Gold Explodes To Six-Year Highs What Next?
Gold prices are flirting with six-year highs after surging by more than 10% from this year lows. As the price continues to test resistance levels last registered in 2013, daily momentum appears to be deep in overbought territories. A pullback could thus be in the offing pending further upside action. A spike in gold prices has once again triggered renewed investor interest on gold stocks with the likes of Vanstar Mining Resources Inc. (CVE: VSR) and Crystal Lake Mining Corp (CVE: CLM) seeing increased market activity.
Gold Price Analysis
After a long period of consolidation, Gold did take out the $1350 resistance level on its way to the $1400 level. A spike to the $1437 level appears to have elicited some selling pressure as the yellow metal has since pulled lower. The $1400 level has since emerged as the immediate support level supporting further upside action in continuation of the bullish momentum.
A spike to six years high was not expected this fast. This explains the recent pullback. However, Gold remains bullish, given the underlying developments that continue to support price action.
Gold Price Catalyst
In recent months, Gold has assumed its haven status amidst growing concerns about the health of the global economy compounded by trade tensions between economic powerhouses. Geopolitical tension pitying the U.S and Iran has also forced many investors to shift their investments into safe-haven assets such as Gold as the threat of a full-blown war becomes real by the day.
The Federal Open Market Committee retaining interest rates but leaning more dovish has also triggered weakness in the U.S dollar consequently fuelling a spike in the precious metal price. The committee warned that it would cut interest rates should the U.S economy begin to show signs of a slowdown has also worked in favour of gold prices given the weakness it has triggered on the U.S dollar.
Dovish monetary statements by the U.S central bank as well as the European Central bank raises serious concerns about the health of the global economy. Gold tends to outperform the overall market in times of uncertainties, given its haven status.
Gold safe-haven demand should continue to rise should the U.S and Iran fail to reach an agreement that would bring to end tension in the gulf. Should the U.S unleash military power against Tehran following the shooting of its military surveillance drone, then it is likely that Gold will spike even higher as investors rush towards safe havens.
Gold Stocks Performance
Higher gold prices work in favour of companies engaged in the exploration and mining of the precious metal given the higher returns expected as prices surge. Vanstar mining resources is one such company that has started seeing renewed investor interest if recent market activity is anything to go by. In partnership with IAMGOLD, the company is currently working on the development of Nelligan Project believed to play host to huge gold prospects.
Crystal Lake Mining is another company engaged in the exploration of metal resources in Canada. The company is currently exploring for Gold, nickel, cobalt, and copper at its flagship properties in Emo Ontario. The company has also expanded the size of its Newmont Lake Project, thereby becoming the largest landholder in broader Eskay camp.
The fact that Gold remains bullish given the uncertainties on global economic growth, as well as geopolitical tensions, should continue to support a spike in gold-focused stocks with solid fundamentals. Above the $1400 level, gold prices should continue to rise. A breach of the support level could result in Gold dropping back to the $1361 support level.
- Published in Uncategorized
CROP Investment Holding World Farms Corp. Announces Definitive Agreement to go Public on the CSE
Momentum Public Relations
Press Release: June 27, 2019
CROP INFRASTRUCTURE CORP. (CSE: CROP) (OTC: CRXPF) (Frankfurt: 2FR) announced today that its investment holding, World Farms Corp., has signed a definitive agreement with Graphite Energy Corp to go public via a reverse takeover (‘RTO’) on the Canadian Securities Exchange.
CROP currently owns 10,000,000 shares in World Farms Corp. which also announced a $0.30 private placement in connection with the RTO.
On February 27th CROP divested its interest in Italian and Jamaican joint ventures in return for $2.0 Million in common shares of World Farms Corp. at a deemed price of $0.20 per share for a total of 10,000,000 shares.
CROP CEO, Michael Yorke, stated: “The RTO is proceeding as planned and is now subject to final approval by the CSE. By divesting our Italian and Jamaican assets to World Farms, it has allowed CROP to focus and expand its operations in the USA, as well as gain a major investment.”
“It is significant for World Farms that it is already cultivating 100,000 cannabis plants with another 500,000 planned to be growing in Croatia over the coming weeks.”
World Farms Corp. can be followed on Instagram at www.instagram.com/world_farms, on Facebook at www.Facebook.com/worldfarms, and also on Twitter at www.twitter.com/world_farms.
About CROP
CROP is publicly listed on the CSE and trades under the symbol “CROP”, in the US on the OTC under the symbol “CRXPF”, and on the Frankfurt exchange under the symbol “2FR”. CROP has developed a portfolio of asset investments including: two in Washington State, medical and recreational in California, a 1,012-acre Nevada cannabis farm, 2,115 acre hemp CBD farm and a growing portfolio of common share equity in upcoming listings within the cannabis space, as well as Canna Drink, a cannabis infused functional beverage line. Crop has US distribution rights to over 55 cannabis topical products and a portfolio of 16 cannabis brands.
