Interview with Hugh Agro, President & CEO of Revival Gold Inc.
Our previous interview: https://www.cruxinvestor.com/posts/revival-gold-tsxvrvg-large-gold-resource-base-with-exploration-upside-in-idaho-5020
Recording date: 11th April 2024
Revival Gold (TSXV:RVG) has announced a transformational acquisition of the Mercur Gold Project in Utah through its purchase of Ensign Minerals. The deal catapults Revival Gold into the ranks of leading U.S. gold developers with the third-largest resource base in the US with 6.2 million gold ounces.
The Mercur acquisition aligns perfectly with Revival's strategy of pursuing gold projects in the U.S. with a history of mining and exploration. It brings a significant resource in a Tier-1 jurisdiction, increasing Revival's heap leach resource by over 60% at a cost of just one-third of its market capitalization.
Mercur boasts a pit-constrained inferred resource of 1.6 million ounces grading 6 g/t gold. The project sits in the prolific Carlin and Bingham Canyon gold trends of Utah, which have produced over 50 million cumulative ounces. Revival sees immense exploration upside across Mercur's 6,000-hectare land package and plans to digitize a trove of legacy data to identify new targets.
Revival aims to leverage Mercur's private land status to expedite permitting and development timelines. The project's arid climate and limited water requirements could allow construction to begin within three years.
To fund the acquisition and advance both Mercur and its existing Beartrack-Arnett project, Revival is raising C$7 million. The company plans a 50/50 capital allocation, with Mercur being advanced to a PEA by Q1 2025 and Beartrack-Arnett progressing through permitting and exploration.
The Mercur acquisition gives Revival improved financial flexibility, with initial payments starting in 2026 and production-based payments thereafter. This aligns the cost structure with Revival's development timeline and future cash flows. Revival is now uniquely positioned to become a mid-tier U.S. gold producer, with a target of 150,000 ounces per year from two heap leach assets.
With a clear path to production, robust economics, and significant exploration upside, Revival Gold offers exposure to a rapidly advancing gold developer with multiple catalysts on the horizon. As the Mercur acquisition closes and Revival executes on its strategic vision, the company is poised for a re-rating towards its intrinsic value.
View Revival Gold's company profile: https://www.cruxinvestor.com/companies/revival-gold-inc
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An insight into junior mining and opportunities to invest.
Company Interviews, a Crux Investor show, exists to cut through the jargon, bias and bluster.
Matthew Gordon, and guest host Merlin Marr-Johnson hone in on the important factors that indicate a company's strong footing for growth and success.