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Tuesday, March 13, 2018 Derek Macpherson

Northern Vertex: Pours First Gold & Preps for M&A

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Northern Vertex Mining Corp. (TSXV:NEE) has announced that it has made its first gold pour at its Moss Mine, which recently started production, an important milestone and the next step towards commercial production. As well the company has prepared itself to execute on significant M&A by securing a commitment of up to $100M for acquisitions and development from Sprott Private Resource Lending LP plus a C$2M equity investment (at $0.52 per unit – each unit is a share plus 2-year half warrant at $0.68)-for exploration spending. The company now has access to up to $100M in financing for future development and acquisitions; however, Sprott must approve the use of proceeds and the terms are expected to be determined at the time of drawdown. Now that Northern Vertex has started production, the key catalysts are likely to be the ramp-up of production, leading to the declaration of commercial production. Looking into the future, the permits required to extend the mine-life, beyond the current five years, and capture the ~200k oz AuEq outside the current resource is likely to be a focus. Northern Vertex trades at an EV/oz premium to peers (C$229/oz vs. peers at C$56/oz), which we view as warranted, considering it appears to be financed through to first cash flow, along with the potential for meaningful mine-life extension and improved economics from the ongoing optimization and exploration programs. read more


Sunday, March 04, 2018 Derek Macpherson

NEE Files FQ2 Financials

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Northern Vertex Mining Corp. (TSXV:NEE) has announced that it has filed its unaudited interim consolidated financial results for FQ2 2018 ended December 31, 2017. The company ended 2017 with C$22.2M in cash, down from C$25M at June 30, 2017 as a result of cash outflows to the construction of the Moss Mine, which was partially offset by the cash inflows from various financings completed by the company. The company also stated that it has received the fourth and final tranche of $5M from Sprott Private Resource Lending, therefore the $20M Sprott facility is now fully drawn. Construction costs at the Moss Mine for the six months ending December 31, 2017 were $41.55M. The company has also drawn down the final US$3 million of its US$6 million working capital facility from its major shareholder, Greenstone Resources II L.P. While this, company is highly levered at this critical stage as it transitions from construction to production, there is some protection for equity investors as we would expect Greenstone (holds ~30% of the equity) to bridge a short-term financial gap to protect its investment if required. Northern Vertex trades at an EV/oz premium to peers (C$233/oz vs. peers at C$57/oz), which we view as warranted, considering it appears to be financed through to first cash flow, along with the potential for meaningful mine-life extension and improved economics from the ongoing optimization and exploration programs. read more


Tuesday, February 20, 2018 Derek Macpherson

NEE Progressing Towards First Gold Pour

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Northern Vertex Mining Corp. (TSXV:NEE) has announced that it has entered the final stages of commissioning at the Moss Mine. The company has continued to crush and load ore from the mine to the leach pad, which now is covered by 21,775 tonnes of crushed ore. Leaching is underway, and with Merrill Crowe, plant in the last stages of commissioning, first gold pour is still possible in this quarter. As well, the company has drawn down the final US$3 million of its US$6 million working capital facility from its major shareholder, Greenstone Resources II L.P. While this, company is highly levered at this critical stage as it transitions from construction to production, there is some protection for equity investors as we would expect Greenstone (holds ~30% of the equity) to bridge a short-term financial gap to protects its investment if required. Northern Vertex trades at an EV/oz premium to peers (C$237/oz vs. peers at C$59/oz), which we view as warranted, considering it appears to be financed through to first cash flow, along with the potential for meaningful mine-life extension and improved economics from the ongoing optimization and exploration programs. read more


Tuesday, February 06, 2018 Derek Macpherson

NEE Nears First Gold Pour at Moss

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Northern Vertex Mining Corp. (TSXV:NEE) has started stacking ore on the recently completed leach pad, in preparation for the first gold pour at Moss expected this quarter. The company is ramping up production towards 2,500tpd then to 5,000tpd, 7,800 tons have been stacked week-to-date. The crushing plant has been tested and commissioned. The processing plant continues to be commissioned, processing is expected to begin in 10 days. The refinery furnace is expected to be commissioned next week. The power station is online and is supplying power to the crushing plant and processing plant. The company continues to advance the mine and remains on schedule for the first gold pour in Q1 2018. Northern Vertex trades at C$164/oz a premium to peers (C$50/oz). We view the premium valuation as reasonable given that the Moss mine is financed, permitted and in the late stages of construction. In addition, the company’s valuation does not appear to fully account for the potential of meaningful mine-life extension and improved economics from the ongoing optimization and exploration programs. read more