Company Contact
Michael Yorke – CEO and Director
E-mail: info@cropcorp.com
Website: www.cropcorp.com
Phone: (604) 484-4206
- Published in Cannabis, CROP Infrastructure, Life Sciences, Marijuana, News Home
North Bud Farms Signs Binding Letter of Intent to Acquire Nevada Botanical Science
Momentum Public Relations
Press Release: June 25
North Bud Farms Inc.(CSE: NBUD) (OTCQB: NOBDF) (“NORTHBUD” or the “Company”) is pleased to announce that it has entered into a binding letter of intent (“LOI”), effective June 23, 2019, to acquire all of the issued and outstanding securities of Nevada Botanical Science, Inc. (“NBS”) in a transaction valued at USD$7 million.
Nevada Botanical Science is located in Reno, Nevada. They hold medical and adult use licenses for cultivation extraction and distribution. NBS’ operation is located on 3.2 acres of land within the Reno green zone industrial park. NBS currently operates a 5,000 sq. ft. indoor cultivation facility and have been approved for expansion of up to 100,000 sq. ft. The property also houses an extraction facility and commercial kitchen capable of manufacturing beverages and edibles. Operated by healthcare professionals, NBS has been primarily focused on the cultivation and manufacturing of medical cannabis products. NBS currently manufactures and sells award winning* (Jack Herer Cup 2018) topical pain creams, balms and lotions under the Trichomic brand.
“We are very excited to have the opportunity to enter the Nevada market,” said Ryan Brown, CEO of NORTHBUD. “The Nevada market is considered one of the best markets in America with recreational sales of USD$580 million in the first full year of legalization* (2017 Nevada Dept. of Taxation). Assuming the successful closing of the proposed transaction with NBS and our previously announced transactions with Eureka Vapor and Tanforan Ventures, we are building an excellent platform in the 3 largest markets in the United States on which to build our brand focused strategy.”
“The NBS team is pleased to be entering into this agreement with NORTHBUD, as we believe that NORTHBUD and its brands will be a perfect addition to our existing medical business and allow us to capitalize on the Nevada recreational market,” said Robert Dalrymple, MD., CEO of Nevada Botanical Science.
Transaction Terms
The proposed transaction (the “Transaction”) is currently structured as a share purchase agreement whereby in exchange for the purchase of all of the securities of NBS, NORTHBUD will pay USD$6M in cash and issue USD$1M in common shares (“Common Shares”) to the shareholders of Nevada Botanical Science (the “NBS Shareholders”) with the price per Common Share to be determined based on a formula of the higher of (a) CAD$0.35 per Common Share and (b) the 30-day volume weighted average price (“VWAP”) calculated on the closing date (the “Closing Date”) of a definitive agreement in respect of the Transaction (the “Definitive Agreement”). In addition, NORTHBUD has agreed to loan up to USD$500,000 under a promissory note to NBS while the companies work towards a definitive agreement. Specific terms of the promissory note are not yet determined, however any amounts loaned to NBS under the promissory note will be fully refundable and may be converted into equity in NBS, at the option of NORTHBUD, in the event that the transaction is not completed. NORTHBUD and NBS Shareholders expect to enter into the Definitive Agreement on or before October 1, 2019.
The Transaction is a significant acquisition but will not result in a “Fundamental Change” pursuant to the policies of the Canadian Securities Exchange (“CSE”). Financial information on NBS will be disclosed following receipt of audited financial statements in connection with the Company’s due diligence. NORTHBUD will be preparing the necessary corporate and securities filings in order to secure the required approvals for the Transaction.
NORTHBUD has agreed to pay up USD$280,000 in broker/finder fees to arm’s length parties in connection with the closing of the Transaction.
The closing of the Transaction is conditional on the receipt by the parties of applicable corporate and regulatory approvals including that of the CSE.
While the proposed transactions involving NBS, Tanforan Ventures and Eureka Vapor are complementary, they are independent and the Company may ultimately proceed to close one, two, all or none of the proposed transactions, depending on market conditions and regulatory requirements.
About Nevada Botanical Science, Inc.
Founded by a group of northern Nevada physicians and healthcare professionals who believe in the promise of medical cannabis, Nevada Botanical Science has developed a world class cannabis production, research and development facility in Reno’s Washoe County. Its work and commitment are fully in compliance with the Hippocratic Oath as well as Nevada statute. Nevada Botanical Science is dedicated to ensuring the highest measure of safety, governance and stewardship for its patients, employees and the community it serves.
For more information visit: www.nevadabotanicalscience.com
About North Bud Farms Inc.
North Bud Farms Inc., through its wholly owned subsidiary GrowPros MMP Inc., is pursuing a licence under The Cannabis Act. The Company is constructing a state-of-the-art purpose-built cannabis production facility located on 95 acres of Agricultural Land in Low, Quebec. North Bud Farms Inc. has entered into agreements to acquire assets in California, Colorado and Nevada.
