Each one in plain English, with the numbers worked through for a shareholder.
18 May 2022asset acquisition disposition▼ Bad
The Ulaan Ovoo coal royalty is renegotiated in Battery Metals' favour, from US$2 a tonne to the greater of US$3 a tonne, 5% of gross sales, or 3% of the Newcastle benchmark on coal sold to China, in exchange for 990,485 Flying Nickel shares worth $336,765. The sale of 45% of Mega Thermal Coal has slipped: penalties and termination fees were waived and the deadline pushed to 31 December 2022 so Battery Metals can list on the TSX Venture Exchange. Silver Elephant intends to distribute the remaining 55% to its own shareholders.
El Triunfo drilling into geophysical targets found in 2021: TR009 returned 247 metres averaging 0.4 g/t gold equivalent from 3 metres depth with 14 metres at 2.5 g/t AuEq inside it, and TR010 gave 1.2 metres at 7.7 g/t AuEq within 45 metres at 0.7 g/t. The same filing announces a letter of intent to sell Battery Metals Royalties 45% of Mega Thermal Coal for $6.3 million in Battery Metals shares - the Ulaan Ovoo and Chandgana coal mines in Mongolia, the only assets that produced anything in this company's cached record.
Two programs in one filing. Regional drilling of 9 holes for 3,251 metres within 3 km of the Tajo vein system produced one narrow hit, 2 metres at 299 g/t silver 1.5 km north of the vein. At Paca, 8 holes for 1,717 metres: the four testing geophysical anomalies to the east returned close to nothing - PND119 gave 39.0 metres at 5 g/t silver - while PND123, testing the northern extension, cut 27.0 metres at 159 g/t silver from 3 metres depth including 1.5 metres at 565 g/t, in near-surface oxide.
The British Columbia court approved the arrangement, effective 14 January 2022. Every ten Silver Elephant shares become one consolidated Silver Elephant share plus one share each of Flying Nickel and Nevada Vanadium and two of Battery Metals Royalties. What remains inside Silver Elephant is Pulacayo and El Triunfo in Bolivia plus a minority holding in the royalty company: a ten-to-one consolidation and four tickers where there had been one.
Shareholders approved the break-up almost unanimously, 99.44% of votes cast in favour of the arrangement, but only 150 holders voting 30,168,028 shares turned up against roughly 193 million shares outstanding, and 4,732,800 of those were excluded as interested on the resolution approving the Flying Nickel financing.
Flying Nickel closed the full $8.6 million: 10,094,033 non-flow-through subscription receipts at $0.70 and 1,992,437 flow-through receipts at $0.77, held in escrow pending release conditions.
19 Nov 2021capital raising announcement▲ GoodMajor
Flying Nickel's raise was upsized from $7.0 million to $8.6 million on a $2.975 million lead order from Blackstone Minerals, an ASX-listed battery-metals processor. The subsidiary is raising more in one financing than its parent managed in three tranches over the same autumn.
The parent's placement finished with a third tranche of 8,163,640 shares for $1,796,000, making $3,740,000 in total for 17,000,000 shares at $0.22 across ten weeks and three closings.
What it means for a shareholder
17.0m new shares at C$0.220 to raise about C$3.7m. That's 8.6% dilution: every existing holder's slice gets 8.6% smaller. If you held C$1,000 of shares (4,545 at the issue price), your slice goes from 0.00252% to 0.0023% of the company. To keep it you'd need 428 more shares - about C$94 at the issue price.
26 Oct 2021capital raising announcement▲ GoodMajor
The Minago spinout begins raising its own money before it is even separated: Flying Nickel Mining Corp., with Red Cloud as lead agent and Canaccord Genuity alongside, seeks up to $7.0 million in subscription receipts at $0.70 for the non-flow-through units.
A second tranche of 4,662,727 shares raised $1,025,800, and the offering was increased from 15 million to 17 million shares for a target of $3.74 million even though the first two tranches together had taken under $2 million.
Only 4,173,632 of the 15,000,000 shares were taken up in the first tranche, raising $918,199 of the $3.3 million sought, with finders paid $46,872 in cash and 213,054 warrants. The same filing carries a timetable update for the plan of arrangement.
What it means for a shareholder
15.0m new shares at about C$0.0612 to raise about C$918,199. That's 7.7% dilution: every existing holder's slice gets 7.7% smaller. If you held C$1,000 of shares (16,336 at the issue price), your slice goes from 0.00905% to 0.00836% of the company. To keep it you'd need 1,357 more shares - about C$83 at the issue price.
A placement of up to 15 million shares at $0.22 for up to $3.3 million, with Canaccord Genuity and Red Cloud as advisers. The price is 41% below February's $0.375 placement and nearly half the C$0.40 bought deal of last November.
What it means for a shareholder
15.0m new shares at C$0.220 to raise about C$3.3m. That's 7.7% dilution: every existing holder's slice gets 7.7% smaller. If you held C$1,000 of shares (4,545 at the issue price), your slice goes from 0.00252% to 0.00232% of the company. To keep it you'd need 378 more shares - about C$83 at the issue price.
The Gibellini assessment: an open-pit heap leach with a 25.4% after-tax return and $260.8 million of cumulative after-tax cash flow, initial capital of $147 million, 10.2 million lb of vanadium pentoxide a year at an all-in sustaining cost of $6.04/lb and a strip ratio of 0.18 to 1. Those figures assume US$10.00/lb; the European price three days before publication was $9.60.
1,972 metres of the 2,000 metre Pulacayo program are drilled at El Abra, Veta Quattro and Pacamayo, with visible galena, tetrahedrite and sphalerite logged at Pacamayo between 490 and 560 metres depth but no assays yet. El Triunfo grab samples ran up to 294 g/t silver. Bolivia's geological survey puts historic production from the Tajo vein system at 678 million oz of silver.
