Wednesday, July 30, 2014

Frank Callaghan quits!

An interesting little tidbit of news for those who like the colourful world of Venture Exchange mining companies.

Frank Callaghan quits! or maybe is asked to leave, you be the judge.

Barkerville Gold Mines Ltd. (BGM) dropped six cents to 41 cents on 546,000 shares, after Frank Callaghan, the company's president of 23 years, submitted his written resignation. Director Norman Anderson has assumed the roles of interim president and interim chief executive officer for now, while Mr. Callaghan will stay on as a director. He explained that "Barkerville Gold Mines has entered a new phase as a producer, . . . I feel now is the appropriate time to bring in an executive management team that can lead the company through what could be a much larger development." Its development so far has been a handful of gold bars from the QR mine and last week's first 400 ounces of gold from Bonanza Ledge. The company highlighted 14 of Mr. Callaghan's most notable achievements, including how he led the company through a 14-month securities commission review following a June, 2012, resource estimate announcement. (He also led the company to make that resource estimate announcement, which contained 10 million ounces of gold indicated and a potential 90 million inferred, both of which the commission said were misleading and non-compliant.) Interim CEO Anderson made sure to diplomatically thank Mr. Callaghan today for his "many years of selfless hard work and care . . . ." His selfless hard work last year came with a $240,000 salary, plus $1.2-million in fees charged by his private companies for exploration, deferred development, loan interest and administrative expenses. His son Sean also received $68,000 as he learned the business.

Contemporaneously with today's management changes, Mr. Anderson pointed out that Eric Sprott has agreed to a one-month extension on the first of three loan repayments. The payment, valued at 4,200 ounces of gold, is now due Aug. 31. Mr. Sprott has also agreed to extend the deadline of his other loan covenant -- maintaining working capital of at least $1.5-million -- to Aug. 31. This is his second working capital extension; the first was a six-month extension in February. Mr. Callaghan did manage to raise some money since then, $6.8-million in financings, but they have made only a small dent in the company's working capital, which was negative $18-million on Feb. 28, 2014.

As a director, Mr. Callaghan will no longer be entitled to his $240,000 a year in salary, but he might be entitled to a one-time payment of twice that, depending on his definition of voluntary. His employment agreement has a strange stipulation, "if Mr. Callaghan was induced by action of the company to terminate his engagement, on an involuntary basis, then Mr. Callaghan is entitled to payment equal to two years' of his yearly fees." It is unclear if Mr. Callaghan was induced to leave his management responsibilities, but with today's loan extensions it seems likely.
This begs the question where is Frank Jr. (Sean) going to end up?

Friday, July 25, 2014

Panterra Resources free money

So what has Tim DeFreitas of Panterra Resources done for me lately? I picked up a few thousand shares of his deal and he went and issued all the shareholders rights! And then he called them for trading!

I opted to take the cash off the table and pocketed $100.00 after commission. That is better than a poke in the eye with a sharp stick that I got from the junior mining sector.

What's Rick up to these days?

Well, he is chumming around with Frank who has taken some time off from Sarah, telling everyone at the Sprott Natural Resource Symposium about how a dramatic rebound in the juniors is about to occur..

A dramatic rebound has finally occurred in my portfolio after loosing thousands of dollars in juniors last year and sticking all the money into Alberta's Montney and Duvernay oil play where millions of dollars are flowing and making money for everyone except the junior mining players.

As a reminder as to why not to invest in the junior mining scene I still have one of Frank's deals (ROY.H) in an account and it is down a whopping 92% and I have some GMV Minerals that is down a typical 95% for a junior. Both deals got rolled back 10 for 1 killing all chances of seeing any return of the equity. (that is how it is done in the junior mining sector).

Hey Rick that is $13,000 that will never hit the junior mining circuit again, poof! And I am not the only one who lost up to 95% of the value in juniors, there are legions of speculators out there with the same returns, never to step back into the ring.

