The BMR Portfolio (Part 2 of 3)
Gold Bullion Development (GBB, TSX-V)
It was an important week for Gold Bullion as the company announced it has arranged its largest financing ever, a $6 million non-brokered private placement at 54 cents…each of the approximate 11 million units includes a half warrant at 75 cents…the advantages of a measured financing now are very clear…the company increases its cash resources to nearly $9 million, ensuring it has all the capital it requires to carry out even more aggressive exploration at Granada without the need to go back to the market for another financing until at least the spring of next year…the way this project is developing, Gold Bullion at some point will require a lot more money than it’s now raising but chances are that can be done at significantly higher prices next year if results start to come in as expected at Granada…a $6 million financing now is not very dilutive (less than 10%), and some key players get positioned in the stock at a favorable price (earlier this month GBB hit an all-time high of 79 cents)…the stock has stabilized and has tremendous technical support in the low 50’s where the rising 100-day moving average is located…on the ground in the LONG Bars Zone, Gold Bullion is completing an additional 5,000 metres of drilling with GENIVAR going after some high priority targets… another set of assay results can’t be far off and we’re expecting even better numbers than those released just over 2 weeks ago based on GENIVAR’s visual observations as reported in Gold Bullion’s September 9 news release…the stock closed Friday at 55 cents, a 3-cent drop for the week…Frank Basa is executing his plan at Granada – DRILL, DRILL, and DRILL some more…given our very bullish outlook for Gold and the CDNX over the next 6 months, and our understanding of the potential of the LONG Bars Zone, the Son of Osisko is rising in northwestern Quebec and could soon be shining very brightly…
