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VANCOUVER , Oct. 23, 2018 /CNW/ – Pacton Gold Inc. (TSXV: PAC, OTC: PACXF, FSE: 2NKN) (the “Company” or “Pacton“) is pleased to announce that it has entered into a definitive agreement (the “Agreement“) to acquire the conglomerate gold rights (“Gold Rights“) of Calidus Resources Limited (ASX:CAI) in both the Marble Bar sub-basin, and the Northeast Pilbara sub-basin of Western Australia’s Pilbara craton. (Figure 1).
Subject to TSX Venture Exchange acceptance, the conglomerate gold rights will be transferred to Pacton within 50 days.
The acquisition of the Calidus conglomerate gold rights is strategically significant for Pacton, and is consistent with Pacton’s directed strategy of acquiring Fortescue Group exploration conglomerate gold assets in parallel with its equally growing portfolio of Mesoarchean and Paleoarchean orogenic “mother lode” exploration projects.
Calidus is exploring for orogenic shear hosted gold deposits at its Warrawoona Gold Project south of Marble Bar in the Paleoarchean “basement rocks” of the Pilbara craton, which is excluded from the Agreement with Pacton (Figure 2).
Pacton’s Agreement with Calidus allows it to explore and exploit any conglomerate or transported gold deposits in the sedimentary rocks overlying the basement rocks in the Calidus holdings, which are scattered from the town of Marble Bar to the Nulllalgine-Beaton Creek area. The Fortescue Group formation that overlies the basement rocks on the tenements covered by the Calidus Agreement are composed entirely of outcropping Mount Roe Basalt.
Pacton is currently conducting field exploration in the Mallina Basin, on its Egina area properties, located approximately 200 km west of the Marble Bar sub-basin. Field exploration will commence on the Calidus project immediately following the transference of the conglomerate rights to Pacton.
Three areas of the Calidus conglomerate gold right tenements have already been targeted for exploration. Two areas are located near the town of Marble Bar. The third area, an immediate priority, consists of a portion of a north-pointing, 10 km long “spear” of Mount Roe basalt, which is the northern extension of the Mount Roe formation that underlies the Novo Resources Corp (NVO:TSXV) conglomerates at Nulllagine and Beaton Creek , located approximately 20 km to the south. The Pacton portion of the “Spear”, with a combined edge strike-length of about 15 km, covers an area of 20 km2, approximately the same area as the Mount Roe surface exposure on Novo’s Beaton Creek tenements. This is due to the fact that the Mount Roe Basalt surface footprint at Novo’s Beaton Creek project is covered by the overlying Hardey formation conglomeratic members.
The preliminary targeting of the Calidus conglomerates is unusually precise due to the favourable weathering characteristics of the Pilbara and the differential silicification of known conglomerate units. In other words, Pacton has recorded the signatures of known Pilbara conglomerate deposits and has prioritized similar signatures on its Calidus conglomerate targets, including the “Spear”.
A preliminary estimate of mapped Mount Roe Basalt in all Calidus tenements includes approximately 50 linear km of Mount Roe edge exposure and downhill talus slope, covering a total area of approximately 90 square km. (Figures 3, 4, 5 & 6 showing selected Mount Row features).
Conglomerate target planning will continue and field operations will commence immediately following the transference of the conglomerate gold rights from Calidus to Pacton.
Agreement Terms
Under the terms of the Agreement, the Company through its wholly-owned Australian subsidiary, will acquire the Gold Rights by issuing Calidus or its nominees 7,000,000 common shares. The Agreement includes a right to deferred compensation whereby Calidus may receive up to 3,000,000 additional common shares of Pacton on the first anniversary of completion of the transaction based on the 30-day VWAP of Pacton’s shares on the date of such issuance.
The Company will be seeking TSX Venture Exchange acceptance of the transaction forthwith.
About Pacton Gold
Pacton Gold (PAC: TSXV; PACXF: US) is a well-financed Canadian junior with key strategic partners focused on the exploration and development of conglomerate-hosted gold properties located in the district-scale Pilbara gold rush in Western Australia.
The technical content of this news release has been reviewed and approved Peter Caldbick , P.Geo., a director of the Company and a Qualified Person pursuant to National Instrument 43-101. The qualified person has not yet verified the data disclosed, including sampling, analytical, and test data underlying the information or opinions contained in the written disclosure.
On Behalf of the Board of Pacton Gold Inc.
Alec Pismiris
Interim President & CEO
This news release contains or refers to forward-looking information based on current expectations, including, but not limited to the Company completion of the proposed transaction described herein, the prospect of the Company achieving success in exploring its properties and the impact on the Company of these events, including the effect on its share price. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances.