The real money is flowing into the oil patch just ask Tim DeFreitas who took an $0.08/share shell and raised $130,000,000, yeah that is $130,000,000 million that did not make it into the crappy junior mining scene.

You see the oil patch has a reputation of making money for investors who are more than willing to back new projects, the junior mining scene has squandered the shareholders cash on lifestyle companies, hence why the money will not be flowing back into this scene any time soon.

For the record I will keep the losing position in GMV and Royce as a stark reminder to never invest in the junior mining industry again.

Thursday, July 17, 2014

GMV Minerals - Rolled back just like that

Nice to see the rights as a shareholder no longer exist. GMV Minerals rolls back with the stoke of a pen without seeking shareholder approval and this is why you should never throw your money at a junior with an unproven track record.

Pursuant to a resolution passed by the directors on June 13, 2014, the company has consolidated its capital on a one-new-for-10-old basis. The name of the company has not been changed.
Effective at the opening on Monday, June 30, 2014, the shares of GMV Minerals Inc. will commence trading on the TSX Venture Exchange on a consolidated basis. The company is classified as a mining company.
Capitalization:  Unlimited shares with no par value, of which 7,127,828 shares are issued and outstanding.

I don't know why anyone would then throw $300,000 into the kitty. That will be just enough to pay the G&A  and a back hoe for the Mexican Hat property. I think they call that "good money after bad money".

GMV Minerals Inc. plans to complete a non-brokered private placement of up to 3.75 million units. The private placement offering will be at eight cents per unit, and each unit will consist of one common share in the capital of the company and one full share purchase warrant.
Each whole warrant will be exercisable at 11 cents to purchase an additional common share for a period of 18 months following the closing date. All subscriptions for units are anticipated to be completed and accepted by the company on or before the end of July, 2014.
GMV Minerals Inc. has commenced its initial exploration program at its 100-per-cent-owned Mexican Hat gold property located in Cochise county, Arizona.
The program will entail detailed sampling of all surface exposures and approximately 2,000 metres of excavator trenching in areas where higher gold grades have been reported from previous surface and diamond drill hole data. The company hopes to define multiple higher-grade zones within a 300-metre-by-300-metre area and to evaluate the potential to develop an economically recoverable resource in this area of interest, subject to continued geological, metallurgical and engineering studies. Continuous chip sampling using a mechanized hammer chisel has commenced sampling exposures along road cuts, and new trenches will be dug using an excavator at 25-metre to 50-metre spacing across the mineralized zones within this target area.

Santacruz Lead/Zinc numbers?

Santacruz posted their 2nd. quarter production numbers and I am trying to add up the math. BTW I am tired of the Silver-equivalent ounce thing, it just masks the real numbers.

Santacruz Silver Mining Ltd. has released its second quarter 2014 production of 169,800 payable silver-equivalent ounces from the Rosario mine in San Luis Potosi, Mexico. This production represents a 40-per-cent quarter-over-quarter increase as compared with first quarter 2014 payable silver-equivalent ounces, and the company remains on schedule to meet its production target of between 850,000 to 1.1 million silver-equivalent ounces by the year-end 2014.
Second quarter 2014 operations highlights (compared with first quarter 2014)
  • Ore processed grew 10.5 per cent to 22,612 tonnes (all ore milled is now from the Rosario mine);
  • Metal production increased 39.4 per cent to 169,800 payable silver-equivalent ounces;
  • Silver production totaled 100,200 silver ounces;
  • Underground development of 1,494 metres;
  • Recoveries for silver increased to 89.9 per cent from 85.7 per cent in the first quarter.
Operations summary                   Q2 2014  Q1 2014
Ore processed (tonnes milled)         22,612   20,447 
Silver-equivalent ounce production   169,805  121,800 
Silver ounce production              100,200   94,325 
Gold ounce production                  106.8    162.9
Lead production (tonnes)               171.7    186.1 
Zinc production (tonnes)               436.8    367.6 
Total underground development (m)      1,494    1,216
So let me get this straight Q1 and Q2 add up to 291,605 silver-equivalent ounces and your goal is 850,000 to 1.1 million, even at the lower guidance, Santacruz needs to come up with 558,395 silver-equivalent ounces in the next six months or 808,395 on the upper guidance range.

