QIS Update #18 - 2018 - Deer Horn Capital private placement, International Frontier spuds well and Newlox Gold signs pilot plant contract - November 19th 2018
Included in this update:
- Deer Horn Capital Completes First Tranche of $500,000 Private Placement (DHC:CSE)
- International Frontier Spuds its TEC-11 Horizontal Well in Mexico (IFR:TSX-V)
- Newlox Gold Signs Pilot Plant Development Contract with Argo Applied Technologies (LUX:CSE)
It was another rough week for small-cap stocks as the TSX Venture hit another two and a half year low at 612 points. Oil stocks have been hit particularly hard as global oil prices plunged back to the mid $50s while Canadian producers are still struggling with record differentials due mainly to delivery constraints. With interest rates continuing to rise we don't see much relief for small-cap manufacturers and capital intensive businesses. However, the more we move into global uncertainty and higher inflation, the chance of a highly anticipated rise in small-cap mining issues continues to strengthen.
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Deer Horn Capital Inc. (DHC:CSE)
Current Price: $0.24 (coverage commenced April 10/18 - $0.17)
Deer Horn Capital has completed the first tranche closing of its previously announced private placement and has issued a total of 400,000 units for aggregate gross proceeds of $80,000. Each unit is composed of one common share and one common share purchase warrant. Each whole warrant is exercisable into one common at a price of 25 cents per share for a period of one year.
The company intends to raise up to $500,000 by way of a non-brokered private placement of up to 2.5 million units of the company at a price of 20 cents per unit.
Each unit will consist of one common share in the capital of Deer Horn and one common share purchase warrant. Each warrant will be exercisable into one common share for a period of one year at a price of 25 cents per share. The securities issued in connection with the offering will be subject to a hold period expiring four months and one day from the date of issuance of such securities.
In connection with the private placement, the company may pay finders' fees to arm's-length parties who introduce subscribers for the units.
The proceeds of the private placement will be used for general working capital purposes.
QIS CAPITAL: Anyone wishing to participate in Deer Horn's private placement can contact us at firstname.lastname@example.org or by calling (250) 377-1182. This placement is open to accredited investors or those already holding shares in the company.
International Frontier Resources Corporation (IFR:TSX-V)
Current Price: $0.15 (coverage commenced Oct 21/18 - $0.13)
Tonalli Energia, International Frontier Resources Corp.'s joint venture (JV) with Mexican petrochemical leader Grupo IDESA, has spudded the first conventional horizontal well (TEC-11) at its onshore Tecolutla block:
- - TEC-11 is planned to penetrate the El Abra reef at a vertical depth of approximately 2,310 metres with a horizontal leg of up to 1,000 m.
- - TEC-11 is the first horizontal well in a potential multi-well plan to develop the northern extension of the Tecolutla field that has been identified on Tonalli's interpretation of the 3-D seismic.
- - Tonalli will deploy a LWD (logging while drilling) rotary steerable directional system to optimize hole quality and wellbore placement and to guide subsequent completion operations.
- - Information gathered from Tonalli's recently drilled TEC-10 vertical well, including permeability, porosity and pressure data, indicates that the reef at Tecolutla is capable of high deliverability.
The Tecolutla field is located within the Tampico-Misantla basin, which has multiple reservoirs with diverse play types as well as access to existing infrastructure, market, service sector providers and an established supply chain. In 2017, IHS Markit identified the Tampico-Misantla basin as a potential superbasin.
Through its JV with Grupo Idesa, International Frontier was one of the first foreign companies to participate in Mexico's historic reform of the oil and gas sector. The Tecolutla block was awarded to Tonalli as part of the first round and third call of Mexico's oil and natural gas mature fields bid round.
QIS CAPITAL: This is a major event for International Frontier as the TEC-11 horizontal well has the potential to produce 5-6X what is currently being produced at TEC-10. If successful, the company and its joint venture partners have a number of follow-up wells to develop this large land block.
Newlox Gold Ventures Corp. (LUX:CSE)
Current Price: $0.03 (coverage commenced Mar. 31/14 - $0.05)
NEWLOX GOLD VENTURES AND ARGO APPLIED TECHNOLOGIES TO DEVELOP GROUND-BREAKING CLEAN GOLD PRODUCTION TECHNOLOGY
Newlox Gold Ventures Corp. has signed a pilot plant development contract with Argo Applied Technologies, a British natural resources technology company, to develop and deploy cutting-edge clean gold production technology.
This partnership follows up on significant research and development, which has taken place over the past year at the University of Leicester, where samples collected from Newlox Gold Ventures' projects in Central America have been used to evaluate innovative and environmentally positive mineral recovery technologies in a laboratory setting.
Argo Applied Technologies and Newlox Gold Ventures are now endeavouring to apply this groundbreaking technology to the mineral processing field. Research completed over the past year has yielded very encouraging results and provides a solid foundation for Argo Applied Technologies to build upon and commercialize.
Argo Applied Technologies' DESion technology is based on the use of deep eutectic solvents, developed at the University of Leicester, to process mineral ores. DESion presents a non-toxic, environmentally safe processing option for the recovery of precious metals and mercury from Newlox Gold Ventures' feed material. Initial testwork completed by Argo Applied Technologies has already indicated the potential for the very rapid dissolution of both gold and mercury by DESion, which is faster than the industry standard leaching technologies available today.
The ability of deep eutectic solvents to dissolve and selectively recover virtually any metal while requiring no water and no toxic processing inputs is a paradigm shift for the industry. The deep eutectic solvents technology underlying DESion was first utilized in the aerospace industry 20 years ago to recycle superalloy metals. Argo Applied Technologies is now applying this technology to the metals and mining sector.
The contract is to be executed in phases to perform the required laboratory testwork to enable construction of a pilot plant suitable to process the artisanal gold tailings feed from Newlox Gold Ventures' projects. The primary target of the pilot plant is to evidence that Argo Applied Technologies' DESion technology process provides a commercially and environmentally superior alternative to current industry standards and could benefit Newlox Gold Ventures' current planned project design in relation to the processing artisanal gold tailings.
"We are very excited by this development opportunity with Argo Technologies, and Argo's philosophy fits in with Newlox's own strategy of recovering gold through socially and environmentally responsible processes, recovering contaminants and residual precious metals from historical waste. Argo's initial results testwork, especially in relation to the potential recovery of mercury and the rate of recovery of gold, has prompted Newlox to work with Argo," commented Ryan Jackson, president of Newlox Gold Ventures.
"Applying deep eutetic solvents to the global mining industry is a core objective of Argo. We are very pleased to be able to announce this contract and the wider collaboration that we will undertake with Newlox Gold as a customer. Reducing the environmental and social impacts of mining is a core advantage for mining companies using DESion, rather than conventional metals processing techniques," commented John Murray, a director of Argo Applied Technologies.
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 282,500 shares and 65,000 warrants of Deer Horn Capital Inc., 6,500 shares of International Frontier Resources Corporation, and 4,499,398 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 in the common shares of Deer Horn Capital, International Frontier or Newlox Gold Ventures. No stock exchange has approved or disapproved of the information contained herein. Copyright ©2018, QIS Capital Corporation.