Galloper Gold Corp. (CSE:BOOM)(OTC PINK:GGDCF) (the ‘Company‘ or ‘Galloper‘) is pleased to announce that it has submitted a detailed proposal to the Newfoundland and Labrador Minister of Industry, Technology and Energy in response to the province’s ‘Request for Proposals for Glover Island Exempt Mineral Land’, which the province issued on November 7, 2024.

The Exempt Mineral Land (‘EML’) on Glover Island created on March 11, 2012, covers former Mining Lease 170-A and is surrounded by Galloper’s existing exploration licenses on Glover Island. The EML overlaps a southwest-to-northeast trend of known gold mineralization with multiple prospects and consists of 1,925 hectares of surface area along 8.85 kilometres of potential strike length. Historic exploration on the EML advanced to include trenching and drilling resulting in a 43-101 National Instrument compliant gold resource estimate of 58,200 oz indicated and 120,600 oz inferred. The EML consists of 19 mineral prospects and showings, the majority of which are for gold, along with several prospects for base metals copper and zinc. The Company is relying upon historic assessment reports and government publications and has not performed sufficient work to independently verify the details of the historic resource estimate.

As per the Newfoundland and Labrador Ministry of Industry, Technology and Energy, the deadline for receipt of proposals is January 22, 2025. The successful proponent will be granted exclusive mineral rights with project commitments incorporated as terms and conditions of an Extended Map Staked Licence including special attention to the provisional protected status of the island.

Galloper’s CEO, Mr. Hratch Jabrayan, commented: ‘We are delighted to have submitted to the Minister a robust proposal for the acquisition, exploration and development of the EML on Glover Island. As we continue the process of building a leading junior gold company in Newfoundland with our flagship Glover Island asset, the known and upside potential the EML ground offers is of significant value and importance to the overall development of our Glover Island Project and Galloper Gold as a whole. We look forward to sharing further progress reports with our valued shareholders as details become available.’

Galloper Appoints New Corporate Secretary
Galloper Gold is pleased to announce the appointment of Jan Urata as Corporate Secretary, effective January 1, 2025. Mr. Rav Mlait resigned as Corporate Secretary of the Company on December 31, 2024 to facilitate Ms. Urata’s appointment. Jan Urata is the Founder and President of Take It Public Services Inc., a highly motivated legal support service for top tier junior issuers in a variety of industry sectors. Ms. Urata has more than 30 years’ experience in the industry providing corporate secretarial services covering regulatory filings, taking corporate entities from initial seed capital stage to publicly listed status and supporting complex transactions. Ms. Urata’s career began with years of experience as a legal secretary/paralegal for top Vancouver law firms before establishing Take It Public Services Inc. in 2011.

Figure 1 – Glover Island Property Map

Acknowledgment – Newfoundland & Labrador Junior Exploration Assistance Program
Galloper Gold acknowledges the financial support of the Junior Exploration Assistance Program, Department of Natural Resources, Government of Newfoundland and Labrador.

About Galloper Gold Corp.
Galloper is focused on mineral exploration in the Central Newfoundland Gold Belt with its flagship Glover Island Property, 24 km southeast of Corner Brook, and its Mint Pond prospect in the Gander area. Galloper recently completed the first diamond drilling program at Glover Island since 2012, completing six holes with results pending.

For more information please visit www.GalloperGold.com and the Company’s profile on SEDAR+ at www.sedarplus.ca.

On behalf of the Board of Directors,
Mr. Hratch Jabrayan

CEO and Director
Galloper Gold Corp.

Company Contact:
info@gallopergold.com
Tel: 778-655-9266

Forward-Looking Statements
This news release contains forward-looking statements within the meaning of applicable securities laws. The use of any of the words ‘anticipate’, ‘plan’, ‘continue’, ‘expect’, ‘estimate’, ‘objective’, ‘may’, ‘will’, ‘project’, ‘should’, ‘predict’, ‘potential’ and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company cannot give any assurance that they will prove correct. Since forward-looking statements address future events and conditions, they involve inherent assumptions, risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of assumptions, factors and risks. These assumptions and risks include, but are not limited to, assumptions and risks associated with mineral exploration generally, risks related to capital markets, risks related to the state of financial markets or future metals prices and the other risks described in the Company’s publicly filed disclosure.

