TUO, KRR
Over the past few years, Uncle Moneybucks (Eric Sprott) has thrown millions of dollars at Teuton Resources aka TUO and its JV partners on the Treaty Creek gold deposit in BC's Golden Triangle, and they are certainly putting the money to work. We get a PR announcing that six drills are currently stepping out to the north on the already enormous Goldstorm deposit, while two others are doing exploration holes on the recently discovered CBS and Eureka zones.
And we have another interesting development which will certainly enhance the value of the property to prospective purchasers. Seabridge has been building a road to connect another enormous nearby gold deposit to Highway 37, and Tudor has announced the construction of another road to connect to that road, which will allow all-weather access to Treaty Creek.
Also, the JV partners are running a geophysics survey over Treaty Creek and nearby areas.
Expect constant news flow from TUP through the summer
Message 33856838
Big news from Karora Resources aka KRR -- they are acquiring Lakewood, a fully permitted operating gold processing facility that is capable of handling 1.0MT of ore per year. They see this purchase as key to their growth strategy, because not only does it add 60% more capacity on top of the Higginsville mill, it is located much closer to Beta Hunt, only 60km away.
The purchase does open up opportunities for making income through toll milling, but to cover the purchase price of $A70M (as well as $A10M in shares) KRR also announced a $C50M bought deal financing, priced at the disappointingly low level of $4.80 a share. Surprise, surprise, today the KRR share price dropped to just over $4.80 per share on the TSX.
The company is betting that the benefits of this deal will eventually more than make up for the current drop in the share price; I hope they are right.
Message 33856911
For more details on the bought deal, see the following link.
karoraresources.com |
