Resource Stock Roundup:Monday, July 20th, 2009
Jul 20th, 2009 | By Doug Casey | Category: Gold MarketAs is the norm of late, news flow slowed to a drip during Friday trading on the Canadian Markets with the headline on the junior front being a proposed three way merger. For the tale of the tape; the TSX Exchange added 0.63%, while the TSX Gold Index tacked on 1% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, gave back 0.20% with the advancers beating out the decliners by a 430 to 360 margin on 176 million shares traded.
IMA Exploration (AMEX:IMR), Kobex Resources and International Barytex Resources are looking to do a three-way deal that would create a mineral exploration company with around C$44 million in cash. The merger value will be based on each company’s working capital. A rough calculation shows that IMA is worth C$0.40 per share, Kobex is worth C$0.53 per share and International Barytex about C$0.09 per share. Interestingly, IMA closed down C$0.015 at C$0.32, Kobex closed up C$0.06 at C$0.445 and Barytex closed up C$0.045 at C$0.0115.
Fancamp Exploration tabled an indicated resource of 84,000 metric tons grading 42.4% iron, 10.7% titanium dioxide, 1.6% chromium and an inferred resource of 201,000 metric tons running 42.1% iron, 10.6% titanium dioxide, 1.5% chromium on its 48.64% owned Magpie titaniferous magnetite deposit in Quebec. Fancamp closed up C$0.19 at C$0.85.
Given that it’s past the middle of July and the junior board has not rolled over, the summer trading action looks rather favorable. We shall see what Monday trading has in store.
Source: Resource Stock Roundup:Monday, July 20th, 2009
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.