Lode Gold: 2024 Year-End Review and 2025 Outlook
Lode Gold Resources (TSXV: LOD) (OTCQB: SBMIF) has announced significant developments in 2024 and plans for 2025. The company raised $6M since March 2024 and is executing a strategic spin-out to create two pure-play companies. The spin-out will form Gold Orogen, focusing on Canadian assets, and maintain Lode Gold for US operations.
The company completed a $3M raise for Gold Orogen at a $7.65M pre-money valuation, with an additional $1.5M planned for 2025 exploration. Gold Orogen will control assets in Yukon (99.5 km² in Tombstone Belt) and New Brunswick (420 km² land package). Lode Gold will retain its California project, which has a 2023 PEA showing USD $370M NPV and contains 1 Moz (M&I) + 2 Moz (Inferred) gold resources.
Lode Gold Resources (TSXV: LOD) (OTCQB: SBMIF) ha annunciato sviluppi significativi nel 2024 e piani per il 2025. L'azienda ha raccolto 6 milioni di dollari da marzo 2024 ed è in fase di attuazione di una strategia di separazione per creare due società indipendenti. La separazione darà origine a Gold Orogen, che si concentrerà su asset canadesi, mentre Lode Gold continuerà a gestire le operazioni negli Stati Uniti.
L'azienda ha completato una raccolta di 3 milioni di dollari per Gold Orogen con una valutazione pre-money di 7,65 milioni di dollari, con ulteriori 1,5 milioni di dollari previsti per l'esplorazione nel 2025. Gold Orogen controllerà asset nello Yukon (99,5 km² nel Tombstone Belt) e nel New Brunswick (pacchetto di terreno di 420 km²). Lode Gold manterrà il suo progetto in California, che ha una PEA del 2023 che mostra un NPV di 370 milioni di dollari e contiene 1 Moz (M&I) + 2 Moz (Inferred) di risorse aurifere.
Lode Gold Resources (TSXV: LOD) (OTCQB: SBMIF) ha anunciado desarrollos significativos en 2024 y planes para 2025. La empresa ha recaudado 6 millones de dólares desde marzo de 2024 y está llevando a cabo una escisión estratégica para crear dos empresas independientes. La escisión formará Gold Orogen, centrada en activos canadienses, y mantendrá Lode Gold para las operaciones en EE. UU.
La empresa completó una recaudación de 3 millones de dólares para Gold Orogen con una valoración pre-money de 7.65 millones de dólares, con 1.5 millones de dólares adicionales planeados para exploración en 2025. Gold Orogen controlará activos en Yukon (99.5 km² en el Tombstone Belt) y New Brunswick (paquete de terreno de 420 km²). Lode Gold retendrá su proyecto en California, que tiene un PEA de 2023 que muestra un NPV de 370 millones de dólares y contiene 1 Moz (M&I) + 2 Moz (Inferred) de recursos auríferos.
Lode Gold Resources (TSXV: LOD) (OTCQB: SBMIF)는 2024년에 중요한 발전을 이루었으며 2025년 계획을 발표했습니다. 이 회사는 2024년 3월 이후 600만 달러를 모금했으며, 두 개의 전문 회사를 만들기 위해 전략적인 분사를 실행하고 있습니다. 이 분사는 Gold Orogen를 형성하여 캐나다 자산에 집중하고, Lode Gold는 미국 사업을 유지할 것입니다.
회사는 765만 달러의 사전 평가로 Gold Orogen을 위해 300만 달러를 모집했으며, 2025년 탐사를 위한 추가 150만 달러가 계획되어 있습니다. Gold Orogen은 유콘(99.5 km²의 Tombstone Belt)과 뉴브런즈윅(420 km²의 토지 패키지)에 자산을 통제하게 됩니다. Lode Gold는 2023년 PEA에서 3억 7천만 달러의 NPV를 나타내며 1 Moz (M&I) + 2 Moz (추정)의 금 자원을 포함하는 캘리포니아 프로젝트를 유지할 것입니다.
Lode Gold Resources (TSXV: LOD) (OTCQB: SBMIF) a annoncé des développements significatifs en 2024 et des projets pour 2025. L'entreprise a levé 6 millions de dollars depuis mars 2024 et met en œuvre une scission stratégique pour créer deux sociétés indépendantes. La scission formera Gold Orogen, se concentrant sur des actifs canadiens, et maintiendra Lode Gold pour les opérations aux États-Unis.
