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December 21, 2024

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Three Big Negatives Overshadow the Uptrends in SPY and QQQ

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SPY and QQQ remain in long-term uptrends, but three big negatives are currently hanging over the stock market. Two negatives are tied to important cyclical groups and the third is reminiscent of summer 2022. The semiconductor business is cyclical and the Semiconductor ETF (SOXX) is one of the weakest industry group ETFs. Housing is an important part of the domestic economy and the Home Construction ETF (ITB) broke down. On top of this, the 10-yr Treasury Yield is breaking out and appears headed back to 5%, just as it did in summer 2022. The charts below tell the story.  

The Semiconductor ETF (SOXX) remains in a long-term downtrend. The chart below shows SOXX breaking down in July, forming a rising wedge into October and breaking wedge support at the end of October. Notice how this wedge retraced around 61.8% of the July decline and met resistance near the July support break. This advance was a counter-trend bounce and the wedge break signals a continuation lower. This is negative for semis, and by extension, the Technology sector and QQQ.

We recently covered weakening breadth and oversold conditions in two breadth indicators. These indicators could remain oversold. As such, we are setting bullish thresholds to distinguish between a robust bounce and a dead cat bounce. Click here to take a trial to Chart Trader and get two bonus reports!

The Home Construction ETF (ITB) failed to hold its late November breakout and reversed its long-term uptrend this month. ITB surged in November with a momentum thrust, similar to the July breakout. The July breakout held and ITB hit new highs in mid October. The November breakout, in contrast, failed as the ETF broke support and the 200-day SMA in December. ITB is in a long-term downtrend, which is negative for housing, and by extension, the Consumer Discretionary sector and the broader market.  

The 10-yr Treasury Yield is on the rise as it broke out of a 13 month falling channel, which was in place since November 2023. This breakout targets a move toward the October 2023 high around 5%. The chart below shows the falling channel extending from October 2023 to December 2024. TNX hit the upper line in late November and fell rather sharply into early December. The yield firmed in the 41-42 area (4.1%-4.2%) as a falling flag took shape. TNX broke out of the flag on December 11th and followed through with a channel breakout this week. This move reverses the long-term downtrend and argues for a higher 10-yr Treasury Yield. Much like summer 2022, this could weigh on stocks.

Even though SPY and QQQ are still in long-term uptrends, this negative trifecta will likely weigh on the market. Small-caps and mid-caps were slammed this week and breadth has been deteriorating for a few weeks. Our breadth models at TrendInvestorPro have yet to signal a bear market, but we will watch them closely in the coming days and weeks.

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Oversold Conditions Not Always a Friend

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Nearly all of our charts currently show deeply oversold conditions. While this is usually a good thing, in a market downturn, it isn’t necessarily your friend. As you can guess, we believe that Wednesday’s big decline was the beginning of something more serious. But the question is, “what about oversold conditions?”

One of the Bear Market Rules that we have is this:

Oversold conditions in a bear market — “thin ice”, no solid foundation for price bounces. Bounces can be bull traps.

Now for certain, we aren’t in a bear market (yet), but we have experienced a serious decline that could lead to more. We are certainly susceptible to a bull trap. How oversold are our indicators? Here are the numbers as of the close on Thursday:

The Swenlin Trading Oscillators have reached deeply oversold territory. However, we wouldn’t get overly excited by an upside reversal. Oscillators must oscillate and they want to be on the zero line. Notice that only 7% have price above their 20-day EMA and a mere 5% of stocks have rising momentum!

The ITBM and ITVM are also oversold. They haven’t hit extremes and could accommodate more downside at this juncture. The big problem on this chart is the very few PMO BUY Signals left in the index.

Finally our Bias chart shows the oversold conditions of %Stocks > 20/50EMAs. %Stocks > 200EMA could definitely see more downside as could the Golden Cross and Silver Cross Indexes. Both of those indexes are below their signal line giving us a BEARISH Bias in the intermediate and long terms.

Conclusion: Oversold conditions are welcome in a bull market or bull market move. The market is still near all-time highs and mega-caps could continue to hold things together, but our thought is that these weak internals are coming home to roost. If not now, then January. Watch out for bull traps!

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Technical Analysis is a windsock, not a crystal ball. –Carl Swenlin

(c) Copyright 2024 DecisionPoint.com

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.

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AI Boom Meets Tariff Doom: How to Time Semiconductor Stocks

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Semiconductors are at a crossroads, with innovation fueling growth and tariffs threatening profits.  How might you navigate this potentially volatile landscape and identify opportunities without getting burned?

In 2025, analysts predict AI will drive explosive demand in the semiconductor industry, fueling innovation and revenue growth. At the same time, this optimism is tempered by the new administration’s tariff policies, which threaten to disrupt global supply chains, increase costs, and reshape the competitive landscape for chipmakers.

This tug-of-war between bullish and bearish forecasts is best exemplified by the VanEck Semiconductor ETF (SMH) price action, a reliable proxy for the semiconductor industry. Here’s a weekly chart.

FIGURE 1. WEEKLY CHART OF SMH. Congestion narrowing within a wider trading range may indicate that bulls and bears are in temporary equilibrium, with neither buyers nor sellers showing enough conviction to drive a decisive breakout or breakdown. Chart source: StockCharts.com. For educational purposes.

There’s a narrowing, range-bound movement between its all-time high near $283 and the swing low of $280 (see blue dotted lines). The increasingly tight congestion range over the last three months, as highlighted by the magenta rectangle, suggests increased indecision among bulls and bears. Despite the temporary standstill, semiconductor stocks are outperforming their tech sector peers (see price performance against XLK) by only 29% and the S&P 500 by 51%.

While AI chip demand will likely see significant growth in the future, the effects of tariffs and reshoring may bring sharp and near-term pain to most chipmakers, particularly semiconductor companies that are most reliant on Asian production. Domestic chipmakers with minimal reliance on overseas manufacturing may fare better under these conditions.

With that in mind, let’s take a look at SMH’s top three holdings—NVIDIA Corp. (NVDA), Taiwan Semiconductor Manufacturing Company (TSM), and Broadcom Inc. (AVGO)—all of which play a leading role in AI chip development, but have different levels of reliance in the global chip supply chain.

FIGURE 2. PERFCHARTS COMPARING SMH AGAINST ITS TOP THREE HOLDINGS. Note the late jump in AVGO. Chart source: StockCharts.com. For educational purposes.

All three of SMH’s top holdings are outperforming their industry peers with NVDA on top, TSM second, and AVGO third. Understanding that late jump in AVGO might require some context (which we’ll get into later).

  • NVDA is the world’s AI chip leader.
  • TSM, is the world’s top chip foundry, and main producer of NVDA’s GPUs.
  • AVGO is a diversified supplier of data center components which are the backbone of AI infrastructure. Unlike NVDA, its business model is less exposed to reshoring effects.

