TD Securities’ Global Precious Metals team released a bearish short-term forecast on gold this morning, as follows:
Gold never retested the highs yesterday and our idea to fade rallies towards $1,620 worked nicely. Today is Comex Options expiry and the market waits to see if a push towards the large open interest (18,600 lots) in the $1600 calls will drag the price lower later on in the day. The market is very long here and wants bad news to drive gold higher – so the pain is clearly to the downside. We’ll look to buy gold on a dip towards $1,570 should we see it.
Spanish Mountain Gold Raises C$15 Million
Spanish Mountain Gold (SPA.TSXV) announced a C$15 million private placement offering comprised of up to 25 million units at C$0.60. Each unit consists of one common share and one-half of one share purchase warrant. Each warrant entitles the holder to acquire an additional common share of the Company at a price of C$0.70 per share for a period of two years. The offering is expected to close by July 7, 2011. Full Spanish Mountain Gold News Release.
Brian Groves, President and CEO:
“The exploration drilling was successful in demonstrating that the potential exists to expand the areas of mineralization to the east and west. Additional drilling will be done in 2011 to better define the continuity of mineralization in these areas.”
HIGHLIGHTS:
- The proceeds from the offering will be used to advance the development of the Company's Spanish Mountain gold project in Canada, to explore the contiguous Cedar Creek claims and for general corporate purposes.
- All of the securities issued in connection with the offering will be subject to a four-month hold period in accordance with applicable Canadian securities laws.
- Pursuant to the offering, Mr. Ian Watson, a director of the Company, is expected to acquire 5 million of the units for approximately C$3 million. This represents approximately 20% of the offering and 3.19% of the issued and outstanding shares after the completion of the private placement. In addition, certain directors and officers of the Company are expected to acquire an aggregate of 800,000 units.
Paul Dietrich, Foxhall Capital Management:
“This Canadian gold mining development company has a market cap of about $74 million and has, by my calculations, some of the cheapest in-the-ground gold in the world that is located in a politically stable country.”
spanish mountain map
INTERACTIVE SPA NEWS RELEASES
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