Giga Metals and Triumph Gold Just Filled Their Coffers With Huge Funding Deals

Palisade Research July 12, 2018
Category: Research

Triumph Gold Corp. (CVE:TIG, FRA:8N61, OTCMKTS:NFRGF) – Cash Infusion from Chinese Mining Powerhouse, Zinjin Mining Group

Share Price: C$0.325

Shares Outstanding: 78.4M

Market Capitalization: C$25.5M

Cash: C$7.3M

Total Liabilities: C$0.4M

 

Triumph Gold has raised C$5.12 million via private placement.

The financing was primarily institutional investors – which includes Zinjin Mining Fund as a new investor.

We at Palisade, by cutting a $1,015,000 check, have maintained our interest at 17.5% – or 20.9% on a partially diluted basis – while Goldcorp Mining’s exercised their right to top up to a 19.9% by investing an additional $950,000 ownership.

In fact, Goldcorp’s investment bumped their ownership to 19.999% – they wanted as much as they could get while staying under 20%.

Lastly, Swiss based gold fund – Gold 2000 – invested $500,000 in the financing and now owns 9% of Triumph. . .

Goldcorp’s continued endorsement – and now Zinjin’s $2.5 million investment – is incredible validation of the Freegold Mountain Project and Triumph’s exploration philosophy. With Goldcorp’s recent investment also comes access to their technical team – something Triumph will continue to utilize.

The cash will be used for exploration – Triumph currently has two diamond drills on the property and is in the middle of an 18,000-metre drilling program.

The 2018 exploration program began in late March to capitalize on frozen ground in the Keirsten Zone, which is largely overlain by a swamp. Triumph will drill 1,900 meters at the Keirsten Zone and will target a newly discovered porphyry system.

Phase 1 drilling of the Keirsten zone will also test and advance the exploration concept that Revenue and Nucleus are not discrete deposits, but instead they are parts of a five- to six-kilometre-long magmatic-hydrothermal mineralizing system with porphyry and epithermal components.

The Keirsten zone is centred almost exactly between the Revenue and Nucleus deposits and represents a high-priority exploration target as a potential core or focus of the broad mineralizing system.

The 2018 exploration program is planned to include drilling at Revenue, Nucleus, Tinta Hill and at the Irene showing. Additional exploration activities will include trenching and geophysical and soil geochemistry surveys.

 

Giga Metals Corporation (CVE:GIGA, FRA:BRR2, OTCMKTS:HNCKF) – Cashes up with $10M Royalty Sale – Shares Are Now Trading Far Less Than The Cash In Their Bank

Share Price: C$0.29

Shares Outstanding: 42.1M

Market Capitalization: C$12.4M

Cash: C$4.0M

Total Liabilities: C$0.1M

 

After yesterdays news – Giga Metals is now sitting on more than C$5 million more than their entire market-cap. . .

Giga Metals has agreed to sell a 2% net-smelter return (NSR) royalty on all future metal production from the Turnagain project – one of the worlds largest undeveloped sulphide nickel and cobalt projects – to Cobalt 27 (CVE:KBLT, FRA:27O) for $1 million in cash payment and $9 million in common shares of Cobalt 27, at an issue price of C$10.50 per share, for a total of 1.125 million shares.

Under the terms of the agreement – Giga will use 75% of the proceeds to complete the work required in advancing their Turnagain Project to the Pre-feasibility stage – and for further exploration.

The importance of this royalty shows the huge potential of the Turnagain Project. . .

Giga’s already began exploration work – the company’s planning to drill 9,600 meters that will test several high-impact exploration targets and to infill to support prefeasibility studies. The company will also perform geophysical surveys and trenching to define new targets they can explore.

Exploration targets include three unexplained magnetic anomalies. Project geologists theorize that the lower portions and roots of the Turnagain project’s magmatic complex were displaced by faulting. Giga plans on determining if these anomalies represent the roots – or feeder conduits – to the Turnagain complex; feeder zones of intrusive complexes can contain accumulations of massive sulphides.

If this is the case at Turnagain – it can be a significant gamechanger for the project and company going forward.

I can’t forget to mention that including the capital injection from Cobalt 27, Giga Metal’s sitting on over C$17 million of cash and securities – which is much more than their current market cap.

This gives investors a thick margin of safety. . .

 

Palisade Global Investments Limited holds shares of Triumph Gold and Giga Metals. We receive either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate. The information contained in such write-ups is not intended as individual investment advice and is not designed to meet your personal financial situation. Information contained in this report’s from sources we believe to be reliable, but its accuracy cannot be guaranteed. The opinions expressed in this report are those of Palisade Global Investments and are subject to change without notice. The information in this report may become outdated and there is no obligation to update any such information. Do your own due diligence.

 

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