NVIDIA (NVDA): The AI Semiconductor Leader

Take a look at the rounding top pattern on the daily chart.

FIGURE 3. DAILY CHART OF NVDA. Rounding tops are bearish, but tend to break higher more than 50% of the time. Chart source: StockCharts.com. For educational purposes.

According to Thomas Bulkowski’s Encyclopedia of Chart Patterns, while rounding tops are typically viewed as bearish, more than half the time they break upwards, challenging that assumption. In many cases, the rim on the right is higher than the one on the left. In the case above, the rim is formed by a price bounce off the 100-day simple moving average (SMA). 

Both the 100-day and 200-day SMAs are likely to act as strong support unless there is a significant change in the chipmaker’s fundamentals. While NVDA’s uptrend remains intact, momentum seems to be weakening as suggested by the decline in the money flow index (MFI). Keep an eye on this development, especially if it breaks below the 100-day SMA and bounces off the 200-day SMA.

Next, let’s take a look at NVDA’s main chip foundry: TSM.

Taiwan Semiconductor Manufacturing Company (TSM): The Foundry

TSM’s daily chart doesn’t look too different from NVDA’s. Remember, TSM is NVDA’s main chip foundry, and so NVDA is highly dependent on TSM (rather than the other way around).

FIGURE 4. DAILY CHART OF TSM. The stock’s price is chugging along with plenty of support. Chart source: StockCharts.com. For educational purposes.

You can see the difference between the stock’s volatile rise in price against a gradual decline in the RSI. TSM’s recent price action over the last three months has succumbed to this drop in bullish momentum. 

The stock is reacting strongly to the 100-day and 200-day SMAs, suggesting a high likelihood of bouncing off these levels again should price continue to decline from the current levels.

Broadcom (AVGO): A More Diversified AI and Semiconductor  Play

Broadcom also uses TSM’s foundry services, but it has a few other foundries in Asia and Europe. Because of its wide range of products and its focus on data centers, AVGO is more diversified and less exposed to the same supply chain risks as NVDA. Perhaps this (plus the company’s optimistic 2025 revenue projection) is why its shares have recently outperformed the other two companies above, hitting an all-time high in late December. 

Let’s take a look at AVGO’s daily chart.

FIGURE 5. DAILY CHART OF AVGO. The December gap followed strong company guidance. Chart source: StockCharts.com. For educational purposes.

AVGO’s uptrend going back to November 2023 runs a similar course to NVDA and TSM. Its uptrend experienced some moments of volatility yet remained relatively sold. Its price fluctuations also reacted strongly to both the 100-day and 200-day SMAs, finding support with both.

However, unlike our previous examples, momentum as measured by the RSI appears steady and somewhat cyclical. To get a clearer view of momentum with volume, I added the On Balance Volume (OBV) with a 50-day SMA overlay which shows that buying pressure has steadily been increasing, fueling AVGO’s ascent, and culminating in the bullish jump in December.

Whether or not price falls to fill the gap, you might wait for RSI to dip below the 50-line to better time an entry if you’re looking to go long.

At the Close

The semiconductor industry faces a dynamic and uncertain 2025, with AI demand poised to spur growth while tariff talks threaten to reshape global supply chains and profit margins. Keeping an eye on SMH and monitoring its top holdings—NVDA, TSM, and AVGO—for shifts in momentum and action at key levels is critical if you’re looking to time your trades in this promising space. 

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

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2024’s Big Bang: A Deeper Dive Into the Hindenburg Omen

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This week saw the fabled Hindenburg Omen generate its first major sell signal in three years, suggesting the endless bull market of 2024 may soon indeed be ending. Why is this indicator so widely followed, and what does this confirmed signal tell us about market conditions going into Q1? First, let’s break down the conditions that led to this rare but powerful bearish indicator.

Major Tops Tend to Have Consistent Patterns

Strategist Jim Miekka created the Hindenburg Omen in 2010 after analyzing key market tops through market history. What consistent patterns and signals tended to occur leading into these market peaks? He boiled it all down to three key factors which were consistently present:

  1. The broad equity markets are in an uptrend
  2. At least 2.5% of NYSE listings are making a new 52-week high and at least 2.5% are making new 52-week lows on the same day
  3. The McClellan Oscillator breaks below the zero level

One final step involves observing these three conditions occur at least two times within one month. Looking at the chart, we can see that this completed Hindenburg Omen signal has only occurred three times since 2019: in February 2020, going into the COVID peak, in December 2021, just before the 2022 bear market, and in December 2024.

What strikes me about this initial look at the indicator is that from a technical perspective, 2024 and 2021 have been remarkably similar. Both years featured long-term uptrends with minimal drawdowns and low volatility.  So does that mean we are heading into another 2022 and a 9-month bear market for stocks? Not necessarily.

Trend-Following Techniques Can Help Improve Accuracy

Switching to a weekly chart, we can bring in much more history to consider. I’ve added red vertical lines to indicate any time we registered a confirmed Hindenburg Omen signal with at least two observations within one month.

Reviewing some of the recent market tops, we can see that this indicator did remarkably well in identifying topping conditions in 2021, 2020, and 2018. Going back even further, you’ll notice signals around the 2007 and 2000 peaks as well.  But what about all the other signals that were not followed by a major decline?

People have quipped that the Hindenburg Omen have “signalled ten out of the last five corrections,” referencing the “false alarm” signals that did not actually play out. I would argue that the key with indicators like this is to combine them with trend-following approaches, similar to how I approach bearish momentum divergences.

When I see a bearish divergence between price and RSI or observe any other leading indicators like the Hindenburg Omen flash a sell signal, it doesn’t tell me to blindly take action! What it does tell me is to be on high alert and look for signs of distribution that could serve to confirm a bearish rotation. By patiently waiting for confirmation, we can improve our success rate and take action only when the charts compel us to do so!

S&P 5850 Remains the Level to Watch

So where does that leave us in December 2024?  While Wednesday’s post-Fed drop certainly represented a significant short-term distribution pattern, the longer-term trends for the S&P 500 and Nasdaq 100 are still quite constructive.

The S&P 500 broke below its 50-day moving average this week for the first time since September. And while Wednesday and Thursday both saw the SPX close below the 50-day, Friday’s rally on improved inflation data took the major equity index right back above this key short-term barometer.

SPX 5850 has been my “line in the sand” since the November pullback, and as long as price remains above this threshold, I’m inclined to consider this market innocent until proven guilty. And given the normal end-of-the-year window dressing common with money managers, I would not be surprised if the Magnificent 7 stocks and other large-cap growth names remain strong enough to keep the benchmarks in decent shape into year-end.

But indicators like the Hindenburg Omen certainly have caused me to dust off the bull market top checklist, looking for signs of distribution that would imply further weakness. One of my mentors and long-time StockCharts contributor Greg Morris once quipped, “All new highs are bullish… except the last one.”  I’m wondering if that early December high around 6100 may be the last one for a while!