Management has provided the above summary of risks and assumptions related to forward-looking statements in this news release in order to provide readers with a more comprehensive perspective on the Company’s future operations. The Company’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive from them. These forward-looking statements are made as of the date of this news release, and, other than as required by applicable securities laws, the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise.

Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Source

Impact of tariffs on fertilizers

One of the biggest issues facing the fertilizer sector in 2025 could be trade tariffs imposed by the incoming Trump administration.

During his campaign, Trump was vocal about using tariffs to level trade imbalances with other nations and often singled out China. However, in December, he began to propose imposing 25 percent tariffs on all goods imported from Canada into the US.

Since he made the statements, there has been no indication of any carve-outs for fertilizer supplies. Canada is the world’s largest producer of potash, and any tariffs could upset the amount traded to the US, leading to higher prices downstream for farmers and the food supply.

“Of the near 15 million metric tons of potash imported to the US last year, almost 13 million of those originated from Canada… Russia, another possible tariff target for the incoming administration, accounted for 1.5 million metric tons last year. While the US does produce potash, it is not nearly large enough to meet our demand,” Linville said.

He also outlined how reliant Canadian producers are on US ports to reach the rest of the world, noting that 4.4 million metric tons were exported. Even if Canadian potash isn’t being consumed in the United States, it is still subject to tariffs when it crosses the border, making it more expensive for the end buyer.

It’s not just tariffs on potash, phosphate is also likely to be affected as well.

As Linville outlined, the United States and four other countries are responsible for 85 to 90 percent of the world’s phosphate supply. Trump placed tariffs on China during his first term in office, while Biden placed Morocco and Russia under tariffs during his time in the White House.

“That leaves Saudi Arabia as the lone wolf that can still target the US unencumbered, and they have plenty of global buyers they can target. At this time, we do not expect this situation to change in 2025, which should keep the US in line to slightly higher than the rest of the world,” Linville said.

Ample potash supply, phosphate remains tight

The potash market in 2024 was relatively quiet with more than enough supply to meet demand. Barring any major developments, that scenario is expected to continue through 2025.

“It is very hard to see an outlook that includes much price appreciation in the potash sector. While there have been some fears that supplies would be cut with the speech by Belarusian President floating production curtailments in response to low prices, no other major manufacturers have been heard following his lead,” Linville said.

It is uncertain whether that situation will continue past 2025. New projects are in the pipeline, including BHP’s (OTC PINK:BHPLF,ASX:BHP) C$14 billion Jansen potash mine, which is set to come online in Late 2026. Once completed, the operation will produce 8.5 million metric tons of potash annually.

Linville also pointed to Russia, which is looking to expand its production. China has also been working to expand its operations in Laos. However, in early January, the Laotian government ordered the closure of a mine operated by Sino-Agri International Potash after sinkholes formed nearby.

While the potash market remains straightforward and stable, the phosphate market is more dynamic.

China, which controls 30 percent of the market, began issuing export quotas in the middle of 2022 that were well below the numbers seen in 2021.

The cuts came at a time when major fertilizer prices were near record highs, including phosphate, which was above US$1,000 per metric ton. The country imposed further restrictions on exports in 2023 and again in 2024 as domestic prices failed to stabilize.

However, there are other factors impacting the supply and demand of phosphate.

“The government [was] slow to respond to a changing market and stockpiles got close to the levels seen in late 2021 when the agricultural market rioted in response,” Linville said.

The government responded quickly and has been a major buyer since, but Linville said that stockpiles remain lower than normal. Meanwhile, production in the United States was impacted by the dual impact of hurricanes Milton and Helene.

Unlike potash, there is only one notable phosphate project, which Nordic Mining (OL:NOM) is developing in Rogaland, Norway. The site contains 70 billion metric tons of phosphate, but production will not start for several years. When it does, the impact will be uncertain, with Linville suspecting much will be destined for the battery industry.

Investor takeaway

According to Linville, prices for potash are unlikely to see much change. “Today, the 2025 outlook is more of the same. It is very hard to see an outlook that includes much price appreciation in the sector,” he said.

For phosphate, Linville paints a picture that is also a continuation of 2024.

“The 2025 outlook continues to paint phosphate at higher price levels. We expect that Chinese exports will continue to be lower than normal and global demand to look decent. I will not be surprised to see a seasonal summer low on values, but any hope of seeing prices down significantly are hard to hold,” Linville said.