Neither TSX Venture Exchange, the Toronto Stock Exchange nor their Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
View original content to download multimedia:http://www.prnewswire.com/news-releases/pacton-acquires-calidus-conglomerate-gold-rights-300736242.html
SOURCE Pacton Gold Inc.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/October2018/23/c3238.html
Original Source: http://www.321gold.com/editorials/moriarty/moriarty102318.html Investors are funny. You can go to the chat boards and read about Novo Resources that had an incredible run in 2017 and read about how unhappy investors are that the price of shares has gone down. It’s my entire fault or it’s Quinton’s fault or it’s Eric Sprott’s fault. It’s everyone’s fault except the investors who wanted to wait until Novo went up to buy. Well, screw them and the horse they rode in on. I was writing about Novo when it was $.45 a share, not telling people to buy at $8. Maybe if investors actually want to make money they should buy my book and learn to buy cheap and sell dear. It works for me and I am certain it will work for them. (Click on image to enlarge) Irving reported samples showing $23,400 rock in 2016 and investors ignored them. I’ve written the company up half a dozen times yet I was able to buy shares for $1 not long ago. And just the other day they reported more absurdly high-grade assays. |
C
Brien Lundin, publisher of Gold Newsletter, sat down with Maurice Jackson of Proven and Probable to discuss precious metals and their relationship with recent Fed actions and the dollar.
VIDEO
AUDIO
TRANSCRIPT
http://www.streetwisereports.com/article/2018/10/22/brien-lundin-the-fed-the-dollar-and-precious-metals.html
Maurice Jackson: Joining us for a conversation is Brien Lundin, the president of Jefferson Financial, helping to protect your world.
Please tell us about Jefferson Financial and what type of services you provide.
Brien Lundin: We are essentially a provider of investment information. We publish Gold Newsletter, which is the oldest precious metals advisory in the world, having been started by Jim Blanchard in 1971 as a way for him to advocate for the return of gold ownership, legalized gold ownership to American citizens. And I also produce the New Orleans Investment Conference, an annual event that Jim Blanchard also started in 1974 after he was successful in helping to get gold legalized. He had an investment conference to teach American investors how to buy gold, how to invest in the gold markets, and silver, and it’s been going on ever since. We have the oldest, and I believe the most respected investment event out there.
Maurice Jackson: We brought you on today to get your insights on a number of topics, and I would like to begin our discussion with the Federal Reserve and its commitment to increase interest rates and reduce its debt obligations on its balance sheet. I have to begin by asking you, is that even possible for the Fed to unwind its balance sheet?
Brien Lundin: Well, it can unwind its balance sheet, I think the key question is at what pace it can simply let the obligations run off as they mature, which would take quite literally decades for that to happen. But the key is, can the Fed do it without unforeseen, or dangerous consequences to the U.S. economy and stock market. And frankly I don’t think it can, as it increase its balance sheet as it was the buyer of last resort to keep interest rates low. And as the Fed had, as you know, an unprecedented program called Quantitative Easing, which was just money printing, all of this to support the market. We saw the effects in not retail price inflation as many of us feared, but in financial assets inflation, which to be fair, was their goal all along.
On the way up, as the balance sheet was rising and as quantitative easing was hitting its stride, the correlation between the Fed’s balance sheet and the S&P 500 was around 97%, so the Fed inflated the stock market, bull market. It was directly behind it.
And the question now is, if they had that much of a correlation on the way up, well, now that they’re on the way down, are we going to have a similar correlation? And I think the events of the week when the DOW lost over 1,400 points over a couple of days is powerful evidence that the Fed won’t be able to get away with it without some dire consequences in the equity markets.
Maurice Jackson: Speaking of those dire consequences, from a macro perspective, what type of impact are the Fed’s decisions having on global markets? And should we be concerned about contagion and capital flight from peripheral markets?
Brien Lundin: Well, it’s actually attracting some money to the U.S. because you have, on a relative basis, higher rates in U.S. treasuries than you have in similar instruments in Europe and elsewhere. So it is attracting money and helping to support the dollar, but I don’t think it’s making the dollar strong. If anything, it’s preventing the dollar’s decline because the Fed wants rates to rise now, it really can’t do it much longer for a number of reasons.
First , the Fed is going to crater the economy if it gets rates to high. Second, we can’t, because of the large debt loads we have right now; the U.S. simply cannot bear the burden of higher interest rates while we have this kind of a debt burden. If interest rates got to historic levels, and by historic levels, I’m talking of 10, 15 years ago where the interest rate burden on the Federal debt was on the order of 5–6%. If we got to those levels again, then the interest burden on the federal debt would be on the order of $1.2 trillion. And that’s far greater than the whole deficit is right now.
