QIS Update #15 2014 - May 16th 2014
Included in this update:
- Manado Gold provides update on private placement
- Newlox Gold Ventures lists on Xetra(tm) Exchange and provides company update
- QUATTRO Exploration and Production signs purchase and sale agreement at Donalda, Alberta and achieves substantial reserves value increase
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Manado Gold Corp. (MDO:TSX-V)
Current Price: $0.055 (coverage commenced Dec. 6/13 - $0.065)
Manado Gold Corp. has provided an update on its previously announced private placement financing of up to 5,000,000 units at a price of $0.05 per unit for gross proceeds of $250,000 (see news release dated March 27, 2014). Manado completed the first tranche of its private placement financing on April 22, 2014 by issuing 1,500,000 units at a price of $0.05 per unit for gross proceeds of $75,000. Manado anticipates that it will close its final tranche within the next two weeks.
Each unit will continue to consist of one common share of Manado and one non-transferable share purchase warrant, with each warrant entitling the holder to purchase one additional common share at a price of $0.06 per common share for a period of three years following the closing date of the private placement financing.
The proceeds of the private placement financing will be used for mineral exploration on Manado’s Takla-Rainbow Property and working capital purposes.
Closing of the proposed private placement financing is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including approval of the TSX Venture Exchange.
QIS Capital: Anyone wanting to participate in the second tranche of this placement should contact QIS Capital immediately. While there isn’t a significant discount to market price on the original private placement price, the 3 year warrant at $0.05 could certainly prove to be very valuable should the company’s share value rise during the next 36 months.
Newlox Gold Ventures Corp. (LUX:CSE)
Current Price: $0.04 (coverage commenced March 31/14 - $0.05)
Newlox Gold Ventures Corp. advises that the company’s common shares are now trading on Deutsche Börse Group’s XETRA® trading platform, with the requisite bank sponsorship under the symbol NGO. The shares continue to trade on CSE and Frankfurt.
XETRA® is the leading European trading platform offering some 900,000 tradable products including more than 11,000 German and international stocks. Among them are well-known blue chip companies such as Siemens, BMW, Daimler, and Bayer. The platform is known for its integrity, stability and security as well as cost-efficient trading on a highly liquid market. XETRA® provides a pan-European trading network with some 250 participants in 18 countries and more than 4,500 authorized traders.
The XETRA® listing marks a further step in Newlox’s commitment to broaden and enhance trading of the company’s common shares and is one of many initiatives planned to further increase market awareness for the company.
Gold Recovery and Soil Remediation Project – Costa Rica
Newlox, through its local subsidiaries, has a series of arrangements in Central America whereby it has access to inventories of historical gold bearing waste dumps. The company will reprocess these materials in a cost effective and environmentally responsible way. Under the guidance of Professor Marcello Veiga, Newlox’s Senior Technical Advisor, it has installed a small processing facility which is proving effective in upgrading the materials from an average of 22 grams per tonne to over 300 grams per tonne of gold.
A second phase of the circuit has been purchased and, when operational, it is expected to recover the fine gold and increase recovery by ten times the current amounts. The pilot plant is rated for throughput of 48tpd and is targeted to be fully operational by month end. Once the first plant is functioning at designed criteria, the company plans to deploy small self-contained (non polluting) processing plants across numerous identified locations throughout Latin America. Newlox anticipates that this initiative will be embraced by local stakeholders while providing Newlox with a fast-track route to low cost precious metals production without the risks and costs associated with exploration, drilling, and mining.
In keeping with the strategy of delivering operational cash flow to support organic growth, the Newlox team has also fielded a gold trading platform in Latin America whereby the company purchases gold from various sources in the field before reselling the metal through established networks. By employing a rapid turnaround on purchases at high volume, Newlox has been able to generate meaningful revenue based upon modest margins per transaction while mitigating risk associated with commodity price volatility. The company’s gold trading program is progressing well. Margins are within expectations and volumes are increasing satisfactorily at 20% monthly.