AI’s role in drug discovery

Advancements in AI technology are fueling anticipation of AI-powered drug discovery. However, uncertain macroeconomic conditions have tempered investor enthusiasm.

According to KPMG’s Q3 2024 Venture Pulse Report, venture capital (VC) activity decreased in Q3 compared to the previous quarter. Data from Evaluate shows biopharma VC investment reached US$6.59 billion, down from US$7.95 billion in Q2.

However, total VC funding in 2024 has already surpassed levels seen in 2023, with cumulative funding for biopharma companies more than double the amount seen in Q3 2023, according to data gathered by Zymewire.

Cumulative funding by region in Q3

Chart provided by Zymewire

Despite the dip in VC funding, industry participants remain keenly interested in the potential of AI to revolutionize healthcare. In July, AbCellera (NASDAQ:ABCL), a biotech company specializing in AI-powered antibody drug discovery, expanded its existing partnership with major pharma company Eli Lilly (NYSE:LLY) to identify and develop new antibody therapies for a range of diseases, including immune disorders, cardiovascular disease and neurological conditions. This collaboration underscores the growing interest in leveraging AI for drug development.

Further demonstrating its progress, the company announced the initiation of preclinical trials for four new T-cell engager models during its Q2 2024 business update on August 6. Notably, the US Food and Drug Administration (FDA) granted fast-track designation to an Investigational New Drug (IND) submission for a potential new cancer drug developed by Abdera, a company AbCellera helped establish.

Exscientia, another company utilizing AI for drug discovery, specifically in small molecule drug development, announced progress in its collaboration during its Q2 business update on August 15. Initiated in September 2023, this partnership aims to discover new drug candidates for oncology, neuroinflammation and immunology. Most notably, Exscientia’s candidate, GTAEXS617, is currently enrolling test subjects for its Phase 1/2 trial for the treatment of solid tumors.

These advancements demonstrate the potential of AI to accelerate the development of promising new therapies, offering a potential solution to the declining productivity in biopharmaceutical research and development (R&D) highlighted in McKinsey’s July 31 report, Making More Medicines that Matter.

The report analyzed contributing factors such as low clinical trial success rates and the rising cost of development as impediments to progress, despite increased clinic development. AI’s ability to optimize trial design and predict drug efficacy can potentially overcome these hurdles.

As Susie Roberts, head of research informatics at precision medicine company Relay Therapeutics (NASDAQ:RLAY) confidently stated at HealthTech Ignite, a conference hosted by Pender Ventures in Vancouver on October 10, “We will definitely see AI design drugs in the next 10 years. There are four drugs that were designed by AI technologies in later phase clinical trials right now. So those are showing very promising results from the clinical trials. So it is working.”

The arduous drug development process has led companies to rely on blockbuster drugs such as Eli Lilly and Novo Nordisk’s (NYSE:NVO)blockbuster glucagon-like peptide-1 (GLP) drugs, tirzepatide and semaglutide. Sales of these drugs, marketed as Mounjaro, Wegovy and Ozempic, have achieved remarkable success, with sales representing a sizable share of the companies’ respected revenues in Q3.

However, reliance on a few key products carries risk. Both companies faced supply shortages of these drugs in Q3 and are encountering competition from companies like Pfizer (NYSE:PFE) and Viking Therapeutics (NASDAQ:VKTX), which have shown promising results in their clinical trials for similar treatments.

The competition in the market for GLP-1 drugs, used to treat type II diabetes and obesity, is particularly fierce. “GLP [drugs are oversaturated],” Megh Gupta of Wittington Ventures told the audience at HealthTech Ignite. “Do the medications work? Sure, but there are now dozens of companies doing the same thing…I think the ship’s kind of already sailed.”

Perhaps to mitigate these risks, Eli Lilly signed a deal worth US$140 million with San Diego-based biotech startup Radionetics Oncology in July. Terms of the deal give the pharma giant the option to buy the start-up for US$1 billion at a later stage. This strategic partnership provides Eli Lilly with access to Radionetics’ promising pipeline of cancer therapies and highlights the continued trend of pharmaceutical companies investing in and collaborating with innovative biotech startups to drive future growth.

AI’s expanding role in MedTech

Beyond drug discovery, investment in the biotech sector expanded to include AI-powered ancillary products and services that support and enhance the efficiency of the broader biopharmaceutical and medical industries in Q3.