Real Silver production only rose by 6.2% to 100,200 ounces while gold fell by 34.4%, lead production dropped while zinc went up.

Looks like Brien Lundin is throwing in the towel on this one.

Nothing new to report on there Brien that this blogger did not come across back on June 20th.

Argonaut Gold going to buy Timmins Gold?

I read it on the internet so it must be true.

I have no idea if Argonaut is going to buy Timmins Gold or not and I have no intel on anything, I do have some open sell orders in around $2.50 if this rumor is true though.

Next up SilverCrest?

Sure won't be Santacruz.

Friday, July 4, 2014

Tim de Freitas is $130 million richer

Panterra closes the $130 million financing to purchase $120 million oil and gas assets. 500 million share in top of the 298 million already issued will mean that 798 million will have to be consolidated 10:1 at some point. Going forward to raise any more money with 798 million shares outstanding will be incredibly dilutive.
 PanTerra Resource Corp. has closed its previously announced bought-deal financing of subscription receipts of the corporation with a syndicate of underwriters co-led by Desjardins Capital Markets and TD Securities Inc., and including Raymond James Ltd., Beacon Securities Ltd., Haywood Securities Inc., CIBC World Markets Inc. and Clarus Securities Inc., whereby the corporation issued 500 million subscription receipts at a price of 26 cents per subscription receipt for aggregate gross proceeds of $130.0-million. The gross proceeds from the offering will be held in escrow and will be released to the corporation upon completion of its $120-million acquisition of certain natural gas assets, as described in further detail below. The acquisition is currently anticipated to close on or about July 31, 2014. For further information regarding the acquisition, please see the press release of the corporation dated June 12, 2014.

Thursday, July 3, 2014

St. Augustine Gold, I used to blog about that....

What ever happened to this deal...last time I wrote about it I dumped my shares and took my licks due to the corruption involved...corruption? Philippines? No way?

Canada Stockwatch provided this update:

Andrew Russell's St. Augustine Gold and Copper Ltd. (SAU) edged up one-half cent to 14 cents on 1,000 shares. The company has arranged a $14.5-million financing from director Manual Villar's Queensberry Mining and Development Corp. of the Philippines. Queensberry will buy 145 million St. Augustine shares at 10 U.S. cents, becoming St. Augustine's largest shareholder with 247 million shares or 39 per cent of the company. Chief executive officer Andrew Russell, who owns 144 million shares, will remain a director, but he has handed his CEO duties over to Mr. Villar, a Filipino senator and businessman. He is undoubtedly hoping that Mr. Villar, who bills himself as the richest senator in the Philippines, can use his connections to help St. Augustine speed up development of its King-king gold project in that country. Mr. Villar runs two other companies, Vista Land and Lifescapes, which build condominiums in Manila, and Starmalls Inc., which operates 11 shopping malls across the country. Like most Filipino senators, Mr. Villar has had his fair share of fraud allegations. Among other things, his opponents claimed that during a campaign he falsely portrayed himself as growing up in poverty when his family appeared to be wealthy enough to afford a private hospital. (Mr. Villar denied the allegations.) He also tried running for president in 2010. Meanwhile St. Augustine is working on a $30-million feasibility study for King-king, after which it will have earned a 45-per-cent interest. Queensberry's parent company, Nadecor, is optioning the interest to St. Augustine; it has been trying to bring the project to production since 1981.

If I recall this was going to take like $4 billion in Capex to develop and that is not including the greasing of the palms along the way.

BTW have you seen Vice TV's coverage of Philippines politics?

Wednesday, July 2, 2014

Timmins Gold: Remind me again who won

That is it? they are done? All this was about Anthony Hawkshaw?