The company will break itself into four. A plan of arrangement moves existing royalties into a new subsidiary, Battery Metals Royalties Corp., then spins out Minago, Gibellini and Battery Metals as separate companies, with shareholders receiving one share of each of the first two and two of the third for every Silver Elephant share held. Everything bought since mid-2020 except the Bolivian ground is on its way out of the company.
The Minago technical report itself, filed the same day as the announcement with thirteen qualified-person consents attached. The report exhibit in the cached copy is a scanned image file with no machine-readable text.
The Minago technical report is filed, dated 20 August and effective 2 July 2021, prepared by Mercator with AGP on pit optimisation and Stantec on permitting. John Lee now signs as chief executive as well as executive chairman, and the company describes itself as "a premier mining company of battery metals" rather than a silver miner.
The Minago estimate lands five months after the acquisition: 722 million lb of contained nickel measured and indicated and 319 million lb inferred, grading 0.74% nickel, effective 2 July 2021. That grade is well above the 0.52% of the historic estimate the company bought, and the project has already absorbed more than $40 million of exploration, study and permitting spending by earlier owners since 2000.
A 2,000 metre, ten-hole program begins at Pulacayo to test a 1,400 by 250 metre induced-polarisation anomaly that has never been drilled, running parallel to and 300 metres from the Tajo vein system, with first targets at El Abra, Veta Quatro and Pacamayo. The release also carries a stray paragraph about the Gibellini vanadium project that has nothing to do with Pulacayo.
Wood and Mine Technical Services are commissioned to write a preliminary economic assessment for Gibellini, described again as part of the spinout strategy. Vanadium pentoxide had risen 52% since January to US$8.2/lb.
21 May 2021material agreement termination▼ BadMajor
Silver Elephant suspended its instalment payments on Sunawayo nine months after agreeing to buy it, notifying the vendors that they had breached disclosure representations in the August 2020 purchase agreement over the property's title and environmental permit status. Only US$300,000 had been paid and the company says it has no further obligation unless it chooses to continue. The project it had called a greenfield silver discovery is now "a small, non-material part" of its strategy.
Mercator, AGP and Stantec are commissioned to produce the first current resource estimate for Minago, expected in June, and the release says in its own headline that it is being prepared to support spinning the project out into a subsidiary, Flying Nickel Mining Corp.
Indium and gallium assays for the first ten Sunawayo holes, held back from the earlier releases: SWD002 carried 87 g/t indium and 7 g/t gallium with 48 g/t silver over 9.0 metres (252 g/t AgEq) inside 31.0 metres at 119 g/t AgEq. Adding the two by-products raises that 31-metre interval from the 67 g/t AgEq reported in February to 119 g/t, and the company notes that primary indium and gallium deposits are uncommon.
Holes SWD011 to SWD014 at Sunawayo returned 2.0 metres at 645 g/t silver, 5.12% lead, 1.34% zinc and 0.19% copper (813 g/t AgEq) inside 5.0 metres at 380 g/t AgEq. Everything else in the batch ran between 30 and 72 g/t silver equivalent over intervals of one to eighteen metres, and the indium and gallium assays were still outstanding.
Ten holes into Sunawayo and all mineralised. The best is SWD010 with 3.0 metres at 421 g/t silver, 0.92% lead and 0.90% zinc (469 g/t AgEq) inside 10.0 metres at 183 g/t AgEq; SWD009 gave 2.0 metres at 50 g/t silver and 7.67% zinc (290 g/t AgEq). The high grades arrive in two- and three-metre slices inside much longer low-grade intervals.
The first two holes ever drilled at Sunawayo: SWD001 cut 137.0 metres at 36 g/t silver from surface, and SWD002 31.0 metres at 44 g/t silver, 0.39% lead and 0.48% zinc (67 g/t AgEq) from 1 metre. Long, shallow and remarkably uniform, but at roughly a thirteenth of the 477 g/t silver of the best surface sample that had justified buying the property.
The Minago purchase closed. The project covers 197 km2 in Manitoba's Thompson Nickel Belt, and its Nose deposit carries a historic estimate of 790 million lb of nickel in 68.7 million tonnes at 0.52% - which the release states plainly is not a current mineral resource and which no qualified person has yet verified.
The Minago asset purchase agreement itself, filed as an exhibit. The cached copy is a scanned image file with no machine-readable text; the commercial terms are in the announcement and completion releases of 22 January and 10 February 2021.
Closed within four days at the full $3,750,000 from 10,000,001 shares at $0.375, with $73,875 of cash finder's fees. There are now 192,895,079 shares outstanding. John Lee signs as executive chairman.
What it means for a shareholder
10.0m new shares at C$0.375 to raise about C$3.8m. That's 5.2% dilution: every existing holder's slice gets 5.2% smaller. If you held C$1,000 of shares (2,667 at the issue price), your slice goes from 0.00148% to 0.0014% of the company. To keep it you'd need 148 more shares - about C$56 at the issue price.
A non-brokered placement of up to 10 million shares at $0.375 for up to $3.75 million, with proceeds stated as exploration, working capital and general corporate purposes "which may include project evaluations and acquisitions".
What it means for a shareholder
10.0m new shares at C$0.375 to raise about C$3.8m. That's 5.2% dilution: every existing holder's slice gets 5.2% smaller. If you held C$1,000 of shares (2,667 at the issue price), your slice goes from 0.00148% to 0.0014% of the company. To keep it you'd need 148 more shares - about C$56 at the issue price.