One last thing…

I recently sat down virtually with author and technical analyst Chris Vermeulen to discuss the benefits of following asset flows, the dangers of holding dividend paying stocks during bear markets, how to navigate a potential breakdown in crude oil and energy stocks, and how investing and surfing are more alike than you might think!

RR#6,

Dave

PS- Ready to upgrade your investment process?  Check out my free behavioral investing course!

David Keller, CMT

President and Chief Strategist

Sierra Alpha Research LLC

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice.  The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.  

The author does not have a position in mentioned securities at the time of publication.    Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.

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Will the Stock Market’s Santa Rally Bring Holiday Cheer to Investors?

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A smart investor listens to the stock market and this week’s stock market action was a perfect example of why this is important. 

It was a roller-coaster week in the stock markets leading many investors to quickly sell holdings when there was a big selloff and scramble to go long again on Friday when the broader stock market indexes turned higher. This is why it’s a good idea to always look at a longer time frame chart to get a sense of the long-term trend before making hasty decisions. 

If you pull up a weekly chart of any of the three major indexes you’ll see that the S&P 500 ($SPX) and Nasdaq Composite ($COMPQ) are trending higher. The Dow Jones Industrial Average ($INDU) is also doing the same but it’s just hanging in there by a whisker.

The Ups and Downs

Comments from Fed Chairman Jerome Powell on Wednesday sent investors into selloff mode which spilled over into Thursday. But Friday’s slightly lighter-than-expected November PCE may have reversed investor sentiment. The broader stock market indexes moved higher spreading some holiday cheer to an otherwise gloomy week. 

What made the market move higher? It doesn’t make sense to look for a reason for the reversal in sentiment. Remember, it’s best to listen to the market and follow along. That said, a few interesting data points are worth noting.

The Federal Reserve indicated their focus was on a cooling of the labor market in their last few meetings. However, Wednesday’s comments from Chairman Powell suggested that the labor market is doing fine now but the Fed’s focus has switched to inflation. That may have made investors nervous and triggered the massive selling we witnessed on Wednesday. Friday’s light November PCE may have been a sigh of relief that brought back the optimistic sentiment. 

Despite the optimistic sentiment, one important news we can’t lose sight of is the possibility of a US government shutdown. A shutdown doesn’t necessarily impact the stock market but there may be inconveniences such as a reduction in government services that may send ripples through the economy.

The Year-End Party

As 2024 winds down, there will likely be very light trading days but there are some important events that unfold at the end of the year. There’s the January Effect which is when small-cap stocks start rallying. Small-cap stocks got a boost post US election but since late November they’ve been sliding lower. The daily chart of iShares Russell 2000 ETF (IWM) shows the small-cap trend is still bearish. 

FIGURE 1. DAILY CHART OF IWM. Small cap stocks took a big hit in December. Look for the full stochastic oscillator to cross above the 20 level with some follow-through to confirm their seasonal rally. Chart source: StockCharts.com. For educational purposes.

The full stochastic oscillator is deep in oversold territory and a cross above the 20 level would be encouraging for small-cap stocks. But there needs to be follow-through for the small caps to have a bullish rally.  

In addition to the January Effect, there’s the eagerly awaited Santa Claus rally, which is supposed to start next week. Friday’s price action may have reignited the possibility of having Santa show up this year. But I wouldn’t hold my breath just yet. 

If you look at the daily chart of the S&P 500 below, you’ll see that the three market breadth indicators displayed in the lower panels had started declining in late November, which should have signaled that the market was ripe for a selloff.

FIGURE 2. S&P 500 HOLDS ON TO SUPPORT. Friday’s price action may look slightly bullish but it needs more follow-through to confirm a reversal. Chart source: StockCharts.com. For educational purposes.

What is concerning is that Friday’s price action didn’t change the market breadth narrative. So even though Friday’s rise was sizeable, with a bullish engulfing pattern that closed at the 50-day simple moving average, I wouldn’t rush to buy the dip just yet and certainly not on triple-witching Friday. For all you know, there could have been some short-covering going on. I’ll need to see more follow-through of the upside move before adding more positions to my portfolio. At least the S&P 500 stayed above the support of its mid-November lows.

The daily chart of the S&P 500 Equal Weighted Index ($SPXEW) vs. the S&P 500 gives you an idea of how dominant the heavily weighted stocks influence the index.

FIGURE 3: S&P 500 VS S&P 500 EQUAL-WEIGHTED INDEX. The less-heavy weighted stocks in the S&P 500 are lagging the S&P 500. The equal-weighted index is trading below its 100-day moving average and has a long way to go before re-establishing its uptrend. Chart source: StockCharts.com. For educational purposes.

$SPXEW is trading below its 100-day SMA. Note that Friday’s high came close to the 100-day SMA. A close above the 100-day SMA would be the first sign of a trend reversal in the equal-weighted index. But one day’s action doesn’t make a trend. A series of higher highs and higher lows needs to be established before a trend has indeed reversed. It would be more confirming if the non-Mag Seven stocks showed signs of catching up with the big S&P 500 index.

Volatility Pulls Back 

One encouraging point to end the week is the Cboe Volatility Index ($VIX) closed below 20 (see chart below). Investors were getting so complacent towards the end of November but if you had noticed the VIX creeping higher, you’d have seen the selloff coming. 

FIGURE 4. DAILY CHART OF THE CBOE VOLATILITY INDEX ($VIX). The VIX was at very low levels from November but it slowly started moving higher signaling that investors were getting fearful. This led to Wednesday’s spike. Chart source: StockCharts.com. For educational purposes.

The pattern in the chart of the VIX shows that a similar pattern occurred from June to July, right before the August spike. Could a similar scenario unfold this time?

The Mark Twain quote, “History doesn’t repeat itself but it often rhymes,” explains it so well. So as you navigate the stock market, listen to the rhythm and follow its lead. 

The bottom line: Set up your Dashboard panels on the StockCharts platform and get a bird’s eye view of the stock market.

End-of-Week Wrap-Up

  • S&P 500 down 1.99% for the week, at 5930.85, Dow Jones Industrial Average down 2.25% for the week at 42,840.26; Nasdaq Composite down 1.78% for the week at 19,572.60
  • $VIX up 32.95% for the week, closing at 18.36.
  • Best performing sector for the week: Technology
  • Worst performing sector for the week: Energy
  • Top 5 Large Cap SCTR stocks: Applovin Corp. (APP); Palantir Technologies (PLTR); Reddit Inc. (RDDT); Astera Labs, Inc. (ALAB); MicroStrategy Inc. (MSTR)

On the Radar Next Week

  • November Durable Goods Orders
  • November New Home Sales
  • October S&P/Case-Shiller Home Prices

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

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Skyharbour Announces Closing of Private Placement for Gross Proceeds of C$10 Million

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Not For Distribution to U.S. News Wire Services or Dissemination in The United States

Vancouver, BC, Dec. 20, 2024 (GLOBE NEWSWIRE) — Skyharbour Resources Ltd.  (TSX-V: SYH ) (OTCQX: SYHBF )   (Frankfurt: SC1P ) (‘Skyharbour’ or the ‘Company’) is pleased to announce that is has closed the brokered private placement previously announced by the Company on December 2, 2024, as upsized on December 3, 2024 (the ‘Brokered Offering’), and has additionally closed a concurrent non-brokered private placement (the ‘Non-Brokered Offering’, and together with the Brokered Offering, the ‘Offering’), for aggregate gross proceeds to the Company of C$10,020,000.

