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December 23, 2015

BMR Morning Market Musings…

Gold has traded between $1,068 and $1,076 so far today…as of 9:30 am Pacific, bullion is down $3 an ounce at $1,069…Silver is up slightly at $14.29…Copper has added 2 pennies to $2.13…Crude Oil has rallied $1.55 a barrel to $37.69 while the U.S. Dollar Index has gained one-third of a point to 98.55

Dennis Gartman is right about this point concerning Gold “What really had my interest was the CFTC reports that came out last week indicating that the commercials, as they’re called, who are normally enormously net short, are almost net long,” the editor of the Gartman Letter said. “The fact that commercials are effectively net long and the public is abundantly out – that is a reason to be abundantly in.”

According to Gartman, in the “enormously rare” instances that commercial interests shift their participation to the long side, it’s an indication that “real” bull markets have begun.  “Commercials are always ahead of the public,” said Gartman. “The last time we saw this happen in the other direction was when the commercials got egregiously net short back in November of 2011. They’re the ones that call the top, they’re the ones that call the bottom, so that alone has me interested.”

More Production Cuts Expected In Nickel

With such a high proportion of the cost curve losing cash, it appears to be only a matter of time until production cuts become more prominent in Nickel, according to Goldman Sachs in a report dated December 21…cuts outside China have been minimal and disappointing to date, and the bank expects weak supply and demand fundamentals to persist…

Crude Oil Update

Oil prices will take decades to recover and will still not reach the peak seen in recent years, according to the latest World Oil Outlook (WOO) from OPEC (consider the source, however, at a time when some members of the cartel are deliberately pressuring prices to the downside)…in the group’s latest outlook on supply, demand and prices to 2020 and 2040, OPEC predicted that a barrel of Oil would cost (in real terms) around $70 by 2020 and $95 by 2040, a far cry from a high point of $114 a barrel last seen in June 2014 before prices began to plunge on oversupply…

We have an updated WTI chart in today’s Morning Musings

The Growing Global Terrorist Threat

The Wall Street Journal reported this morning that Western security officials are struggling to respond to the threat that Islamic State can make authentic-looking Syrian and Iraqi passports, which could be used to hide operatives planning attacks in Europe or North America among refugees…ISIS likely obtained equipment and blank passport books needed to make Syrian passports when the group took control of the Syrian cities of Raqqa and Deir Ezzour, those officials said…it has also gained control of materials to make Iraqi passports when it occupied the Iraqi city of Mosul, a Belgian counterterrorism official disclosed for the first time…the near-absence of communication with the Syrian government means Western officials are lacking key information that could be used to identify the passports, according to a confidential analysis by the U.S. Department of Homeland Security…

In today’s Morning Musings

1.  North American equity markets are buoyant following a slew of economic data on the final full trading day before Christmas…

2.  A look at key support for the TSX and how a turnaround could form in early 2016

3.  One of the better opportunities on the Venture under a nickel…

4.  China continues to push hard to increase its currency’s global appeal…

Plus more…to view the rest of today’s Morning Musings, login with your username and password, or click here to gain full access to this and other exclusive BMR content and features…

71 Comments

  1. May everyone have a joyous Christmas and 2016 bring Good Health, Happiness and Prosperity.

    God Bless

    Comment by John - BMR — December 23, 2015 @ 10:38 am

  2. Thanks John, same to everyone at BMR and all the readers and contributors here.

    Comment by Tom UK — December 23, 2015 @ 10:45 am

  3. Jon .. the Dec 22nd posting has 61 comments . can only see 9… odd??? Thx for looking into it
    and may I extend a happy and safe holiday Christmas to all that celebrate it, and a happy and healthy New Year…
    egg nog already:)

    Comment by Jeremy — December 23, 2015 @ 11:08 am

  4. All the best to each and everyone of you – Merry Christmas and a Happy New Year. Thank you all for your passion and contributions to the board – it has been energizing and look forward to more of the same.

    Cheers

    Comment by Foz1971 — December 23, 2015 @ 11:39 am

  5. Merry Christmas to BMR and their readers!

    Comment by Martin — December 23, 2015 @ 11:58 am

  6. Charlotte McLeod • December 22, 2015
    Add Comment
    1000
    iron ore price
    Those watching the nickel space this year have no doubt heard of Vancouver-based Equitas Resources (TSXV:EQT), which began exploring at its Labrador-based Garland property in February.

