are reasons to doubt that permitting issuance in a timely manner will happen – the problems at Florence’s ISR project, a stricter EPA, and the general stigma surrounding ISR mining all loom large. However, as covered above in the Gunnison vs. Florence discussion, there are plenty of reasons to believe that Excelsior can successfully navigate the permitting maze. The following factors are also relevant: (i) management has had enough belief to focus on this project for more than ten years, (ii) a respected mining private equity firm has invested $22m into Excelsior over the past 18 months, (iii) two prominent Arizonans, Jim Kolbe and Steven Lynn, sit on the company’s board, and (iv) the company has proactively demonstrated that Gunnison has the ability to spur tremendous economic activity in a relatively depressed county.

Ignoring the permitting worries for a second, how much exactly is the Gunnison project worth? The recently released Prefeasibility Study provides us with a good place to start. I’ve included below an excerpt straight out of Excelsior’s February 9th news release discussing the PFS’s headline numbers:

Highlights of the North Star Gunnison Copper Project Updated PFS (United States dollars)

Net Present Value (“NPV”) of $1.2 billion pre-tax and $829 million post-tax at 7.5% discount rate using a life of mine (“LOM”) copper price of $2.75/lb;

Internal Rate of Return (“IRR”) of 57.9% pre-tax and 45.8% post-tax;

Initial construction capital costs of $45.9 million includes 20% contingency, 16% EPCM, freight, mobile equipment, owner’s costs and capital spares;

Payback period for initial capital of 1.8 years pre-tax and 2.6 years post-tax;

Average life-of-mine operating costs of $0.70/lb;

All-In Cost (all capital plus operating costs) of $1.24/lb;

Sensitivity analysis at a LOM copper price of $2.00/lb generates an IRR of 30.8% pre-tax and 26.2% post-tax;

Over 850 million pounds of copper added to the probable mineral reserve, an increase of 24%;

Mine life of 27 years;

Staged production profile:  initial production rate of 25 million pounds of copper cathode per annum using the existing JCM facilities, followed by an intermediate expansion stage to 75 million pounds per annum and final expansion stage to full production of 125 million pounds per annum (includes the construction of an acid plant at full production). The staged production profile makes possible the funding of future expansions out of cash flow;

Staged production approach lowers initial capital costs, reduces financing risk and speeds the timeline to first production.

These are no doubt impressive numbers, but out of conservatism they need to be discounted.

Let’s focus on the project’s after-tax NPV, as this number tells us what the value of Gunnison would be if it were put into production today.

The company estimates an “$829m USD post-tax NPV $829 million post-tax at a 7.5% discount rate using a life of mine (“LOM”) copper price of $2.75/lb”. While I do believe that the long-term price of copper will actually be above this $2.75 number for the majority of the mine’s producing life, out of conservatism we need to adjust for the current copper price of roughly $2.20 per pound. As can be seen below, the company included a sensitivity analysis in their PFS that accounts for lower copper prices.

This adjustment for copper prices that are 20% lower than the $2.75 price assumption leads us to an after-tax NPV of $512m USD.

Additionally, my belief is that a 10% discount rate should be used for all mining companies across the board. While some would call this harsh, a particularly trusted friend of mine advocates for a 20% discount rate to account for (a) the uncertainty inherent in mining and (b) the significance of near term cash flow. With this perspective in mind, I think 10% is pretty reasonable.

Excelsior management used a 7.5% discount rate in the PFS, so we’re going to chop the $512m number by another 33% (our preferred 10% discount rate is 33% greater than the 7.5% used).  This is an admittedly back of the envelope way of calculating, and is overly harsh to Gunnison’s value. Regardless, let’s discount the $512m by 33% to reach an after-tax NPV of $340m.

Next, we discount this $340m NPV by another 60% to reflect the permitting risk discussed in length above (aka only 40% chance of success).

This results in a risk-adjusted, after-tax NPV of $136m USD, or $1.07 CAD per fully diluted share of MIN. Despite the fact that this is 215% above Excelsior’s current share price, I believe this ~$1 CAD number is the company’s fair value per share at this time.

