QIS Update #11 - 2017 - The latest corporate updates from Newlox Gold Ventures, NTG Clarity Networks and and Opawica Explorations - September 14th 2017
Included in this update:
- - Newlox Gold Ventures commences advanced metallurgy and eliminates debt, grants options
- - NTG Clarity Networks announces credit facility extension
- - Opawica Explorations appoints President & CEO, discusses previously announced financing
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Newlox Gold Ventures Corp. (LUX:CSE)
Current Price: $0.05 (coverage commenced Mar. 31/14 - $0.05)
Newlox Gold Ventures Corp. has advised that it has applied the funds raised in its recent Revenue Participation Financing (July 17, 2017) to fieldwork and immediate corporate expenses. Importantly, and apart from the corporate expenses, the vast majority of new funding is being deployed to Newlox's previously announced environmental reclamation and precious metals recovery project.
While the plant circuit was thought to be adequate and nearly ready to commence operation, recently retained consulting metallurgical and process engineers have proposed a few improvements to the flowchart. The recommended upgrades are now in progress and are intended to improve efficiency and streamline operations.
Ryan Jackson, President of Newlox Gold Ventures Corp., is currently deployed in the field and reports that, "impressive progress has been made in the company's operations over the past few weeks. Newlox has beefed-up its technical team with the addition of two, highly qualified, in-field engineers who are working in cooperation with Newlox's Canadian technical team to deliver substantial results".
Once the upgraded processing circuit is operational, attention will be directed to fitting out the new onsite laboratory to ensure tight control over feedstock grades and processing efficiencies. The company has sourced the necessary equipment and purchased a 52-foot insulated transport trailer to house the new on-site laboratory.
"The addition of real-time analytical testing will significantly increase the Company's capabilities as it continues to deploy its business plan in Latin America", explains Mr Jackson.
Pursuant to Newlox Gold Ventures Corp.'s stock option plan, the board of directors has authorized the granting of incentive stock options to employees and directors of the company to acquire an aggregate of 5,018,580 common shares of the company. The options have an exercise price of six cents per share and are exercisable until Sept. 13, 2022
QIS Capital: Newlox is certainly a company worth watching right now. The company has completed a $1 million revenue sharing agreement, is currently upgrading its processing facility, has installed a new on-site laboratory to ensure tight control over feedstock grades and processing efficiencies, and is nearing the recommencement of small-scale gold production.
Newlox will likely never be a larger scale producer, but with gold prices over US$1350/oz, an abundance of readily available stockpiles, and a small and efficient production circuit, the company is looking to become a highly profitable producer with a goal to generating profits and dividends for its shareholders.
NTG Clarity Networks Inc. (NCI:TSX-V)
Current Price: $0.05 (coverage commenced Feb. 4/10 - $0.045)
NTG Clarity Networks Inc. has announced that the company has extended the repayment requirements under the Amended Existing Loan Agreement with its primary lender for an additional 6 months.
As previously announced, as of June 30, 2017, NTG Clarity was in violation of its margin requirements under its Existing Loan Agreement in the amount of $2,241,890. This excess amount was renegotiated under an Amended Existing Loan Agreement which would have required NTG Clarity to pay down this amount on or before September 1, 2017.
Due to improvement in the company's financial and operating results for the first half of 2017, NTG Clarity has received a 6 month extension from its primary lender with an expiry date of March 1, 2018. Pursuant to the credit facility extension, NTG Clarity is required to make a $50,000 repayment at the end of each month. All other terms of the Amended Loan Agreement and the existing demand credit facility and pre-shipping facility remain the same.
Management remains committed to bringing NTG Clarity back to profitability in 2017 and is confident that the company can meet the amended repayment schedule and keep the corporation in good standing with its lending institution.
QIS Capital: This is certainly welcome news from NTG Clarity. The company has made steady improvement in its profitability since stepping back from its expansion plans while several of its key operating regions are facing economic challenges. The company's balance sheet requires additional capital and will take some time to repair with expected future earnings. NTG Clarity appears to be on the right track though and we looking forward to Q3 results by the end of November.