L'entreprise a complété une levée de fonds de 3 millions de dollars pour Gold Orogen avec une valorisation pré-money de 7,65 millions de dollars, avec 1,5 million de dollars supplémentaires prévus pour l'exploration en 2025. Gold Orogen contrôlera des actifs dans le Yukon (99,5 km² dans le Tombstone Belt) et au Nouveau-Brunswick (package de terrain de 420 km²). Lode Gold conservera son projet en Californie, qui présente une PEA de 2023 montrant un VAN de 370 millions de dollars et contenant 1 Moz (M&I) + 2 Moz (Inferred) de ressources aurifères.
Lode Gold Resources (TSXV: LOD) (OTCQB: SBMIF) hat bedeutende Entwicklungen im Jahr 2024 angekündigt und Pläne für 2025 gemacht. Das Unternehmen hat seit März 2024 6 Millionen US-Dollar gesammelt und führt eine strategische Abspaltung durch, um zwei eigenständige Unternehmen zu gründen. Die Abspaltung wird Gold Orogen hervorbringen, das sich auf kanadische Vermögenswerte konzentriert, während Lode Gold die US-Geschäfte beibehalten wird.
Das Unternehmen hat eine Kapitalerhöhung von 3 Millionen US-Dollar für Gold Orogen mit einer Pre-Money-Bewertung von 7,65 Millionen US-Dollar abgeschlossen, mit zusätzlichen 1,5 Millionen US-Dollar, die für die Erkundung im Jahr 2025 geplant sind. Gold Orogen wird Vermögenswerte im Yukon (99,5 km² im Tombstone Belt) und New Brunswick (420 km² Landpaket) kontrollieren. Lode Gold behält sein Projekt in Kalifornien, das im Jahr 2023 eine PEA mit einem NPV von 370 Millionen US-Dollar aufweist und 1 Moz (M&I) + 2 Moz (geschätzt) an Goldressourcen enthält.
- Successful $6M capital raise since March 2024
- Strategic spin-out creating immediate value through two $7M companies
- Gold Orogen secured $3M funding with additional $1.5M planned
- California project PEA shows USD $370M NPV with 31% IRR
- Strong resource base of 1 Moz M&I + 2 Moz Inferred gold
- Conversion of secured debt to equity strengthening balance sheet
- Resolution of $1.6M legacy liability
- Current market cap trading at significant discount to asset value
- Only 11% of veins exploited in California project
- Mining license in California project remains suspended since 1942
Toronto, Ontario--(Newsfile Corp. - December 11, 2024) - Lode Gold Resources Inc. (TSXV: LOD) (OTCQB: SBMIF) ("Lode Gold " or the "Company") is pleased to provide a year-end update.
Dear Investors,
I am excited to update you on our progress since I took over as CEO less than a year ago, just before Christmas in December 2023. With the support of the board, key shareholders, and the dedicated Lode Gold team, we have raised
Strategy: Create Two Pure Play Companies to Unlock Value and Attract New Investors
Last year, around this time, I met with bankers to discuss how we plan to unlock value by spinning out the Company's assets to create two pure-play companies. This strategy resonated with many as Lode Gold has key assets situated in highly prospective mining regions in Canada and the United States. This initiative immediately creates two
Focus on Intrinsic Asset Value vs Market Cap: Do some small-cap stocks outperform large-cap investments in the long run?
Clifford Asness, who played a key role in building Goldman Sachs' Global Alpha before founding AQR, and now manages over
In the case of Lode Gold, the intrinsic value, verified with a third-party NI 43-101 technical report, has an NPV USD
This is a value proposition, validated by smart money: strategic investors and institutional shareholders; a total of four own approximately
Near-Term: Gold Orogen spin out to unlock value for shareholders
The company has three key orogenic assets, with proven gold endowment.
To unlock value for shareholders; immediately we are spinning out the Canadian assets into a new company, Gold Orogen. Each Lode Gold shareholder will get shares of Gold Orogen; via a tax-efficient spin-out.
Additionally, a
A gold asset on the Mother Lode Belt with MRE: 1 (M&I) + 2 (Inferred) Moz Au and a 2023 PEA: USD
Spin Out Unlocks Shareholder Value: Confirmed gold endowment and RIRGS on Tombstone Belt
The spin-out will result in the formation of two pure-play companies, each focused on specific areas of exploration in Canada and the US.