Jordan Trimble, President and CEO of Skyharbour, stated: ‘Skyharbour is very well-funded for its drilling and exploration plans in 2025, with the majority of the Offering placed with several strategic institutional and corporate investors. Over the next year, the Company anticipates the largest combined drilling and exploration campaign at its core projects of Russell Lake and Moore. This will follow up on successful drilling in 2024 at both projects, which included high-grade drill results and new uranium discoveries. The Company also expects continuous cash and share payments, as well as news flow, from its prospect generator business, consisting of partner companies advancing numerous other uranium projects throughout the Athabasca Basin.’

The Brokered Offering was completed through a syndicate of agents co-led by Haywood Securities Inc. and Red Cloud Securities Inc. (collectively, the ‘Agents’). Pursuant to the Brokered Offering, the Company issued: (i) 5,000,000 hard dollar units of the Company (the ‘Units’) at a price of C$0.40 per Unit; (ii) 2,368,420 charity flow-through shares (the ‘Charity FT Shares’) at a price per Charity FT Share of C$0.59; and (iii) 13,310,070 traditional flow-through shares (the ‘Traditional FT Shares’) at a price per Traditional FT Share of C$0.46, for aggregate gross proceeds under the Brokered Offering of C$9,520,000.

Additionally, the Company has completed a concurrent Non-Brokered Offering through the issuance of 1,250,000 Units at C$0.40 per Unit, for additional gross proceeds under the Non-Brokered Offering of C$500,000 with one strategic investor.

Each Unit consists of one common share of the Company (a ‘Share’) plus one-half of one common share purchase warrant (each whole such warrant, a ‘Warrant’). Each Warrant entitles the holder thereof to purchase one Share (a ‘Warrant Share’) at an exercise price of C$0.55 until June 20, 2027.

The gross proceeds from the sale of the Charity FT Shares and the Traditional FT Shares will be used by the Company to incur eligible ‘Canadian exploration expenses’ that qualify as ‘flow-through critical mineral mining expenditures’ as both terms are defined in the Income Tax Act (Canada), and will also be used to incur ‘eligible flow-through mining expenditures’ as defined in The Mineral Exploration Tax Credit Regulations, 2014 (Saskatchewan) (collectively, the ‘Qualifying Expenditures’) related to the Company’s projects in Saskatchewan, on or before December 31, 2025, and to renounce all Qualifying Expenditures in favour of such subscribers effective December 31, 2024. The net proceeds from the sale of Units will be used for the 2025 exploration and drilling programs at the Company’s uranium projects in Saskatchewan, as well as for general working capital purposes.

The Offering was conducted in accordance with available prospectus exemptions pursuant to applicable Canadian securities laws, with the securities issuable under the Offering subject to a statutory hold period expiring on April 21, 2025.

In consideration for the services provided by the Agents in connection with the Brokered Offering, on closing the Company paid to the Agents a cash commission of 6.5% of the gross proceeds raised under the Brokered Offering, and issued to the Agents compensation options equal to 6.5% of the total number of securities sold under the Brokered Offering (the ‘Compensation Options’), other than with respect to president’s list orders for which a 3.25% cash fee was paid and 3.25% Compensation Options were issued. Each Compensation Option is exercisable at C$0.50 until June 20, 2027. In connection with the Brokered Offering, the Company paid aggregate cash commission fees of $589,550 and issued 1,294,525 Compensation Options. No fees were paid in connection with the Non-Brokered Offering.

Directors and officers of the Company subscribed for an aggregate of C$49,900 in gross proceeds under the Offering. Participation by insiders of the Company constitutes a ‘related party transaction’ under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (‘MI 61-101’). Pursuant to sections 5.5(b) and 5.7(1)(a) of MI 61-101, the Company is exempt from obtaining formal valuation and minority approval of the Company’s shareholders respecting the purchase of securities under the Offering by related parties as the fair market value of securities to be purchased under the Offering is below 25% of the Company’s market capitalization as determined in accordance with MI 61-101.

The securities offered have not been, nor will they be, registered under the U.S. Securities Act, as amended, or any state securities law, and may not be offered, sold or delivered, directly or indirectly, within the United States, or to or for the account or benefit of U.S. persons, absent registration or an exemption from such registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful.

About Skyharbour Resources Ltd.:

Skyharbour holds an extensive portfolio of uranium exploration projects in Canada’s Athabasca Basin and is well positioned to benefit from improving uranium market fundamentals with interest in twenty-nine projects, ten of which are drill-ready, covering over 580,000 hectares (over 1.4 million acres) of land. Skyharbour has acquired from Denison Mines, a large strategic shareholder of the Company, a 100% interest in the Moore Uranium Project, which is located 15 kilometres east of Denison’s Wheeler River project and 39 kilometres south of Cameco’s McArthur River uranium mine. Moore is an advanced-stage uranium exploration property with high-grade uranium mineralization at the Maverick Zone that returned drill results of up to 6.0% U 3 O 8 over 5.9 metres, including 20.8% U 3 O 8 over 1.5 metres at a vertical depth of 265 metres. Adjacent to the Moore Project is the Russell Lake Uranium Project, in which Skyharbour is an operator with joint-venture partner Rio Tinto. The project hosts several high-grade uranium drill intercepts over a large property area with robust exploration upside potential. The Company is actively advancing these projects through exploration and drill programs.

Skyharbour also has joint ventures with industry leader Orano Canada Inc., Azincourt Energy, and Thunderbird Resources at the Preston, East Preston, and Hook Lake Projects respectively. The Company also has several active earn-in option partners, including CSE-listed Basin Uranium Corp. at the Mann Lake Uranium Project; CSE-listed Medaro Mining Corp. at the Yurchison Project; TSX-V listed North Shore Uranium at the Falcon Project; UraEx Resources at the South Dufferin and Bolt Projects; Hatchet Uranium at the Highway Project; Mustang Energy at the 914W Project; and TSX-V listed Terra Clean Energy at the South Falcon East Project which hosts the Fraser Lakes Zone B uranium and thorium deposit. In aggregate, Skyharbour has now signed earn-in option agreements with partners that total over $41 million in partner-funded exploration expenditures, over $30 million worth of shares being issued, and over $22 million in cash payments coming into Skyharbour, assuming that these partner companies complete their entire earn-ins at the respective projects.