    Since then, the company has put out a steady stream of updates on exploration work at the Garland, most recently releasing a handful of initial drill results from the property.

    Market participants were expecting great things from the results, in large part because the property is located less than 30 kilometers southeast of the massive Voisey’s Bay nickel mine. That mine was first discovered in 1993 by Robert Friedland’s Diamond Fields Resources, and is now a 6,000-tonne-per-day operation owned by Brazil’s Vale (NYSE:VALE).

    But Voisey’s Bay is not just big — it was also discovered in a fairly dramatic fashion, with Diamond Fields hitting high-grade massive sulfides in the second hole it drilled. Equitas’ first results were lower key, but President Kyler Hardy doesn’t see them as a stumbling block.

    Equitas Resources (TSXV:EQT; FSE:T6UN) is one of the first junior resource companies in the last 20 years to hold such a large, consolidated land package in the Voisey’s Bay district. With a first-class, experienced team of professionals skilled in raising capital and managing successful exploration projects Equitas Resources has a tight share structure on early stage of nickel focused exploration. Connect with Equitas Resources and learn more about this world class deposit.
    “For us it’s very significant in that we now have focus points to narrow down and sniff out the better mineralization that we’re looking for,” said Hardy in conversation with the Investing News Network.

    He added, “in less than a year, we flew a VTEM airborne survey, allowing us to see five times deeper than anyone else before, identified many possible buried anomalies and are now less than halfway through drilling them to delineate possible nickel sulfide targets. We have now uncovered possible indicators that could lead us to a major discovery on the Garland.”

    In particular, he highlighted three factors that should help Equitas direct further work at the Garland property:

    Sulfides from surface in hole GP-15-005 — “One of the more significant events is the fact that we did get sulfides from surface in hole GP-15-005,” said Hardy. GP-15-005 was the fifth of five holes completed at the Garland, and is situated on the Cominco showing, which is historic from Teck Cominco’s work in the area. According to Hardy, Equitas “encountered disseminated sulfides in this hole to depths of about 69 meters.” Hardy also said, “that leads us to believe that we could be in a similar system to the Voisey’s Bay mine. Disseminated sulfides are a targeting tool and a fantastic indicator of a possible major nickel sulfide deposit. A disseminated halo associated with a massive economic deposit is a common feature of many ore environments. We now must get back onto the property and find out where these disseminated sulfides could have come from.”
    Off-hole response in anomaly Q — Hardy also mentioned a “possible off-hole response in anomaly Q.” He explained, “we had to conduct downhole geophysics on it twice, but what we are seeing is a possible significant off-hole anomaly about 50 meters off. A detailed resurvey of the hole needs to be completed to resolve any ambiguity. The modeling indicates that if the response is real, it fits very well in size, conductivity and depth with our exploration model.” The area will be one of the first that Equitas returns to in the new year.
    Interpretation of the E-W lineament — Finally, Hardy said that interpretation of the large E-W lineament in the northern portion of the Garland gives added weight to VTEM Tau anomalies O, P and D. “The adjacent lake has a nickel-copper-cobalt anomaly on the scale of the lakes east of the Voisey’s Bay mine. Target D was part of the five holes drilled, but due to the hole being strategically placed on practically the side of a cliff the geophysics could not be conducted. As soon as the lake freezes Equitas will conduct geophysics over the entire lake,” he said.
    Hardy concluded, “in our minds, the Teck Cominco showing, and then the Q off-hole response and then the correct geotectonic framework at O, P and D — that’s the general flow of things that we want to go into [moving forward]. We’ll also continue working on ground-based geophysics, exploration and further drilling.”

    Speaking more about geophysics, he emphasized, “one key note that needs to be shared is the fact that the VTEM survey spacing was 300 meters wide, for reasons of economy; a 200-meter survey spacing for the relatively small footprints of nickel sulfide targets is better. We have now zoned in our areas of the property where we can conduct more detailed geophysical surveys.”

    Comment by Bob — December 23, 2015 @ 12:04 pm

  7. thanks Bob great read. merry Xmas

    Comment by bcguy — December 23, 2015 @ 12:12 pm

  8. great day for the venture! Let’s hope it carries through 2016. Merry Christmas everyone!