Wednesday, January 17, 2018 Derek Macpherson

NEE to Begin Stacking Ore on Heap Leach Pad Next Week

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Northern Vertex Mining Corp. (TSXV:NEE) has commissioned the Moss Mine crushing plant, with subsequent programming and calibration work to follow, in order to begin first ore stacking on the leach pad by next week. In addition, the company has drawn US$3 million of the US$6 million non-revolving working capital facility with Greenstone Resources II L.P., which will be used for funding for the commissioning of the Moss Mine and exploration including general corporate and working capital requirements. The company continues to advance the mine, in anticipation for the first gold pour in Q1 2018. Northern Vertex trades at C$179/oz a premium to peers (C$49/oz). We view the premium valuation as reasonable given that the Moss mine is financed, permitted and in the late stages of construction. In addition, the company’s valuation does not appear to fully account for the potential of meaningful mine-life extension and improved economics from the ongoing optimization and exploration programs. read more


Wednesday, December 27, 2017 Derek Macpherson

NEE Provides Update – First Pour Expected in Q1/18

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Northern Vertex Mining Corp. (TSXV: NEE) has reported progress on construction and commissioning activities at its Moss Mine project in Arizona. Highlights from the company include the completion of the mechanical portion of the crushing plant, the advancement of the onsite power station, the preparation of the leach pad and preparation of an operational workforce for the mine site. The company has also indicated that the first gold pour at the Moss Mine is now expected to take place in Q1 2018 (was Q4 2017). We consider the delay minor, as the project continues to progress and the company has secured additional funding to bridge them to positive cash flow in 2018. Northern Vertex trades at C$123/oz a premium to peers (C$42/oz). We view the premium valuation as reasonable given that the Moss mine is financed, permitted and in the late stages of construction. In addition, the company’s valuation does not appear to fully account for the potential of meaningful mine-life extension and improved economics from the ongoing optimization and exploration programs. read more


Friday, December 22, 2017 Derek Macpherson

NEE Adds More Debt to Provide Flexibility During Ramp Up

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Northern Vertex Mining Corp (TSXV:NEE) has announced that it has secured additional debt from key partners that should carry the company until it begins generating cash flow from its near-producing Moss Mine in western Arizona. The company has drawn the final $5M tranche from Sprott Resource Lending and signed a flexible $6M working capital facility with Greenstone Resources that is available in up to four tranches. Northern Vertex trades at C$120/oz a premium to peers (C$41/oz). We view the premium valuation as reasonable given that the Moss mine is financed, permitted and under construction. In addition, the company’s valuation does not appear to fully account for the potential of meaningful mine-life extension and improved economics from the ongoing optimization and exploration programs.  read more


Friday, November 10, 2017 Derek Macpherson

NEE Provides Update on Construction Activities

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Northern Vertex Mining Corp (TSXV:NEE) has provided an update on construction at its 100% owned Moss Au-Ag mine in northwestern Arizona. The company has made significant progress in preparing the Moss Mine site for its first gold pour in Q4 2017. At peak construction the company had as many as 170 workers on site. Construction activities to date includes the preparation and construction of the crushing plant, diesel power station, leach pads and pond earthworks. The company has also placed 100kt of overliner in the completed portions of the leach pad and has recently completed the construction of the refinery building shell in order to proceed to the electrical work. Northern Vertex trades at C$102/oz a premium to peers (C$38/oz). We view the premium valuation as reasonable given that the Moss mine is financed, permitted and under construction. In addition, the company’s valuation does not appear to fully account for the potential of meaningful mine-life extension and improved economics from the ongoing optimization and exploration programs.  read more


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