Skyharbour’s goal is to maximize shareholder value through new mineral discoveries, committed long-term partnerships, and the advancement of exploration projects in geopolitically favourable jurisdictions.

Skyharbour’s Uranium Project Map in the Athabasca Basin:

https://www.skyharbourltd.com/_resources/images/SKY_SaskProject_Locator_2024-02-14_V2.jpg

To find out more about Skyharbour Resources Ltd. (TSX-V: SYH) visit the Company’s website at www.skyharbourltd.com .

Skyharbour Resources Ltd.

‘Jordan Trimble’

Jordan Trimble

President and CEO

For further information contact myself or:
Nicholas Coltura
Investor Relations Manager
‎Skyharbour Resources Ltd.
‎Telephone: 604-558-5847
‎Toll Free: 800-567-8181
‎Facsimile: 604-687-3119
‎Email: info@skyharbourltd.com

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.

Forward-Looking Information

This news release contains ‘forward‐looking information or statements’ within the meaning of applicable securities laws, which may include, without limitation, the intended use of proceeds from the Offering, the ability of the Company to renounce Qualifying Expenditures in favour of the subscribers, tax treatment of the Charity FT Shares and the Traditional FT Shares, future results of operations, performance and achievements of the Company, completing ongoing and planned work on its projects including drilling and the expected timing of such work programs, and other statements relating to the technical, financial and business prospects of the Company, its projects and other matters. All statements in this news release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the price of uranium, the ability to achieve its goals, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms. Such forward-looking information reflects the Company’s views with respect to future events and is subject to risks, uncertainties and assumptions, including the risks and uncertainties relating to the interpretation of exploration results, risks related to the inherent uncertainty of exploration and cost estimates and the potential for unexpected costs and expenses, and those filed under the Company’s profile on SEDAR+ at www.sedarplus.ca. Factors that could cause actual results to differ materially from those in forward looking statements include, but are not limited to, continued availability of capital and financing and general economic, market or business conditions, adverse weather or climate conditions, failure to obtain or maintain all necessary government permits, approvals and authorizations, failure to obtain or maintain community acceptance (including First Nations), decrease in the price of uranium and other metals, increase in costs, litigation, and failure of counterparties to perform their contractual obligations. The Company does not undertake to update forward‐looking statements or forward‐looking information, except as required by law. 







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FALCO ANNOUNCES CLOSING OF BROKERED PRIVATE PLACEMENT
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 /NOT FOR DISTRIBUTION TO  UNITED STATES  NEWS WIRE SERVICES OR FOR DISSEMINATION IN  THE UNITED STATES  / 


 TSXV – FPC 


Falco Resources Ltd. (TSXV: FPC) (‘ Falco ‘ or the ‘ Corporation ‘) is pleased to announce the closing of its previously announced ‘best efforts’ brokered private placement (the ‘ Offering ‘) with Cantor Fitzgerald Canada Corporation, acting as sole agent and sole bookrunner (the ‘ Agent ‘). Pursuant to the Offering, Falco has issued an aggregate of 24,000,000 units of the Corporation (the ‘ Units ‘) at a price of C$0.25 per Unit, for aggregate gross proceeds of C$6,000,000 .




 Each Unit consists of one common share (each, a ‘  Common Share  ‘) of the Corporation and one common share purchase warrant (each, a ‘  Warrant  ‘). Each Warrant is exercisable to acquire one Common Share at a price of  C$0.35  at any time on or before that date which is 60 months after the closing date of the Offering. 


 The Corporation intends to use the net proceeds from the sale of Units for the advancement of the Horne 5 Project and for working capital and general corporate purposes. 


 In connection with the closing of the Offering, the Corporation paid the Agent a cash commission totaling  C$324,000  and has issued the Agent 1,152,000 non-transferrable compensation warrants (each, a ‘  Broker Warrant  ‘). Each Broker Warrant entitles the Agent to purchase one Common Share of the Corporation at an exercise price of  C$0.25  per Broker Warrant at any time for a term of 24 months following the date of issuance. 


 All Common Shares and Warrants issued pursuant to the Offering are subject to a hold period of four months plus one day from the date of issuance of such securities under applicable securities laws in  Canada  . 


 A related party of the Corporation subscribed for 1,790,000 Units under the Offering. A transaction with a related party of the Corporation constitutes a ‘related party transaction’ within the meaning of Multilateral Instrument 61-101 –  Protection of Minority Security Holders in Special Transactions  (‘  MI 61-101  ‘). The Corporation is relying on exemptions from the formal valuation requirements of MI 61-101 pursuant to section 5.5(a) and the minority shareholder approval requirements of MI 61-101 pursuant to section 5.7(1)(a) in respect of such related party participation as the fair market value of the transaction, insofar as it involves interested parties, does not exceed 25% of the Corporation’s market capitalization. The Corporation did not file a material change report 21 days prior to closing of the Offering, as the related party’s participation had not been confirmed at that time and the Company wished to close the transaction as soon as practicable for sound business reasons. 


 This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in  the United States  or in any other jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in  the United States  absent registration or an applicable exemption from the registration requirements thereunder. 


 About Falco 


Falco Resources Ltd. is one of the largest mineral claim holders in the Province of Québec, with extensive land holdings in the Abitibi Greenstone Belt. Falco owns approximately 67,000 hectares of land in the Noranda Mining Camp, which represents 67% of the entire camp and includes 13 former gold and base metal mine sites. Falco’s principal asset is the Horne 5 Project located under the former Horne mine that was operated by Noranda from 1927 to 1976 and produced 11.6 million ounces of gold and 2.5 billion pounds of copper. Osisko Development Corp. is Falco’s largest shareholder owning a 16% interest in the Corporation. 


 Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release  . 


 Cautionary Statement on Forward-Looking Information 


 This news release contains forward-looking statements and forward-looking information (together, ‘forward-looking statements’) within the meaning of applicable Canadian securities laws, which may include, but is not limited to, statements with respect to anticipated business plans or strategies. Statements, other than statements of historical facts, may be forward-looking statements. Often, but not always, forward-looking statements can be identified by words such as ‘plans’, ‘expects’, ‘seeks’, ‘may’, ‘should’, ‘could’, ‘will’, ‘budget’, ‘scheduled’, ‘estimates’, ‘forecasts’, ‘intends’, ‘anticipates’, ‘believes’, or variations including negative variations thereof of such words and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved. Without limiting the generality of the foregoing statements, the proposed use of the proceeds of the Offering is a forward-looking statement. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual plans, results, performance or achievements of Falco to differ materially from any future plans, results, performance or achievements expressed or implied by the forward-looking statements. These risk and uncertainties include, but are not limited to, the risk factors set out in Falco’s annual and/or quarterly management discussion and analysis and in other of its public disclosure documents filed on SEDAR+ at  www.sedarplus.ca  ,  as well as all assumptions regarding the foregoing. Although Falco believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by applicable law, Falco disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. 


