Golden Arrow Resources (GRG.V) is a publicly traded explorer acquiring and advancing exploration projects located in Latin America. On September 19, 2019, the company sold their 25% interest in the Puna JV to JV partner SSR Mining (formerly Silver Standard) for C$44M. A large part of this payment consisted of 1.25M shares of SSR Mining, valued at C$25M at the time of closing the deal. The shares have a 4 month hold period which ended in January 2020. The JV consisted of the Chinchillas project owned by Golden Arrow, which also discovered and developed it since 2012, and the almost depleted nearby (35 km away) Pirquitas Mine owned and operated by SSR Mining. SSR owned 75% of the JV, Golden Arrow the balance of 25%.
After the sale of Puna, the company has turned towards exploration again, and the main focus of attention this time will be directed towards gold. Golden Arrow has several early staged Argentinian precious metals exploration projects in its portfolio, and has also optioned the early stage Rosales Copper project in Chile. Golden Arrow is also branching out to Paraguay, with the Tierra Dorada project.
After the unexpected sale of Chinchillas to SSR Mining, which was planned to be an ideal cash cow for Golden Arrow to fund further exploration and new projects, the company has to start from scratch again, supported by the ownership of a substantial amount of SSR Mining shares. This means Golden Arrow doesn't have to go to the markets for a long time, and has the firepower to buy or option really interesting projects. In addition to this, the new president of Argentina appears to be very pro mining, so it appears the decades-long experience and network of Joe Grosso in this country remains valuable.
Share price Golden Arrow Resources: