Silver Elephant Mining Corp. (TSX:ELEF): announcements explained, share price

Announcements, explained

Each one in plain English, with the numbers worked through for a shareholder.

18 Mar 2019production update▲ GoodMajor

Prophecy reports that its Ulaan Ovoo coal mine in Mongolia restarted in March with about 21,000 tonnes produced and sold. The company does not operate it: under an October 2018 lease an arm's-length Mongolian lessee funds all capital and operating costs and pays Prophecy US$2 a tonne shipped. Nameplate capacity is 2 million tonnes a year from a 40 to 80 metre seam outcropping at surface. It is the only producing asset anywhere in this company's cached record, and it produces a royalty rather than a mine margin.

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14 Feb 2019drilling progress report● Neutral

Wood, formerly Amec Foster Wheeler, is retained to update the resource and mining sections for a Gibellini feasibility study the company expects to finish by the end of 2019. Up to ten short holes of 150 to 250 feet are planned in the higher-grade parts of Gibellini and the rest at Louie Hill, once the Bureau of Land Management approves.

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23 Nov 2018capital raising announcement● Neutral

The bought deal closed at C$5,520,000, all earmarked for Gibellini. Gerald Panneton signs as president and chief executive.

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2 Nov 2018capital raising announcement● NeutralMajor

Prophecy agreed a C$5.5 million bought deal with BMO Capital Markets, 12,000,000 shares at $0.46, to fund exploration, development and permitting of the Gibellini vanadium project in Nevada - at this point the company's only stated focus. Gibellini's May 2018 assessment carried 22.95 million tons at 0.286% vanadium pentoxide in the measured and indicated categories.

What it means for a shareholder

12.0m new shares at C$0.460 to raise about C$5.5m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.

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