So, I just don’t think that’s politically possible. So if we’re looking at interest rates of 5–6% on the Federal debt, we’re talking about a Fed funds rate that probably around 3%. I think that’s the upper limit.
Maurice Jackson: You referenced the U.S. currency’s decline. You know the U.S. for all intents and purposes is in a trade war. And President Trump recently shared he’s not in favor of the Fed’s recent rate hikes. Is the Fed jeopardizing his position in discussions with his adversaries in the trade war?
Brien Lundin: I don’t think his trade war really affects that so much. I think one of the reasons why Trump is out there bemoaning and belittling the Fed so vociferously is because he’s looking for an excuse in case the economy starts downward. Or in case there’s a serious stock market decline. He wants to be able to blame it on someone except himself, and the Fed will be the obvious target. So he’s kind of setting the table for that, I believe. Plus he’s obviously in favor, and his administration is in favor, of low interest rates and debt. I think that’s what we’re going to keep getting.
Maurice Jackson: Now when do you foresee the Fed’s rate hikes ending? And what may be the effects upon the conclusion, long term?
Brien Lundin: Well, if the upper limit is around 3%, that means we have about three more quarter-point rate hikes ahead of us. If the Fed does one in December, which everybody expects, then that means it will only need a couple more to get to 3%, and that could happen in the first half of next year.
I don’t think that’s a widely understood or appreciated fact right now. I think there’s some spark money that’s been seeing that for some time, in realizing that the Fed is in the back half of its rate hike campaign, while other currencies, other central banks, like the ECB and the Bank of England, have yet to begin their rate tightening. But they are on schedule to do so very soon. So I think there’s already been a shift in large money allocations from the dollar into the euro and the pound. And I think we’re going to continue seeing that, and I think that’s the reason why the dollar has not been able to, say, break out of the 95 range on the dollar index and why I believe the dollar will be headed lower over the next six months or so.
Maurice Jackson: Speaking of smart money, we like to remind our audience that we refer to money as physical gold and physical silver. Talk to us about the recent price movement in gold.
Brien Lundin: What’s really been interesting about gold is that it has risen on a number of occasions recently when the stock market was crashing and yet the dollar was strong. Now typically that would argue that the buying is safe haven related. And, Maurice, I never like that as a driver for gold. I’m never in favor of that as a reason for gold to go up for any sustained period because these, the safe-haven type buying, these geopolitical political issues, these little flash crises, they come and go, and they don’t provide a sustained driver for gold. What really drives gold over the longer term are concerns over monetary issues, concerns over debt and currency depreciation and the like, and inflation.
So when you see the dollar going up along with gold, that’s a sign that the buying is safe haven related and probably not lasting. However, at the same time, and even on those days when the stock market was crashing, the gold stocks were rising. They were very strong and that argues for a more of a long-term approach to the gold buying. That’s an indication that people are buying gold because they see longer-term monetary based factors at play. So it’s a little bit of both right now, and I find it very interesting. It’s going to shake out one way or the other, but what’s encouraging is that we’re seeing indications of both types of demand for gold. But both are contributing to higher gold prices. And in fact, if we can get enough of a gain in gold to spark a short covering rally, by all the short speculators out there, then I’ll take that. That’s fine with me. That could be enough to really start a longer-term rally in metals.
Maurice Jackson: I have to ask this as well. What prudent action should someone take, based on today’s discussion regarding physical precious metals?
Brien Lundin: Well, they need to own physical precious metals. That’s what I tell everyone; if you’re a newbie to the sector, make sure you have your physical precious metals component, the foundation of your precious metals allocation. Make sure you have that in place, make sure you have it accessible. Don’t put it in bank safe deposit boxes. Make sure you have access to it. I’m a big fan of small denomination silver coins that are junk, you know, old junk silver. As an important component of what somebody should own, but they need to get the physical component in place. That’s the first thing, and even some experienced gold and silver bugs to the sector, they like to play around in the mining stocks, but a lot of them don’t have that physical component in place.
And you really need to, that’s your insurance, it’s something everyone needs. And has to have an insurance against not the unforeseen, but against the inevitable.
Maurice Jackson: You said a lot of information there. I’d like to just recover there for a second. Number one you referenced not to have it in a safe deposit box. Could you please expand on that for a little bit?
Brien Lundin: One of the things you’re insuring yourself against or hedging against by owning physical metals is a bank holiday. So if they lock the banks, how are you going to get to your precious metals? Now that limits your storage options, but there are still a number of options out there, including some in a personal safe, some in other security centers. And then if you’re going to have a fairly large allocation of physical, you can have some in storage facilities both domestic and international.
