Don't give up yet on the mining sector. M&A, major institutional financings and insider buying should be seen as bullish despite the negative sentiment which is common after a four year bear market. Its been a busy week as the uranium sector has been resuscitated back to life by good news out of Japan, China and India. The emerging economies are moving ahead with nuclear power and investors are returning to the sector with high volume breakouts.
1)Continue to watch the Athabasca Basin and this world class management team
who has continued to reward loyal long term shareholders with premium buyouts. The management team just closed a $20+ million CAD bought deal financing
showing that interest is still alive for uranium exploration. The technical team has discovered a high grade-near surface deposit of more than 110+ million pounds of uranium. They are working diligently on a Preliminary Economic Assessment (PEA) which may classify it as the most economic uranium development project in the World. As the market turns in uranium this asset should be the first takeout target because of its high grade and shallow mineralization. I have also been buying their prospect generator spin-out which controls a huge land package with 16 properties in the Athabasca Basin. Once the parent company is acquired I expect a much higher price for the smaller spin-out with the same management team who is just beginning to gain recognition by the investment community with a small market cap below $20 million.
2)Canadian Gold Mining is red hot. Just look at the mergers and acquisitions of Aurico, Osisko, Rainy River and Probe. Major news was announced for a shareholding of mine and a former website sponsor who was bought out by Yamana for a 100% premium last week.
Despite this awful bear market, I have been blessed to continue to find winners acquired by major mining companies such as Probe, Paramount, Fronteer and Uranerz. This buyout is good news for the Canadian Mining Sector especially in Manitoba. Manitoba is an excellent mining jurisdiction with extremely low operating expenses due to the low cost power. I am continuing to accumulate another Manitoba junior gold miner
partnered with a mid tier producer who is in the midst of a $1.5 billion merger. This mid-tier loves Manitoba for its extremely low electricity costs and likes this junior's large high grade-open pit amenable resource. The stock may be on the verge of a breakout at $.30 as they recently announced an update on the Feasibility Study and exploration program.
It should be an exciting year as around $4 million is dedicated just to exploration. This is a lot for a small junior with a miniscule market cap under $15 million. Its been in a four year downtrend but that may be ending.
3)In other news, this Nevada gold developer raised $11.5 million
despite the depressed junior gold market.
They are backed by some deep pocketed shareholders. Over 21 million shares of insider buying has occurred over the past six months. Recently on April 10th, 2015 one of the directors acquired over 7.69 million shares. Management is hitting impressive grades and the next few months could be exciting as they possibly announce a better stock exchange listing, new 43-101 Resource and a Preliminary Economic Assessment. Recently the company published a project update which stated the deposit has a high grade core similar of a Carlin style deposit. Investors can still buy this company near all time lows despite demonstrating excellent drilling success with a 450% increase in resources in a few short years. The CEO stated in the recent update,
"...we anticipate increased ounces and higher grade in the updated resource estimate expected later this quarter."
Disclosure: I own all the companies mentioned and they are all current/past website sponsors. Please do your own due diligence and beware of
conflicts of interest as I would benefit if the share price increases on these stocks mentioned.