 SOURCE Falco Resources Ltd.




 View original content:  http://www.newswire.ca/en/releases/archive/December2024/20/c9019.html 






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Silver Price Forecast: Top Trends That Will Affect Silver in 2025
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The silver price reached highs not seen since 2012 this past year, supported by an ongoing deficit and increasing interest from investors as geopolitical concerns prompted safe-haven buying. 


The white metal reached its highest point for the year in October, breaking through US$34 per ounce on the back of a shifting post-pandemic landscape and geopolitical tensions. However, Donald Trumps victory in the US presidential election just a few weeks later buoyed bond yields and the US dollar while weighing on silver and its sister metal gold. 


What will 2025 hold for silver? As the new year approaches, investors are closely watching how Trump’s policies and actions could impact the precious metal, along with supply and demand trends in the space. 




Here’s what experts see coming for silver in 2025. 






                            How will Trump’s presidency impact silver?                                


As Trump’s inauguration approaches, speculation is rife about how he could affect the resource industry. 


The president-elect ran on a policy of “drill, baby, drill,’ and while his focus was largely on oil and gas companies, mining sector participants have taken it as a positive sign for exploration and development. 


Trump’s promise to reduce permitting timelines for anyone making an investment of US$1 billion or more in the US has excited sector members, and could end up being a boon to silver companies in the country. 


However, part of the help Trump has promised to mining companies comes from reneging on environmental commitments, including the Paris Agreement. This could end up weighing on silver. 


Current President Joe Biden’s Inflation Reduction Act includes tax credits and deductions for solar projects, and some experts are concerned that the incoming administration and the new Elon Musk-led Department of Government Efficiency (DOGE) could impose reversals or have the entire act gutted.


“Tesla bought SolarCity, which became Tesla Energy. They are an important provider of solar panels. Again, Musk’s new role heading DOGE and obvious close connection to Trump just might help mitigate risks to Tesla and its solar panel/power storage business. If that happens, and whatever form it may take, it could shelter solar panel production and sales in the US to a considerable degree,” Krauth explained via email. 


He also noted that Trump’s presidency isn’t without risks and that much uncertainty still remains. 


Mind Money CEO Julia Khandoshko also isn’t worried about solar demand in the US. 












                            Silver deficit expected to continue                                


Industrial segments have been critical for silver demand in recent years. 


As of November, the Silver Institute was forecasting total industrial demand of 702 million ounces of silver for 2024, an increase of 7 percent over the 655 million ounces recorded in 2023.


The institute attributes much of this increase to energy transition sectors, highlighting photovoltaics in particular. 


However, these gains are coming alongside flat mine production, which is expected to grow only 1 percent to 837 million ounces during 2024. Once factored in, secondary supply from recycling pushes the total supply of silver to 1.03 billion ounces, a considerable gap from the 1.21 billion ounces of total demand. 


Both Krauth and Khandoshko think the gap between silver supply and demand will continue. 


Khandoshko expressed a similar sentiment, saying demand is likely to keep outpacing supply.


 However, she also sees geopolitics and a global macroeconomic situation that could constrain both demand and supply growth in 2025. For example economic difficulties in Europe and China could slow energy transition demand. 


“The problem is that silver production is mainly concentrated in geopolitically challenging areas, such as Russia and Kazakhstan, where securing funding for supply expansion is quite difficult,’ she explained. 


‘These factors limit silver’s growth potential compared to gold, which in turn benefits from its role as a safe-haven asset during times of economic uncertainty.’ 






                            Silver M&A set to heat up in 2025                                


As silver supply becomes increasingly stressed, experts are eyeing projects that are ramping up. 


Krauth highlighted Aya Gold and Silver’s (TSX:AYA:OTCQX:AYASF) Zgounder mine expansion. Its first pour was at the end of November, and it is expected to ramp up to full annual output of 8 million ounces in 2025. 


Endeavour Silver’s (TSX:EDR,NYSE:EXK) Terronera mine is also nearing completion. Once complete, the mine is expected to produce 15.5 million silver equivalent ounces per year. 


For its part, Skeena Resources (TSX:SKE,NYSE:SKE) is working to develop its Eskay Creek project. It is set to come online in 2027, and is expected to bring 9.5 million ounces of silver per year to market in its first five years. 


Krauth said a rising silver price is likely good news for mergers and acquisitions in 2025.


“Higher prices, since they translate into higher share prices, meaning acquirers can use their more valuable shares as a currency to acquire others … I think 2024 will bring deals between mid-tiers and between juniors,’ he said. 


Krauth added, ‘The truth is that many mid-tier producers have not been spending on exploration. Something has to give, so I think we’ll see this space heat up.’






                            Investor takeaway                                


Khandoshko and Krauth have similar silver outlooks for 2025, suggesting a possible pullback. 


“Due to supply shortages and increasing demand in the coming months, silver is expected to reach US$35. After this, a slight pullback to US$30 would be possible,” Khandoshko said. 


However, after that happens she projects another rise, with silver potentially passing US$50. 


Krauth was looking for silver to reach US$35 in 2024, which happened in Q4. Looking forward to 2025, he thinks the white metal will revisit that level in the first quarter, with US$40 or more possible later in the year. 


However, he suggested that investors should be cautious of wider economic trends affecting silver. 


“There is a serious risk of significant correction in the broader markets and of a recession. A broad market selloff could bleed into silver stocks, even if only temporarily,” Krauth said. 


In the case of a recession, a lack of industrial demand could create headwinds for silver. Still, Krauth thinks that could be tempered by government stimulus efforts for green energy and infrastructure.


Overall, 2025 could be a significant year for silver investors. However, geopolitical and economic instability may provide headwinds across the resource sector and could stymie silver’s upward momentum.




Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.




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Opawica Announces the Closing of Non-Brokered Private Placement
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 (TheNewswire) 






















December 20th, 2024 Vancouver, B.C. TheNewswire – Opawica Explorations Inc. (TSXV: OPW) (FSE: A2PEAD) (OTCQB: OPWEF) (the ‘Company’ or ‘Opawica’), a Canadian mineral exploration company focused on precious and base metal projects, is pleased to announce that it has closed the recently announced private placement (December 17, 2024) of 4,330,00 Units for total aggregate proceeds of CAD $1,082,500 each consisting of one flow through Share of the Company and one half Common Share Purchase Warrant at a price of $0.25 per Unit.


 Each purchase Warrant is exercisable into one Common Share at an exercise price of $0.40 per share at any time up to 24 months following the closing date.  The Company also maintains a Warrant Acceleration option allowing Opawica to accelerate the expiry date of the Warrants if the daily trading price of the Common Shares on the TSX Venture Exchange is greater than $0.55 per Common Share for the preceding 10 consecutive trading days. All securities issued under the Offering and including Warrants will be subject to a four (4) month and one day holding period being April 21  st,  2025. 




