RCKS Talk

16-Jul-2018

Metanor Resources Inc.

Barry Extended West With 7.4g/t Over 4.4m

Impact: Mildly Positive

Metanor Resources has released new results from the ongoing drill campaign at the Barry project, located in the Urban-Barry camp in Quebec.

  • Highlights from this round of results include: 7.4g/t Au over 4.4m, 7.1g/t over 4.2m, 9.4g/t over 2.9m and 8.2g/t over 2.6m
  • Drilling succeeded in purpose of expanding the deposit to the west and at depth, demonstrating strong continuity of the mineralized system
  • The Barry ramp, which will provide access to both underground drill bays and extraction of the bulk sample program in Q4 2018, is progressing on schedule with approximately 300m of advancement to date
Bonterra Resources has recently announced that its has entered into a binding letter of intent to acquire Metanor for ~C$0.65/share in an all share transaction (1.6039 Bonterra shares for each Metanor share), representing a 8% premium to last close of C$0.60/share, which reflects further upside to the current share price should the transaction be completed.

05-Jul-2018

Metanor Resources Inc.

Metanor Intersects High-Grades in Moroy Zone

Impact: Mildly Positive

Metanor Resources has announced new drill results from the ongoing underground drill program at the Moroy zone of the Bachelor Mine, located in Quebec.
  • Results demonstrate high-grade continuity to the east, including: 8.4g/t Au over 5.5m, 11.0g/t over 4.0m, and 10.7g/t over 4.4m
  • The Moroy zone will continue to be explored with one underground diamond drill rig completing 15m (50ft) step outs; development into Moroy will provide additional ore for daily gold production
Bonterra Resources has recently announced that its has entered into a binding letter of intent to acquire Metanor for ~C$0.65/share in an all share transaction (1.6039 Bonterra shares for each Metanor share), representing a 12% premium to last close of C$0.58/share, which reflects further upside to the current share price should the transaction be completed.

19-Jun-2018

Bonterra Resources Inc.

BTR to Acquire MTO; Only One Interloper Possible

Impact: Positive

Bonterra Resources has announced that the company has entered into a binding letter of intent to acquire Metanor Resources for ~C$0.73/share in an all share transaction (1.6039 Bonterra shares for each Metanor share), representing a 30% premium to Friday’s close and an aggregate transaction value of C$78 million on a fully diluted in-the-money basis. Prior to completion of the acquisition, Bonterra is to spin out its Larder Lake assets in Ontario with C$7M in cash to create a new gold explorer for its shareholders. The proposed acquisition should create a new advanced Canadian gold explorer and developer focused on the Urban-Barry Gold Camp.
  • For Bonterra, we view the transaction positively, as high-grade ore from Gladiator could be shipped to the Bachelor mill (expansion possible), shortening the deposits path to production and reducing capex
  • For Metanor, this provides additional ore to feed the Bachelor mill and provides additional cash to advance exploration at Bachelor and Barry
  • Metanor is now “in-play” and in our view the only likely interloper is Osisko Mining (TSX:OSK); however, considering the friendly nature and previous opportunities that Osisko has had, we believe there is only a 20-30% chance of a superior offer being made
  • At market close on June 15th, Bonterra traded at C$0.455, which puts the proforma company’s market value at ~C$178M with a cash balance of C$32M (EV of ~C$146M) to advance the Gladiator project to production, an updated resource estimate is still on track for H2 2018
Upon completion of the proposed transaction, the combined entity would be the second largest company in the Urban-Barry Camp by market cap, and the only producer in the region. Considering the 2Moz Au potential that we see at Gladiator, combined with access to Metanor’s permitted mill infrastructure, and the exploration upside we see at both Bachelor and Barry, we believe the company is attractively valued relative to peers. As well, the increased potential scale of the combined company’s projects is likely to make it more attractive to potential acquirers.

14-Jun-2018

Metanor Resources Inc.