Let’s expand our outcome visualization a little further and speculate on what would occur if/when the permits are successfully obtained in H1 2017. While the company won’t be trading at Gunnison’s full NPV immediately after permit approval, it would be reasonable for the company’s enterprise value to equal the full $340m USD by the time Gunnison reaches production. Thanks to the accelerated construction time due to the Johnson Camp annex, this could happen as early as 2018.  If the company’s EV does indeed equal the $340m NPV upon first production in 2018, this would result in a $2.69 CAD share price, or a 691% return over twenty-four months.

Drawing back to the coin flip analogy discussed earlier, I view this as the equivalent of paying $34 (i.e. MIN’s current share price) for a roughly 50% chance to win $269 (i.e. Gunnison’s adjusted NPV per share). As long as one can accept that a negative outcome is a distinct possibility, these are very good odds indeed.

Before we get too excited about the best-case scenario outlined above, we have to take into account a couple points.  The first is that any equity dilution associated with project financing is not factored into the above numbers. My view on this is that the potential upside discussed above is so large that any potential equity dilution involved with project financing is a virtually a non-issue. Permitting is far and away the bigger risk here.

The second is that there is always the risk that Excelsior shareholders will not be able to realize the full value of Gunnison in the event of a takeover by an existing copper producer. This is always a risk inherent in deeply undervalued development projects. My opinion in the event of a takeover is that, as long as a reasonable premium is offered and management acts in the best interest of shareholders, it’s worth smiling, taking the money, and moving onto the next play.

To conclude this piece, I’ve provided below my expectations as an Excelsior shareholder for the coming two years:

$4m Financing (provides sufficient working capital through a production decision) by end 2016

Gunnison Feasibility Study Released by end 2016

APP, UIC, and Operating Permits Received by end Q2 2017

$45m Construction Financing Raised by end Q2 2017

First Production at Gunnison by end Q2 2018

Of these milestones, the most significant is surely Excelsior’s expectation that APP, UIC, and Operating permits will be received in H1 2017. If the company hasn’t announced a permitting success by July 2017, then it will be time to seriously consider liquidating your investment. If Excelsior does in fact defy the market and announce successful permitting, then I expect the share price to double overnight. Time will tell here – the good news is that we will know the answer to this permitting question within 1 year, which in the world of junior mining isn’t a particularly long time.

Matt Geiger has a diverse set of skills pertaining to early stage ventures – both in the world of natural resources and tech. He is currently General Partner of MJG Capital – a resource-focused investment partnership with 20+ LPs. He is also Cofounder/President of a venture-backed technology business with $10m in cumulative funding. Known for his exhaustive security analysis and intuitive grasp of contrarian investing, Matt is a rising star in the junior resource field.

 

 

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Fri, 13 May 2016 05:50:00 -0400 https://ca.proactiveinvestors.com/companies/news/125908/featured-investment-excelsior-mining-tsxvmin-125908.html
<![CDATA[News - Excelsior Mining's stock triples after pre-feasibility study results wow investors ]]> https://ca.proactiveinvestors.com/companies/news/99459/excelsior-minings-stock-triples-after-pre-feasibility-study-results-wow-investors-51358.html Shares of Excelsior Mining Corp. (CVE:MIN)(OTCQX: EXMGF) more than tripled in value on Friday after the junior explorer announced the results of a prefeasibiliy study on the North Star deposit at its Gunnison copper project in southern Arizona, boasting figures as high as $1.24 billion for the net present value before tax. 

The company's stock was soaring 241% at last check early Friday afternoon, lately at 41 Canadian cents on the TSX Venture Exchange, pushing year-to-date gains to over 256%. 

The NI 43-101 compliant prefeasibility study, completed by Arizona's M3 Engineering & Technology Corp, showed an after-tax net present value of $825.83 million, at a 7.5% discount rate, using a copper price of $2.75 per pound. 

Copper futures for delivery in March were lately up 0.3% to $3.354 a pound at 11:37 a.m. on the Comex in New York.

The pre-tax internal rate of return was pegged at 59.7%, or 44.7% after tax, with payback periods of 1.8 years or 2.4 years, respectively. 