The Innovation Labs’ Top Tech Needs In 2024 For Life Science Report highlighted the evolving nature of healthcare provider engagement with life science companies, with technology, particularly AI, seen as the key enabler.

At HealthTech Ignite, KLAS research director Ryan Oliver highlighted the areas where healthcare providers are planning to deploy AI, among them clinical decision support, workflow automation, operational optimization and disease management and prediction.

The Clarius Model-T AI Handheld Ultrasound Machine, described by Clarius CEO Ohad Arasi, is a good example: it uses AI algorithms to enhance image quality and assist in diagnosis and provide real-time guidance during medical procedures.

However, a ZoomRx survey of over 200 life science professionals revealed there is still some distrust of AI, with data security cited as a primary concern. Additionally, many companies adopting AI are still in the early stages and most respondents said they see AI as a way to reduce costs and that the major impact AI could have on revenue is overrated. Drug discovery, precision medicine and trial optimization were identified among the top five AI use cases by respondents.

Despite a slow rate of adoption, Rock Health’s Q3 analysis of the digital health marketplace revealed the space received US$2.4 billion in venture funding. The authors note that while the number of deals declined by about 17 percent, the average deal size has held at roughly US$20 million through the third quarter. They speculate this trend is indicative of VCs’ more selective approach.

As Gupta points out, “Demonstrating that you’re solving a pain point isn’t enough. It’s got to be a pain point that people are willing to pay for, and that it’s a pain point that can scale into a large enough market.”

The analysis also showed that mergers and acquisitions decreased in Q3 2024 compared to the same period in 2023. Q3 also saw a shift towards vertical consolidation, with companies acquiring businesses at different stages of the value chain, instead of primarily targeting competitors as seen in previous years.

Gupta and HealthTech Ignite panelists Branden Fini of Providence Ventures and Daniel Sinclair from the Co-operators Group, discussed how healthcare leaders evaluate AI-powered solutions, seeking out minimally disruptive ones that integrate easily into existing workflows and solve specific, measurable problems in healthcare. Fini says his team is focusing their investments on tools that increase access to healthcare while lowering the cost to patients.

Q3 financial performance and market trends

Q3 saw a mix of positive and challenging developments in the biotech sector, with strong financial performances from leading companies, significant drug approval and ongoing clinical trials and robust IPO activity when compared to other sectors.

Johnson & Johnson’s (J&J) (NYSE:JNJ) Q2 results, reported on July 17, exceeded expectations, driven primarily by its oncology, immunology and neurology therapies. Merck’s (NYSE:MRK) Q2 results, posted on July 30, were also above estimates, with its blockbuster cancer treatment Keytruda surpassing US$7 billion in sales.

A handful of notable drug approvals also occurred in Q3, including J&J’s Lazcluze for non-small cell lung cancer and Eli Lilly’s Kisunla for Alzheimer’s disease. Lazcluze, a combination therapy targeting specific mutations in the EGFR gene, offers a promising new approach to overcoming resistance in certain types of lung cancer. Kisunla represents a significant advancement in Alzheimer’s treatment, with clinical trials demonstrating its potential to slow cognitive decline by targeting amyloid plaques.

The biotech sector also witnessed robust IPO activity in Q3 compared to the previous quarter. BioPharma Dive identified 8 new public biotech companies in Q3 2024, indicating investor confidence in the sector’s potential. Experts anticipate further IPO activity following the election and into 2025.

Q4 outlook

Looking ahead, the biotech sector is poised for continued growth. Established companies are expected to continue leveraging AI and strategic partnerships to drive innovation and growth. Eli Lilly’s recent announcement of a US$4.5 billion manufacturing and research site in Indiana, coupled with its earlier partnership with Isomorphic Labs, is one example that suggests a strong commitment to AI-powered drug discovery and development.

However, regulatory changes and evolving market dynamics could present challenges. While the full impact of the Supreme Court’s decision to overturn the Chevron Deference will likely unfold gradually, it may lead to increased regulatory scrutiny and potential legal challenges for biotech companies. The potential implication could impede drug approvals and market access in the coming quarters.

Although VC investment is not expected to change dramatically in Q4, AI-powered solutions are likely to attract attention. DeepMind’s AlphaFold, recently awarded the Nobel Prize in Chemistry, has ignited a renewed fascination with AI’s transformative potential in the biotech industry, particularly in areas like drug discovery and trial optimization.

