QIS Update #12- 2018 - More news from Deer Horn Capital and Newlox Gold Ventures - July 3rd 2018
Included in this update:
- - Deer Horn Capital Announces $400K Private Placement (DHC:CSE)
- Changes in Copper Refining Expected to Impact Tellurium Supplies
- Newlox Gold Continues to Pour Gold in Central America (LUX:CSE)
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Deer Horn Capital Inc. (DHC:CSE)
Current Price: $0.55 (coverage commenced April 10/18 - $0.17)
DEER HORN ANNOUNCES NON-BROKERED PRIVATE PLACEMENT
Deer Horn Capital intends to raise up to $400,000 by way of a non-brokered private placement of up to 800,000 units at a price of 50 cents per unit. Each unit will consist of one common share in the capital of Deer Horn and one-half of one common share purchase warrant. Each warrant will be exercisable into one common share for a period of two years at a price of 60 cents per share.
In connection with the private placement, the company may pay a finder's fee consisting of cash, shares and/or warrants to eligible finders as permitted under applicable securities laws and Canadian Securities Exchange policies. The proceeds of the private placement will be used for general corporate purposes.
CHANGES IN COPPER REFINING EXPECTED TO IMPACT TELLURIUM SUPPLIES
Recent market studies are forecasting steady growth in demand for tellurium over the next five years, while supplies may be declining due to changes in copper recovery and refining where most tellurium is produced. As a result, the key users of tellurium, especially manufacturers of solar panels, thermoelectric devices and consumer electronics, are likely to require more tellurium from primary deposits such as the Deer Horn Property where Deer Horn Capital Inc. is advancing a high-grade gold-silver-tellurium resource. Both the US Geological Survey (USGS) and First Solar Inc. have identified Deer Horn as one of the world's notable epithermal tellurium properties.
Tellurium is extremely rare, making up approximately 0.0000001% of the earth's crust. It's three times rarer than gold, comparable to the rarity of platinum and rarer than most "rare earth" metals. Tellurium is classified as a "critical metal" by the US Department of Energy for its importance to clean energy. It is also considered an essential "green" metal for low-carbon applications.
Most refined tellurium is recovered as a byproduct from the electrorefining of copper. In a 2017 report, the USGS calculated that the world currently depends on copper mining for roughly 90 percent of its tellurium supply. However, as copper grades continue to decline, copper miners are turning to different recovery methods to exploit lower-grade ore. These processes largely bypass any recovery of tellurium.
"On a relative scale, there isn't a lot of high-grade copper left for the supply of tellurium," said Deer Horn president and CEO Tyrone Docherty. "As these higher-grade copper deposits wind down, production from lower-grade deposits, where tellurium is excluded, will dominate the industry. This will certainly impact tellurium output in the years ahead."
Deer Horn recently reported positive results from an independent Preliminary Economic Assessment ("PEA") at the Deer Horn property, where the Company is planning to conduct further drilling to both expand and upgrade the current gold-silver-tellurium resource. The PEA was calculated from only 450 meters of a 2.4-kilometer-long mineralized system that remains open to the west, east and down-dip.
QIS CAPITAL: Deer Horn Capital has done nothing but gone up in value since we commenced coverage in April of this year. It is important to remember that Deer Horn has only 14 million shares outstanding so even though we have more than tripled in the last 3 months, the company still has a market capitalization of less than $8 million.
We will again be participating in the private placement at $0.50 with a half warrant exercisable at $0.60 for 2 years. The placement is available to accredited investors or any current shareholders. If you would like more information on the placement or if you would like to participate, please contact us at firstname.lastname@example.org or give us a call at (250) 377-1182.
Newlox Gold Ventures Corp. (LUX:CSE)
Current Price: $0.055 (coverage commenced Mar. 31/14 - $0.05)
NEWLOX'S DORE POURS CONTINUE TO GROW
Newlox Gold Ventures has continued its pouring of gold dore at its remediation and precious metals recovery facility in Central America since the company's inaugural pour of gold dore reported on April 23, 2018. Efficiency and yield have been steadily increasing pour over pour.
Gold dore pours are now a regular occurrence at the company's processing facility, and precious metals sales are supporting Newlox's continued testing of innovative environmental reclamation and precious metals recovery technology.
Newlox's operations team have installed advanced instrumentation at the processing plant and on-site atomic absorption spectroscopy laboratory, which, when combined with the steady-state operations, are generating significant data. Precise, real-time measurements are providing the engineering team with the ability to effectively optimize the company's metallurgical processes and deliver efficiency improvements. Management believes that this science-driven approach is allowing the company to make significant gains toward its stated goals.
Ryan Jackson, president of Newlox Gold, commented: "Newlox's operations team is keeping to a regular gold dore pouring schedule. Encouragingly, each pouring cycle is increasing in efficiency and yield. Newlox is on course to achieve its goal of growing a robust, socially and environmentally positive enterprise, which will generate great value for shareholders and local stakeholders alike."
QIS CAPITAL: Still no definitive numbers announced on the gold pours so we will have to continue to wait for measureable results or financial results. From our discussions with management, we are expecting Newlox to be at or near break even in the next few months. It is encouraging that efficiency and yield have been improving with each pour and that these results are now being tested with the new lab that the company has installed.
Newlox Gold has 71.7 million shares outstanding and a market capitalization of less than $4 million.
The corporate information provided in this report is for informational purposes only. While every effort has been taken to provide accurate information, the completeness or accuracy of such information is not guaranteed. Certain statements in this report may constitute “forward looking” statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. The company profiled assumes no liability for the information presented. The information contained in this report should not be construed as offering investment advice. Those seeking direct investment advice should consult a qualified, registered, investment professional. 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. Trading accounts, including personal, family and corporate accounts, under the control of QIS Capital management currently hold 200,000 shares of Deer Horn Capital Inc. and 4,589,398 shares and 833,472 warrants of Newlox Gold Ventures Corp. QIS Capital is engaged in an advertising agreement with Deer Horn Capital Inc. and may trade the company’s common shares. No stock exchange has approved or disapproved of the information contained herein. Copyright ©2018, QIS Capital Corporation.