Two things are holding down Seafield Resources (SFF, TSX-V) and keeping it in a very tight range at the moment: 1) Completion of the private placement announced October 23; and 2) a definitive agreement with Caribbean Copper and Gold Corporation (CCGC) on the acquisition of properties of very substantial merit in the Quinchia district of Colombia. We believe Seafield is very close – within two weeks or less – of finalizing its private placement and the all-important deal with CCGC that ultimately will power this stock to much higher levels.
We are continuing to work on a major special report regarding Seafield and it is our intention now to post that report soon after all the details are released on its agreement with CCGC. The deal with CCGC is going to be a company-changer for Seafield, and all the accumulation and positioning we’ve witnessed over the past couple of months is proof of that in our opinion.
We suspect the delay in the completion of the private placement is actually another clue that something very big is in the works. On Wednesday morning, November 17, following an important Seafield news release, M Partners entered the Seafield market for the very first time and picked up nearly 500,000 shares (read our post about M Partners Nov. 19). We believe they contacted Seafield President and CEO Tony Roodenburg that day to let them know of their desire to acquire some shares in the open market and perhaps also through a private placement. We say that because in a single trade that morning, M Partners picked up 250,000 shares at 15 cents. Insider trading reports reveal that an unnamed Seafield insider sold 250,000 shares that very same day at the same price. Strange coincidence, or positioning? Speculation on our part, but it seems that M Partners was fed some stock at 15 cents and this only could have happened, we believe, from a conversation between them and Roodenburg. It’s hard to imagine M Partners would stop at a paltry 500,000 shares in the open market. They probably also wanted in on some private placement stock, so we expect Seafield to soon announce the closing of a new private placement or the third and final tranche of what was proposed October 23.
We could be right or wrong but that’s how we read it. M Partners is big on Colombia and they were also the lead agent in Galway Resources‘ (GWY, TSX-V) recent major financing.
The Seafield story has indeed had some interesting twists and turns the past couple of months, but those investors who have shown patience will be rewarded tremendously soon enough. Once the financing is completed and the Colombian news is announced, the lid is effectively off this stock.
