VANCOUVER, Sept. 5, 2013 /CNW/ - Spanish Mountain Gold Ltd. ("Spanish Mountain" or the "Company") (TSX-V: SPA) is pleased to announce that it has engaged Secutor Capital Management Corporation to act as lead agent (the "Agent") on a commercially reasonable basis for a proposed private placement (the "Offering") to raise up to $3,000,000 through the issuance of up to $1,500,000 of common share units (the "Units") and of up to $1,500,000 of flow-through units (the "FT Units").
Each Unit will be sold at a price of $0.10 per Unit and will consist of one common share of the Company and one common share purchase warrant (a "Warrant"). Each FT Unit will be sold at a price of $0.12 per FT Unit and will consist of one common share of the Company which will be designated as a flow-through share (the "FT Shares") for the purposes of the Income Tax Act (Canada) (the "Tax Act") and one-half of a Warrant. Each full Warrant will entitle its holder to purchase one common share at a price of $0.15 per share for a period of two years following the closing of the Offering. The Company has also granted the Agent an over-allotment option, exercisable at any time prior to the closing of the Offering, to purchase an additional 15% of the total number of Units and FT Units sold pursuant to the Offering.
SPA is creeping up very slowly. Often during this month you see the bigger stocks showing volatility as people hunt for deals in the JR market. So far, no sign this is happening. I still expect movement in the bigger stocks but I don't expect to see anything spectacular in the JR market primarily because of the horrendous damage the TSX has done to it.
I won't be selling any dividends. Instead, I'll bargain hunt there. Until the new exchange shows life I suspect my predictions from the past will hold true. Cash will be king and the decimation will ramp up. You may still see a false euphoria designed to trick people into thinking a stock is taking off but it will be followed by a harsh decline. There are still a lot of people holding the TSX bag.
I still expect to see more development in the real deposits of Canada. The safe haven idea is becoming a fact. I plan to hold developing mines like Schaft Creek but I'm expanding the timelines. Previously I said 2 years but now I'm going to invest on a 5 year plan. Take HPY. They just got a former Teck geologist on board. Given the slowdown at Teck I expect David Blann will be doing a lot more infill this year and next. The idea behind obtaining the new face is to customize the plan to Teck's needs.
HPY still has that lovely tungsten deposit that's shaping up rather nicely. The last round of drilling was proof of the value. I find it funny the market has not caught on. Are the investors waiting for it to become more advanced? Watch as many get left out in the cold. They will be scrambling to determine fair market value and a deal will side swipe them. I'm expecting this one to come in out of the blue and you can't say I didn't warn you. At 15-16 cents it's an absurd bargain. The new results suggest a real value well over a buck. In this market, it might jump 60 cents. as it changes the nature of its development.
If I get time I'm going to delve in deeper on the market movements. I'm expecting to see some action in the bond market that might shake things up as the realization of shortages sets in and managers try to find a buck.