Company 1: Spin Co - Gold Orogen
Asset 1:
- 27 km strike, 99.5 km2 in Yukon, prolific Tombstone Belt (Snowline, 3 Aces, Sitka Gold)
- Total of four Reduced Intrusive Targets (RIRGS)
Asset 2:
- New Brunswick: Created one of the largest land packages (420 km2)
- Geological analogue to New Found Gold, Galway, Calibre Mining and Puma-Kinross
- Confirmed gold endowment
Company 2: Parent - Lode Gold
Lode Gold is the first company to evaluate this project from an underground perspective.
- Brownfield, previously mined at 8 g/t in the 1940's.
- 4 km strike on the 190 km mineralized Mother Lode Belt: 50,000,000 oz produced
100% owned private and patented land: 3,351 acres, Mariposa County- California: 700 permitted mines; 14 gold
- Mine suspended in 1942 due to gold prohibition in WWII
- Target: 2 Moz underground 5 g/t Au
- Typical Orogenic Deposit with Structural Controls
- 3 Step-Out Holes hit structure (up to 1,200 m)
- 2 nearby mines were up to 1,800 m deep at 13 g/t
- 43,000 m drilled with 23 km of underground workings
11% of the veins (2 of 7 deposits) exploited; mostly in the first 250 m- 2023 MRE: 1 Moz (M&I) + 2 Moz (Inferred)
- 2023 PEA at USD
$2,000 /oz Au: After-tax NPV (5% ) USD$370M ,31% IRR, 11 years LOM - Close to road, rail, power, water
Milestones Achieved in 2024:
1. Executed Spin Out Plan
- Received conditional acceptance from the TSXV for the spinout transaction
2. Improved Capital Structure
- Lode Gold added two additional key institutional and strategic shareholders
- For
$3M , a19.9% strategic joint venture partner with strong technical expertise, was added to the new Spin Co - Tight share structure: 10:1 consolidation. About 40.000,000 shares outstanding for both companies
3. Cleaned Up Balance Sheet
- Converted a secured debt holder to be the second-largest shareholder
- Repaid shareholder working capital loan
- Resolved a legacy lawsuit and eliminated a
$1.6M liability
4. Enhanced Value of Assets in Yukon, New Brunswick and California
- New Brunswick:
- Created one of the largest land packages in the province, potentially a district play
- Completed comprehensive geophysics and soil sampling to define drill targets
- Yukon:
- Identified four RIRGS targets for exploration work in 2025
- Confirmed RIRGS at WIN; high bismuth : gold ratio, gold-bearing sheeted quartz veins, hosted in hornfels
- California:
- The first to review the project from an underground perspective
- Completed Geological Model:
11% of the veins exploited, in 2 out of 7 deposits. Most extraction in the first 250 m. 3 step-out holes at depth, mineralized and hit structure, a typical orogenic deposit - Commissioned NI 43-101 to update the 2023 MRE
5. Strengthening the Lode Gold Team
- Enhanced bench strength by adding key personnel to the technical and marketing teams, visit our website to view their full bios (lode-gold.com)
- Addition of Martin Stratte, Lode Gold's former Director of the Board, to our Advisory Team. He was previously on the permitting team at Castle Mountain, Equinox Gold (2018-2021). The project was acquired for
$200 million in 2018, and it was permitted in 2021
Upcoming Catalysts in 2025
- Spin Co: Shareholders get shares of a new company
- Drilling to investigate 4 RIRGS reduced intrusive targets in Yukon Tombstone Belt, 200 km from Snowline
- Drilling in New Brunswick assets upon systematic exploration: geophysics, soil sampling, mapping, geochemistry
- California: Revised NI 43-101 Mineral Resource Estimate (updating 2023 MRE and investigating high grade underground potential)
- California: Evaluate reactivating a previous mine, where the license was suspended during WWII
Invest in One Company, Get Shares of Two Companies: Optionality on three key assets
Investing in Lode Gold presents an exciting opportunity for shareholders to benefit from an advanced gold exploration project and a forthcoming spinoff with two high-value assets. This strategic move is aimed at unlocking maximum value for investors, who will gain exposure to three highly prospective gold assets through shares in two separate companies.
Wishing you a season filled with joy and prosperity.
Yours truly,
Wendy T. Chan. CEO & Director
About Lode Gold
Lode Gold (TSXV: LOD) is an exploration and development company with projects in highly prospective and safe mining jurisdictions in Canada and the United States.
In Canada, its Golden Culvert and WIN Projects in Yukon, covering 99.5 km2 across a 27-km strike length, are situated in a district-scale, high grade gold mineralized trend within the southern portion of the Tombstone Gold Belt. A total of four RIRGS targets have been confirmed on the property. A NI 43-101 technical report has been completed in May 2024.
