Gold Royalty Acquires Copper Stream; BHP And Rio Tinto Test Electric Trucks; Metals Acquisition Invests In Polymetals And More: Tuesday's Top Mining Stories

Top Stories for May 28, 2024

Gold Royalty GROY: The Vancouver-based company agreed to purchase a copper stream on the Vares Silver Project from Orion Mine Finance for $50 million. The payment includes $45 million in cash and $5 million in Gold Royalty shares. 

• The stream covers 100% of copper production from Vares’ Rupice deposit, with ongoing payments at 30% of the LME spot copper price. 
• First concentrate production began in February 2024, with commercial production expected in Q4 2024. 
• The Vares Project, operated by Adriatic Metals, has an 18-year mine life with plans to increase annual production to one million tons by 2026.

BHP BHP and Rio Tinto will test battery-electric haul trucks in Pilbara, Western Australia, in partnership with Caterpillar CAT and Komatsu. 

• The trials, starting with two CAT 793 trucks in 2024 and two Komatsu 930 trucks in 2026, aim to assess the performance and productivity of these trucks. 
• The collaboration supports both companies’ goal of achieving net zero operational emissions by 2050. 
• Results will be shared between BHP and Rio Tinto, informing future large-scale deployment of battery-electric haul trucks.

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Metals Acquisition MTAL is investing A$2.5 million for a 4.31% stake in Polymetals Resources Limited (POL) at A35 cents per share, with a second A$2.5 million investment conditional on several agreements and funding for the Endeavour mine restart. The Australian mining and explorer will gain a board seat if its stake exceeds 7%.

• The investment includes agreements for tolling zinc ore and a water offtake of 150ML annually for 4.5 years. 
• POL aims to restart the Endeavour mine, which has significant infrastructure and has historically produced silver, zinc and lead. 
• This strategic move aims to enhance the value of MAC's CSA Copper Mine operations.

5E Advanced Materials FEAM is issuing $6 million in senior secured convertible notes. 

• Bluescape Energy Partners and Ascend Global Investment Fund SPC will each purchase $3 million in notes, convertible into common stock at $1.53 per share, maturing in August 2028, with 10% interest paid in-kind. 
• The funds will support the small-scale facility, FEL-2 engineering and customer qualification for commercial agreements, while the Company seeks government funding.

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