Blog posts

By Miguel A Heredia

During the 1^st week of the year (December 30^th to January 5^th 2024), at least 7 press releases were announced by companies working in Mexico, and 1 news published by the media, with four disclosing deals and corporate issues, two announcing financing rounds, one reporting resources and development of their properties, and one commenting on Mexican issues.  ON MEXICO ISSUES, An independent economic analysis indicated that the year 2024 was a crucial period for the Mexican economy, characterized by a scenario of contrast in the midst of a challenging global environment. ON EXPLORATION, no relevant news. ON FINANCING, Luca Mining reported that one of the company´s insiders sold an aggregate of 5,699,975 common shares (Tahuehueto project, Durango). Odyssey Marine secured $4M in funding to support the project's development and extended the maturity of its existing debt. ON RESOURCES AND DEVELOPMENT, Silver Tiger provided a year-end review of 2024 highlights and a 2025 outlook for its El Tigre project, Sonora. ON DEALS AND CORPORATE ISSUES, Sierra Metals adopted shareholder rights plan (Bolivar mine, Chihuahua). US Antimony announced second contract for international supply of antimony (Madero smelter, Coahuila). Elemental Altus announced the appointment of a new Director (Mercedes mine, Sonora). Odyssey Marine formed a JV with Capital Latinoamericano to develop a strategic fertilizer project in Mexico, focusing on high-quality phosphate resources within the country's Exclusive Economic Zone. ON SOCIAL RESPONSIBILITY,  no relevant news.

ON MEXICO ISSUE

• An independent economic analysis indicated that the year 2024 was a crucial period for the Mexican economy, characterized by a scenario of contrast in the midst of a challenging global environment. Factors such as the slowdown of developed economies, geopolitical tensions and domestic policy decisions have shaped the country's economic behavior. According to data from the National Institute of Statistics and Geography (INEGI), Mexico's Gross Domestic Product (GDP) closed 2024 with an estimated growth of 2.8%. Although this represents a slight improvement over previous years, it is still below the expectations of international organizations such as the World Bank, which had projected growth close to 3.5%. Economic performance was mainly driven by: 1 Manufacturing sector and exports: the automotive and electronics industry continued to be a key driver, benefiting from nearshoring and the relocation of supply chains by global companies; 2 Remittances: money transfers from abroad reached a new record, with more than USD $60 B entering the country, which boosted consumption in vulnerable sectors; and 3 Tourism: the recovery of international tourism and the growth of domestic tourism contributed significantly to the economy, especially in regions such as Quintana Roo and Baja California Sur. Inflation closed the year at 4.2%, getting closer to the Bank of Mexico (Banxico) objective of 3%. This achievement is attributed to a restrictive monetary policy that kept the interest rate at high levels for much of the year. However, this also generated an impact on consumer credit and private investment, limiting economic growth. One of the most significant challenges of the year was the weakness in gross fixed investment, which showed a marginal growth of 0.8%. This reflects investor concerns about regulatory uncertainty and the political environment, especially in sectors such as energy and mining. The economic closure of 2024 shows that Mexico faces significant challenges, but also has unique opportunities to strengthen its economy in an uncertain global context. The key to 2025 will be to foster business confidence, consolidate its integration into global value chains and maintain a clear focus on sustainability and inclusive development.

 ON EXPLORATION

• No relevant news.

ON MINING

• No relevant news.

ON FINANCING

• Luca Mining Corp., reported that one of the company´s insiders, Calu Opportunity Fund LP (Calu) sold an aggregate of 5,699,975 common shares, at a price of approximately $0.62 per common share for sales gross proceeds of $3,533,984. Calu advised the company´s management that it intends to use $2M for the sales proceeds to exercise a total of 4M warrants at an exercise price of $0.50 per warrant (Tahuehueto project, Durango).
• Odyssey Marine Exploration Inc., entered into a securities purchase agreement to secure $4M in funding to support the project's development and extended the maturity of its existing debt. Separately, holders of Odyssey’s debt have agreed to extend the maturity date of notes due December 2024 to December 2025 and notes due June 2025 to April 2026.

ON RESOURCES AND DEVELOPMENT

• Silver Tiger Metals Inc., provided a year-end review of 2024 and an outlook for 2025, highlighting significant progress in its El Tigre project, Sonora. Key achievements in 2024 included the completion of a Preliminary Feasibility Study (PFS) with a base case After-Tax NPV of USD $222M and an After-Tax IRR of 40%. The company also updated its Mineral Resource Estimate and commenced underground drilling on high-grade veins, sulphide, and shale zones. For 2025, Silver Tiger plans to complete a 5,000m underground drill program, with the first drill results expected in January 2025, deliver a Preliminary Economic Assessment (PEA) during H1-2025 for the underground resource, secure project financing for the open pit portion of the project, and make a construction decision upon receipt of the open pit permit.

 ON DEALS AND CORPORATE ISSUES

• Sierra Metals Inc., adopted a shareholder rights plan effective December 30, 2024, aimed at ensuring fair treatment of shareholders during take-over bids and protecting against creeping bids. The plan allows shareholders to purchase additional common shares at a 50% discount if rights become exercisable. However, it requires ratification by shareholders and approval from the Toronto Stock Exchange by June 30, 2025; otherwise, the plan will terminate (Bolivar mine, Chihuahua).
• US Antimony Corporation (USAC) announced on December 30, 2024, a second contract for the international supply of antimony, with initial shipments of 50 wet metric tons from Thailand expected to arrive at the Mexican port of Manzanillo in March 2025 to be processed at the company´s Madero smelter in Coahuila. Additionally, USAC filed a new $100M universal shelf registration statement with the United States Securities and Exchange Commission (SEC), aimed at providing flexibility for future financing opportunities. It will replace its existing $25M universal shelf registration statement that will expire in January 2025. This move is part of USAC's strategy to secure quality antimony supply for its smelters and set up for a strong financial performance in 2025.
• Elemental Altus Royalties Corp., announced the appointment of a new member to its Board of Directors as an independent non-executive Director (Mercedes mine, Sonora).
• Odyssey Marine Exploration Inc., formed a JV with Capital Latinoamericano S.A.de C.V. to develop a strategic fertilizer project in Mexico, focusing on high-quality phosphate resources within the country's Exclusive Economic Zone. The initiative aims to establish a partnership with the Mexican government to enhance food security and empower local farmers, particularly small-scale producers, by providing access to affordable fertilizers. The project combines Odyssey's expertise in subsea resource exploration with Mr. Juan Cortina's leadership in agriculture, promoting sustainable practices and rural development. The project will employ advanced technology and proven sustainable dredging techniques, which have been successfully used in over 200 similar projects in Mexican waters by a local operating partner for the project. Odyssey secured $4M in funding to support the project's development and extended the maturity of its existing debt.

 ON SOCIAL RESPONSIBILITY

• No relevant news.

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the picture above, flow banded rhyolite in an epithermal vein system project in Durango, Mexico. Photo taken by Miguel A Heredia.