QIS Update #17 - 2018 - New Company profile posted and Deer Horn Capital signs LOI - October 30th 2018
Included in this update:
- Deer Horn Capital Signs LOI to Purchase Colorado Tellurium Property (DHC:CSE)
- Full profile for International Frontier Resources (IFR:TSX-V) has been released
To say that the markets have been unsettled during October would be a major understatement. The DOW hit an all time high in early October of 26,952 and has since fallen 9.3%. The TSX started the month above 16,000 and has since declined 8.4%. And of course the small-cap stocks continue to be the hardest hit with losses of 12% for the month. The Venture started 2018 above 850 points and is now off an incredible 26.4% in the last 10 months. Not a great year for small-cap investors.
To do well in this market you pretty much need to hit a home run. While we are comfortable with the underlying value and long term prospects for most of the stocks we hold, our two latest Feature Companies, Deer Horn Capital and International Frontier Resources have the home run factor which has already resulted in great gains for those who picked up Deer Horn when we first featured the company (up 200% to subsequent high).
Best of luck to all of our readers as we trudge through challenging markets ... and Happy Halloween!
Please feel free to email us anytime at firstname.lastname@example.org or call us at (250) 377-1182. We look forward to your comments, questions, and feedback.
Deer Horn Capital Inc. (DHC:CSE)
Current Price: $0.25 (coverage commenced April 10/18 - $0.17)
DEER HORN CAPITAL SIGNS PURCHASE OPTION LOI ON FORMER FIRST SOLAR, INC. TELLURIUM PROPERTY
Deer Horn Capital Inc. has signed a binding letter of intent (LOI) with Colorado Klondike LLC to acquire a purchase option on the Colorado Klondike tellurium property located in south-central Colorado, United States. The Colorado Klondike property is a tellurium prospect held previously by First Solar Inc. as a potential primary source of tellurium for the company's cadmium-telluride (CdTe) solar panels. Colorado Klondike LLC, operated by former First Solar management, acquired the property in 2013 after First Solar terminated its worldwide raw materials exploration program.
The Colorado Geological Survey (CGS), in partnership with the Colorado School of Mines, reported on work performed by First Solar on the Colorado Klondike property in the 2015 Colorado Mineral and Energy Industry Activities 2014 to 2015 publication. In particular, the CGS noted:
"Surface sampling by First Solar, Inc. in 2006 found very high tellurium grades of up to 3.3% (33,000 ppm), along with locally high gold grades. Tellurium occurs principally as the native element and as altaite, a lead-telluride mineral. First Solar is the world's largest manufacturer of thin-film solar modules and tellurium is a critical element in the photovoltaic material. Tellurium grades at Klondike were the highest encountered in the company's nationwide exploration program. First Solar acquired the land in 2010 and began systematic exploration including geophysical investigations. However, the company discontinued their tellurium development program in early 2012 and sold the property to Colorado Klondike LLC."
Surface samples such as these are preliminary in nature and not conclusive evidence of the likelihood of a mineral deposit.
"We're very happy to be expanding our tellurium property portfolio at a time when technology is discovering important new applications for the metal," said Deer Horn president and chief executive officer Tyrone Docherty. "It's also important that Colorado Klondike gives us an asset that can be explored for most of the year."
First Solar also conducted geophysics, drill program planning and permitting on the Colorado property, preparing for an extensive exploration program before selling the property to Colorado Klondike LLC.
The Colorado Klondike property is located 10 miles (16 km) from the small town of Saguache and is easily accessible via paved and gravel roads. It is situated on the lower, south-facing slopes of the Cochetopa Hills on the northwest margin of the semi-arid San Luis Valley. Although the average elevation is 9,300 feet (2,835 metres), the area receives just 40 to 50 inches (100 to 150 centimetres) of snow in a typical winter due to its sheltered position east of the Continental Divide. Annual precipitation averages 12 to 14 inches (30 to 36 cm). Most exploration work can be performed year-round.
Deer Horn is conducting further due diligence on the property in anticipation of signing a full agreement later in the year.
QIS CAPITAL: This high grade property is strategically important for Deer Horn as the company builds its tellurium portfolio and further strengthens its relationship with First Solar. Demand for tellurium continues to grow as new technologies require the rare mineral in a variety of exciting applications. Deer Horn has established vital relationships with key players in the industry and is gaining increasing interest from players looking to enter the industry. Deer Horn will continue to require new capital to develop its properties and is looking at a number of alternatives to continue to advance its interests.
International Frontier Resources Corporation (IFR:TSX-V)
Current Price: $0.145 (coverage commenced Oct 21/18 - $0.13)
International Frontier Resources Corporation, through its Mexican subsidiary, Petro Frontera S.A.P.I de CV (Frontera) and strategic joint ventures, is advancing the development of petroleum and natural gas assets in Mexico. The company also has projects in Canada and the U.S., including the Northwest Territories and Montana.
Investing in Mexico’s Energy Reform is an unprecedented opportunity. No market in the world holds greater potential for companies to acquire, develop and produce existing oil and gas assets. International Frontier and its joint venture partners are one of the first operators in the area.
International Frontier has commenced production from its TEC-10 well and a successful workover at TEC-2. The company is preparing to drill its first horizontal well, TEC-11, and will be participating in the next land auction in February 2019.
A full profile for International Frontier is now available on our website at: www.smallcaps.ca
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 260,500 shares and 15,000 warrants of Deer Horn Capital Inc. and nil shares of International Frontier Resources Corporation. QIS Capital is engaged in an advertising agreement with Deer Horn Capital Inc. and may trade in Deer Horn's or International Frontier's common shares. No stock exchange has approved or disapproved of the information contained herein. Copyright ©2018, QIS Capital Corporation.