X-Terra Resources Announces Acquisition Of Copper/Cobalt Property, Shares Near 52 Week Highs
Thursday, February 09, 2017
X-Terra Resources Inc. (TSX-Venture:XTT) is an exploration stage company with interests spanning over various metals such as gold, silver and uranium. The outlook for these metals is positive with market experts expecting commodity prices to show continued growth in 2017 as the worldwide economy expands and major infrastructure programs begin in several countries leading to increased demand for the underlying commodities. X-Terra Resources is placed in a particularly attractive position as it holds a diversified portfolio of mining properties.
The company is looking to take bold steps in 2017 to further its goals. X-Terra Resources boosted its portfolio as it announced this morning that it has acquired a new copper and cobalt property in James Bay, Quebec. The Cobalt Lake property consists of 40 contiguous mining claims covering an area of approximately 2,142 hectares.
The company has already conducted a survey of the property which showed a possible source for a copper/cobalt anomaly. It also indicated a high magnetic anomaly located on the property above the regional glacial drift.
The company financed the acquisition through a share purchase agreement for all of the issued and outstanding shares of a private corporation, which holds the property as its only asset. The financial arrangement ensures that X-Terra Resources did not strain its liquidity for meeting the obligations arising out of the acquisition.
The company holds stakes in various other properties as well and is carrying out geographical surveys to determine their viability. X-Terra Resources recently announced that it has completed 50 percent of its previously-announced airborne geophysical survey over the Veronneau property ahead of schedule. It is expected to be fully completed by February 11.
The survey is mainly concerned with the identification of electromagnetic conductors with or without magnetic association that could represent new high grade gold deposits in the area. X-Terra Resources had acquired a 100 percent stake in four mining claims comprising part of the Veronneau Gold Property late last year.
The acquisition helped the company in diversifying its portfolio with the positive observations from the site expecting to boost future prospects for the company.
Shares of XTT rallied a phenomenal 254% in price during the past 12 months with shares maintaining their momentum in the new year as well with the stock gaining over 136% on a year-to-date basis. In Wednesday’s trading, shares touched a new 52 week high of $0.39, before pulling back marginally in today’s trade.
The stock is ideally suitable for the buy and hold investor as the company is looking to announce the results of its surveys, particularly the one carried out over the Veronneau property later in 2017. These developments along with an improved commodity outlook should continue to be positive catalysts for the Company going forward.
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