Each one in plain English, with the numbers worked through for a shareholder.
6 July 2016capital raising announcement● NeutralMajor
Bought-deal equity raise of US$20 million: 12.5 million units at US$1.60, each unit being one share plus half a warrant exercisable at US$2.25 for 18 months, underwritten by Cantor Fitzgerald Canada and Rodman & Renshaw with a 6% commission and an over-allotment option for a further US$3 million.
What it means for a shareholder
12.5m new shares at US$1.60 to raise about US$20.0m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
Guanajuato Mine Complex measured and indicated resources are 510,068 tonnes at 181 g/t silver and 2.70 g/t gold (6.11 million silver-equivalent ounces), unchanged from a year earlier, meaning 2015 mining was exactly replaced. Within that total the measured category rose 36% to 340,175 tonnes as San Ignacio ounces were classified measured for the first time, offset by a 39% fall in indicated - a reclassification, not new metal.
Mexico's explosives regulator finished its inspection of the earlier theft of explosives at one of the Guanajuato Mine Complex mines and fined the company; the fine has been paid and, per the company, will not materially affect financial results. Use of explosives was suspended again and processing at the Cata plant halted until administrative matters conclude, with authorization to resume expected within days; the company said it did not expect production guidance to change. An internal investigation continues.
First drill program on the Guadalupe de los Reyes project acquired with Cangold six months earlier: 41 holes for 5,514 metres, best result 11.28 g/t gold and 212 g/t silver over 6.51 metres true width in hole 15-GDLR-10 at Noche Buena, plus 21.91 g/t gold over 2.45 metres at San Miguel Far West. The company says it is now using the data for an updated resource estimate and an in-house economic model for a combined open-pit and underground operation.
Completed the Cangold acquisition announced in April; Cangold shareholders approved it with 99.44% of votes cast and the BC Supreme Court gave final approval on 26 May. Cangold is now a wholly-owned subsidiary and Guadalupe de los Reyes becomes a Great Panther project.
Took a two-year option from Nyrstar to acquire 100% of the Coricancha mine complex in Peru, 90 kilometres east of Lima and on care and maintenance. This is the first move outside Mexico and follows the company's stated model of buying past-producing mines cheaply and restarting them.
Signed the definitive agreement to buy Cangold, following February's binding letter agreement, at 0.05 Great Panther shares per Cangold share - about 2.14 million new shares for 42.78 million Cangold shares. The prize is the 6,000-hectare Guadalupe de los Reyes gold-silver project in Sinaloa, with the Plomo project and the past-producing Argosy mine in Ontario coming along; it is a share-funded pipeline top-up rather than an addition to the two producing Mexican mines.
The supporting technical report behind the Guanajuato Mine Complex resource numbers, covering the Guanajuato mine, San Ignacio, El Horcon and Santa Rosa. Guanajuato measured resources are 184,530 tonnes at 309 g/t silver and 3.24 g/t gold; San Ignacio holds 180,300 indicated and 787,800 inferred tonnes at about 160 g/t silver and 3.3 g/t gold; El Horcon carries the 214,400 inferred tonnes announced in October 2013. The report recommends a modest US$3.0 million two-phase exploration program.
Final results of the 25-hole, 3,728 metre San Ignacio program, capped by hole ESI14-140 at 4.99 g/t gold and 196 g/t silver over 11.72 metres true width, with ESI14-136 at 3.61 g/t gold and 130 g/t silver over 19.47 metres. Mineralisation now continues about 300 metres south of current mining, and the company says it has changed the mine plan to develop the new zone.
Topia's measured and indicated resource rose 46% to 198,000 tonnes at 844 g/t silver, 1.71 g/t gold, 6.16% lead and 4.82% zinc (8.19 million silver-equivalent ounces, up from 5.60 million), more than replacing what was mined since the last estimate. Inferred slipped 10% to 209,500 tonnes at 863 g/t silver, which the company attributes to conversion into the higher categories and to cutting back step-out drilling on budget grounds.
A routine notice from the transfer agent to Canadian regulators about an upcoming shareholder meeting and its record date. The cover page gives no meeting date or other details; no business information.
Thirteen shallow holes over 1,144 metres at San Ignacio, then being developed for first production in the first half of 2014. Best hole ESI13-106 returned 263 g/t silver and 7.27 g/t gold over 15.81 metres true width, thicker than the 5.39 metres seen 25 metres away in 2011, supporting the company's view that high-grade pods sit inside the Intermediate Vein.
Updated resources at the producing Guanajuato Mine Complex: measured and indicated of 504,700 tonnes at 174 g/t silver and 1.65 g/t gold (4.43 million silver-equivalent ounces), with inferred of 434,000 tonnes at 140 g/t silver and 2.32 g/t gold (3.9 million ounces). Measured and indicated fell against the prior estimate while inferred rose sharply, so 2014 work shifts to converting the inferred ounces rather than finding new ones.
First resource estimate for the El Horcon project near Guanajuato: 214,402 tonnes of inferred material at 3.22 g/t gold, 68 g/t silver and 2.36% lead, from a 24-hole, 2,156 metre drill program. Small, but close to surface and within trucking distance of the existing Guanajuato mill, so the company is permitting further drilling with the aim of making it a satellite feed source like San Ignacio.
The filing is a cover form attaching an October 8, 2013 press release; its headline says the company received the final permit for San Ignacio and began site preparation ahead of mine development. The body of the release is not included, so no figures or timing are available here. San Ignacio is the satellite later part of the Guanajuato complex sold in August 2022.