    Comment by Tony T — December 23, 2015 @ 12:16 pm

  9. Garibaldi end of year message out!

    Comment by Martin — December 23, 2015 @ 12:21 pm

  10. Didn’t see the Ggi end of year message. Can someone post it please. Thanks

    Comment by Sameer — December 23, 2015 @ 12:39 pm

  11. Martin, I can’t seem to find th GGI year end message anywhere?

    Comment by George — December 23, 2015 @ 12:42 pm

  12. It’s on their website. You have to click on the link to get it up. Halfway down page, like a news release.

    garibaldiresources.com/i/pdf/GGI-2015-Year-End-Message.pdf

    Comment by Tom UK — December 23, 2015 @ 1:23 pm

  13. Promise of news releases from Mexico in new year. Still awaiting assays from Grizzly.

    This is the bit that keeps my hopes up:

    1. GGI is uniquely positioned to add value from existing and potential new high-grade discoveries;

    Comment by Tom UK — December 23, 2015 @ 1:25 pm

  14. GGI- Presidents message on GGI homepage

    Comment by Bob — December 23, 2015 @ 1:27 pm

  15. http://garibaldiresources.us11.list-manage.com/track/click?u=154a984cefe6b52a6bdcaae18&id=edc9ac9f33&e=1950def287

    Comment by Guy Delisle — December 23, 2015 @ 1:28 pm

  16. garibaldiresources.com/i/pdf/GGI-2015-Year-End-Message.pdf

    Comment by Martin — December 23, 2015 @ 1:28 pm

  17. I think it says it all!

    Comment by Martin — December 23, 2015 @ 1:29 pm

  18. The year end message is posted on the GGI site at hte bottom of first page DECEMBER 23 2015 PRESIDENT MESSAGE

    Comment by alain forest — December 23, 2015 @ 1:29 pm

  19. CDNX up just under 2% to close @ 511 , the CDNX hasn’t had an up day this good since October. Maybe it finally has a bottom.

    Comment by Les — December 23, 2015 @ 2:56 pm

  20. When some were disappointed in CDNX breaking below 500 Jon iterated what would probably happen and so far he is bang on….let’s hope this continues well into 2016 to bring badly needed money to it!

    Comment by DDD4 — December 23, 2015 @ 3:05 pm

  21. Jon, the latest interview with Regoci. Will you be sharing it with your subscribers? I know you shared some excerpts but I would like to hear his voice. While the excerpts are nice, it would be greatly appreciated if we could hear what he had to say. It has been 10 days since the interview. Thanks.

    Comment by Dan1 — December 23, 2015 @ 4:13 pm

  22. Hi Dan1, yes, it is coming…sorry for the delay, but haven’t even started my Christmas shopping yet!…trying to get caught up on everything, but the rest of the interview will be worth the wait, more time involved due to the fact it’s video.

    Comment by Jon - BMR — December 23, 2015 @ 4:30 pm

  23. NICKEL INVESTING
    Alphastox.com Q&A Session with Kyler Hardy, President of Equitas Resources
    « Equitas Resources: Drill …
    Matthew Spizziri • December 23, 2015
    Add Comment
    2000
    equitas logo small
    In a recent interview with Alphastox.com Equitas Resources (TSXV:EQT; FSE:T6UN) President Kyler Hardy discussed their focus on making another major Voisey’s Bay-like discovery.

    As quoted in the interview:

    Can you please give our subscribers a brief explanation of what makes Equitas stand out from most other junior exploration companies?
    The thing that differentiates us most amongst the crowd is our management team. Myself, I’ve built and sold a number of businesses not just in the natural resource sector but outside the sector as well, both publicly and privately so I consider myself a company builder and a successful entrepreneur having generated substantial profits for my shareholders over my career. Everett Makela, our VP of Exploration, has had a long and a very successful career working with two majors in the industry (one that took out the other). His sphere of influence, ability to put deals together and track record of successfully discovering and developing ore bodies from a very grassroots stage through to production is absolutely amazing. Our board, which is comprised of a healthy mix of corporate, financial and technical backgrounds, is second to none in the industry. One major factor that helps us stand out amongst our peers is our cornerstone investor, Zijin Mining (through their subsidiary). Since we took control of Equitas, Zijin held a significant stake in EQT. We have kept them abreast and they have followed our developments and have congratulated us on reaching pivotal moments of our early stage developments. Like us, they hope we have a major discovery at the Garland Property. There could be potential large synergies in the future if the right moment or opportunity comes into the fold.