I tell people that I have very good friends in the precious metal storage business. Yet, I still recommend that if you’re going to have a substantial physical bullion investment, to spread your storage around, because you just never know. You never know what’s going to happen in each specific company or facility. And that’s a risk that you can easily diversify and really should.
Maurice Jackson: You know another fact that a lot of people aren’t aware of, is the safe deposit boxes at your banks, are they FDIC insured?
Brien Lundin: No, they’re not a deposit. So they’re not insured.
Maurice Jackson: That is very important for for our audience to understand.
Brien Lundin: And they’re not insured. The authorities have access to those with a subpoena. Interestingly, one of the things we discovered here in New Orleans during Katrina is that you should also not have a safe deposit box on the first floor of a bank. Because there are a number of safe deposit boxes in the New Orleans area that were under 12 feet of water for a weeks at a time after the hurricane. And they are not waterproof by the way, so a lot of these things you need to consider when looking to store precious metals and valuable documents.
Maurice Jackson: Another point you made was regarding mining stocks. I think a lot of individuals who are investors, particularly in the secondary market, are not aware that they can own physical metals, so they’re under the impression that they own mining company that owns gold and that is incorrect. You are only basically a company that is mining, but they don’t provide you the physical metal. When you purchase the stock, you’re going to get back cash, you’re not getting back the metal. Very important for us to understand here. If I may ask you this sir, we all have our favorites, of the big five, which are gold, silver, platinum, palladim, and rhodium, which ones have your attention and why?
Brien Lundin: Gold and silver primarily; the other three have large industrial components to them. So there are other factors, and they make good investments and good speculations in certain times, but gold and silver are the pure monetary metals. A lot of people talk about the industrial component to silver, but quite frankly, if silver was only valued on its industrial value, it would be $5 an ounce or less right now. So the rest of that margin or premium in its price is really monetary value. If you like gold, you have to love silver because silver is going to follow gold, but it’s going to move more than gold in the same direction. So it offers kind of an innate leverage to the gold price. If gold’s rising in terms of the fiat currency, silver’s going to also rise but to a greater degree.
Now there’s the downside of that as well; it’s going to go more quickly to the down side in a down market. But it is something that I tell people they really need a hold, a blend of the two. But for your hedging against financial catastrophe or a steady devaluation of the dollar, you really need to own gold and silver primarily.
Maurice Jackson: May I ask you this as well? The gold-silver ratio, how does that factor in your decision on purchasing?
Brien Lundin: Well, I think it determines the health of a market more so than timing, perhaps a little bit about value, or the relative value of the metals. But when the gold-silver ratio is falling, that means that silver is outperforming gold to the upside. And that is the hallmark of a good, strong, consistent, sustainable bull market in gold. And when the opposite is in effect, then it’s not positive, it doesn’t reflect on strength in the metals in general. I don’t don’t recommend that people trade the gold-silver ratio, because if you say sell gold and buy silver because the ratio is falling, then you’re mitigating your potential gains because they’re both going to rise, or they’re going to head in the same direction.
So if they’re both rising and you’re selling gold, you’re cutting a good portion of your potential gains out of the equation. So I don’t like trading your ratio, I like to look at it as a signal of the relative strength of the trend in one direction or the other.
Maurice Jackson: Interesting perspective, and thank you for sharing that. Switching gears, the New Orleans Investment Conference will be conducted November 1-4 in beautiful downtown New Orleans. Mr. Lundin, tell us about the world’s greatest investment event? Who are some of the featured speakers and discussion topics?
Brien Lundin: Well, I touched on it a bit earlier. The conference has been around since 1974 when Jim Blanchard started it, and Jim was a fairly flamboyant kind of a guy. He really went over the top with inviting big name speakers to the conference, so we’ve inherited that legacy and try to burnish as best we can. And so we get speakers here that you won’t see elsewhere, in general the line-up of speakers that we bring to our attendees is higher quality I believe than you’ll find anywhere else.
This year we have Robert Kiyosaki, we have political commentators Mark Steyn and Jonah Goldberg. We have James Grant who is one of the most eloquent advocates for gold in particular, most eloquent commentators on the financial markets out there. We have Doug Casey, of course, who’s always a big fan favorite. We have Peter Schiff, we have Dennis Gartman, Rick Rule. We have Guy Adami from CNBC who’s a really interesting guy. We have Ben Hunt who writes a blog, and doesn’t speak very often at conferences, but he has a blog that’s widely read by some really smart people in the markets.
And then we’ve got dozens upon dozens of other speakers, experts in just about every sector, but with a particular emphasis on metals and mining stocks.
Maurice Jackson: What type of attendees usually attend the New Orleans Investment Conference?
