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Small-Cap Miner Strikes Deal With Competitor
By: AllPennyStocks.com News
August 31, 2010
The old saying, “if you can’t beat ‘em, join ‘em”, certainly rings true in the small-cap world. Companies with the goal of making something bigger of themselves – particularly in the mining business -- often do so by throwing in their lot with competitors of equal or larger size, to combine resources and efforts toward a common objective.
The latest example of that phenomenon is Vancouver-based Mineral Mountain Resources Ltd. (TSX-Venture:MMV), which announced on the last day of August that it had signed a definitive Option Agreement with Golden Harp Resources Inc. (TSX-Venture:GHR) on its Main Block Gold Property in the Shining Tree Mining Camp.
The pact means MMV can earn a 60% interest in the 90-square-kilometre Main Block gold property situated in Ontario’s Macmurchy Township. The price tag is $6.6 million over the next four years, shuttling $650,000 and 3.5 million shares to GHR over the next three years. Once the ink is dry, MMV will be the initial operator of the Main Block.
MMV intends to become a significant explorer and developer of precious metals with a particular focus on gold and silver. It claims its business model is based on a strong management team and strategic partnerships, with solid management at its back, which has led MMV to an initial solid financial position with a healthy treasury allowing the Company to grow through exploration and project acquisitions, the latest of which was Main Block from GHR.
Earlier in August, MMV announced it was expanding the holdings on its Kootenay Arc property, near Revelstoke, B.C. to over 89,595 hectares now covering a 70-kilometre-long by 15-kilometre-wide, arc-shaped belt. Those newly acquired properties, Butte-Bonanza group of claims, cover 595.36 hectares of highly prospective ground just south of MMV’s main claims in the Kootenay Arc. The former crown grants have high-grade values in gold, silver, lead and zinc, as well as anomalous copper and tin.
For its 100% interest in Kootenay Arc, MMV had to part with $100,000 and 150,000 shares, over four years.
The noise out of Ontario got this B.C.-based company’s stock going; more than 170,000 shares traded on Aug. 31, although the price dropped to about 35 cents, just slightly below its peak of 39 arrived at the week before. Its low for the last 52 weeks is 20 cents, also early in August, so the stock has traded in a fairly narrow, uncomplicated range, just at the levels where it may be attractive to small-cap investors with an eye to adding mining exposure to their holdings.
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