    What gets you excited about Equitas’ value proposition at these levels?
    Honestly, in regards to the Garland Project, everyone wanted to see us knock it out of the park in terms of our results in the first round and that would have obviously been fantastic, but we are not there just yet. We did find significant idicators that warrants further exploration but to save shareholder’s investment dollars we opted to wait for better weather conditions.I will argue that this positions EQT in a much better place strategically to create even more value for our shareholders over time. We found evidence of a potentially very significant system on three different locations so the chances of a potential discovery has increased significantly since we first started with the property. The opportunity for investors is being led by our capable management team, our business plan and our intense focus on building the company into a significant player in the industry. This vision is very much alive and progressing extremely well. Our number one focus is to build shareholder value. Let’s face it, I’ve invested a lot of my own money into Equitas along with the rest of our management team and personal contacts over the last twelve months and there is no way we’re going to let this die on the vine just because we haven’t yet hit a major discovery hole in our first phase of systematically exploring. You need tenacity to succeed in this market and perseverance to build a successful company no matter what industry you’re in and that’s exactly what we’re driving to do with Equitas.

    EQT has been one of the most active stocks on the Venture over the last several months and has performed extremely well since we first featured it to subscribers. What do you think gets investors so excited about the story in this market?
    The Voisey’s Bay discovery was a huge win for investors, the market and Canada so the chance of us discovering buried Voisey’s Bay-style deposits on our property is there, but the other thing has to do with the general honesty and nature of how our management team works and how we have put this deal together in the first place. Our whole team, from top to bottom, works hard every day including weekends with one goal in mind and that is to build value for our shareholders- all the way from Sean Kingsley, our corporate communications on the phones everyday sharing our story and opportunity to potential investors, to our technical team led by our VP Exploration Everett Makela, to Ray Goldie, one of the most successful mining analysts on Bay Street who has recently came on as a Director and has provided us with significant insight with many of the decisions we make in the field and in the market. At the end of the day, investors see us as being able to execute on what we say we’re going to do. We have the ability, tenacity and the wherewithal to make something from nothing and build it into one of the greatest plays in the market because we’ve done it before and intend to do it again. For a market point of view the liquidity allows investors to see that they can get in and out of our stock on any given day without hurting the market which is something so many juniors on the TSXV lack these days. We strive to build the company so our shareholders and potential investors believe in our capabilities and opportunities to grow the company to be a contender.

    Can you please tell our readers why you feel you have one of the best teams to make another major Voisey’s Bay-like discovery?
    Well, honestly, all of it has to do with our team. There are members that the public might never hear of from our drillers that drilled the original Voisey’s Bay discovery to Dan Lee our consulting geologist that ran the Archaen Resources base camp and mentored the guy currently at the Voisey’s core shack. Alan King was a part of the ‘Green Team’ Inco sent in to debunk the original Voisey’s Bay discovery which the team sadly reported back it’s the ‘real deal’. To Everett Makela which ran Vale’s North American exploration team. Heck, even Ray Goldie wrote a book about the Voisey’s Bay while he was an analyst. These guys have been following and exploring the area for decades; they understand what nickel sulphide deposits look like, how they are formed and they understand what other deposits look like not just nickel ones so if something else pops up in the area – like Robert Friedland experienced while looking for diamonds, we have the right technical team to tackle and develop any system present in the area. The quality of our management team and our technical leadership is second to none in the industry because we understand the area and have a global knowledge of how to seize the right opportunity on a global scale both from an entrepreneurial standpoint and from a big company perspective. These guys know exactly what majors look for before deciding to potentially buy a junior and they’re doing everything they can to position Equitas as potentially being that target over the next 18 to 24 months.

    What can investors look forward to over the next 6 to 12 months?
    Well, there are a few things: we’ll be going back into the Garland as soon as we can for our Phase 2 program as we discussed before. There may also be additional developments going on with the company not Garland related. We do see the possibility of potentially closing on a significant acquisition or property deal to increase the size of our portfolio and diversify our risk. We may even look to venture away from strictly focusing on grassroots plays and focus on a development project sometime in the early New Year. We’re very excited about making a potential discovery and building shareholder value and that is our number one focus but also agree during the tough market conditions cash is king. I think over time, investors will be very happy to be a part of our progress and see the value we’re working on generating.

