QIS Update #15 - 2017 - Corporate updates from Newlox Gold Ventures and Fairmont Resources, share consolidation for Opawica Explorations - December 6th 2017
Included in this update:
- Fairmont Resources provides corporate update and reports change to board of directors
- Newlox Gold Ventures achieves steady state gold operations in Central America
- Opawica Explorations consolidates its shares 5:1
The small-cap markets continue to be very challenging to identify quality, "undervalued" companies. We are finding lots of speculative situations, some of which have done incredibly well, but lack the steady cash flow and earnings that we are searching for. These are getting harder and harder to find as either fundamentals are deteriorating or valuations have increased so dramatically that stocks are trading at ridiculous valuations. We are getting lots of questions about block-chain and marijuana companies but we fail to see the current fundamentals despite the impressive performance in the markets. Many of you will remember that we regularly followed Quinsam Capital (QCA) which converted in May 2017 to a marijuana investment vehicle. The stock increased from $0.12 to $0.58.
We continue to look for new opportunities that are undervalued and offer decent trading liquidity as we endeavour to return to our investment roots that brought us so much success over the past 18 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.
Fairmont Resources Inc. (FMR:TSX-V)
Current Price: $0.02 (coverage commenced Feb. 18/16 - $0.025)
Fairmont Resources Inc. has announced that Innovacion, Soluciones Y Servicios Para La Commercialiacion S.L. (commercial name Eureka Trading) has filed in the Superior Court located in the District of Montreal, Province of Quebec to obtain enforcement of the judgement against Fairmont rendered on June 28th, 2017, by the Court of First Instance No. 5 in the city of Badajoz. Fairmont continues to pursue settlement options with respect to this issue.
Further to Prophecy Development Corp.'s (Prophecy) news release dated July 21, 2017, the company and Prophecy have mutually agreed to terminate the letter agreement for Prophecy to acquire the Buttercup project from Fairmont. Prophecy did not conclude its due diligence inquiries within the time-frame required in the letter agreement.
The company also announces that a customer's initial testing and purchase of dense aggregate from the Buttercup Property have been completed. The customer is expected to complete additional testing on the dense aggregate purchased, and if product acceptance with end users it is expected that the customer will purchase additional dense aggregate in 2018.
Photo's of equipment working at the Buttercup Property this summer and fall can be seen at this link: https://youtu.be/XbCy6qbfCjI
Fairmont also announces that Ernest M. Cleave has resigned as director. Fairmont wishes to thank Mr. Cleave for his services as director.
QIS Capital: We will continue to provide updates on Fairmount Resources as the company works to settle the Grabasa claims. We are not expecting any major corporate developments in the near future as the company is underfinanced and will likely not be raising money until the Eureka lawsuit has been settled. We are hoping for some positive developments with the testing at Buttercup as well as potential joint ventures on the company's other properties.
Newlox Gold Ventures Corp. (LUX:CSE)
Current Price: $0.075 (coverage commenced Mar. 31/14 - $0.05)
Newlox Gold Ventures Corp. has reported the successful application of its previously announced plant circuit modifications and upgrades at its gold tailings processing facility in Central America. The plant has achieved steady-state operations and is increasing throughput toward its targeted 80 tonnes per day. Plant efficiency now exceeds original expectations and is projected to improve over the coming weeks.
Newlox's metallurgical and engineering team has completed the design of the next phase of development, which is beneficiation of the concentrate and smelting. The company's in-house engineering team is directing onsite fabrication of required equipment. Commissioning is targeted for mid-December, after which Newlox plans to enhance sample analysis by establishing an on-site laboratory to ensure frequent testing of processed material.
Ryan Jackson, President of Newlox Gold Ventures Corp., states: "Impressive progress has been made in the company's operations over the past few weeks. Our beefed-up operations team is cooperating with Newlox's technical advisors to meet or exceed the company's objectives". "Adding real-time analytical testing will enhance Newlox's capabilities as it continues to deploy its business plan in Latin America", explains Mr Jackson.
With the completion of the design, construction, and commencement of operations at its first plant, and with a strengthened technical and operations team, Newlox Gold is advancing its previously stated plans to deploy its business model throughout Nicaragua where it has identified potential opportunities.
The company's full-time on-site team conducting the engineering and commissioning activities noted herein include the following:
MSc. Gonzalo Ramirez, Process Engineer:
- Seasoned process engineer with vast experience in the analysis, design, construction, and management of mineral resource projects
- Responsible for the design and construction of several notable gold production facilities in Central and South America.
- Experienced process engineer including management of mining projects, the design of electromechanical equipment and spare parts, and project management.
- Expertise extends to equipment and systems design utilizing advanced software, excelling in the design of maintenance programs for heavy machinery using TPM and RCM methodology.
Roberto Montalba, Civil & Metallurgical Engineer:
- Experienced in metallic mining, including iron, copper, and especially, gold.
- Project director of processing operations for numerous projects utilizing recovery technologies including heap leach, CIP, CIC, CIL, and Merrill-Crowe.
- Conducted research and development in the technical and economic evaluation of projects through start-up and operation
- Participated in major projects in Central America and South America.
Dr Rolando Perera Molina, Metallurgical Engineer (QP):
- Metallurgical engineer and a graduate of the Universitatii Politehnica din Bucuresti with a masters of science degree in extractive metallurgy.
- Practised profession continuously since 1983 and has been involved in the invention, research, development, patenting, and manufacture of a series of metallurgical products, under his brand Perbols38.
- Involved during his career in the evaluation, design, and operation of mineral processing facilities and recovery systems similar to those utilized by Newlox Gold Ventures Corp.
- Member of the Costa Rican Association of Engineers (C.I.Q.P.A.), with the designation of Metallurgical Engineer.
QIS Capital: This is all very exciting for Newlox Gold as the company prepares to recommence small-scale production. We expect to see a steady flow of news over the next 6 months as equipment is upgraded and progress is made toward steady production and cash flow. While the situation remains highly speculative, Newlox Gold is certainly in a much better position than this time last year with a stable balance sheet, an improved operational team, and active operations.
Opawica Explorations Inc. (OPW:TSX-V)
Current Price: $0.225 (coverage commenced May 11/17 - $0.225)
Pursuant to a resolution passed by shareholders on Nov. 23, 2017, the company has consolidated its capital on a one-new-for-five-old basis. The name of the company has not been changed.
Effective at the opening, Wednesday, Dec. 6, 2017, the common shares of Opawica Explorations Inc. will commence trading on the TSX Venture Exchange on a consolidated basis. The company is classified as a resource company.
Capitalization: unlimited shares with no par value, of which 6,024,191 shares are issued and outstanding.
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 1,404,500 shares and 787,500 warrants of Fairmont Resources Inc., 4,290,398 shares and 833,472 warrants of Newlox Gold Ventures Corp. and 55,000 shares 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.