Brien Lundin: Well, they are smart, number one, because you have to be smart to pick this event to come to it, because it caters to really smart investors. It also caters to self-directed investors; these are people who are independent thinkers, maverick thinkers, they’re information hungry. They may have a large portion of their portfolio with money managers, but a large portion of their portfolio is directed by them, and according to the views that they have.
And the conclusions that they have after a lot of investigation of the markets and trends and listening to a lot of people. So it’s a smart group. It’s a successful group. One of the things I tell our attendees every year is that, yeah, we have great people, top of the line experts on the stage, but look around you. There are literally hundreds of very successful investors around you at this event. And I’ve never seen one of them who wasn’t willing to share his ideas and strategies, you know? And best thoughts on the markets and where they’re heading. So there’s a lot of fantastic market intelligence just within the crowd at our event.
Maurice Jackson: There’s a number of intellectual capital there at the conference. And speaking of the attendees, this will be my third year in attendance, and I have to admit I’m looking forward to meeting the attendees equally as I am to the guest speakers. The networking opportunities with some of the best minds all in one place is priceless. If you do not have your tickets, we welcome you to visit our website, provenandprobable.com and on the right hand column of the website you will see an image for the New Orleans Investment Conference. Click on the image, and you will be taken directly to the registration page.
Before we close, tell us about the gold newsletter and how we can retrieve your information on a regular basis.
Brien Lundin: Well, Gold Newsletter, as I mentioned, before is the oldest and I would say one of the most respected and successful newsletters or advisories on precious metals and mining stocks out there. Jim Blanchard started it in 1971, literally the day that Nixon closed the gold window. And it’s an important history in the hard money movement in advocating for the very legalization of gold in America. So we have a long, illustrious history. We’re trying to build on that every day, and we cover not only the economy, geopolitics and the kinds of things that affect all of the asset classes, but we do specifically focus on precious metals and what’s driving them and we cover a number of mining stocks. Typically junior mining stocks that have the potential to rise when precious metals prices rise or on discovery of new deposits. So that’s kind of our casino as, or where we have a number of high potential, higher risk for sure, but much higher potential investment opportunities.
Maurice Jackson: You know, Mr. Lundin, for someone that wants to get more information regarding Jefferson Financial, please share the contact details.
Brien Lundin: Well, for Gold Newsletter you can go to GoldNewsletter.com very simply, and for the New Orleans Investment Conference, NewOrleansConference.com, although I believe you’ll have some links as well, Maurice, that will get people some special opportunities to the conference.
Maurice Jackson: I certainly will sir. And as a reminder for our audience, we are licensed brokers to buy and sell gold, silver, platinum, palladium and rhodium, off shore storage accounts, and precious metals IRAs. To have conversation, please email Maurice@MilesFranklin.com, or call 919-274-5680.
And last but not least, please visit our website ProvenandProbable.com, where we interview the most respected names in the natural resource space. You may reach us at contact@provenandprobable.com.
Brien Lundin of Jefferson Financial, thank you for joining us today on Proven and Probable.
Brien Lundin: Great to be with you.
With a career spanning four decades in the investment markets, Brien Lundin serves as president and CEO of Jefferson Financial, a highly regarded publisher of market analyses and producer of investment-oriented events. Under the Jefferson Financial umbrella, Lundin publishes and edits Gold Newsletter, a cornerstone of precious metals advisories since 1971. He also hosts the New Orleans Investment Conference.
Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.
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Original Source: https://energyandresourcesdigest.com/oil-companies-ditch-permian-oklahoma-plays-nfx-eog-scoop-stack-merge-score/
If you follow the oil markets as I do, you might have heard that the Permian Basin in West Texas is the most prolific oil basin in the U.S. But the Permian has a big problem.
Producers are unable to get any more oil out.
Yes, there’s plenty more oil there. But the Permian has run out of takeaway pipeline capacity.
New pipeline projects won’t be ready until 2020. That means producers have had to severely discount their Permian crude destined for Gulf Coast refineries. For instance, on September 4, WTI Midland oil traded a discount of $23.95 per barrel to Magellan East Houston oil.
Those discounts come right off of a producer’s bottom-line profits. If you’re an investor, think of it as coming right off of your share price.
Oklahoma producers don’t have those problems. Sooner State exploration and production companies are laughing all the way to Cushing, Oklahoma.
Today there are several major oil plays in Oklahoma, referred to as the SCOOP, STACK, SCORE and Merge plays.
The STACK play acronym comes from the Sooner Trend oil field, Anadarko Basin, and Canadian and Kingfisher counties. Unlike the Granite Wash, Eagle Ford or Bakken, STACK isn’t a geological formation but a geographic area.
