Canada is among the leading mining countries in the world and it is one of the biggest producers of metals and minerals. The mining industry contributes significantly to the economy of the country. The industry has been growing over recent years and companies have enhanced their investment in exploration and mining activities as well as the consolidation of resources. For instance last year the industry saw some of the biggest mergers and acquisitions as companies position themselves to benefit more.
Canadian government commits $500,000 to facilitate exploration in the North
The Canadian government has been supporting the development of the industry by creating enabling for mining companies. To show its commitment to supporting the industry the federal government’s Canadian Northern Economic Development Agency has pledged $500,000 to the NWT and Nunavut Chamber of Mines as well as Yukon Mining Alliance over 3 years. The government is partnering with the three regional governments to host the Invest Canada North in Toronto at the Prospectors and Developers Association of Canada Convention from March.
The support will enable the North to demonstrate opportunities in the region as the world’s largest annual mining conference. The Northwest Territories Premier, Caroline Cochrane stated that the partnership and initiatives will increase investor understanding of the region as well as enhance confidence necessary for new exploration and growth in the North.
Capstone Mining ready to drive value in 2020
Most Canadian miners have been gearing to driving most value in 2020 by enhancing their exploration and production capabilities. For instance, Capstone Mining Corp (OTCMKTS: CSFFF) has indicated that it expects to produce around 140 to 155 million pounds of Copper. Last year the company’s actual production raged between 145 and 160 million pounds of copper at $1.80 to $2.0 per pound of copper produced.
The company CEO Darren Pylot stated that the company has redefined itself ahead of the new decade. He said that their business is supported by the expansion of the company’s high margin and grade Cozamin mine as Pinto Valley positions itself to offer the best in class leverage to copper. Capstone is making a high return and quick payback investments so that they can optimize cash flow in the improving copper market.
Adamera partners with Hochschild for the Cooke Mountain project
Mining companies have also been partnering with each other since last year to drive value for mines. The latest is junior miner Adamera Minerals Corp (OTCMKTS: DDNFF) which has partnered with Hochschild Mining (OTCMKTS: HCHDF) to help it in advancing its activities at the Cooke Mountain in Washington State. The companies have entered an option agreement that will see Hochschild receive a 60% stake in the project by investing $8 million on exploration in the next five years. During the earn-in stage, Adamera will be the project operator.
Equally, Hochschild could earn an additional 15% stake by funding feasibility in three years. After completion of the phase, they will form a 75.25 joint venture or a 60/40 joint venture in the event phase 2 doesn’t get exercised. The project is located in a high-grade gold mining area with little modern exploration.