Drilling resumes at E&L. The 2021 drilling program will resume at the E&L project at Nickel Mountain. Garibaldi’s preliminary ZTEM geophysical survey detected several conductors that are being ranked for field work and drill testing. Five conductors occur along the 15-kilometer strike-length between E&L in the southwest and the nickel copper outcrops identified at Mount Shirley to the northeast which offer new discovery potential. Later in the season, the drill could be moved to test gold-silver targets at Casper and Palm Springs.Financing enhances flexibility. Garibaldi secured up to C$12 million of equity financing over three years via a draw down equity financing facility. The agreement is structured to provide access to equity private placement tranches of up to C$500,000 each. Each tranche will be a private placement of units consisting of one Garibaldi common share and one-half a common share purchase warrant valid for 3 years. We think Garibaldi could supplement financing for exploration with flow-through equity financing.Financing terms. Garibaldi may draw funds when needed based on its own discretion. There are no standby charges or upfront fees associated with the agreement. The units will be issued at a discount of 15% to 25% from the closing market price at the time each tranche is drawn down and the warrants will be issued at a 25% premium over the same closing market price. The expiration date of the warrants may be accelerated subject to certain conditions.Rating is Outperform. Garibaldi Resources is unique because it offers exposure to high value metals that play a critical role in clean air and battery technologies, along with precious metals. We think interest among major mining companies in properties highly prospective for nickel, copper, and platinum group elements will continue to accelerate and we cite competing bids for Noront Resources (TSX.V, NOT) by BHP Group (NYSE, BHP) and Wyloo Metals as an example. Read More >>