In New Brunswick, Lode Gold has created one of the largest land packages with its Acadian Gold JV Co; consisting of an area that spans 420 km2 and a 42 km strike. McIntyre Brook covers 111 km2 and a 17-km strike in the emerging Appalachian/Iapetus Gold Belt; it is hosted by orogenic rocks of similar age and structure as New Found Gold's Queensway Project. Riley Brook is a 309 km2 package covering a 25 km strike of Wapske formation with its numerous felsic units. A NI 43-101 technical report has been completed in August 2024.
In the United States, the Company is advancing its Fremont Gold project. This is a brownfield project with over 43,000 m drilled and 23 km of underground workings. It was previously mined at 8 g/t Au in the 1940's.
Mining was halted in 1942 due the gold prohibition in WWII just as it was ramping up production. Unlike typical brownfield projects that are mined out; only
The project is located on 3,351 acres of private and patented land in Mariposa County. The asset is a 4 km strike on the prolific 190 km Mother Lode Gold Belt, California that produced over 50,000,000 oz of gold and is instrumental in the creation of the towns, the businesses and infrastructure in the 1800s gold rush. It is 1.5 hours from Fresno, California. The property has year-round road access and is close to airports and rail.
Previously, in March 2023 the company completed an NI 43 101 Preliminary Economic Assessment ("PEA"). Project Valuation has an after-tax NPV (
All NI 43-101 technical reports are available on the Company's profile on SEDAR+ (www.sedarplus.ca) and the Company's website (www.lode-gold.com).
QUALIFIED PERSON STATEMENT
The scientific and technical information contained in this press release has been reviewed and approved by Jonathan Victor Hill, Director, BSc (Hons) (Economic Geology - UCT), FAusIMM, and who is a "qualified person" as defined by NI-43-101.
ON BEHALF OF THE COMPANY
Wendy T. Chan, CEO & Director
Information Contact
Winfield Ding
CFO
info@lode-gold.com
+1-416-915-4257
Kevin Shum
Investor Relations
kevin@lode-gold.com
+1 (647) 725-3888 ext. 702
Cautionary Note Related to this News Release and Figures
This news release contains information about adjacent properties on which the Company has no right to explore or mine. Readers are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on the Company's properties.
Cautionary Statement Regarding Forward-Looking Information
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release includes "forward-looking statements" and "forward-looking information" within the meaning of Canadian securities legislation. All statements included in this news release, other than statements of historical fact, are forward-looking statements including, without limitation, statements with respect to the completion of the transaction and the timing thereof, the expected benefits of the transaction to shareholders of the Company, the structure, terms and conditions of the transaction and the execution of a definitive agreement, the timing of submission to the CSE and TSXV, Gold Orogen raising an additional
Forward-Looking statements are based on a number of assumptions and estimates that, while considered reasonable by management based on the business and markets in which the Company operates, are inherently subject to significant operational, economic, and competitive uncertainties, risks and contingencies. These include assumptions regarding, among other things: that the Company and GRM will be able to negotiate the definitive agreement on the terms and within the time frame expected, that the Company and GRM will be able to make submissions to the CSE and TSXV within the time frame expected, that the Company and GRM will be able to obtain shareholder approval for the transaction, that the Company and GRM will be able to obtain necessary third party and regulatory approvals required for the transaction, if completed, that the transaction will provide the expected benefits to the Company and its shareholders.
There can be no assurance that forward-looking statements will prove to be accurate and actual results, and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include adverse market conditions, general economic, market or business risks, unanticipated costs, the failure of the Company and GRM to negotiate the definitive agreement on the terms and conditions and within the timeframe expected, the failure of the Company and GRM to make submissions to the CSE and TSXV within the timeframe expected, the failure of the Company and GRM to obtain shareholder approval for the transaction, the failure of the Company and GRM to obtain all necessary approvals for the transaction, and r other risks detailed from time to time in the filings made by the Company with securities regulators, including those described under the heading "Risks and Uncertainties" in the Company's most recently filed MD&A. The Company does not undertake to update or revise any forward-looking statements, except in accordance with applicable law.
1 Asness, Clifford S. "The Less-Efficient Market Hypothesis," SSRN, August 30, 2024. Available at SSRN (papers.ssrn.com).
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/233484
FAQ
What is the value of Lode Gold's (SBMIF) California project according to the 2023 PEA?
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