Premium Resources Reports Positive Drill Results and Strategic Financing Moves in Botswana

Premium Resources Ltd. has reported successful drill results at its Selebi Mines project in Botswana, with key intercepts indicating resource expansion. The company plans further drilling efforts while successfully increasing its funding to CA$44 million due to high investor interest. Strategic investors have joined, and the leadership will see a change with Morgan Lekstrom appointed CEO. The outlook for copper demand remains strong, positioning Premium Resources for growth and increased market value.

Premium Resources Ltd. (PREM:TSX.V) has announced promising drill results from its underground Selebi Mines copper-nickel-cobalt project in Botswana, comprising the Selebi Main and Selebi North deposits. Notably, two significant intercepts were identified outside the mineral resource envelope of the Selebi North Underground (SNUG) mine: 14.2 meters at 5.14% copper equivalent (Cu eq) from drill hole SNUG-24-172 and 14.4 meters at 3.99% Cu eq from SNUG-24-144. These results indicate extensions of mineralization beyond the previously established resource, which averages 3.25% Cu eq, according to Dr. Stefan Ioannou of Cormark Securities in his recent report.

The Company intends to conduct further drilling to build upon these results, utilizing its own low-cost drilling rigs. One rig will target a 100-meter depth extension in the South Limb near SNUG-24-172, while another will explore the area between the N2 and N3 Limbs based on the findings of SNUG-24-144. Additionally, Premium Resources has increased its private placement from CA$36 million to CA$44 million due to strong investor interest, selling units at CA$0.30 each.

The recent financings have attracted new strategic investors, including Frank Giustra and his Fiore Group, Andrew Bowering, Michael Murphy, and Mathew August. Following the refinancing, Morgan Lekstrom will become the new CEO and director of Premium Resources, backed by a wealth of experience in the mining sector. The company also converted CA$20.9 million of term loans into equity with EdgePoint Investment Group, further strengthening its financial position.

Premium Resources aims to advance both the Selebi Mines and the Selkirk project, with both sites having NI 43-101 mineral resources and existing infrastructure. Giustra emphasized that the company’s assets are significantly undervalued compared to its peers and noted the potential for future growth in an area that could attract larger investment. The total confirmed mineral resource at Selebi Mines is 27.7 million tons at 3.25% Cu eq, while Selkirk’s estimate stands at a significant 44.2 million tons.

The growing global demand for copper, driven by technological advancements and the push for clean energy, positions the metal as critically important. Analysts predict substantial increases in copper consumption, particularly in energy transition sectors, with demand from electric vehicles expected to expand significantly by 2040. Cormark’s Dr. Ioannou maintains a Buy rating on Premium Resources and suggests a target price offering a potential return of 194%.

Investor interest in copper is growing, with analysts forecasting its market value to reach CA$368.8 billion by 2030. Potentially hindering new supply due to various global challenges, including declining ore grades and production disruptions, the copper market may experience increasing deficits. Recent supply issues in Chile have exacerbated this situation, potentially leading to higher copper prices.

As drilling progresses, Premium Resources is poised to expand its resource base at Selebi Mines, with plans for a prefeasibility study aiming to commence production by the first half of 2028. The exploration upside at the Selebi deposits remains a fundamental aspect of the company’s investment appeal, bolstered by ongoing strategic initiatives and financial support.

The recent developments by Premium Resources Ltd., characterized by promising drill results and strategic financing, position the company favorably within the competitive mining sector. Expanding its operations at the Selebi Mines and Selkirk project, alongside the expected rise in global copper demand, underscores a compelling growth thesis. Analyst endorsements and robust market dynamics further enhance Premium’s potential for significant returns, warranting investor attention.

Original Source: www.streetwisereports.com