Metanor Intersects 5.0g/t over 12.1m at Barry

Impact: Mildly Positive

Metanor Resources has released results from the Barry project intended as infill drilling of the South-Eastern portion at depth and to test the felsic intrusive on the western extent of the deposit, which intersected 5.0g/t Au over 12.1m.
  • Drill highlights include: 15.7g/t Au over 2.4m, 14.6g/t over 1.8m, 12.2g.t over 2.7m and 14.2g/t over 1.2m
  • Infill results continue to demonstrate the continuity and predictability of the shear-hosted gold deposit over a strike length of 1.1km
  • Metanor continues on schedule with the development of the Barry ramp, which is planned to provide access to underground drill bays and extraction of the bulk sample in Q4 2018
With the only permitted mill in the Urban-Barry camp and an expectation for meaningful resource growth, Metanor’s $57M market cap (EV$ 52M) suggests it is undervalued relative to other Urban-Barry camp peers, which are development stage.

01-Jun-2018

Metanor Resources Inc.

Metanor Releases FQ3 Financials

Impact: Neutral

Metanor Resources has reported financial and operating results for the quarter ended March 31, 2018 (FQ3 2018).
  • Metanor achieved gold production of 6,654oz Au (Figure 1) leading to gold sales of 6,764 ounces from Bachelor Mine, a 4.6% increase compared to last quarter
  • The company ended the quarter with C$6.4M in cash and cash equivalents
  • Construction of a new camp has been completed at the Barry project in May in order to accommodate the additional workers required for the upcoming 50,000 tonne underground bulk sample
With the only permitted mill and an expectation for meaningful resource growth, Metanor’s C$57.1M market cap (EVC$50.7) suggests it is undervalued relative to other Urban-Barry camp peers, which are development stage.

29-May-2018

Metanor Resources Inc.

Bachelor Significantly Extended to Depth

Impact: Positive

Ongoing underground drilling from the Bachelor Mine has extended the mine at depth, highlights include 19.1 g/t Au over 3.6m (14-238), 12.0 g/t Au over 4.0m (E18-234) and 6.4 g/t Au over 21.8m (14-239).
  • Drilling extends Bachelor 183m below lowest working level, adding significant potential for increased resources and reserves
  • Another structure could exist perpendicular to the Main vein, more drilling required
  • Moroy Zone remains important target, 2 drill rigs are in operation
With the only permitted mill and an expectation for meaningful resource growth, Metanor’s $57M market cap (EV$ 52M) suggests it is undervalued relative to other Urban-Barry camp peers, which are development stage.

22-Apr-2018

Metanor Resources Inc.

Metanor Extends Barry Deposit to the East and at Depth

Impact: Mildly Positive

Drill results from its Barry project highlight the project’s potential and continuity, returning 15.8 g/t Au over 1.5m (MB-17-54) and 12.3 g/t Au over 1.3m (MB-18-156).

  • Results extend Barry 100m to east and 75 m at depth
  • Drilling continues at Barry with 3 diamond drill rigs in operation, ramp development for bulk sample continues (40m complete)
  • On an EV basis, MTO is trading roughly in line with small Canadian producing peers, but a steep discount to its development stage peers in the Urban-Barry camp
With the only permitted mill and an expectation for meaningful resource growth, Metanor’s $54M market cap (EV$ 43M) suggests it is undervalued, relative to other Urban-Barry camp peers, which are development stage.

09-Apr-2018

Metanor Resources Inc.

Metanor Hits 51g/t over 4.8m at Moroy

Impact: Positive

Metanor continues to add value to its operating Bachelor mine with ongoing drilling and development reaching the two known Moroy veins. 

  • Underground development has reached Moroy veins on level 11
  • Drill results demonstrate continuity and extend Moroy mineralized structures
  • Adding ounces at Moroy and Barry likely to lead to a mill expansion
 
With the only permitted mill and an expectation for meaningful resource growth, Metanor’s $53M market cap (EV$ 42M) suggests it is undervalued, relative to other Urban-Barry camp peers.

01-Jan-2018

Metanor Resources Inc. (TSXV:MTO)

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