By: Dylan Sikes - AllPennyStocks.com News

Monday, March 7, 2016

Mining stocks have risen sharply in trading today, driven by a rally in commodities. Iron ore prices registered huge gains today amid expectations that China will announce further stimulus measures. Among the major mining stocks, BHP Billiton Limited (NYSE:BHP) was a big gainer. Shares of the mining company were up more than 5%. BHP though remains attractively valued. The stock is still offering a dividend yield of more than 5%. BHP’s Australian rival Rio Tinto (NYSE:RIO) has also risen sharply in trading today. At last check, RIO was up 5.67%. RIO has gained more than 12% in the last three trading sessions alone. Like BHP, Rio is also offering an attractive dividend yield of 6.05%.

In the junior mining space, one of the biggest gainers in trading today is Serengeti Resources Inc. (TSX-Venture:SIR). Based in Vancouver, Canada, Serengeti is a mineral exploration company currently advancing its Kwanika copper-gold project and exploring its extensive portfolio of properties in the highly prospective Quesnel Trough of British Columbia.

At last check, SIR shares were trading 15% higher at $0.075 on above average volume of 1.13 million.

SIR shares are soaring in trading today after the company announced that it has signed a binding agreement with Daewoo Minerals Canada Corporation, a Canadian subsidiary of Daewoo International Corp. Daewoo International is one of South Korea’s leading trading corporations. According to the binding agreement, Daewoo may earn up to a 35% interest in SIR’s Kwanika copper-gold project by providing funding of C$8.2 million. The transaction has been approved by Daewoo's board of directors and by the relevant government authorities. Serengeti expects to receive the funds within 30 days. On receipt of the funding, work on the project will be renewed.

Daewoo Minerals Canada will earn an initial 5% interest in the Kwanika project by funding a firm C$1.2 million in expenditures in the first year, of which $0.8 million will be for project expenditures and $0.4 million as an operator's fee to Serengeti. DMC is granted the right to earn an additional 30% interest in Kwanika by funding an additional C$7 million in project expenditures over the subsequent two years for aggregate expenditures of C$8.2 million over three years to earn an aggregate 35% project interest.

David W. Moore, President & CEO at Serengeti Resources, said that the agreement with Daewoo represents a significant milestone for Serengeti. As mentioned above, SIR shares are up on the day, however the really impressive return is evident when taking a look at how shares have performed in 2016. The Company shares have catapulted higher 400% from just prior to the New Year (Dec 29th, 2015) to today’s date. Mining stocks are certainly back in style, and SIR is a classic example of that new found interest in the sector.

Copyright © 2016 AllPennyStocks.com. All rights reserved. Republication or redistribution of AllPennyStocks.com's content is expressly prohibited without the prior written consent of AllPennyStocks.com. AllPennyStocks.com shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.