QIS Update #10 - 2019 - Deer Horn Capital announces financing, NTG Clarity Networks secures purchase orders and Newlox Gold Ventures discusses production - July 10th 2019
Included in this update:
- NTG Clarity Receives 3 Purchase Orders (June 2019)
- Deer Horn Capital Arranges $500K Financing (May 2019)
- Newlox Gold Ventures Achieves Steady Gold Production (July 2019)
We have provided below updates on all of the companies we are currently providing coverage on. Some great developments have recently occurred, particularly with Newlox Gold Ventures. We have also seen a tremendous run on Well Health Technologies Corp. (WELL:TSX-V) which we have been following over the past year. It seems that if you can get some momentum in this market, share prices can move very rapidly.
Larger blue chips continue to lead the market and are trading at near record highs. Small-caps continue to languish which is probably why investors tend to jump onto big gainers as there hasn't been much to cheer for in the small-cap space over the past couple of years.
Please feel free to email us anytime at email@example.com or call us at (250) 377-1182. We look forward to your comments, questions, and feedback.
NTG Clarity Networks Inc. (NCI:TSX-V)
Current Price: $0.055 (coverage commenced Feb. 4/10 - $0.045)
NTG Clarity Receives 3 Purchase Orders in Saudi Arabia for 940K Saudi Riyals (approx $340K CAD)
June 5, 2019 / NTG Clarity Networks Inc. (TSX.V:NCI), is pleased to announce that the Company has received 3 new Purchase Orders in Saudi Arabia.
These Purchase Orders are for a one year term and have an estimated value of 940K Saudi Riyals (approximately $340K CAD). The Purchase Orders are for new projects with new customers in the information technology field.
"We are pleased to receive these Purchase Orders from new customers, which opens the door for growth of NTG Services in new areas. We are looking forward to building on the NTG brand and name recognition in the Gulf area to expand our offerings and to grow our revenue. These new contracts validate NTG Clarity’s new sales model that was announced in early May” said Kristine Lewis, NTG Clarity’s President.
In an unrelated matter, Dr. Zafar Farooqui has resigned his position on the board of directors of NTG Clarity due to his other commitments. Dr. Farooqui has been a valuable board member since 2004. We wish to thank him for his valuable contributions and wish him all the best.
QIS CAPITAL COMMENTS:
We have experienced a good recovery for NTG Clarity as the stock has moved from $0.025/$0.03 and has built a new base around $0.05. Financial results have continued to show good improvement but investors tend to be watching more for larger contracts as was seen in the big surge in trading after last month's contract announcements. The latest three purchase orders above provide continuity in revenues which should enable NTG Clarity to continue its process of financial improvement.
Deer Horn Capital Inc. (DHC:CSE)
Current Price: $0.15 (coverage commenced Apr. 10/18 - $0.17)
Deer Horn arranges $500,000 private placement
May 31, 2019
Deer Horn Capital Inc. intends to raise up to $500,000 by way of a non-brokered private placement of up to two million units of the company at a price of 15 cents per unit and up to one million flow-through shares at a price of 20 cents per share. Each unit will consist of one common share in the capital of Deer Horn and one common share purchase warrant. Each warrant will be exercisable into one common share for a period of one year at a price of 20 cents.
The offering will be conducted pursuant to available prospectus exemptions, including sales to accredited investors, family members, close friends, and business associates of directors and officers of the company, under applicable securities laws.
A finder's fee of cash, common shares or warrants, or a combination thereof, may be paid to eligible finders with respect to any portion of the offering that is not subscribed for by existing shareholders.
QIS CAPITAL COMMENTS:
The slide in Deer Horn Capital's share price is concerning but is not uncommon for mining issuers at the present time, as the need for financing weighs heavily on investment in this sector. We have kept in regular contact with management as news has become less often and there are lots of things happening behind the scenes which will likely come to the forefront after the slow summer period. As announced above, Deer Horn Capital is currently working to complete its latest financing. Anyone wishing to participate can contact us directly at firstname.lastname@example.org or at 250-377-1182.
Newlox Gold Ventures Corp. (LUX:CSE)
Current Price: $0.05 (coverage commenced Mar. 31/14 - $0.05)
Gold Production Achieved: Environmentally & Socially Responsible Operations, Central America
July 9, 2019 - Newlox Gold Ventures Corp. is pleased to announce the commencement of steady-state gold production at its recently completed, remediation and precious metals recovery facility in Central America. Production of 3.875 kilograms of gold/silver dore during June resulted in revenues of $81,610.00.
As announced May 27, 2019 all pre-production activities at the Company's first processing plant were completed by the end of May, initiating steady-state operations during the month of June. During this inaugural month, Newlox's engineering team have been monitoring operational parameters of the plant and are pleased with its performance.
The Company is now focused on increasing daily throughput volume and achieving optimum tailings environmental remediation and gold recovery.
Management continues to leverage its association with both the Norman B. Keevil Institute of Mining Engineering at the University of British Columbia (UBC), and the Centre for Mineral Technology (CETEM) under the Brazilian Ministry of Science and Technology (MCTI), to advance the development of environmentally responsible technologies for the resource industry.
Through its partnership with CETEM and MCTI, Newlox has successfully tested its cutting-edge system for recovering deleterious materials left behind by historical and current artisanal mining operations. On-site testing of this innovative prototype was very encouraging, and final engineering of a full-scale circuit integration is currently underway.
Ryan Jackson, President of Newlox Gold comments:
"June 2019 has been an exciting month for Newlox, marking a major milestone for the Company. Not only did the processing plant complete its inaugural month of steady-state operation, but Newlox's operating subsidiary surpassed the break-even point in the very first month. We expect precious metals recovery and sales to grow over the coming months and are confident that the processing plant will meet or exceed Newlox's original expectations. I would like to congratulate the entire Newlox team on this momentous occasion. Reaching this milestone would not have been possible without their hard work and dedication."
QIS CAPITAL COMMENTS:
This is a very exciting development for Newlox Gold Ventures and sets the stage for what should be a very exciting second half of 2019. Revenues for June 2019 alone exceeded revenues for all of 2018. Management feels that they can continue to improve efficiency, reduce costs, and increase throughput over the coming months. With estimated cash costs of US$500/oz and gold prices hovering nearing US$1400/oz, Newlox could be highly profitable with this steady-state gold/silver operation while also having the potential to expand to other plants and areas. Governments throughout this region and countless others are eager to reclaim hazardous mining tailings and source material is plentiful for Newlox. Currently, the company needs to continue to prove its business model and build cash reserves to limit future share dilution and provide for expansion opportunities. We are very pleased with Newlox's inaugural month of steady-state production and will be following progress closely over the next several months.