 As part of the closing, Opawica has agreed to compensate the finding agents with a commission of up to 6.0% cash totaling $64,950, and up to 6.0% purchase Warrants totaling 259,800 Warrants based on the gross proceeds of the Offering. Each purchase Warrant is exercisable @ $0.40 according to the terms described above. 


 The Company intends to use the net proceeds to advance drilling obligations on its flagship properties in the Abitibi Gold Belt Québec. 


 The Private Placement remains subject to receipt of all required approvals, including the final approval of the TSX Venture Exchange, as well as execution of formal documentation. 


 Blake Morgan CEO and President states, ‘With a great cash position in hand, Opawica is now primed to start drilling on its flagship properties in the Abitibi Green Stone Belt Québec. A large number of high priority drill targets have been identified across our two flagship properties and the company is eager to drill them. The company will have some more news regarding the drill program soon. We welcome shareholders to visit  www.opawica.com  and follow us on our journey.’ 


 A  bout Opawica Explorations Inc.


Opawica Explorations Inc. is a junior Canadian exploration company with a strong portfolio of precious and base metal properties within the Rouyn-Noranda region of the Abitibi Gold Belt in Québec. The Company’s management has a great track record in discovering and developing successful exploration projects. The Company’s objective is to increase shareholder value through the development of exploration properties using cost effective exploration practices, acquiring further exploration properties, and seeking partnerships by either joint venture or sale with industry leaders. 


 FOR FURTHER INFORMATION CONTACT: 


 Blake Morgan 


 President and Chief Executive Officer 


Opawica Explorations Inc.


 Telephone: 236-878-4938 


 Fax: 604-681-3552 


 www.opawica.com 


 info@opawica.com 


 Neither the TSX Venture Exchange nor its Regulation Service Provider (as the term is defined in 


 the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy 


 of this news release. 


 Forward-Looking Statements 


 This news release contains certain forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected including, but not limited to, market conditions, availability of financing, actual results of the Company’s exploration and other activities, environmental risks, future metal prices, operating risks, accidents, labor issues, delays in obtaining governmental approvals and permits, and other risks in the mining industry. All the forward-looking statements made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required by applicable law. 


 Copyright (c) 2024 TheNewswire – All rights reserved. 






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Top 5 Canadian Mining Stocks This Week: Omineca Jumps 67 Percent
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The S&P/TSX Venture Composite Index (INDEXTSI:JX) fell 2.87 percent on the week to close at 586.88 on Friday (December 20). Meanwhile, the S&P/TSX Composite Index (INDEXTSI:OSPTX) posted a 2.6 percent decrease to hit 24,599.48, and the CSE Composite Index (CSE:CSECOMP) was down just 0.12 percent to reach 130.58.


Statistics Canada released November’s consumer price index (CPI) data on Tuesday (December 17). The data showed that inflation in Canada continued to cool, posting a 1.9 percent year-over-year increase, down from the 2 percent recorded in October. 




The agency said the decrease was partly due to a 0.4 percent decrease in gasoline prices and consumers taking advantage of lower prices during Black Friday sales.


StatsCan also released its October monthly mineral production survey on Thursday (December 19). The release shows copper production in Canada increased to 37.5 million kilograms from 35.43 million in September. Gold production also increased, rising considerably to 26,553 kilograms from 15,296 kilograms the prior month. Meanwhile, silver production decreased slightly, with 25,166 kilograms produced in October compared to 26,827 kilograms the previous month.


South of the border, the US Federal Reserve held its final meeting of the year this past Tuesday and Wednesday (December 18). The committee cut the benchmark rate by 25 basis points, lowering it to 4.25 to 4.5 percent.


The Fed cited an improving economic outlook, with inflation easing towards its target 2 percent range and a better job market balance. However, the Fed is widely expected to slow further cuts in the new year as it continues to gather data. 


In his remarks following the meeting, Fed Chairman Jerome Powell wouldn’t rule out future increases as some inflationary indicators have stalled in recent weeks.


The news was not well received on Wall Street, with the Dow plunging more than 1,000 points following the announcement.


Over the course of the week, markets were broadly down. The S&P 500 (INDEXSP:INX) fell 2.19 percent to end Friday at 5,930.84, while the Nasdaq-100 (INDEXNASDAQ:NDX) shed 2.69 percent to 21,289.15. Meanwhile, the Dow Jones Industrial Average (INDEXDJX:.DJI) finished the week down 2.25 percent at 42,840.25.


Precious metals also took a hit on the Fed news, with gold and silver plunging below US$2,600 and US$30 respectively. 


Overall, gold lost 1 percent over the week to finish Friday at US$2,623.92 and silver sank 3.42 percent to US$29.49 per ounce. Additionally, copper fell 2.61 percent for the week to close at US$4.10 per pound on the COMEX. The S&P GSCI (INDEXSP:SPGSCI) was down 1.32 percent to close at 539.08.


Learn about this week’s five best-performing Canadian mining stocks below.


Data for this article was retrieved at 4:00 p.m. EST on December 20, 2024, using TradingView’s stock screener. Only companies trading on the TSX, TSXV and CSE with market capitalizations greater than C$10 million are included. Companies within the non-energy minerals and energy minerals sectors were considered.












                            1. Omineca Mining and Metals (TSXV:OMM)




Company Profile






Weekly gain: 66.67 percent
Market cap: C$10.91 million
Share price: C$0.075


Omineca Mining and Metals is a gold exploration and mining company working to advance its Wingdam project in British Columbia, Canada. 


The project consists of 61,329 hectares of hard rock and placer claims within the Cariboo mining district. It is a 50/50 joint venture with D&L Mining. The site currently hosts mining operations focused on extracting placer gold from gravels 50 meters beneath Lightning Creek. 


According to the company, the mine is extracted through gravity separation, which uses an existing reusable water supply without chemicals, mill waste or tailings. 


Omineca’s shares saw price gains at the end of the week, but the only news came early in the week after the company announced on Tuesday that it had expanded its diamond drilling program at Wingdam from 10 holes to 17 and up to 10,000 meters. So far, the company has completed six holes with two rigs and sent its first sample to be assayed. 


The company said drilling has encountered some quartz veins with various concentrations of semi-massive to massive sulphide mineralization, and included photos of the mineralized cores. Samples from several holes will be assayed for coarse gold.


Additionally, on December 6, the company announced that it had entered into a non-brokered private placement of flow-through units for C$0.055 per share, with gross proceeds of up to C$2.4 million. The company said it would use the funds to explore Wingdam further as it works to find the lode source of the placer gold.








                            2. Bayhorse Silver (TSXV:BHS)




Company Profile






Weekly gain: 45.45 percent
Market cap: C$17.87 million
Share price: C$0.08


Bayhorse Silver is a silver-focused company currently working to bring the Bayhorse silver, copper and antimony mine in Oregon, US, back online.