For more information visit: www.northbud.com
Neither the Canadian Securities Exchange (the “CSE”) nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking statements
Certain statements included in this press release constitute forward-looking information or statements (collectively, “forward-looking statements”), including those identified by the expressions “anticipate”, “believe”, “plan”, “estimate”, “expect”, “intend”, “may”, “should” and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts but reflect current expectations regarding future results or events. This press release contains forward- looking statements including those relating to the entering into of the Definitive Agreement, closing of the Transaction and associated approvals, Nevada Botanical Science’s ability to achieve milestones under the Definitive Agreement and associated Common Share issuances. These forward-looking statements are based on current expectations and various estimates, factors and assumptions and involve known and unknown risks, uncertainties and other factors. Such risks and uncertainties include, among others, the risk factors included in North Bud Farms Inc.’s final long form prospectus dated August 21, 2018 which is available under the issuer’s SEDAR profile at www.sedar.com.
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
North Bud Farms Inc.
Edward Miller
VP, IR & Communications
Office: (855) 628-3420 ext. 3
investors@northbud.com
Crystal Lake Mining Continues to Make Progress in Canada’s Challenging Mining Sector
Crystal Lake Mining (CLM.V), announced it has managed to identify a new large target area – the so-called Chachi Corridor – with the high-grade gold potential on the eastern side of its Newmont Lake Project (Northwest B.C.’s Eskay Camp). Accordingly, the area is considered to be “notably underexplored”, and will act as one of the focus areas this upcoming summer.
“The newly exposed prospective ground makes the entire Chachi Corridor a high priority target”, the company said in a statement.
The Lake Country-based firm, which is engaged in the identification, acquisition and exploration of prospective mineral properties in Canada, continues to make steady progress in identifying and creating new mineral discoveries in Canada.
This news comes only a few weeks after the company announced it has successfully raised nearly $4.6 million from a private placement financing. In March, the company was forced to increase its private placement due to strong investor demand.
The majority of the raised funds, at least $3 million, will be used to complete the first phase of Crystal Lake’s 2019 drilling and exploration program at the Newmont Lake Project, while the rest is expected to be used mainly for general working capital purposes. As of today, Crystal Lake Mining has a market share of $33.3 million, which signifies a 38% increase compared to $24 million in February this year.
In order to acquire a 100% interest in the Newmont Lake Project, the firm must spend at least $8 million on exploration over the next three years; CLM pays Romios Gold Resources $2 million in installments and issue 12 million Crystal Lake shares to Romios over a three-year period.
Although the recently published “Risks and opportunities for mining – Outlook 2019” report published by KPMG still sees Canada as one of the major global hubs in the mining industry, its companies face great challenges in the context of regulation and scrutiny in order to get their key mining projects going. The Mining Association of Canada (MAC) has also warned that its companies are falling behind in the new global mining order.
“The value of total projects planned and under construction from 2018 to 2028 has been reduced by 55% since 2014, from $160 billion to $72 billion”, it is stated in the “Facts and Figures” annual report released by MAC.
For this exact reason, the new Chachi Corridor project is seen as a boost, not just for Crystal Lake Mining and its ambition to take a big step towards a more notable role in Canada’s crowded mining sector, but also for Canada’s entire mining industry.
Overall, Crystal Lake Mining is well-positioned to gain larger market share, particularly given the overall potential of the Newmont Lake Project, in addition to the expected higher demand for minerals given the global trend of a mass electrification.
- Published in Uncategorized
CROP’s DVG Subsidiary Acquires Adjacent Tenanted Outdoor Farm in Washington
Momentum Public Relations
Press Release: June 25, 2019
CROP INFRASTRUCTURE CORP. (CSE: CROP) (OTC: CRXPF) (Frankfurt: 2FR) announced today that its 30% owned DVG, LLC partner has acquired additional facilities for a tenanted outdoor cannabis farm in Grant County, Washington.
In return for acquiring the turnkey infrastructure and branding assets for DVG company, CROP infrastructure is issuing 2,000,000 shares at a deemed price of $0.30 per share and has paid $46,000 USD cash.
The farm is operated by a Tier 3 licensed Tenant and is fully planted for the 2019 season.
The strains being planted for the 2019 outdoor season are Bubba Kush, Dutch Hawaiian, Ghost Train, Green Crack, Star Killer and WA Cookies, predominantly for extraction at the adjacent processing facility.
CROP CEO, Michael Yorke, stated: “In the roll out of the Hempire and Evolution brands we have continually worked with the team tenanted at these locations. It seemed only natural to align all parties’ interests as we continue to execute on our America-wide focus with this team.”
About CROP
Crop is publicly listed on the CSE and trades under the symbol “CROP”. CROP is focused on cannabis branding and real estate assets. CROP’s portfolio of projects includes cultivation properties in California, two in Washington State, a 1,000-acre Nevada Cannabis farm, 1,865 acres of CBD farms, extraction in Nevada and joint ventures on West Hollywood and San Bernardino dispensary apps with a growing portfolio of common share equity in upcoming listings within the cannabis space.
CROP has developed a portfolio of assets including Canna Drink, a cannabis infused functional beverage line, US and Italian distribution rights to over 55 cannabis topical products and a portfolio of 16 Cannabis brands. CROP’s infrastructure has over 150,000 sq ft of built canopy and over 2,900 acres of real estate.
Company Contact
Michael Yorke – CEO and Director
E-mail: info@cropcorp.com
Website: www.cropcorp.com
Phone: (604) 484-4206