Expansion - Nicaragua
The company has established a subsidiary in Nicaragua, in anticipation of replicating its remediation and trading model there where it has local support from the authorities including the Chamber of mines and the Nicaraguan Promotion Agency (PRONICARAGUA).
Newlox’s environmental reclamation approach is intended to provide valuable environmental and social benefits to local stakeholders while simultaneously generating meaningful revenue. With mercury contamination due to artisanal mining emerging as a major issue in Latin American politics, Newlox is receiving strong encouragement from local government officials.
QIS Capital: Newlox continues to roll out its business plan as a low cost remedial gold producer with an environmental focus. The company is now processing tailings and has set up its gold trading platform, both of which should contribute significantly to future financial results. Newlox is scheduled to report its Q4 and annual results, for the year ended March 31, 2014 by mid-to-late July.
QUATTRO Exploration and Production Ltd. (QXP:TSX-V)
Current Price: $0.72 (coverage commenced Mar. 24/14 - $0.32)
QUATTRO Exploration and Production Ltd. has announced, following the completion of both the Milo and Donalda Acquisitions (Donalda by the end of May with a February 1 effective date), and the ongoing efforts of Quattro's operations team, that the company has achieved the following milestones in the first quarter of 2014;
- Increased average production by 210 boe/d, 18 Bopd of oil and liquids and 192 boe/d of Natural Gas, for the quarter ended March 31st, 2014, resulting in average production of 1250 boe/d for the period (not including the Donalda production, adding an additional 100 boe/d at the end of May).
- Continuing efforts at Donalda and Bashaw, Alberta, reducing costs by 20% to date, half way to the target of a 40% operating cost reduction as budgeted to be achieved by September 2014.
- 2P Reserves of 6.27 mmboe with a NPV10% value of $84.7 million, representing a 200% replacement of the trailing 12 months production and a 25% increase in reserves from the 5.03 mmboe reported in Quattro's 51-101 compliant report for the year ending 2013, prepared by Deloitte Advisory Services.
The April 1st update was internally prepared by Quattro, and is provided as guidance and a comparison to our Year End 2013 Engineering completed by Deloitte, prior to the acquisitions announced March 25th, 2014.
|Year end 2013||April 1, 2014|
|Reserves 2P||5,030,000 boe||6,265,700 boe|
|NPV 10% 2P||$ 54,900,000||$ 84,700,000|
Leonard Van Betuw, President and CEO commented, As we announced in our March 25, 2014 news release, the acquisitions completed represent the measured execution of Quattro's business plan, a combination of consolidations, remediation and development drilling, within our core area consisting of 190,000 acres.
The first quarter 2014 is the solidification of our foundation, 6.27 million boe of reserves with a book value of $42.5 million, $11.50/bbl for the Company's oil and liquids and $ 0.54 per mcf for natural gas. Our low cost production continues to grow as anticipated, with a focus on achieving annualized cash-flow that positions us to grow organically to more than 6,000 boe/d in 2016, through further remediation and development drilling.
Quattro continues to be pleased with the results of our strategy, through the execution of a diversified, low-risk material growth plan in western Canada, we continue to focus on our commitment to increasing corporate value both in western Canada and Central America, stated Mr. Van Betuw.
QIS Capital: Quattro is nearing the release of its Q1 financial and operating performance which has to be released by the end of May. This quarter should give us a good comparison for the company with a full quarter of cash flow and production following the acquisition. Of particular note in this latest release is the NPV10% of the 2P reserves at $84.7 million. The book value of these reserves is estimated at $42.5 million or $1.21 per share.
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 286,000 shares and 200,000 warrants of Manado Cold Corp., 505,000 shares of Newlox Gold Ventures Corp., and 85,000 shares of Quattro Exploration and Production Ltd. 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 - 2014 QIS Capital Corporation.