Time To Pay Attention?

The poor beaten-up mineral exploration sector has been drowning in the tears of its fans [speculators all] as financings have been directed to sexier sectors like cannabis, blockchain, and whatever.

Those diversifications have proven to be rewarding and a few will continue to be [e-sports is at the top of the list], but we are finally seeing the stirrings of what it takes to have fun in minex.

At VRIC2019, we heard the same old mantras:

“A rising tide floats all boats”

and

“We need some discoveries”

and

“The price of gold has to go up”

For the first time in years, we may have the right combination of factors to give us the market we have been hoping for:

Lots of money sitting on the sidelines, volatile moves to the upside in the prices of gold and silver, and positive news from companies that have worked hard to keep going in tough times.

Let’s look at a few of the latter: Sabina (SBB); and Silvercrest (SIL), which just keeps getting better and better; and Goldsource Mines (GXS), which is announcing some excellent results.

The answer to the headline is “YES”.

Facebook on the Hot Seat.

A lot of attention is being paid to Cambridge Analytica and one of its founders, Christopher Wylie.

He spoke at the latest Cambridge conference – Extraordinary Future 18 – and I had a chance to ask him a few questions.

He got his start by volunteering for work with a Canadian political party, and things developed amazingly quickly thereafter.  Still a young guy – he hasn’t hit 30 yet – but he’s had enough adventures to form the basis for a barnburner of a movie.

There is a lot of interesting detail in this excellent article in The Guardian. https://www.theguardian.com/news/2018/mar/17/data-war-whistleblower-christopher-wylie-faceook-nix-bannon-trump

New Version of the old Wild West VSE

A company trades at under $0.20.
1) It announces it’s going drilling.
2) Ten days later it announces that it has taken 50 rock samples from an area identified by geophysics and is sending them for rush assays.
3) About a week later, the price is at $0.49 and IIROC asks why.
4) The company says it does not know.
5) Three days later, it closes a previously announced $200k private placement (“pp”) at $0.14.  Eight placees: no insiders, no pros.
6) The same day, it announces closing of a second pp raising $720k at $0.18.  Four lucky placees: no insiders, no pros.  Really.
7) Three days later, it announces a pp to raise $667k.
8) One day later, it revises that announcement and ups the pp to $934k.
9) Three days later, it announces that it will commence diamond drilling and that it has closed the $934k pp with certain strategic investors. Canaccord gets a small finders fee. What did Canaccord tell its “strategic investor” client[s]?
10) The same day, it announces that there are nine placees including one member of a pro group.  A Canaccord person, perhaps?
Note: Still no results from those “rush assays”.
11) Six days later, the start of drilling is announced.
12) One week later when the stock is trading at $0.91, the company announces that its first drill hole (stepped out from the main area) has hit 176 meters of mineralization.  It also announces a proposed pp to raise $6M at an average of $072.
Note: Wouldn’t it be wonderful to have an XRF to get a quick and accurate idea of the nickel-copper values in that core?  Really no need to wait for assays to get a pretty good picture of what is happening.
13) Twenty-five days later, with the stock now trading at $1.83!, the company announces that the TSXV has made it raise the average price of the $6M pp from $0.72 to $0.88.  Must have been a tough negotiation.
14) The same announcement reveals the granting of 200,000 incentive options at $1.50 ($0.33 under the market price the same day?)
15) One week later, a SEDAR Early Warning Report is filed, stating that Eric Sprott already owns 3.3% of the company (5.6% on a fully diluted basis) and that after closing the presently announced pp, will own 10.7% (14.6% on a fully diluted basis).
Did Mr Sprott know something the rest of us didn’t?  If so, how did he find out?
16) Eight days later, the stock was halted for 5 minutes due to a “single-stock circuit breaker”.  WTF is that?
17) Two days later, it is announced that all 11 holes after the first one have hit interesting sulfides.  An XRF has been used, but no results are given. Instead the phrasing is “supports the very high tenor of the sulfide…as previously announced by the company”.  Who knows what that means?  Let the mystery continue. BTW, still no results from those ‘rush assays’.
18) Three days later (yesterday), a pp of $10M @ $3.15 is announced, and is ‘expected to close shortly’.

It appears that the Garibaldi Resources Corp team is to be congratulated for making a major discovery in the last three months.
More power to them.
It also appears that the overpaid obstructionist nitpickers at IIROC and the TSXV have dropped the ball on the concept of full disclosure.  Why?

Date

Sym

Company

Price

Type

Headline

2017-10-16 17:46

GGI

Garibaldi Resources Corp

3.38

News Release

Garibaldi Resources arranges $10-million financing

2017-10-13 06:57

GGI

Garibaldi Resources Corp

2.69

Resume Trading

Garibaldi Resources to resume at 6:58 a.m. PT

2017-10-13 04:35

GGI

Garibaldi Resources Corp

2.69

News Release

Garibaldi hits sulphides in 11 holes at Nickel Mtn

2017-10-11 06:56

GGI

Garibaldi Resources Corp

2.13

Resume Trading

Garibaldi Resources to resume at 6:56 a.m. PT

2017-10-11 06:55

GGI

Garibaldi Resources Corp

2.13

Halt Trading

Garibaldi Resources halted at 6:51 a.m. PT

2017-10-05 01:04

GGI

Garibaldi Resources Corp

2.19

News Release

Garibaldi closes $3.49M final tranche of placement

2017-10-03 07:52

GGI

Garibaldi Resources Corp

1.97

SEDAR Early Warning Report

SEDAR Early Warning Report

2017-10-02 16:54

GGI

Garibaldi Resources Corp

News Release

Garibaldi closes $2.5M first tranche of placement

2017-09-29 16:33

GGI

Garibaldi Resources Corp

1.89

SEDAR Interim Financial Statements

SEDAR Interim Financial Statements

2017-09-29 16:33

GGI

Garibaldi Resources Corp

1.89

SEDAR MD & A

SEDAR MD & A

2017-09-26 16:24

GGI

Garibaldi Resources Corp

1.83

News Release

Garibaldi revises financing terms, grants options

2017-09-01 10:18

GGI

Garibaldi Resources Corp

0.91

News Release

Garibaldi intersects 176 m of mineralization at E&L

2017-08-24 03:24

GGI

Garibaldi Resources Corp

0.68

News Release

Garibaldi Resources starts drilling at E&L

2017-08-18 13:50

GGI

Garibaldi Resources Corp

0.69

Private Placement

Garibaldi Resources 2,031,998-unit private placement

2017-08-18 08:27

GGI

Garibaldi Resources Corp

0.60

News Release

Garibaldi to begin diamond drilling at E&L

2017-08-15 12:59

GGI

Garibaldi Resources Corp

0.60

News Release

Garibaldi Resources revises private placement

2017-08-14 12:55

GGI

Garibaldi Resources Corp

0.58

News Release

Garibaldi Resources arranges $667,000 private placement

2017-08-11 13:22

GGI

Garibaldi Resources Corp

0.58

Private Placement

Garibaldi Resources 1.43-million-unit private placement

2017-08-11 13:19

GGI

Garibaldi Resources Corp

0.58

Private Placement

Garibaldi Resources four-million-unit private placement

2017-08-08 12:52

GGI

Garibaldi Resources Corp

0.49

News Release

Garibaldi Resources does not say why trading is up

2017-07-27 08:26

GGI

Garibaldi Resources Corp

0.175

News Release

Garibaldi Resources finds mineralization at E&L

2017-07-17 23:22

GGI

Garibaldi Resources Corp

0.175

News Release

Garibaldi to begin drilling at E&L