    Why should investors look at EQT.V as a potential addition to their speculative portfolio?
    Again, I keep coming back to this with whomever I talk to: management, management, management. The market’s perception of our initial results wasn’t spectacular even though we considered them a significant technical success, but, having said that, management is constantly working for our shareholders. We continue to support and have invested a significant portion of our own dollars into this company and we’re going to continue building it. Management have positioned ourselves and we’ve been net buyers from day one which should give investor’s confidence that we’re in this for the long term and believe in the future viability of the company we set out to build.

    This is a play led by an incredible technical and financial team backed by a group of investors that understand the capital markets and know how to build real shareholder value. We have been evaluating over 60 projects world-wide this past year. We are highly excited and focused on thoroughly and systematically exploring the Garland but at the same time admit, economically, we shouldn’t drill year round until we do have a major discovery there. We have always been transparent with our investors that we intend on creating a portfolio of valuable assets and that’s what we intend on doing for them.

    Comment by Bob — December 23, 2015 @ 4:36 pm

  24. Most of yesterday’s commentary isn’t viewable as it was last evening. Did we all post something deemed ‘offensive’?…lol

    Merry Christmas everyone! 🙂

    Comment by Treb — December 23, 2015 @ 4:50 pm

  25. OK, thanks Jon. Only one day to get your shopping done. Better get moving. Lol

    Comment by Dan1 — December 23, 2015 @ 4:55 pm

  26. There seems to be some sort of technical glitch, Treb, that we’re trying to figure out with regard to those missing comments (52 of them) from Dec. 22 —- a mystery at the moment, Treb, but we’re working on it tonight and will fix that, hopefully. Haven’t seen that happen before. Comments are showing as approved on our back-end but not appearing online other than the actual number (61) and then the comments stop after the 9th comment. All the comments are on our back-end, so nothing has been lost. It’s just a matter of making them show online. Our technician is working on it tonight. Our apologies for the inconvenience. I was late in picking up on this because the administrator back-end indicated every comment was posted.

    Comment by Jon - BMR — December 23, 2015 @ 5:55 pm

  27. Jon: called the bottom!

    Comment by STEVEN1 — December 23, 2015 @ 7:03 pm

  28. Hopefully it’s the bottom! And hopefully gold will start moving up soon too!

    Comment by Sameer — December 23, 2015 @ 7:09 pm

  29. Another excellent example of how the weak will perish and the strong will thrive…and how some attractive assets will be available at fire sale prices…

    Mr. Benjamin Mossman reports

    BANKS ISLAND GOLD LTD. CANCELS EQUITY FINANCING

    Banks Island Gold Ltd. has cancelled the equity financing announced by news release on Dec. 1, 2015. The company did not receive sufficient interest to be able to close the $3-million minimum financing required to support its operations over the coming months.

    As a result, the company has insufficient funds to maintain operations and has received notice of claims from three significant trade creditors for payment of outstanding debt. The mining reclamation bond posted by the company with the Ministry of Energy and Mines has been confiscated by the ministry. The company has provided notice of termination to all of its remaining employees, effective Dec. 31, 2015. The board of the company currently comprises Ben Mossman, Jason Nickel, John Anderson and Frederick Sveinson.

    The company is consulting with its legal advisers and will provide a further update on the company’s status in the coming weeks.

    Comment by Jon - BMR — December 23, 2015 @ 10:17 pm

  30. People.. that be us… repeat after me… we will NO longer be slaves to the rhetoric of CEO’s and shamans of the mining industry, and we will ONLY give respect and focus to those projects that demand our attention only AFTER true vetting, and will not consider any verbiage from anyone called a CEO since it cannot be trusted.
    We must prevail… Kyler was on here before .. come back now and defend your position… if you don’t then you speak volumes ….

    we the investing community want good deals and opportunities … we cannot let CEO’s et al guide us to rapid waters … without our knowledge.. we need to better informed.. and we must be..
    forget the pompom wavers… they are paid to do it maybe… regardless … we need to make our own informed decisions … like now!!!! the important time is now … we are at the apex of a turn.. and need to be cognizant of the things and peeps and opinions around us…
    lets just do the right thing…
    remember everyone has an agenda… I dont:) seriously.. my 2 million is now 300K… I am already screwed.. but screwed by the ones I speak of.. hopefully I can help those of you who are not as dead..
    Truth is not a commodity.. but some or most seem to think it is.. I dont.. true or not.. tell that to your 13 yr old daughter… cant hide that crap..

    everyone try to do the right thing.. it wont hurt… but try .. and do it.. it will feel really good..
    Kyler I challenge you.. can you be truthful? like really?? rant done… sick and tired of all the supposed suffragettes being wrong done!

