QIS Update #16 - 2017 - Newlox Gold Ventures and Fairmont Resources appoint executives, NTG Clarity Networks announces contracts - December 21st 2017
Included in this update:
- Fairmont Resources appoints new President & CEO
- Newlox Gold Ventures adds new technical advisor and successfully tests new technology
- NTG Clarity announces shares for debt settlement and receives 4 new Purchase Orders
First of all we would like to wish all of our subscribers a very Merry Christmas and a Happy and Prosperous New Year. It's been a challenging year for QIS Capital and we appreciate the support of all of our investors. We are working to bring some new content early in the New Year and will be returning to our proven profitable, cash flow focus for new issues.
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Fairmont Resources Inc. (FMR:TSX-V)
Current Price: $0.025 (coverage commenced Feb. 18/16 - $0.025)
Fairmont Resources Inc. has appointed Michael Lerner as president, chief executive officer and a director. Michael Dehn has stepped down as an officer of Fairmont, but will continue as a director.
New chief executive officer and president.
Effective Dec. 13, 2017, Mr. Dehn has resigned as an officer of Fairmont. Fairmont wishes to thank Mr. Dehn for his dedication to Fairmont during his undertaking. Mr. Dehn will continue as a director of Fairmont.
Mr. Lerner has been appointed president, chief executive officer and director of Fairmont, effective Dec. 13, 2017. Mr. Dehn brings with him more than 20 years of experience in the natural resources market, starting as an institutional trader at CIBC and Wellington West, and then as a professional trader and financier focused on junior mining stocks at Dominic and Dominic. Since 2012, Mr. Lerner has become more involved in the operations of junior mining companies as an officer or director of public companies including Happy Creek Minerals, Jiminex Inc. and Navasota Resources where he has helped to turn around these companies.
QIS Capital: We have spent many hours speaking with Michael Dehn over the past few years as we have been following Fairmont Resources. Unfortunately, due to the failed bid to acquire the Grabasa assets and the subsequent lawsuit from Eureka Trading, a management change was required in the best interest of shareholders. Mr. Lerner is working to resolve the Eureka Trading lawsuit and has been influential in restructuring a number of micro-cap resource companies. We expect to see further details in this regard early in the new year.
Newlox Gold Ventures Corp. (LUX:CSE)
Current Price: $0.065 (coverage commenced Mar. 31/14 - $0.05)
Newlox Gold Ventures Corp. has appointed Dr. Luis Sobral to the advisory board of Newlox Gold as senior environmental technical adviser.
Dr. Sobral graduated in chemical engineering from the Federal Rural University of Rio de Janeiro (1973). In early 1979, he joined the Centre for Mineral Technology (CETEM) specializing in a metal surface-finishing project at the Nago International Training Center in Japan.
Dr. Sobral has been head of the hydrometallurgy and biohydrometallurgy group for more than 30 years at Centre for Mineral Technology (CETEM), under the Brazilian Ministry of Science and Technology (MCTI). He presided over numerous MSc and PhD thesis projects focused on the mining and chemical sectors regarding the use of elemental mercury in different industrial branches. He assists many chemical, industrial and mineral processing plants in Brazil and abroad to maximize the efficiency of their processes while minimizing environmental impact. In particular, Dr. Sobral is interested in working with small-scale gold miners to raise awareness concerning the characteristics of mercury and safe handling procedures.
He has extensive experience in materials engineering and metallurgy, with an emphasis in electrochemical engineering and electrometallurgy, working mainly with mercury contamination in artisanal mining. His expertise extends to electrorecovery and electrorefining of metals, precious metals in particular at the Brazilian Mint and other government mints around the world, as well as the impacts of heavy metals on the environment.
Since 2005, Dr. Sobral has designed, developed, and optimized research and commercial facilities utilizing bioleaching to recover precious and industrial metals. He is a recognized authority on the subject and has published a book entitled "Biohydrometallurgical Processes: a Practical Approach" which he provides free of charge to advance research and development in this field.
Dr. Sobral and his colleague Julia Nascimento Souza, a chemical engineer at the Federal University of Rio de Janeiro, have inspected the recently commissioned Newlox processing facility and the surrounding artisanal mining district. This visit allowed evaluation of local conditions, review of the company's processing operations and testing of a cutting-edge system recovering deleterious materials from local historical artisanal mining waste.