The initial capital cost for the project, excluding sustaining capital, is pegged at $284.74 million, with average life-of-mine operating costs of 68 US cents per pound. Other costs were estimated at 12 cents per pound, including royalties.

The project envisions, through in-situ recovery, an annual production rate of 110 million pounds of copper for the first 14 years, with a total of 1.682 billion pounds of copper to be produced over the 20 year mine life.

"With the completion of this major milestone, the commercial case for the Gunnison Copper Project has grown even stronger," said president and CEO of Excelsior, Stephen Twyerould, in the release. 

"The Prefeasibility Study has confirmed the robust economics and technical viability for what has the potential to be one of the lowest cost copper producers in North America."

Initial production for the project is expected to start in the fourth quarter of 2016, the company said. 

The prefeasibility study figures include the addition of an acid plant, said Excelsior, but even without the plant, the project still has a "significant pre-tax net present value" of $1.06 billion, and an IRR of 61.4%. 

The company said the level of accuracy of the report is considered to be plus or minus 20%. 

The Gunnison project is located in a remote section of Cochise County, about 65 miles east of Tucson, and is within the copper porphyry belt of Arizona. The focus of the project is the North Star deposit, which hosts a measured and indicated resource of 3.91 billion pounds of copper and an inferred resource of 1.4 billion pounds. It also hosts probable reserves of 3.61 billion pounds.

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Fri, 17 Jan 2014 12:50:00 -0500 https://ca.proactiveinvestors.com/companies/news/99459/excelsior-minings-stock-triples-after-pre-feasibility-study-results-wow-investors-51358.html
<![CDATA[News - Excelsior Mining soars after getting financing for Gunnison project ]]> https://ca.proactiveinvestors.com/companies/news/96435/excelsior-mining-soars-after-getting-financing-for-gunnison-project-46382.html Excelsior Mining Corp. (CVE:MIN), a junior mining corporation focused on Arizona, advanced to the highest in a month after obtaining financing for the Gunnison copper project from Callinan Royalties Corp. (CVE:CAA). 

The shares surged 45 percent to 16 Canadian cents, the highest intraday price since June 24, before trading at 15.5 Canadian cents, up 41 percent, at 11:39 a.m. in Toronto on Tuesday. 

Callinan will invest $1 million in Excelsior Mining by way of a non-brokered private placement and up to a further $21 million by buying a staged gross revenue royalty, or GRR, on the Gunnison project, Vancouver, British Colombia-based Excelsior said in a statement on Tuesday.

"Despite the current challenges of the junior mining market," Chief Executive Officer Stephen Twyerould said in the statement, "we have successfully delivered to our shareholders a significant financing partner via a non-dilutive structure."

Callinan will buy 6.3 million shares of Excelsior at 16 cents a share for gross proceeds of $1 million. Concurrently, Callinan will acquire a 0.5 percent GRR on the Gunnison Project for consideration of $2 million payable to Excelsior, according to the statement. This $3 million initial investment is expected to be closed on or before July 31.

Callinan will have the option to invest up to an additional $19 million into Excelsior in exchange for a further 2.5 percent GRR on the Garrison Project, which is located in a remote section of Cochise County in southeastern Arizona.

Excelsior said proceeds from the transaction will be used to advance the Gunnison Project and for general and working capital purposes.

The focus of the project is the North Star deposit, which has a Measured and Indicated mineral resource of 3.21 billion pounds of oxide copper and an Inferred mineral resource of 0.83 billion pounds of oxide copper. 

"This transaction stands as confirmation of the financial viability of the Gunnison Copper Project," the company quoted Chairman Mark Morabito as saying. 

The transaction is subject to approval of the TSX Venture Exchange.

Excelsior, with a market value of C$9.3 million, lost 52 percent this year through Monday, compared with a 24 percent loss for the S&P/TSX Venture Composite Index (CVE:OSPVX).

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Tue, 23 Jul 2013 14:55:00 -0400 https://ca.proactiveinvestors.com/companies/news/96435/excelsior-mining-soars-after-getting-financing-for-gunnison-project-46382.html