Nevada Sunrise Acquires Gemini Lithium Project

Nevada Sunrise Acquires Gemini Lithium Project

By: Tomas Ronolski - AllPennyStocks.com News

Thursday, January 21, 2016

Mining stocks have been off to a disastrous start in 2016. Shares of some of the biggest mining companies in the world have tumbled as commodities such as copper and iron ore have continued to drop to multi-year low levels. Since the start of this year, one of the worst performing mining stocks has been Freeport-McMoRan Inc. (NYSE:FCX). Despite a rally today, FCX shares have fallen more than 36% since the start of this year. Shares of Australian mining companies BHP Billiton Limited (NYSE:BHP) and Rio Tinto Plc (NYSE:RIO) have also come under significant selling pressure. While BHP has fallen more than 18%, RIO is down more than 18% since the start of this year.


Although the outlook for mining companies is bearish, many of them are now trading at a deep discount to the broader market. For example, Rio Tinto is now trading at a P/E multiple of 12.11 and offers a dividend yield of 8.11%. Considering the fact that the Australian mining company has a strong balance sheet, this is an excellent opportunity for income investors.

There are some opportunities in the junior mining space. This morning one junior mining company made a major announcement. Based in Vancouver, Canada, Nevada Sunrise Gold Corporation (TSX-Venture:NEV) is a junior mineral exploration company with a strong technical team. The company holds interests in eight exploration projects in the State of Nevada, U.S.

This morning, NEV announced that it has entered into a letter agreement dated January 20, 2016 to grant a 50% working interest on a new Nevada lithium exploration project proximal to the Clayton Valley to Eureka Resources. The company acquired the new project in Lida Valley, Esmerelda County by claim staking in November and December 2015.

As per the terms of the agreement, Eureka will have the right to acquire a 50% participating interest in the Gemini Lithium Project located in the western Lida Valley by reimbursing Nevada Sunrise for 50% of Gemini’s acquisition costs. The costs are estimated at approximately $85,000. Eureka will also issue NEV an aggregate of 500,000 common shares.

Warren Stanyer, President and CEO at Nevada Sunrise, said that the company continues to look for opportunities in Nevada’s expanding lithium exploration sector. Stanyer further said that the company’s technical team for the Lida Valley is prospective for lithium brines and it looks forward to initiating exploration at Gemini in 2016 with its new joint venture partner Eureka.

Even with the important news, shares of NEV are trading in the red today to show just how bearish the sector has been of late. That being said, all sectors go up and down in cycles, the mining sector being no different. When this sector finally does sees the bulls enter the picture, this will be one spectacular bullish trend after the brutal downturn these stocks have endured over the last few years.

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