The SCOOP (South Central Oklahoma Oil Province) play is a geological formation. It’s also located in the Anadarko Basin.
The SCORE (Sycamore, Caney, Osage Resource Expansion) play is the sole idea of Newfield Exploration. Steve Campbell, a senior VP at Newfield, said Newfield was currently leasing 350,000 acres in the Anadarko Basin.
“It is the equivalent of 1 million net effective acres when all the multiple stacked horizons are considered,” he said. Newfield plans to invest $365 million to further delineate its SCORE acreage and different play levels.
Lastly, the Merge play is where STACK and SCOOP come together – hence “merge.”
Unlike West Texas’ pipeline-limited Permian, Oklahoma pipeline companies are staying ahead of producer capacity demand. They are doing this in the face of initial production rates that are similar to those in the Eagle Ford and Permian plays.
Since 2013, Oklahoma producers have invested in higher production well completions. They are also focused on the core acreage in the Oklahoma plays. That has resulted in a 70% increase in initial production rates.
Currently there are 139 rigs operating in Oklahoma. Most of them are in the SCOOP and STACK formations. And I think we’re going to see rapid growth in Oklahoma’s other plays as well.
Producers with acreage in the SCOOP, STACK, SCORE and Merge plays will begin to shift drill rigs there from the backlogged Permian.
Both Newfield Exploration Co. (NYSE: NFX) and EOG Resources Inc. (NYSE: EOG) are a great way to play the growing oil boom in Oklahoma.
Good investing,
Dave
Toronto, Ontario–(Newsfile Corp. – October 22, 2018) – U3O8 Corp. (TSX: UWE) (OTCQB: UWEFF) (“U3O8 Corp.” or the “Company“) is pleased to announce that further to its news release dated October 1, 2018, it has completed its previously announced non-brokered private placement. Due to increased investor demand, the Company increased the size of the private placement to $573,500 from $400,000. The Company issued 2,294,000 units (“Units“) at a price of $0.25 per Unit, for total gross proceeds of $573,500 (the “Offering“).
Each Unit consists of one (1) common share in the capital stock of U3O8 Corp. (“Common Share“) and one (1) common share purchase warrant (“Warrant“). Each Warrant entitles the holder to purchase one Common Share at a price of $0.40 per Common Share until the date which is thirty-six (36) months following the closing date of the Offering, whereupon the Warrants will expire.
Proceeds of the Offering will be used for metallurgical test work on the Company’s Laguna Salada uranium-vanadium deposit in Argentina, for general corporate and administrative purposes, and to enable the Company to consider exercising its right to maintain its 39% holding in the private frac sand company, South American Silica Corp. (“SAS“), should SAS undertake a private placement in light of positive developments in the frac sand industry.
In connection with the Offering, the Company paid to certain eligible finders compensation consisting of cash commissions of $7,000 and 28,000 compensation warrants (“Broker Warrants“). The Broker Warrants will be exercisable into Common Shares of the Company at $0.40 and will be valid for a period of twenty-four (24) months from the date of closing of the Offering.
All securities issued and issuable pursuant to the Offering are subject to a four month and one day statutory hold period.
Closing of the Offering is subject to the receipt of all regulatory approvals, including the Toronto Stock Exchange.
Securities for Debt Transaction
The Company has agreed to settle outstanding cash debts in the amount of $51,500 to certain service providers and former employees (the “Creditors“) through the issuance of an aggregate of 206,000 Units at a price of $0.25 per Unit.
Additionally, the Company has agreed to settle $88,268 with the Creditors through the issuance of 304,371 common shares at a price of $0.29 per common share (the “Debt Shares“) (together, the issuance of the Units and Debt Shares to Creditors, the “DebtSecurities“).
The issuance of the Debt Securities is subject to the receipt of all applicable regulatory approvals, including the Toronto Stock Exchange. The Company is choosing to settle the outstanding indebtedness through the issuance of the Debt Securities as the Company will require cash for working capital and continuing operations.
The Debt Securities and securities issuable thereunder are subject to a four month and one day statutory hold period.
Related Party Transactions
Dr. Richard Spencer (CEO of the Company) and Mr. John Ross (CFO of the Company) participated in the Offering (the “Insider Participation“) and their participation constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 (“MI 61-101“).
Dr. Spencer acquired 140,000 Units for proceeds of $35,000 and Mr. Ross acquired 140,000 Units for proceeds of $35,000.
In the absence of exemptions, the Company is required to obtain a formal valuation for, and minority shareholder approval of, the related party transaction. The related party transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of securities being issued to insiders nor the consideration being paid by insiders exceeds 25% of the Company’s market capitalization.