Strong IPO activity could persist in Q4, fueled by investor confidence in the biotech sector and the anticipation of further interest rate cuts by the Federal Reserve should the economy show sustained signs of cooling inflation.

Ultimately, the biotech sector’s ability to navigate these challenges and harness the power of innovation will determine its success in the coming quarters and its continued contribution to addressing critical global health needs.

Demand expected to increase in 2025

According to the most recent data from the World Platinum Investment Council, overall platinum demand is expected to remain relatively flat in 2025, falling just 1.1 percent to 7.86 million ounces from 7.95 million ounces in 2024.

The automotive sector will remain the largest price driver, but for how much longer remains to be seen.

Both platinum and palladium can be used in the loadouts for catalytic converters, which help eliminate toxic emissions from tailpipe gasses. As their prices fluctuate, platinum and palladium tend to be swapped.

Currently, palladium is trading at a premium to platinum, and it will likely need to be considerably lower before parts makers start retooling processes to swap between them.

Although light vehicle sales are expected to grow by 1.7 percent to 89.6 million in 2025 an increasing number of those will be electric vehicles that don’t require platinum or other metals from the platinum group of elements (PGE).

S&P data projects that EV market share will rise to 16.7 percent over the next year, a significant increase from the 7 percent share it had in 2023. Despite this, automotive use of platinum is expected to see a 2.25 percent gain in 2025.

Platinum demand for autocatalysts is expected to reach 3.25 million ounces, the highest since 2017 when it reached 3.3 million ounces.

Jewelry also provides significant demand for platinum and is forecast to see a 1.64 percent rise to 1.98 million ounces up from the 1.95 million ounces the previous year.

Investment demand is also expected to grow in 2025, rising 6.9 percent to 420,000 ounces from 393,000 ounces in 2024.

Meanwhile, the demand gains will be offset by a 9 percent decline in industrial demand to 2.26 million ounces from 2.43 million ounces last year. The use of platinum in the production of glass is forecast to decline the most, 57.38 percent, to 286,000 ounces from 671,000 in 2024.

Due to its high melting point, platinum is used to line vessels and coat equipment used in the production of glass, particularly glass used for liquid crystal displays. In 2021, the use of platinum surged as display manufacturers increased furnace capacity and glass fibre production lines.

Supply set to decrease

Overall, platinum supply is forecast to increase marginally by just 0.76 percent to 7.32 million ounces, up from the 7.27 million ounces produced in 2024. This sets the market up for a significant supply shortfall of 539,000 ounces.

Refined production is expected to contract by 1.35 percent, with 5.55 million ounces entering the market compared to 5.63 million ounces produced last year. Of the 76,000 ounces lost, 70,000 are attributable to a fall in production from South Africa.

The drop-off was acknowledged in August when Paul Dunne CEO of platinum producer Northam (OTC Pink:NPTLF,JSE:NPH) said the “industry had entered into a phase of irreversible decline.” He suggested it was due to a combination of low prices and a challenging demand landscape as EV adoption gains traction.

Secondary supply from all recycling sources is expected to reach its highest level since 2021 rising 11.78 percent to 1.77 million ounces.

Although platinum is predicted to be in a supply deficit for the third year in a row, this may not significantly impact prices owing to more than 3.01 million ounces held in above ground stockpiles.

What does it mean for the price?

In a video outlook, Jeffrey Christian, managing partner at CPM Group, predicts that platinum will remain relatively flat, in 2025, possibly facing downward pressures in the year ahead.

This would put the price for the precious metal in the US$900 to US$1,000 range.

With the platinum market expected to continue in deficit through 2025, Heraeus Precious Metals believes this will add some pricing support. However, like CPM, it doesn’t see much upside for the metal over the next year.

The firm predicts the metal’s price will range from US$850 and US$1,220.

UBS echoed this sentiment when it set a price target of US$1,100 for the middle of the year.

The Swiss bank believes that an easing of the US Federal Reserve rates will support real assets, though it suggests platinum is likely to lag behind gold until the rates support higher industrial activity.

There is still some geopolitical tension in the market, and with platinum markets predicted to remain tight in 2025, it may not take much to upset that balance. An example of this came in October, when the threat of further sanctions against Russia caused pricesfor both platinum and palladium to rise.