Northern Vertex Mining Corp. (TSXV:NEE) has announced that it has made its first gold pour at its Moss Mine, which recently started production, an
important milestone and the next step towards commercial production. As well the company has prepared itself to execute on significant M&A by securing
a commitment of up to $100M for acquisitions and development from Sprott Private Resource Lending LP plus a C$2M equity investment (at $0.52 per unit
– each unit is a share plus 2-year half warrant at $0.68)-for exploration spending. The company now has access to up to $100M in financing for future
development and acquisitions; however, Sprott must approve the use of proceeds and the terms are expected to be determined at the time of drawdown.
Now that Northern Vertex has started production, the key catalysts are likely to be the ramp-up of production, leading to the declaration of commercial
production. Looking into the future, the permits required to extend the mine-life, beyond the current five years, and capture the ~200k oz AuEq outside
the current resource is likely to be a focus. Northern Vertex trades at an EV/oz premium to peers (C$229/oz vs. peers at C$56/oz), which we view as
warranted, considering it appears to be financed through to first cash flow, along with the potential for meaningful mine-life extension and improved
economics from the ongoing optimization and exploration programs.
Derek Macpherson | VP Mining Analysis
Victoria Ellis Hayes | Associate
Alex Pitcher | Associate
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Northern Vertex Mining Corp. - TSXV:NEE - 1,2,3,4
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