U.S. Registration
The securities offered pursuant to the Offering and the issuance of the Debt Shares have not been registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act“), or applicable state securities laws, and may not be offered or sold to persons in the United States absent registration or an exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Warrant Extension and Amendment
The Company and holders of 759,250 common share purchase warrants (“Original Warrants“) issued pursusant to a previous private placement have agreed to extend the expiry date and amend the exercise price of the Original Warrants.The Original Warrants will expire twelve months from the original expiry date and be exercisable into a common share of the Company at $0.50, as depicted in the table below:
Issue Date | Issued Exercise Price |
Original Expiry Date |
Amended Expiry Date |
Amended Exercise Price |
Effective Date | Original # of Warrants Issued |
November 3, 2015 |
$0.70 | November 3, 2018 | November 3, 2019 | $0.50 | November 3, 2018 | 759,250 |
None of the Original Warrants are held by insiders of the Company.
The Toronto Stock Exchange has provided conditional approval for the extension of the expiry date and amended exercise price with an effective date for the amendments of November 3, 2018.
About U3O8 Corp.
U3O8 Corp. is focused on exploration and development of deposits of uranium and battery commodities in South America. Battery commodities that occur with uranium resources include vanadium, nickel, zinc and phosphate. The Company’s mineral resources estimates were made in accordance with National Instrument 43-101, and are contained in the following deposits:
Additional Information
Information on U3O8 Corp., its resources and technical reports are available at www.u3o8corp.com and on SEDAR at www.sedar.com. Follow U3O8 Corp. on Facebook: www.facebook.com/u3o8corp, Twitter: www.twitter.com/u3o8corp and YouTube: www.youtube.com/u3o8corp.
For further information, please contact:
Carolina Diaz at carolina@u3o8corp.com or phone (416) 868-1491 or Richard Spencer, President & CEO, U3O8 Corp., Tel: (647) 292-0225 richard@u3o8corp.com
Forward-Looking Statements
This news release includes certain “forward looking statements” related with the development plans, economic potential and growth targets of U3O8 Corp’s projects. Forward-looking statements consist of statements that are not purely historical, including statements regarding beliefs, plans, expectations or intensions for the future, and include, but not limited to, statements with respect to: (a) the low-cost and near-term development of Laguna Salada, (b) the Laguna Salada and Berlin PEAs, (c) the potential of the Kurupung district in Guyana and (d) the price and market for uranium. These statements are based on assumptions, including that: (i) actual results of our exploration, resource goals, metallurgical testing, economic studies and development activities will continue to be positive and proceed as planned, and assumptions in the Laguna Salada and Berlin PEAs prove to be accurate, (ii) requisite regulatory and governmental approvals will be received on a timely basis on terms acceptable to U3O8 Corp., (iii) economic, political and industry market conditions will be favourable, and (iv) financial markets and the market for uranium will improve for junior resource companies in the short-term. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in such statements, including, but not limited to: (1) changes in general economic and financial market conditions, (2) changes in demand and prices for minerals, (3) the Company’s ability to establish appropriate joint venture partnerships, (4) litigation, regulatory, and legislative developments, dependence on regulatory approvals, and changes in environmental compliance requirements, community support and the political and economic climate, (5) the inherent uncertainties and speculative nature associated with exploration results, resource estimates, potential resource growth, future metallurgical test results, changes in project parameters as plans evolve, (6) competitive developments, (7) availability of future financing, (8) exploration risks, and other factors beyond the control of U3O8 Corp. including those factors set out in the “Risk Factors” in our Annual Information Form available on SEDAR at www.sedar.com. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. U3O8 Corp. assumes no obligation to update such information, except as may be required by law. For more information on the above-noted PEAs, refer to the September 18, 2014 technical report titled “Preliminary Economic Assessment of the Laguna Salada Uranium-Vanadium Deposit, Chubut Province, Argentina” and the January 18, 2013 technical report titled “U3O8 Corp. Preliminary Economic Assessment on the Berlin Deposit, Colombia.”
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Sophisticated investors often follow gold price in US dollar. This is despite the fact that the biggest buyers of gold for wealth protection purposes are in the Middle East, South Asia, and South-East Asia. These buyers do not think in US dollar terms.
It is hard to believe, but the Middle East peaked economically in the 1970s–it has been going downhill ever since. I call them the Third World, for they failed to change culturally despite having access to financial resources. In fact, in the Middle East (and recently in Turkey, and increasingly in Malaysia and Indonesia) fanaticism grew exactly when they were becoming rapidly rich.
Having failed to develop positive cultural underpinnings, the Third World’s growth rate is falling and social instability is rising. China is the only exception.
The real problem of today is not in the USA or its currency (which are clearly showing signs of improvement, for now), but the Third World. As the problems of the Third World become more recognized, I expect gold demand to rise.