The partnership of Newlox Gold and CETEM is pleased to report that the equipment designed by Dr. Sobral's team successfully recovered heavy metals from historical tailings. This bench-scale test advances the company's goal of environmental reclamation and precious metals recovery operations, to provide both environmental and social benefits from stand-alone business ventures as opposed to government-subsidized projects.
Ryan Jackson, Newlox's president, commented: "Having just completed a week-long visit with Dr. Sobral and Julia Souza at the company's recently commissioned processing facility, we are delighted to have Dr. Sobral join the Newlox team as senior environmental technical adviser. The test of an innovative prototype designed at CETEM to remove historical contamination was a resounding success and we look forward to integrating the first full-scale unit."
With success at its first plant and having a strengthened technical and operations team, Newlox now plans to deploy its business model on opportunities in Nicaragua.
QIS Capital: Newlox continues to move toward the recovery of small-scale gold from artisanal tailings along with environmental reclamation with the removal of mercury and other harmful metals. The company has been making good progress with its equipment modifications and should be doing a test pour in the very near future. We expect to see continued newsflow from Newlox early in the new year and have our fingers crossed that the company can capitalize on its business plan and thus add significant shareholder value.
NTG Clarity Networks Inc. (NCI:TSX-V)
Current Price: $0.07 (coverage commenced Feb. 4/10 - $0.045)
NTG Clarity Networks Inc. plans to issue up to six million common shares of the company at a deemed price of six cents per share to settle indebtedness of approximately $360,000 owed to employees, senior officers, directors and consultants of the company. The transaction will help NTG reduce it debts and improve its balance sheet. Completion of the transaction is subject to customary conditions, including approval of the TSX Venture Exchange.
A portion of the shares-for-debt transaction will be a related-party transaction within the meaning of applicable Canadian securities laws as some of the subscribers include directors and officers of the company who will subscribe for an aggregate of 1.65 million common shares in settlement of indebtedness of $99,000. The board of directors of the company approved the transaction, with the directors participating in the transaction having abstained from the approval. The transaction will be exempt from valuation and minority approval requirements applicable to related party transactions on the basis that the value of the transaction is less than 25 per cent of the company's market capitalization.
The company anticipates filing a material change report less than 21 days prior to closing the transaction in order to improve the company's financial position as expeditiously as possible.
NTG CLARITY RECEIVES 4 POS IN EGYPT WITH AN ESTIMATED VALUE OF 8 MILLION EGP ($580,000 CAD)
NTG Clarity Networks Inc. has received four purchase orders in Egypt:
- - The first purchase order is from one of the biggest fertilizer companies in the Middle East for a total value of 2.5 million Egyptian pounds ($178,000). NTG will implement Oracle Database Appliance (ODA) and perform data migration and a software upgrade to fusion Middle Ware. This project should be completed in four months.
- - The second purchase order is an extension of NTG StageEM implementation announced early this year. The value is approximately two million Egyptian pounds ($144,000). This is to implement business processes and implement NTG StageEM on the customer's cloud. The work on this project will be completed in the next four months.
- - The third purchase order is to implement NTG's StageEM system for a large telecom provider. The value is approximately for 2.6 million Egyptian pounds ($188,000). StageEM will provide service fulfilment and inventory management for the services provided by this customer. This project is a 16-month project and will start in January, 2018.
- - The fourth purchase order is for the extension of services with an existing customer. The value is approximately 975,000 Egyptian pounds ($70,000).
"We are very pleased with these new purchase orders as it demonstrates the continuing trust of our customers and the expanded growth in the customer base. This is in addition to the existing work that is ongoing. This is a very good start for the new year," said Adel Zaghloul, NTG Clarity's Egypt chairman and chief executive officer.
QIS Capital: We received a number of calls on NTG Clarity over the past week as trading volume increased dramatically and the share price more than doubled at its peak. We have still not been able to determine what was responsible for the sudden increase in volume. Following a return to profitability in the third quarter, the stock was trading at a depressed annualized p/e multiple of just 3 times. At the current price the annualized p/e multiple is just under 6 times. The new purchase orders received will generate further revenue in fiscal 2018 and early fiscal 2019. Management has indicated that financial performance should continue to improve going forward as new revenues are generated and the company sees the full impact of cost cutting measures instituted throughout 2017.