Friday, May 31, 2019

Pure Nickel up 200% on Eric Sprott deal

Pure Nickel Inc. [NIC-TSXV; PNCKF-OTC] said Tuesday April 30 that it has signed a deal with a numbered company controlled by Eric Sprott that outlines the arm’s length terms for the acquisition by Pure Nickel of a 51% interest in the Neal Development Ltd. Partnership from Sprott Mining, and the option to acquire an additional 27% of the Neal LP and seven unpatented mining claims.

The Neal LP holds a lease to operate the Neal Project, a gold project consisting of five patented and seven unpatented lode mining claims located 27 km southeast of Boise, Idaho.

The Neal Project site was the most productive gold producer in the Neal Mining District, with underground production from 1889 through 1941, sourced mainly from the Hidden Treasure, Homestake and Daisy mines.

According to the US Bureau of Mines records, the Neal Mining District is estimated to have reported production of at least 30,000 ounces of gold, mostly from the Neal property.

Pure Nickel shares jumped 200% or $0.02 to $0.03 on volume of 4.5 million on Tuesday, making the junior the most actively traded stock on the TSX Ventures Exchange. The shares trade in a 52-week range of $0.01 and $0.03.

There are currently 200 outstanding limited partnership units in Neal LP, of which Sprott Mining owns 142. It has the option to acquire another 54 units (total 196 units or 98% of the units.). Four units are held by a separate party.

Under the agreement, Pure Nickel will acquire 102 units of Neal [51%] by issuing 10.2 million shares to Sprott Mining, an amount that represents 15% of the issued and outstanding shares of Pure Nickel. Once the deal is complete, Pure Nickel becomes the operator of the Neal Project.

Pure Nickel will have an earn-in option to acquire an additional 54 units [27%] of Neal LP and seven unpatented mining claims by raising up to $1.5 million for exploration drilling. On completion of this future financing, Pure Nickel has the option to pay Sprott Mining $84,706 ($1,568.63 per unit) causing Sprott Mining to exercise its option to acquire the remaining 54 units and assign them to Pure Nickel.

Sprott will also transfer its interest in the seven unpatented mining claims to Pure Nickel. Once the earn-in option is fully exercised, Pure Nickel will own 156 units or 78% of Neal LP, leaving Sprott with 40 units or 20%. A separate party will continue to hold the remaining four units or 2%

The Neal LP currently leases the core patented private property at the Neal Project from Daisy Mining & Land, LLP, and the underlying claim holders. Under the lease agreement, Neal LP may remove, extract, ship and sell ores, minerals and materials from the property.

In exchange, Daisy Mining will be entitled to receive lease payments equal to $3 per ton for all material removed from the property.

If the annual lease payment is less than $10,000, Neal LP will pay Daisy Mining as cash top-up to meet the $10,000 annual payment minimum. Daisy Mining will also receive production payments on any production in the form of a 3% net smelter royalty.

“We are very pleased that Eric Sprott has agreed to allow Pure Nickel to become the operating partner at the Neal Project, while at the same time becoming a significant shareholder of the company,” said Pure Nickel’s President and CEO David Russell.

- Source, Resource World

Monday, May 27, 2019

News Bites Is Fear Finally Coming Back?

Fear is finally making its way back into the financial markets and pushing gold higher, said Eric Sprott, billionaire precious metals investor and founder of Sprott Inc.

“The outlook for gold works against the market and that’s why it is up this week because the markets have been down about 3% across the board and there is fear coming back into things here,” Sprott said during Sprott Money’s Weekly Wrap-Up on Friday.

Spot gold opened stronger on Monday in Asian trading, up 0.10% on the day at $1,287.10, according to Kitco’s aggregated charts.

Investors hear conflicting things about the economy and inflation all the time, which drags gold prices in different directions, Sprott noted.

“There are great waves of macro-information flipping back and forth here. At the odd time, we’re told that the economy is great, and then we look at some of the data and the economy is awful. Inflation is rising, and then it’s not rising. The trade war is going to be settled, and then it’s not going to be settled. Each of these seems to be used as an excuse to move the prices around on COMEX,” he said.

The latest headlines keeping the markets worried are the trade war negotiations that are likely to be an ugly affair with no easy resolution, Sprott pointed out.

“You can just sense it. It is not going to be an easy negotiation. Obviously Chinese pushed back on things and the only option Trump had was to put more tariffs on. And this trade war … is going to have a big impact on earnings and sales all around the worlds and those who believe we are in the Goldilocks market might have to reconsider,” Sprott explained.

A more reliable measure when it comes to gold price direction is the physical side of the market, added billionaire precious metals investor.

“I always fall back on the physical side,” he said, highlighting impressive demand for the metal worldwide.

“China stepped up their buying to 15 tonnes last month. That I find very significant … Plus, we have these other government and central banks that are also buying,” he noted.

- Source, Kitco News

Thursday, May 16, 2019

All Manipulations End: Why The Future Looks Bright For Gold & Silver

“It’s funny how [gold] got smashed. Because it actually went up initially. It went down later, I think when [Powell] made some pro-growth comments in the interview after. But there’s been a lot of criticism of the Fed. 

We had some funny things happen. This IOER, the Inter-Bank Offered Excess Reserve Rate, something like that, was cut, and there’s a lot of suggestions that the Fed is losing control of interest rates. 

We still have an inverted yield curve, which does suggest that there’s no one out there thinking there’s any great amount of growth happening here.”

- Source

Friday, May 10, 2019

Eric Sprott: Think Numbers Don’t Lie? You’re Not Paying Attention

“It’s hard to imagine that [GDP] is actually growing at 3.2%. Particularly with the trade wars and every other darn thing that’s going on, and these companies that are coming out with horrendous reports on how their own business is going. So, I tend not to believe it. 

It looks like the market’s not believing it. As you and I discussed, the bond market’s rallying in the face of it. Gold is rallying in the face of it. So, maybe people are getting wise to looking through the numbers.”

Thursday, May 2, 2019

We’re In A New Bull Market For Gold: Patience is Key

“As you describe, the price of gold going down $20 in the week, it feels worse than that, if you know what I mean. 

And of course the reason it feels worse is it’s gone through a bunch of the moving averages…

I’m sure it’s 100% orchestrated. So I hope everyone can have the fortitude to hang in there. 

Every time I see these very, very sharp declines, you know it’s orchestrated. And typically it’s going to go right back up again. So, we’ll have to stand by and see what happens there.”

- Source, Sprott Money