Mining Company Finds Excellent Copper-SIlver Potential in Colo.

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Metallic Minerals Corp. (MMG:TSX.V; MMNGF:OTCQB) reported that it has closed its previously announced brokered private placement, including the exercise in full of the over-allotment option, for total gross proceeds of CA$6,000,024.

Under the placement, the company sold 25,000,100 units at a price of CA$0.24 per unit. Each unit comprises one common share of the company and one-half of one common share purchase warrant, a "Warrant"). Each Warrant grants the holder the right to purchase one Common Share for CA$0.34 until July 30, 2027.

Cormark Securities Inc. served as the lead agent, together with Canaccord Genuity Corp., SCP Resource Finance LP, and Beacon Securities Limited.

The net proceeds from the Offering are earmarked for the advancement of the company's La Plata copper-silver-gold-PGE project in southwestern Colorado, USA, exploration activities at its Keno Silver project and other properties in Yukon, Canada, and for general corporate and working capital purposes, as detailed in the Offering Document.

Newmont Corp. (NEM:NYSE), via its wholly owned subsidiary, Newcrest International Pty Ltd., has expressed its intention to exercise its participation rights under the investor rights agreement dated May 18, 2023, with the company to maintain its proportional shareholding in connection with the offering.

To facilitate participation by management and insiders, along with the expected participation of Newmont (an insider of the company), a subsequent non-brokered private placement is anticipated.

'A Diverse Portfolio'

Bob Moriarty of 321gold.com noted in a piece on July 30 that he had planned to participate in the placement.

"The company boasts a diverse portfolio including a copper, gold and silver project in Colorado," Moriarty said. "President Trump has stated America must return to mining as a means of generating wealth. With copper at historic high prices, MMG's La Plata project with a 43-101 resource of 147 million tonnes of 0.41% Cu Eq (copper equivalent) fits perfectly."

Given the current upward trend of silver and forecasts suggesting it could reach new highs, Metallic's Keno Hill silver project in the Yukon arrives at an opportune moment, Moriarty said.

Metallic owns a 171-square-kilometer property right next to Hecla Mining Co.'s (HL:NYSE) silver mining operations, featuring a 43-101 resource of 18.2 million ounces of silver equivalent (Moz Ag Eq) at 223 g/t (grams per tonne) Ag Eq. This property includes eight historic silver mines, five of which have produced silver at grades exceeding 5,000 g/t.

On July 1, John Newell of Newell & Associates wrote that Metallic Minerals "is shaping up as a serious copper-silver-gold exploration story, backed by some of the smartest money in the business."

The cash injection is set to propel Metallic into the spotlight once more, with forthcoming drilling results from La Plata and extensive exploration activities at Keno Hill, Moriarty noted. With the company currently valued at around CA$42 million and led by a figure who has garnered numerous industry accolades, he said he is convinced that Metallic is undervalued and poised for growth.

"The federal government is beginning to invest in resource companies and both commodities, copper and silver are scarce," he wrote.

On July 1, John Newell of Newell & Associates wrote that Metallic Minerals "is shaping up as a serious copper-silver-gold exploration story, backed by some of the smartest money in the business."

"With Newmont (formerly Newcrest) holding a 9.5% stake and Eric Sprott at 12.5%, the company's flagship La Plata Project in southwest Colorado is drawing comparisons to world-class porphyry systems like Cadia (a Newmont project in Australia)," Newell said. "The 2023 resource at the Allard deposit shows 1.2 billion lbs (pounds) of copper and 17.6 Moz Ag, with the next update expected to include gold and PGEs."

The extensive scale of the alteration system, spanning over 25 square kilometers and featuring several unexplored targets, including zones akin to Ridgeway that could contain significantly higher grades, is particularly notable. With all necessary permits secured and the benefit of Newmont's technical expertise on-site, 2025 is poised to be a transformative year for the project, Newell said.

Positive Results From La Plata

In June, Metallic announced positive results from its extensive district-scale exploration program at La Plata.

"The program resulted in the advancement to a priority drill-ready status at three untested targets with over 25 additional target areas identified for additional work within the 25 square kilometer porphyry system footprint," President Scott Petsel said.

