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Thursday, December 7, 2023

5 Top Weekly TSXV Performers: Amarillo Gold Rises 80 Percent on Acquisition News

The S&P/TSX Venture Composite Index (INDEXTSI:JX) ended its first December session down, shedding 54.94 points, or 5.76 percent, by Friday (December 3).

Canada’s venture exchange held above 920 for most of the five day period before concerns about the impact of the Omicron variant led to a stock selloff mid-week.

The uncertainty brought on by broadening flight restrictions and potential lockdowns outweighed positivity out of the country’s jobs sector, which added 153,700 jobs in November, significantly higher than the forecasted 35,000.

Flooding in BC, which has impeded trade, also added to the uncertainty plaguing the Canadian market. Despite a weak performance at the beginning of the week, oil prices ticked higher on Friday. Gold was up as well that day, approaching the US$1,780 per ounce level after falling to US$1,762 on Thursday (December 2).

Last week’s five TSXV-listed mining stocks that saw the biggest gains are as follows:

  • Amarillo Gold (TSXV:AGC)
  • Pacific Ridge Exploration (TSXV:PEX)
  • New Stratus Energy (TSXV:NSE)
  • Compass Gold (TSXV:CVB)
  • Tectonic Metals (TSXV:TECT)

Here’s a look at what may have moved their share prices during the period.

1. Amarillo Gold

Explorer Amarillo Gold has been advancing two Brazil-based gold projects: the development-stage Posse gold project and the exploration-stage Lavras do Sul project.

Shares of the company rocketed 80 percent higher last week following the announcement that Amarillo will be acquired by precious metals producer Hochschild Mining (LSE:HON,OTCQX:HCHDF)

The deal will birth a spinout called Lavras SpinCo, which will hold all the assets and rights for Lavras do Sul. The transaction is valued at about C$164.5 million, not including C$10 million in cash and Lavras SpinCo’s asset value.

“This acquisition delivers an immediate and compelling opportunity for our shareholders to monetize their investment in Amarillo at an attractive valuation and significant premium to the current and historical trading price of Amarillo’s shares,” Mike Mutchler, president and CEO, said.

“The transaction also provides our shareholders with additional value through their continued participation in the future exploration and advancement of the prospective Lavras Project through Lavras SpinCo.”

Amarillo’s share price ended last week at C$0.40.

2. Pacific Ridge Exploration

Pacific Ridge Exploration is focused on its flagship asset, the Kliyul copper-gold project in BC’s Quesnel Trough. It also holds a portfolio of assets that includes the RDP copper-gold project and the Redton copper-gold project.

Last Wednesday (December 1), the company released assay results from the first of three diamond drill holes completed during a 2021 drilling campaign at Kliyul.

Highlights from drill hole KLI-21-036 include 437 meters of 0.61 percent copper equivalent (CuEq), or 0.96 grams per tonne (g/t) gold equivalent (AuEq), comprising 0.22 percent copper and 0.6 g/t gold; the interval contains 53 meters at 0.7 percent CuEq, or 1.17 g/t AuEq, comprising 0.22 percent copper and 0.83 g/t gold.

“The results from our first ever drill hole at Kliyul far exceeded our expectations,” Blaine Monaghan, president and CEO of Pacific Ridge, said in a statement. “They are, in fact, the best drill results ever to be reported from Kliyul.”

The news pushed shares 57.13 percent higher last week to sit at C$0.23.

3. New Stratus Energy

Focused on oil and gas development in Latin America through acquisitions, New Stratus Energy is targeting a production rate of over 50,000 barrels of oil equivalent per day within a three to five year timeframe.

In mid-November, New Stratus received approvals from the Ministry of Energy and Non-Renewable Natural Resources of Ecuador and the Ecuadorian Antitrust Authority for the transfer of the shares of Repsol Ecuador to New Stratus. “Upon completion of the transaction, the corporation will hold an indirect 35 percent operated working interest in service contracts for Blocks 16 and 67 in Ecuador and Repsol Ecuador S.A. will remain the operator of the blocks,” the company’s statement reads.

According to New Stratus, gross production in October on the blocks was 15,617 barrels of oil per day.

Shares of New Stratus rose 49.68 percent last week, closing at C$0.71.

4. Compass Gold

Precious metals company Compass Gold holds exploration permits for three sites in Southern Mali with a combined land holding of 867 square kilometers.

In early November, the gold company completed the first diamond drilling program at its Sikasso property’s Tarabala prospect. Four holes were completed altogether for a total of 520 meters drilled.

“This drilling has focused on characterizing the gold mineralization previously identified in quartz veins by shallow air core and deeper reverse circulation drilling beneath the artisanal workings there,” CEO Larry Phillips said.

Compass anticipates the receipt of the first assays this month and will move ahead with a 2,000 meter reverse-circulation drilling program in late December if the assays are positive.

Company shares added 44.47 percent to their value for the first week of December, ending the session at C$0.18.

5. Tectonic Metals

Focused on development in Alaska, Tectonic Metals is a gold exploration company with four projects. Last month, the developer reported the surface discovery of high-grade quartz-sulfide veining at its Tibbs gold project.

“Through rock grab sampling, Tectonic has, for the first time, confirmed the presence of high-grade, quartz-sulphide vein mineralization in the gneissic-hosted, western half of Tibbs at our West Trench target,” Tony Reda, president and CEO, said in the announcement.

Tectonic immediately followed up the discovery with a Phase II program consisting of 23 drill holes across 4,215 meters. Its shares were up 40.07 percent by Friday, trading for C$0.10.

Data for 5 Top Weekly TSXV Stocks articles is retrieved each Friday at 11:00 a.m. EST using TradingView’s stock screener. Only companies with market capitalizations greater than C$10 million prior to the week’s gains are included. Companies within the non-energy minerals and energy minerals are considered.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

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