I give my views on the reality of the economies, with charts and statistics, of the Third World in the linked article.
On investments…
A combination of the lack of faith in the junior mining business and the approaching tax-loss selling has resulted in another fall in share prices. Here are companies that I am hoping to buy:
Some people might wonder why I am suggesting NSU. There is still >5% upside left in it. If I make 5% in two months, it amounts to annualized 34% profit (Expected closure date of the merger: 31st December 2018).
If for any reason the closure date of NSU merger gets delayed by even a single day, I expect the share price to increase on such a news and then fall again early next year. This pathology exists because of the way taxation is structured. Understanding this pathology might help make some extra money.
Warm regards,
Disclaimer: All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. The sole purpose of these musings is to show my thinking process when analyzing a stock, not to provide any recommendation. I will not and cannot be held liable for any actions you take as a result of anything you read here. Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on this site, expressed or implied herein, are committed at your own risk, financial or otherwise.
Original Source: https://www.nsrltd.com/wp-content/uploads/2018/10/Pogo-Resource-Update-Final-16-10-2018.pdf
Millrock Resources shareholders should note the following press release by Northern Star Resources regarding the Pogo Gold Mine. Millrock Resources has assets in line with the mineral trend of the Pogo Gold Mine, which may be of significance with the new press release issued by Northern Star Resources. The value proposition for Millrock Resources continues to reward committed shareholders. We have been active buyers that current share prices of TSX-V: MRO | OTQCX – MLRKF.
For Information Contact:
Melanee Henderson
Investor Relations
Direct: 604-638-3164
Toll Free: 877-217-8978
Email: mhenderson@millrockresources.com
VANCOUVER, Oct. 19, 2018 /PRNewswire/ – Pacton Gold Inc. (TSXV: PAC, OTC: PACXF, FSE: 2NKN) (the “Company” or “Pacton“) is pleased to announce the first discovery of gold nuggets on the Golden Palms property (E 47/3810), (Figures 1 & 2). The nuggets were discovered by a prospecting crew working in advance of a geological exploration and mapping team.
This gold nugget discovery, within a 300 meter by 300 meter area, is significant in that it represents the first gold discovery on the Golden Palms tenement and has greatly expanded the known nugget-bearing potential of the South Egina area. This new discovery is located approximately 2.5 km northwest of the recently announced Friendly Creek gold nugget discovery (Pacton News: Oct 15, 2018), and occurs across the regional structural and stratigraphic fabric of the underlying bedrock geology.
The gold nuggets, which show various morphological shapes and textures, and which appear to be eluvial remnants liberated from the underlying bedrock by weathering, were collected in an area that is underlain by mafic to ultramafic volcanoclastic rocks. The basaltic rocks are described as similar to the basalts underlying the recent nugget discovery at the adjacent Friendly Creek tenement, except that the Friendly Creek basalts are massive, thick units, while the basalts underlying the recent Golden Palms tenement nugget discovery are mapped as being stratigraphically thinner, and are sparsely interbedded within a massive chert and limestone sedimentary package. Within the sedimentary package, the basalts do outcrop, but are usually covered by a layer of weathered colluvium, as occurs at the sites where the Golden Palms nuggets were discovered.
The prospective geological gold nugget area covered by Pacton’s South Egina project is large, poorly explored, and consists of an 8 km thick volcano-sedimentary system which extends for approximately 10 km along strike, in a NE-SW orientation, across the adjacent Golden Palms, Friendly Creek and Hong Kong tenements, (Figure 2).
The nuggets and/or mineralization shown in Figure 2 are selected samples and are not necessarily representative of mineralization hosted on the Property.
About Pacton Gold
Pacton Gold (PAC: TSXV; PACXF: US, FSE: 2NKN) is a well-financed Canadian junior with key strategic partners focused on the exploration and development of conglomerate-hosted gold properties located in the district-scale Pilbara gold rush in Western Australia.
The technical content of this news release has been reviewed and approved by Peter Caldbick, P.Geo., a director of the Company and a Qualified Person pursuant to National Instrument 43-101. The qualified person has not yet verified the data disclosed, including sampling, analytical, and test data underlying the information or opinions contained in the written disclosure.
On Behalf of the Board of Pacton Gold Inc.
Alec Pismiris
Interim President and CEO
This news release may contain or refer to forward-looking information based on current expectations, including, but not limited to the Company achieving success in exploring its properties and the impact on the Company of these events, including the effect on its share price. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances. References to other issuers with nearby projects is for information purposes only and there are no assurances the Company will achieve similar results.
Neither TSX Venture Exchange, the Toronto Stock Exchange nor their Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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