The surface rock samples from the exploration yielded notably high-grade results, confirming the area's strong potential. The top 30 samples showcased impressive averages: Copper at 1.68% copper equivalent (Cu Eq), with 12 samples surpassing 1% Cu Eq; gold at 0.51 g/t, with seven samples exceeding 1 g/t Au; silver at an average of 25.7 g/t, reaching up to 426 g/t Ag; and platinum (Pt) + palladium (Pd) combined at an average of 0.037 g/t, with the highest recorded at 0.3 g/t Pt+Pd.

Based in Vancouver, British Columbia, Metallic Minerals is advancing its key asset, La Plata, towards an updated mineral resource estimate. The current NI 43-101-compliant inferred resource, as of July 2023, stands at 1,210,000,000 pounds Cu and 17.6 Moz Ag, with 147,300,000 tons at an average grade of 0.37% Cu and 3.72 g/t Ag (or 0.41% Cu eq) using a 0.25% Cu eq cutoff grade.

In May, the discovery of light and heavy rare earth elements (REEs) at La Plata was confirmed through exploration and geochemical analyses. This discovery is deemed significant for its potential to co-produce critical minerals alongside copper, silver, gold, and PGEs, enhancing the project's value and aligning with U.S. priorities for secure, domestic supply chains of critical materials, as highlighted by Peter Krauth of Silver Stock Investor.

Metallic Minerals also operates the Keno silver project in Yukon Territory, adjacent to Hecla Mining's operations, and maintains a growing portfolio of production royalties on alluvial gold claims in the historic Klondike Gold District and beyond.

The Catalyst: Copper Cloudy, Silver a Standout

The immediate future of copper prices remains clouded by what MetalMiner described as "dueling forces" in a May article. On one hand, the enduring demand from electrification and the shift towards green energy underpins copper prices. On the other, the looming threat of an intensifying trade conflict between the U.S. and China, coupled with a potential surplus, pulls in the opposite direction.

Copper prices experienced a significant drop after Trump unexpectedly exempted refined copper from the harsh new tariffs imposed on the metal, reported Aime Wiliams and Camilla Hodgson for the Financial Times on July 30. On Wednesday, the White House announced it would levy a 50% tariff on semi-finished copper products like pipes and wires, as well as derivative products such as pipe fittings and cables.

However, "input" materials like copper ores and concentrates were not included under these tariffs but were instead subjected to new regulations concerning their sale locations, they reported.

Natalie Scott-Gray, a senior metals analyst at StoneX Financial, described the focus on semi-finished products and the exclusion of raw materials as a "massive market surprise."

Following the president's announcement, copper prices in New York plummeted by approximately 18% to US$4.60 a pound amid volatile trading, the Financial Times report noted. Earlier in the month, futures had reached a record high of nearly US$6 when Trump initially declared the copper tariffs but had not specified which products would be affected.

Silver is currently one of the standout commodities in the market, experiencing a resurgence in investor interest and robust fundamentals that have pushed its prices to a 14-year high, according to a report on Mining.com July 31.

After achieving notable gains of 28% this year and 21% the previous year, some market watchers believe the upward trend is just beginning, making silver a compelling investment prospect, the report said. Citigroup has recently raised its short-term forecast for silver prices to above US$40 an ounce, pointing to a tightening supply and increasing demand.

According to Sprott, which references data from The Silver Institute and Metals Focus, 2025 is expected to mark the seventh consecutive year of a global silver market deficit, likely keeping prices on an upward trajectory. 

Demand from various energy sectors continues to surge, underscoring the metal's essential role in technologies critical for expanding global electricity needs, such as solar power, electric vehicles, and electronics. Notably, solar energy usage alone represented 17% of last year's total silver demand, a significant increase from just 5.6% a decade earlier, the Mining.com report noted.

Ownership and Share Structure

According to Metallic Minerals' Investor Presentation, ownership of the company breaks down this way: management and associates own 15%, Newmont Corp. holds 9.5%, Eric Sprott has 12.5% and high net worth individuals own 15%.

Institutional ownership totals 20%. The remainder, 28%, is in retail.

As of August 1, the Canadian explorer has 179 million issued and outstanding shares. Its market cap is CA$37.74 million. Refinitiv reports Metallic Mineral's 52-week range is CA$0.13–0.31 per share.