Pershing Gold Corp. (PGLC:NASDAQ; PGLC:TSX) has a couple of irons in the fire, with its flagship Relief Canyon mine progressing closer to production and a new sublease that will expand the Blackjack project, which the company terms as highly prospective.
On April 4 Pershing Gold announced it has entered into "a Mining Sublease with Newmont USA Limited which further consolidates the Antelope Springs mining district in the Pershing Pass area south of the Relief Canyon Mine." Stephen Alfers, chairman, CEO, and president of Pershing Gold stated, "The Blackjack Project is comprised of seven historic mercury and antimony mines. The consolidation of this historic mining district for the first time is the crucial catalyst for the Company's district-wide gold exploration efforts."
With the sublease, Pershing Gold now controls 100% of the prospective ground in its Blackjack project area, according to the company.
Under the terms of the agreement, Pershing Gold has "the exclusive right to prospect, explore for, develop, and mine minerals in all areas [with] an initial term of ten years and may be extended by Pershing Gold until December 3, 2034."
"Blackjack is important to the Company because it presents a very real opportunity to extend the life of the entire project through the discovery of satellite deposits," CEO Alfers noted. "This Sublease is important to Pershing Gold because it unlocks the Blackjack Project. The Sublease is centrally located and, as private land, it strengthens Pershing Gold's control over the entire project."
Heiko Ihle of Rodman & Renshaw, in an April 5 report, noted, "Importantly, the signing of the land agreement with Newmont consolidates the district for the first time. . .we feel the consolidated land package could serve as a crucial component with respect to Pershing's exploration efforts outside of Relief Canyon. In our view, any additional discoveries made at Blackjack could be processed at Relief Canyon's existing facilities ultimately providing an extended mine life."
The analyst also stressed that "the key near term catalyst for Pershing is the release of a Pre-Feasibility Study on Relief Canyon. Importantly, we expect the PFS to provide an update on capital and operating costs, including the decision to employ a contract-mining scenario or self-mining scenario at the site. . .we expect management to make a production decision following the release of the PFS."
Ihle highlighted that with extensive infrastructure already at Relief Canyon, the project "should be quickly advanced following the announcement of a positive production decision and note the project could be in production by late 2017 or early 2018."
On February 28, Pershing announced that it had "successfully completed the environmental permitting process and has secured all of the permits necessary to restart and expand the Relief Canyon Mine."
In a March 16 report Bhakti Pavani, an analyst with Euro Pacific Capital, stated that Pershing Gold "is only a few steps away from re-starting production at the Relief Canyon mine, in our opinion. . .the company has obtained all the necessary permits to restart production at the Relief Canyon mine [and] awaits the results from the Pre-Feasibility Study, following which it plans to make a production decision. . .the Company has estimated an approximate lead time of 6 to 9 months to restart production following the production decision."
Read what other experts are saying about:
Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.
1) Melissa Farley compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: Pershing Gold Corp. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview or article until after it publishes.
Disclosures from Rodman & Renshaw, Pershing Gold Corp. Company Update, April 5, 2017
Investment Banking Services include, but are not limited to, acting as a manager/co-manager in the underwriting or placement of securities, acting as financial advisor, and/or providing corporate finance or capital markets-related services to a company or one of its affiliates or subsidiaries within the past 12 months.
I, Heiko F. Ihle, CFA and Jake Sekelsky, certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.
None of the research analysts or the research analyst’s household has a financial interest in the securities of (including, without limitation, any option, right, warrant, future, long or short position).
As of March 31, 2017 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Pershing Gold Corporation.
Neither the research analyst nor the Firm has any material conflict of interest in of which the research analyst knows or has reason to know at the time of publication of this research report.
The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.
The Firm or its affiliates did receive compensation from Pershing Gold Corporation for investment banking services within twelve months before, and will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.
The Firm does not make a market in Pershing Gold Corporation as of the date of this research report.
Euro Pacific Capital Inc., Pershing Gold Company Update, March 16, 2017
Euro Pacific expects to receive or intends to seek compensation for investment banking services from all companies under research coverage within the next three months. Euro Pacific or its officers, employees or affiliates may execute transactions in securities mentioned in this report that may not be consistent with the report’s conclusions.
Within the last twelve months, Euro Pacific has received compensation for investment banking services from Pershing Gold.
Regulation Analyst Certification ("Reg AC") — Bhakti Pavani: The views expressed in this report (which include the actual rating assigned to the company as well as the analytical substance and tone of the report) accurately reflect the personal views of the analyst(s) covering the subject securities. An analyst's sector is the universe of companies for which the analyst provides research coverage. Accordingly, the rating assigned to a particular stock represents solely the analyst's view of how that stock will perform over the next 12 months relative to the analyst's sector average.
No part of the compensation of the analyst preparing this report was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such analyst in this report.