On Monday, Northern Vertex Mining and Eclipse Gold Mining announced that they had entered into a definitive merger agreement to create a new gold producer in the United States.
This merger is said to create the growth of new resource mining business.
Northern Vertex will be the resulting company, with offices in the US and Canada.
According to Northern Vertex President and CEO, Kenneth Berry, "the result of this deal will be a consolidated company with a fairly balanced team and a long history of multi-asset gold mining. We plan to leverage this new platform to accelerate organic growth opportunities, targeting significant resource expansion. "
Meanwhile, Eclipse President and CEO Michael Allen said: "This combination enables Eclipse shareholders to create value on a larger scale, supported by positive cash flow. The shareholders of the new combined company will now own a platform that includes two Walker Lane gold projects with a potential of several million ounces, a mining mine with untapped production and cash flow growth opportunities, and a team of executives who have demonstrated success in creating interdependent multi-asset companies.
Northern Vertex Mining owns and operates the Moss Mine, which is currently the largest pure gold and silver mine in Arizona.
Eclipse Gold Mining, on the other hand, is exploring gold properties in the Hercules area, which is part of the Walker Lane trend in Nevada.
At the moment, the precious metals market is more focused on the potential for recovery than on inflation, which is positive for stocks and commodities, but less for precious metals.
The macro fundamentals for precious metals have so far supported their rally amid the Fed's zero rate. The yield curve continues to climb, while real rates are declining. These fundamentals will support gold and its stocks.
However, gold will not hit a new high nor hit $ 3,000, unless the ratio of gold in the S&P 500 exceeds 0.70.