Timmins Gold Corp. has reached a settlement with its largest shareholder, Sentry Investments Inc. The settlement ends a contested proxy solicitation for the election of directors at Timmins Gold's annual general and special meeting of shareholders scheduled for July 31, 2014.
As part of the settlement, Timmins Gold will nominate eight board members instead of seven as previously announced. The nominees are George Brack, Bruce Bragagnolo, Bryan Coates, Stephen Lang, Luc Lessard, Paula Rogers and Jose Vizquerra Benavides, the seven Timmins Gold nominees previously announced, as well as Anthony Hawkshaw, who was previously a Sentry nominee. Sentry has agreed to vote its shares, representing 17 per cent of the company's issued and outstanding shares, for the election of all eight Timmins Gold nominees.
So who won, Timmins on getting most of their white proxy dudes on board or Sentry for getting Anthony to the table?

I know one thing, the lawyers involved probably did pretty good in this one.

Now what?

Canexus finds a rudder

Canexus announced today that they found a replacement for "Fall Guy" Gary Kubera after the runaway expenses of Canexus's NATO oil terminal. The one that back in 2012 was supposed to cost $125 million and be fully operational.
The cost of the project is expected to be approximately $125 million, inclusive of $45 million of pre-spending authorized by Canexus' Board of Directors to date for long lead items and other construction activities that are currently ongoing. If this next phase of NATO expansion receives full project approval in the coming months, these expanded capabilities should be operational in the third quarter of 2013.
But fully ballooned into the following update.

At NATO, the planned shutdown of the unit train operation began on June 17, 2014. Construction to further increase unit train loading capacity and connect it to the Cold Lake pipeline system continues to progress and the Corporation expects to start-up and begin commissioning the expanded capacity in late August. To date, approximately $290 million has been spent on the unit train project and the total estimated cost has been revised to $350 million to $360 million. The project cost estimate announced in January of $315 million has been refined with actual spend to date and robust estimates to complete including about $10 million of firm bids for remaining work, plus a contingency. This scope is expected to achieve the current contracted 6 to 7 unit trains per week. Some minor debottlenecking (4th loop track, two additional pumps, and a second incinerator) may be required to reach the 10.5 unit trains per week planned activity level expected for some time in 2015. This will be examined after start-up of the current scope.

$125 million to $360 million, no wonder their stock graph looks like this.

 It is on record that the vultures are circling by Jacob Bout and by new President, who by the way is a "results orientated leader" ( I wonder if he had that in his first line of his cover letter?) Douglas Wannacott.
The Financial Post reports in its Wednesday edition that CIBC World Markets analyst Jacob Bout says Canexus should sell its chemical and mid-stream assets so it can maximize shareholder value. The Post's Jonathan Ratner writes in the Trading Desk column that Mr. Bout believes the company's mid-stream assets could fetch between $400-million and $620-million, and its chemical business may be worth $810-million to almost $1.4-billion. Mr. Bout says, "While the stock lost almost 50 per cent over the course of the last year as a result of cost overruns at its North American Terminal Operations (NATO) near Bruderheim, lowered expectations and subpar earnings results, we still believe Canexus has significant potential in the right hands."
And from Mr. Wannacott:
 "Canexus is a company with solid assets that have great potential," commented Mr. Wonnacott. "Our sodium chlorate plant at Brandon has an unrivaled low-cost production advantage, our recently modernized and expanded North Vancouver chlor-alkali plant has significant hydrochloric acid capacity and our operations in Brazil are anchored by a 27-year fixed margin contract. NATO is a state-of-the-art crude-by-rail facility that is well positioned near Alberta's growing oil sands production and on a site that has additional attractive future development opportunities such as large scale condensate handling and storage. The site currently has two salt caverns with approximately 1.6 million barrels of capacity and the potential to construct several additional storage caverns. Our impressive portfolio of assets has not gone unnoticed either and we will continue to advance discussions with those parties that have expressed a potential interest in certain assets."
The market will tell us if they like Mr. Wannacott tomorrow.

For the record I am not long Canexus, but have some October and January $5.00 call options in the company.


The Wannacott Welcome Committee has spoken: