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November Brings LOIs for Acquisitions to Junior Miner
By: AllPennyStocks.com News
November 18, 2011
On the hunt for a project that can be developed towards production, Harmony Gold Corp. has ushered in November with two press releases announcing Letters of Intent to acquire interests in mineral-bearing properties. The properties in focus are located in Zambia and in the Northwest Territories, Canada. In October, Harmony entered into a formal purchase agreement with Fernand Valliquette to acquire a 100 percent interest in the Foubert Lake Property, consisting of 20 claims for a total of 1010.93 hectares, located in the Carheil Township in the prolific Abitibi greenstone belt.
On the third of the month, Harmony Gold Corp. (TSX-Venture:H) reported that it signed a Letter of Intent (LOI) with Montauk Mining and Minerals Ltd. to acquire up to a one hundred percent interest, subject to a 1.5 percent net smelter return (NSR), in the Kafwego-Mufumbwe Copper Property in Kaoma, Zambia. The property consists of one copper mining concession covered by 10-year mining license.
Today, Harmony disclosed that it has signed an LOI with Patrick McDowall and Dave Smith to acquire a 100 percent interest (subject to a two percent NSR) in fourteen claims in the Northwest Territories, Canada. Details regarding the minerals or nature of the claims were not disclosed.
Harmony will have its work cut out for it should the two recent LOIs be executed. The Zambia property will cost Harmony 20 million shares, $1.2 million in cash and the company must complete a two-phase work program in order to earn the full interest. The Northwest Territory claims come with a price tag of $100,000 in cash payments, 6 million shares and a minimum of $250,000 worth of exploration.
Generating funds was also announced today. Harmony reported that it arranged a non-brokered private placement of 10,000,000 units at $0.10 cents per unit for gross proceeds of $1,000,000. Each unit will consist of one common share and one transferable common share purchase warrant. Each warrant will entitle the holder thereof to purchase one additional common share in the capital of the Company at a price of $0.20 per warrant share for a period of 24 months following the closing date.
Shares of Harmony have been on a notable slide since January of 2010 as the company continues to work towards alignment of its business strategies and move forward with property development. Shares have fallen from 74 cents to a recent low of a nickel just over a month ago. The recent LOIs have wended way for a rise in share value, bouncing off five cents to $0.115 on several sizeable volume days. The investment community appears to be taking notice of Harmony at this price point and could be worth more due diligence to follow the developments of the letters and uncover more information on the properties. More than 600,000 shares have changed hands today, with the share price closing up 6% at 8.5 cents.
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