- Rising copper prices tied to COVID-19 vaccine breakthroughs
- Market expert notes that “positive news for the metals is compounding and copper is gaining momentum”
- JOSE focused on development of its Josemaria Copper-Gold Project
In an intriguing take on the COVID-19 global pandemic, copper prices have reached a two-year high because of the connection the base metal has to vaccine breakthroughs (https://ibn.fm/l2Z8y). Those increasing prices bode well for Josemaria Resources (TSX: JOSE) (OTC: JOSMF), a natural resources company that is focused on developing its wholly owned Josemaria Copper-Gold Project in Argentina.
“On the Comex market, copper for delivery in December gained 3.1% to $3.3015 a pound ($7,276 a tonne) by mid-afternoon in New York,” reported a Mining.com article titled “Copper price soars to highest since 2014 on vaccine hopes.” The article went on to note that if copper closed above $3.30, it would be the highest level since January of 2014.
The connection between copper and the coronavirus was also noted in a Yahoo Finance article, which observed that “copper soared to a fresh two-year high on Friday, bolstered by promising news on coronavirus vaccines that could halt impending lockdowns and hasten economic recovery. Pfizer Inc. and BioNTech SE said they plan to file for emergency use on Friday, allowing for the vaccine, which is 95% effective to be used in the U.S. in the next month. The advance comes as the rampaging virus prompts governments to impose further restrictions to stem the spread, posing a threat to global growth” (https://ibn.fm/YzFwG).
“Positive news for the metals is compounding and copper is gaining momentum,” said RJO Futures senior market strategist Peter Mooses. “Base metals have been driven by bullish news all around, and a vaccine is just what the market is looking for: a long-term solution to fears for further disruptions to a global recovery.”
This positive news follows Josemaria Resources’ Q3 2020 company update and financial results, which also pointed to a promising future for the junior mining company (https://ibn.fm/pKfS1).
Company highlights for the period ending Sept. 30, 2020 included the release of results of an independent feasibility study of JOSE’s wholly owned copper-gold Josemaria Project located in San Juan Province, Argentina. According to the results, “the feasibility study demonstrates a robust, rapid pay-back, low risk project, with an open pit operation feeding a conventional process plant at 152,000 tonnes per day over a 19-year mine life, yielding average annual metal production of 136,000 tonnes of copper (‘Cu’), 231,000 ounces of gold (‘Au’) and 1,164,000 ounces of silver (‘Ag’).”
In addition, Josemaria Resources closed a private placement and concurrent public offering of 46,652,986 common shares at a price of $0.67 per common share, resulting in net proceeds of $29.9 million.
“With the recent announcement of the positive results of our Feasibility Study on the Josemaria Project and the completion of a net $29.9 million equity financing during the quarter, we are excited to continue towards the development of the Josemaria Copper-Gold Project,” said Josemaria Resources CEO Adam Lundin. “We are now focused on bridging-phase engineering activities, progression of the Environmental and Social Impact Assessment for planned submission to the relevant authorities in early 2021 and finalizing commercial and fiscal terms with the San Juan and Federal authorities in Argentina.”
Josemaria Resources is a Canadian natural resources company based in Vancouver, British Columbia. The company’s current focus is on advancing the development of its wholly owned Josemaria copper-gold mining project. Josemaria Resources is part of the Lundin Group of companies, a conglomerate of 13 business entities operating in the mining, oil and gas, and renewables sectors around the world.
For more information, visit the company’s website at www.JosemariaResources.com.
NOTE TO INVESTORS: The latest news and updates relating to JOSMF are available in the company’s newsroom at https://ibn.fm/JOSMF
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