    Man I need a drink!!!!

    Comment by Jeremy — December 23, 2015 @ 10:39 pm

  31. News but not the kind we were expecting.

    Comment by Ivan — December 24, 2015 @ 4:24 am

  32. GGI.v news

    Garibaldi closes $848,000 financing, grants stock options PR Newswire “Press Releases US – English”

    VANCOUVER , Dec. 24, 2015 /PRNewswire/ – Garibaldi Resources Corp. (TSX.V: GGI) (the “Company” or “Garibaldi”) is pleased to announce that it has closed a non-brokered private placement, raising total gross proceeds of $848,000 .

    The company has issued 4,050,000 flow-through units at $0.16 per unit (gross proceeds of $648,000 CDN ) and 1,666,667 non-flow-through units at $0.12 per unit (gross proceeds of $200,000 CDN ) as detailed below.

    Steve Regoci , Garibaldi President and CEO, commented: “2015 has been a very productive year for Garibaldi on the exploration front, advancing potential high-impact discoveries in both British Columbia and Mexico . We look forward to a vigorous start to 2016.”

    Comment by ChartTrader — December 24, 2015 @ 4:26 am

  33. garibaldiresources.com/s/NewsReleases.asp?ReportID=735230&_Type=News-Releases&_Title=Garibaldi-Closes-848000-Financing-Grants-Stock-Options

    Financing before good results are due out? Mmmmmmmmmm, not happy with dilution at this level. More stock options too for directors.

    Comment by Tom UK — December 24, 2015 @ 4:32 am

  34. garibaldiresources.com/s/NewsReleases.asp?ReportID=735230&_Type=News-Releases&_Title=Garibaldi-Closes-848000-Financing-Grants-Stock-Options

    Vancouver, British Columbia, December 24, 2015 – Garibaldi Resources Corp. (TSX.V: GGI) (the “Company” or “Garibaldi”) is pleased to announce that it has closed a non-brokered private placement, raising total gross proceeds of $848,000.

    The company has issued 4,050,000 flow-through units at $0.16 per unit (gross proceeds of $648,000 CDN) and 1,666,667 non-flow-through units at $0.12 per unit (gross proceeds of $200,000 CDN) as detailed below.

    Steve Regoci, Garibaldi President and CEO, commented: “2015 has been a very productive year for Garibaldi on the exploration front, advancing potential high-impact discoveries in both British Columbia and Mexico. We look forward to a vigorous start to 2016.”

    Comment by ConcernedCitizen — December 24, 2015 @ 4:38 am

  35. GGI financing is done. Now we know why it stood still for weeks and the selloff etc. Not impressed with the methods especially after theyak in the yr end note about the shr structure! It may also explain the inst trading last week of 500shr lots

    Comment by David — December 24, 2015 @ 4:59 am

  36. GGI private placement,

    Comment by Martin — December 24, 2015 @ 5:05 am

  37. Stock options granted at AGM last week I guess. Assay results out in Jan – nice easy quick profit for the board. Looks like GGI is no better than any other board on the vulture exchange.

    Comment by Tom UK — December 24, 2015 @ 5:08 am

  38. Interesting strategy, they “cashed up” and “optioned up” (20 cents on options). To be able to do that, they don’t have assays yet. If they were approached to do something, hard to turn down as it gives them added strength. Cash is King – the more of it any company has right now, the better off they are, especially when it’s not done at a nickel or a dime.

    They probably could have taken more but Regoci would have been sensitive about dilution at these prices. Now he can just focus on having 30-cent warrants exercised in the event of a discovery and isn’t beholden to brokers playing games. He has put himself in a position of strength I believe.

    This argues for results early Jan., perhaps the week of the 4th?