Opawica Explorations Inc. (OPW:TSX-V)
Current Price: $0.06 (coverage commenced May 11/17 - $0.045)
Opawica Explorations Inc. has announced the appointment of Mr. David Taylor as President, Chief Executive Officer and a Director of the company.
Mr. Taylor has over 25 years experience in financial markets in Asia, the USA and Canada. His experience includes securing finance personnel in Tokyo and the recruiting of executives for firms such as Morgan Stanley, JP Morgan, Credit Suisse and Goldman Sachs.
He has held positions with Thomson Reuters (Tokyo) in marketing US software products to clients such as The Bank of Japan, LTCM (Tokyo), and Bank of Tokyo-Mitsubishi, as well as Private Equity benchmarking contract with the Japanese government, Ministry of Economy, Trade and Industry.
Mr. Taylor has worked in San Francisco, CA, where he managed relationships with Private Equity Firms in the Western USA, focused on Californian Venture Capitalists. In 1996, Mr. Taylor and his team launched the first Venture Capital database for the US National Venture Capital Association (NVCA), and he was instrumental in the research and coordination of clients such as Intel Capital, In-Q-Tel, Accel Partners, Kleiner Perkins, and Microsoft Ventures.
Mr. Taylor was a member of a boutique provider of alternative asset management applications for domestic and international institutions and family offices. His clients included the Rockefeller Foundation, CALPERS, CALSTERS, UTIMCO, Princeton University, Stanford University, Cascade Investments (Bill and Melinda Gates Foundation), MSD Capital (Michael Dell), Mousse Capital (Chanel Family) and the Hewlett Foundation.
In 2007, Mr. Taylor founded a financial advisory service which evolved into an Exempt Market Dealer (EMD), one of the first in British Columbia. Using this EMD platform he conducted financings and marketing Canadian junior companies in the resource and technology sectors. He holds a BBA in Business Administration from Simon Fraser University.
Mr. Ferdynand (Fred) Kiernicki has resigned as President and Chief Executive Officer but will remain as a director and exploration contractor of the company.
The company has allocated 1,019,000 incentive stock options to directors and consultants of the company that are exercisable at $0.07 per share for a one year term, in accordance with the company's stock option plan.
Pursuant to the company's proposed private placement to raise gross proceeds of up to $1,200,000 that was announced on August 15, 2017, the company announces an amendment to the allocation of units proposed to be issued. The company proposes to raise up to $800,000 through the sale of up to 16,000,000 non flow-through units priced at $0.05 (the NFT Units) and up to $400,000 through the sale of up to 5,000,000 flow-through units priced at $0.08 (the FT Units). Each NFT Unit consists of one common share and one half of a share purchase warrant, with each whole warrant exercisable into one further common share at a price of $0.10 for a term of one year. Each FT Unit consists of one flow-through common share and one half of a share purchase warrant, with each whole warrant exercisable into one further common share at a price of $0.10 for a term of one year.
The warrants will contain an accelerated expiry clause such that, in circumstances where the closing price of the shares of the company on the TSX Venture Exchange is $0.15 or greater for a 20 day consecutive trading period, they will expire if not exercised 14 days following the 20 day trading period. The accelerated expiry clause will be in effect after the initial four month hold period has elapsed..
QIS Capital: David Taylor certainly adds credibility and a wealth of industry connections to the Opawica management team. With capital in the industry still very tight, good connections and the ability to implement corporate vision are of vital importance for building shareholder value. We look forward to receiving an operational update from Opawica in the coming weeks.
Disclaimer: This article is for informational purposes only. The information contained within this article should not be construed as offering investment advice. Those seeking direct investment advice should consult a qualified, registered, investment professional. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The company profiled assumes no liability for the information presented. This is not a direct or implied solicitation to buy or sell securities. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock. The author(s) owns directly or indirectly 4,566,398 shares of Newlox Gold Ventures Corp., 1,651,000 shares of NTG Clarity Networks Inc. and 250,000 shares and 150,000 warrants of Opawica Explorations Inc. QIS Capital may have a financial relationship with these companies and may trade in the stocks mentioned. No stock exchange has approved or disapproved of the information contained herein. Copyright © 2003 - 2017 QIS Capital Corporation.