The Gold-Silver Price Ratio is Starting to Drop and Investors are Turning Towards Precious Metal Stocks - Seite 2

On June 24, Genesis Metals Corp. (GIS.V) (GGISF.QB) announced that it has commenced a staged surface exploration program that will be executed in the coming months at Chevrier.

The initial phase of the staged surface exploration program involves follow-up on the priority targets identified from the 2019 glacial till survey. The work will also include surface prospecting, sampling, and geological mapping, as well as geophysical tools, such as detailed drone/helicopter magnetic surveys. The aim is to delineate discrete gold targets for trenching and drill testing later in 2020.

Gold and Silver Miners Sell Off Assets, Sign Streaming Deals, and Secure Financing

Another trend that's happening among gold and silver stocks is the buying and selling of assets. Gold industry giant Barrick Gold (NYSE:GOLD) (TSX:ABX) just announced that it has sold 79.3 million shares in Shandong Gold Mining Co. for $210 million.

On June 22, Metalla Royalty & Streaming Ltd entered into an agreement with Coeur Mining, Inc. (NYSE: CDE) and third parties to jointly acquire an existing 1.3875% royalty interest in Coeur's operating Wharf mine in South Dakota for a total of $8 million. Wharf, which has been producing since 1983, was acquired by Coeur Mining in February 2015 from Goldcorp for roughly $99.5 million in cash.

In conjunction, Metalla Royalty will sell the 0.3875% royalty part to Coeur, which will be satisfied through the transfer of 421,554 Metalla shares that are currently held by Coeur to the third-party sellers. The transfer represents $2.23 million in value based on a price of $5.30 per Metalla share.

Just one day later, Metalla announced an increase in the size of the bought deal secondary offering, which now consists of 3.4 million common shares of Metalla currently held by Coeur at a price of $5.30 per common share for gross proceeds to Coeur Mining, Inc. of approximately $18 million.

Meanwhile, Wheaton Precious Metals (NYSE: WPM) (TSX: WPM) has signed a non-binding term sheet with Caldas Gold Corp to enter into a precious metals purchase agreement for the Marmato Project in Colombia. Upon entering into the Precious Metals Stream, Wheaton will purchase 6.5% of the gold production and 100% of the silver production until 190,000 ounces of gold and 2.15 million ounces of silver have been delivered; after that the stream drops to 3.25% of the gold production and 50% of the silver production for the life of mine.