    Comment by Jon - BMR — December 24, 2015 @ 5:09 am

  39. This is minimal dilution. I like it. It gives them the money and strength to continue with drilling immediately. They do not want to stop and this will give them an hedge when the next big financing comes at a higher price. Imo

    Comment by Dan1 — December 24, 2015 @ 5:24 am

  40. If I read well, the 2015 drilling has shown potential but nothing major!

    Comment by Guy Delisle — December 24, 2015 @ 5:25 am

  41. GGI gave themselves Christmas presents- .16 with a half warrant and .12 FT with a full warrant! Santa was a little generous this year.

    Comment by DDD4 — December 24, 2015 @ 5:25 am

  42. That’s not how I read it, Guy. People don’t pour nearly a million into a play at those prices in these markets if they don’t think the company’s got the goods. No one has obviously seen assays yet, but there are clear indications here.

    You can argue Regoci could have waited, but I believe this puts him in more of a position of strength. The stock is free to run after results as there won’t be a threat of any imminent PP – Regoci has what he needs to pop a bunch more holes, he is in control. Think about it.

    Comment by Jon - BMR — December 24, 2015 @ 5:27 am

  43. Having the cash means that they can crack on with drilling in early January. There is probably enough for 5 or 6 weeks drilling. I’m hoping that as results come out, the SP will increase and future financings will be done at higher levels. By the time this financing runs out, holes 4 and 5 will have been published.

    Comment by Tom UK — December 24, 2015 @ 5:28 am

  44. The fact that they were generous and assuming insiders took most if not all of the PP and knowing the XRF values this could be a good sign imo.

    Comment by DDD4 — December 24, 2015 @ 5:30 am

  45. Since GGI knows the XRF values, wouldn’t it be inappropriate for insiders to load up if they did? Almost like doing a PP with assays back before announcing them…..yes, XRF is not assay results but they’received a VERY big indicator. It will be interesting to know if and how much insiders bought in the PP.

    Comment by DDD4 — December 24, 2015 @ 5:36 am

  46. Yes DDD4, I’m hoping it is a Christmas present to friends and family 🙂

    If so, we could be getting a belated Christmas present ourselves from Regoci and the drill results. Only time will tell. I would have preferred to be eating my turkey knowing for definite where we were with the Grizzly, but I guess I will have to wait until new year.

    Comment by Tom UK — December 24, 2015 @ 5:39 am

  47. Only lab assays are accepted by the Exchange, DDD4.

    The fact they’ve loaded up on 20 cent options, 1.2 million, likely sends a message.

    Comment by Jon - BMR — December 24, 2015 @ 5:40 am

  48. Since it was non brokered and it was never announced then this was filled by insiders, family and friends so they wouldn’t get into this unless the potential for reward was high.

    Comment by DDD4 — December 24, 2015 @ 5:48 am

  49. Will you buying at the open DDD4????

    Comment by Tom UK — December 24, 2015 @ 5:50 am

  50. It makes sense there would be some closs associates involved in this, yes, DDD4.

    Comment by Jon - BMR — December 24, 2015 @ 5:51 am

  51. Jon, why haven’nt they wait for result, than financing?

    Comment by Martin — December 24, 2015 @ 5:57 am

  52. Unfortunately I will only buy GGI after I see the results as I still believe the “R” I heard was legit…….if it isn’t trust me I will be a buyer! I hope the results are good so that it gives me another Sheslay play to invest in!

    Comment by DDD4 — December 24, 2015 @ 6:11 am

  53. I think my previous comments answered that, Martin. Regoci has put himself in a position of strength, IMHO, and bargaining strength once results come out. He can pop a bunch more holes and can dictate the terms of things better on a discovery.

    Comment by Jon - BMR — December 24, 2015 @ 6:15 am

  54. Hmmm…I remember when Equitas was trying in vain to close the 2nd tranche of the most recent pp, waiting on investors that were supposedly dragging their butts getting the money in to the company. In the end what they took down with the 2nd tranche was a relative pittance. But by then they had a good idea of what they had found … or rather didn’t find.

    Garibaldi on the other hand were able to quickly, and quietly!? CLOSE an $848,000 PP with ‘official’ results pending. The difference couldn’t be more stark. Just my opinion of course.

    Comment by Treb — December 24, 2015 @ 6:17 am

  55. Martin, I’m not totally happy with financing now either, but I thinks it’s best to get some cash in to the coffers now. I’m pretty sure that GGI are down to minimal amounts of cash in the bank.

