Junior Resource Players, Black Cat and RTG Mining Riding High with New Acquisitions and Licences

Junior Resource Players, Black Cat and RTG Mining Riding High with New Acquisitions and Licences

Summary

  • Gold stocks are demonstrating strong gains, primarily on the back of current market sentiments
  • BC8 and RTG, small-cap gold explorers, experienced sharp rises in their share prices in the past few days
  • Black Cat is set to boost its landholding from 168km2 to 268km2 upon completion of acquisition of two gold projects and additional packages, strategically located near its flagship project, Bulong Gold Project
  • Besides securing a mining licence for Philippines-based Mabilo high-grade copper-gold project, RTG Mining received a boost with investors’ commitment towards a private placement

Amid rallying gold prices, which have now reached a phase of consolidation, several ASX-listed gold stocks picked up momentum on the ASX. Two small-cap gold explorers, Black Cat Syndicate Limited (ASX: BC8) and RTG Mining Inc. (ASX: RTG) made headlines on the Australian stock exchange with share prices rising steeply.

Let’s dig deeper to see what has caused the steep rise in the stock of BC8 and RTG.   

Black Cat Syndicate Limited (ASX: BC8)

Late last week on May 28th, share price of Australia-based Black Cat Syndicate rose by 30.61% from previous close, following a company announcement concerning 100% acquisition of the Fingals Gold project and the Rowe’s Find gold project from Silver Lake Resources Limited (ASX: SLR). The Company updated to have entered a binding acquisition terms sheet for the projects’ acquisition, subject to satisfaction of certain conditions.

The Fingals Gold Project is located ~30 kms south east of Black Cat’s Bulong Gold Project and the Rowe’s Find Gold Project is located ~100km east of the Bulong Gold Project.

Black Cat Syndicate is a gold exploration company with 100% control over approximately 82km2 of the Bulong Gold Field, located east of Kalgoorlie, Western Australia (WA). With a history of mines producing ~152 koz @ ~1 oz per tonne, the Bulong Gold project allows the Company to enjoy low barriers to exploration because of numerous targets located on mining leases.   

The current landholding of the Company stands at 168km2 and with the two projects’ acquisition, the landholding would increase to 233km2. Total resources would also experience a 145% increase to 8.7 mt @ 2.6 g/t Au for 719,000oz, an addition of 425,000oz to Bulong’s 294,000oz.

Under the terms of the acquisition, which is expected to close in early July 2020, Black Cat would pay a non-refundable deposit of $50,000 and make Silver Lake a substantial shareholder in BC8 by issuing 8,417,962 fully paid ordinary shares.  

According to Black Cat’s Managing Director, Gareth Solly, Fingals and Rowe’s Find, combined with other successful exploration, push the Company towards production with new projects containing 44 tenements including 28 mining leases and providing near-term mining opportunities.

On May 29th, the Company further announced a strategic expansion by entering two binding option agreements to acquire 100% of the Black Hills and South Three packages to expand its landholding from 233km2 to 268km2. The packages comprise ~35km2 of highly prospective ground. 

The stock of BC8 advanced further by more than 11% on 1 June 2020 to close the day’s trade at $0.700.

Also read:  Five Aussie Gold Stocks Under Swing Traders’ Lens- EVN, NST, NCM, WAF, and SAR

RTG Mining Inc. (ASX: RTG)

On May 29th, RTG’s share price skyrocketed to $0.120, up by 73.91% from previous close, after the Company announced to have secured a mining licence for the Mabilo project. Philippines-based Mabilo is a high-grade copper-gold project, which is currently at the final stages of permitting and is expected to commence near-term production.   

RTG Mining operates as a mining and exploration company, backed by an experienced management team that worked on the development of 7 mines located in 5 countries, including the Masbate Gold Mine in the Philippines. The Company is listed on the Australian stock exchange and the Toronto Stock Exchange.

Mt. Labo Exploration and Development Corporation holds the Mobilo project and recently received an approval letter from the Mines and Geosciences Bureau, which includes Mabilo Project to the existing mineral PSA (production sharing agreement) for the Nalesbitan Project. However, it is subject to an approved declared study concerning mine feasibility and a certificate related to environmental clearance.

On May 29th only, the Company announced successful completion of issue of approximately 60,128,550 chess depository instruments at a price of $0.057 per security, raising US$2.2 million before costs, as part of the first tranche of the two-phase private placement updated to the market on 22 May. The financing round was jointly led by Hartleys Limited and INTE Securities.

In the second tranche, the Company is expected to issue 102,422,120 securities to raise ~US$3.8 million. The issuance of these shares is subject to shareholder approval, expected to be held in July 2020.  

The Company expects to use the proceeds from the private placement to push the Mabilo project towards start-up phase, pursue new business development opportunities, partially repay corporate loan facility, and for working capital.

(Note: All the currencies mentioned are in AUD unless specified)

Also Read: Gush for Gold; How You Should Plan to Play The Consolidation?

 


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