Impact: Mildly Positive
New Placer Dome (NGLD) announced that it has commenced a 1,700m (six-hole) diamond drill program at its Bolo Au-Ag project in Nevada and has also made the final share issuance to Allegiant Gold Ltd. (TSXV:AUAU, Not Rated) pursuant to the Bolo earn in agreement. We highlight that Copaur Minerals Inc. (TSXV:CPAU, Not Rated) recently agreed to acquire New Placer Dome in an all-share transaction, and to provide a convertible loan of US$840,000 to help advance Bolo (read more), as proceeds from the most recent financing were earmarked for Kinsley (read more). In our view, Bolo is a high-grade near surface Au project in a tier-one jurisdiction with significant exploration upside with the potential to be expanded laterally and at depth. Bolo currently contributes 34% to our NAV for the company, and we believe that a contemplated resource estimate in 2022 could potentially help re-rate the stock.