    As soon as they get the results from holes 1-3, they will decide where to drill the next set of holes, so by having cash in the bank, the drill will probably start turning by mid-January.

    They might drill another 8 or 9 holes before the next financing is done.

    Comment by Tom UK — December 24, 2015 @ 6:21 am

  56. I hear what u guys are saying, but I think they could’ve done financing very quickly after the results are released at a higher price. Hopefully big money will be itching to get in after the results.

    Comment by Sameer — December 24, 2015 @ 6:38 am

  57. Now we need to hear from farshad regarding Dbv financing. Any word on that?

    Comment by Sameer — December 24, 2015 @ 6:39 am

  58. Jon,now would be a good time to release that interview with Regoci.

    Comment by Dan1 — December 24, 2015 @ 6:51 am

  59. I don’t think we will hear anything until after the holidays as Farshad is on vacation with family…..financing won’t be an issue. Patience.

    Comment by DDD4 — December 24, 2015 @ 6:55 am

  60. Sameer, Regoci is a former broker. He understands how the game is played. He’s anticipating a discovery, and he’s put himself in the driver’s seat because once results come out, he keeps pounding away on the ground. That’s a good position to be in. He can do a free financing, quite possibly, simply on the exercise of the 30-cent warrants from last year. Cash is King – when you got it, you’re in control. Not the other way around.

    Comment by Jon - BMR — December 24, 2015 @ 6:57 am

  61. DBV crew should be back from the camp by now and the remainder of core is at the lab or on its way there.

    Comment by DDD4 — December 24, 2015 @ 6:58 am

  62. $45K for finder fees, suggests that insiders didn’t take it down themselves, but Marquest , a fund outta Tor , for other peoples money seems to have done a chunk among w Secutor, who I think is already in GGI
    I would have liked the 2 yr wts for my 12 cent stock too, given the chance, and FT funds at this time of yr to a fund, are to the benefit of the fund, not so much the mining company IMO
    money is nice, but ill bet a dollar, its why the show slowed down.

    Comment by david — December 24, 2015 @ 7:00 am

  63. Jon- same thing again….its shows 59 comments but only the last 2 comments appear.

    Comment by DDD4 — December 24, 2015 @ 7:01 am

  64. page has gone wobbly again Jon – same as yesterday. first 58 comments are missing

    Comment by Tom UK — December 24, 2015 @ 7:05 am

  65. Says 59 comments but I only see 1 comment…issues with the website?

    Comment by ChetBaker — December 24, 2015 @ 7:11 am

  66. Jon, this mornings comments have all disappeared.

    Editor’s Note: Dan1 – we’re looking into this, there is obviously a glitch in the system that we’ve never seen before that we were checking on last night re: the Dec. 22 post, although no comments appear to have been omitted from that post (the number count is incorrect). This morning, some comments from this morning have suddenly disappeared from yesterday’s post (but the number count is also incorrect). We’re doing the best we can to fix as quickly as possible but the timing of this (Christmas Eve) isn’t good. We apologize for the inconvenience and appreciate everyone’s patience and understanding.

    Comment by Dan1 — December 24, 2015 @ 7:12 am

  67. Could the financing for GGI be the reason for the recent selling? I guess it’s good to raise money but if results were good they could have raised money at higher prices meaning less dilution.

    Comment by Danny — December 24, 2015 @ 7:36 am

  68. GGI – I see it as minimal dilution. It’s true, if results were good they could raise at higher levels, but now there is no short term overhang on the stock if the results are good. It’s free trading as the PP is already closed. Cash in the bank. Ready for the results.

    Comment by George — December 24, 2015 @ 7:42 am

  69. I Jon
    I think we have the same issue with the comments today as yesterday…I was able to see all the comments earlyer but now I can only see the 8 first.

    By the way I wish you and all the BMR team a Very Mary Christmas…!

    Comment by Sylvain — December 24, 2015 @ 7:44 am

  70. Sylvain, it’s an intermittent issue that we’re working on – we’ve never seen this before in 6 years. However, for now, please use this morning’s post (re: Venture rally underway) for posting comments.

    Comment by Jon - BMR — December 24, 2015 @ 8:04 am

  71. The selling maybe to get in on the PP?

    Comment by Sameer — December 24, 2015 @ 8:11 am

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