The mine was originally in operation until late 1984 and closed when the price of silver dropped to under US$6 per ounce. Historic sampling during the 1980s identified grades of 2,146 grams per metric ton (g/t) silver, and a bulk sampling program conducted by Bayhorse in 2014 found bonanza grades of 150,370 g/t silver.


The company has continued to explore the property and, in October 2018, produced a maiden resource estimate that showed the property hosts inferred resources of 6.33 million ounces of silver from 292,300 US tons of ore with an average grade of 21.65 ounces per US ton.


The most recent update from the project came on December 19 when the company reported that drilling had encountered a strongly brecciated zone at 112 meters downhole, continuing to the current drilling depth of 148 meters. Bayhorse said the XRF field analysis showed elevated levels of copper, zinc and lead, but confirmation from a formal lab assay is needed. 








                            3. Defense Metals (TSXV:DEFN)




Company Profile






Weekly gain: 40 percent
Market cap: C$32.53 million
Share price: C$0.14


Defense Metals is a rare earth metals exploration and development company currently focused on advancing its Wicheeda property near Prince George in British Columbia, Canada. 


The property consists of 12 mineral claims covering 6,759 hectares and hosts rare earth element mineralization, first discovered at the site in 1976. Between 2019 and 2023, Defense extensively explored the property, drilling 60 diamond drill holes totalling 12,883.91 meters. 


In August 2023, the company produced a technical report for the property with its most recent mineral resource estimate. The site hosts measured and indicated resources of 699,000 metric tons of total rare earth oxides from 34.17 million metric tons of ore with an average grade of 2.02 percent, as well as inferred resources of 113,000 metric tons of total rare earth oxides from 11.05 million metric tons of ore with an average grade of 1.02 percent.


The company’s most recent news came on Thursday, when it announced it would grant 9.95 million incentive stock options to directors, officers and consultants. The options are exercisable for five years, with 8.85 million offered at C$0.125 per share, 400,000 offered at C$0.205 per share and 700,000 at C$0.26.








                            4. Nevada Lithium Resources (CSE:NVLH)




Company Profile






Weekly gain: 37.5 percent
Market cap: C$53.18 million
Share price: C$0.22


Nevada Lithium Resources is an exploration and development company working to advance its Bonnie Claire lithium project in Nevada, US. The property consists of 915 placer claims covering an area of 74.1 square kilometers in Nye County.


According to a mineral resource estimate issued on Monday (December 16), the site hosts indicated resources of 202,000 metric tons of contained lithium from ore with an average grade of 1,074 parts per million (ppm) and inferred resources of 499,000 metric tons contained lithium at an average grade of 1,106 ppm. 


Along with the lithium, the site also has significant quantities of boron, hosting an indicated resource of 231,000 metric tons of contained boron from ore with an average grade of 1,519 ppm and an inferred resource of 407,000 metric tons at 1,505 ppm. 


In addition to the technical report, Nevada Lithium announced the same day that it had been given conditional approval to list its common shares on the TSX Venture exchange. Once final approval is received, shares will be listed on the TSXV under the same ticker symbol and delisted from the CSE.








                            5. Gratomic (TSXV:GRAT)


                {'@context':'http://schema.org','@type':'Corporation','name':'Gratomic Inc.','url':'https://www.gratomic.ca','description':'Gratomic Inc is an advanced materials company. It is focused on low-cost mine to market commercialization of carbon-neutral, eco-friendly, high purity vein graphite and is set to become a key player in EV and Renewable Resource supply chains. The company is in the process of solidifying its plans for the micronization, spheronization, and coating of its Aukam vein graphite. The company is engaged in the acquisition and exploration of assets located primarily in Canada and Namibia.','tickerSymbol':'TSXV:GRAT','sameAs':[],'image':'https://investingnews.com/media-library/tsxv-grat.jpg?id=27771440&width=980','logo':'https://investingnews.com/media-library/tsxv-grat.jpg?id=27771440&width=210'}            




Company Profile






Weekly gain: 33.33 percent
Market cap: C$13.02 million
Share price: C$0.06


​


Gratomic is a junior graphite development and exploration company with assets in Namibia, Canada and Brazil. 


Its primary project is the Aukam graphite property, located near the port of Luderitz in Southern Namibia. It covers an area of 141,500 hectares and has been granted four prospecting licenses. The site hosts an existing 7,200 metric ton per year modular processing plant, with the capability to be upgraded to 22,000 metric tons per year.


Gratomic has been working to create stockpiles at the Aukam mine as it starts to ramp up production. During the commercial commissioning phase of the plant, the company produced 300 metric tons of graphite.


Gratomic shared an update on the project on November 21, and announced the appointment of new Chief Operating Officer and Director Hermanus Manuel Silver.


“We have already started working on a business plan which we plan to implement in December 2024 to set the stage for greater strategic advancement of the asset and the processing plant,” he said.


The company’s most recent news came on December 11, when it alleged that its former chief operating officer had wrongfully transferred some of its mining claims at its Capim Grosso property in Brazil to another graphite company. It has yet to be approved by the country’s mining authority, and Gratomic is seeking legal advice. The company stated that it had made significant investments in the transferred claims, and it plans to sell the property if it can recover it. 


Gratomic had previously allowed other mining claims at its Capim Grosso property to expire as it said further exploration and development costs at the site were not justified and would drain company resources.​








                            FAQs for Canadian mining stocks                                






                            What is the difference between the TSX and TSXV?                                


The TSX, or Toronto Stock Exchange, is used by senior companies with larger market caps, and the TSXV, or TSX Venture Exchange, is used by smaller-cap companies. Companies listed on the TSXV can graduate to the senior exchange.






                            How many companies are listed on the TSXV?                                


As of June 2024, there were 1,630 companies listed on the TSXV, 925 of which were mining companies. Comparatively, the TSX was home to 1,806 companies, with 188 of those being mining companies.


Together the TSX and TSXV host around 40 percent of the world’s public mining companies.






                            How much does it cost to list on the TSXV?                                


There are a variety of different fees that companies must pay to list on the TSXV, and according to the exchange, they can vary based on the transaction’s nature and complexity. The listing fee alone will most likely cost between C$10,000 to C$70,000. Accounting and auditing fees could rack up between C$25,000 and C$100,000, while legal fees are expected to be over C$75,000 and an underwriters’ commission may hit up to 12 percent.


The exchange lists a handful of other fees and expenses companies can expect, including but not limited to security commission and transfer agency fees, investor relations costs and director and officer liability insurance.


These are all just for the initial listing, of course. There are ongoing expenses once companies are trading, such as sustaining fees and additional listing fees, plus the costs associated with filing regular reports.






                            How do you trade on the TSXV?                                


Investors can trade on the TSXV the way they would trade stocks on any exchange. This means they can use a stock broker or an individual investment account to buy and sell shares of TSXV-listed companies during the exchange’s trading hours.




Article by Dean Belder; FAQs by Lauren Kelly.


Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.


Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.




This post appeared first on investingnews.com



		
				
			
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