Stoneshield announces financing

Today Stoneshield Capital STS.V announced a financing at the $0.175/share with a full warrant. I have jotted myself down for 40,000 shares. My plan is to swap out my free trading shares and replace them with the units.

I will still have 100,000 plus shares plus an additional 80,000 warrants. It is really the warrants that I am after as it adds 2 years to my position.

StoneShield Capital Corp. intends to complete a non-brokered private placement to raise up to $1-million through the sale of up to six million units at 17.5 cents per unit. Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share for 24 months from the closing of the private placement at a price of 25 cents per share for the first 12 months and 35 cents for the remaining 12 months. Finder's fees may be payable in connection with the private placement as permitted under the policies of the TSX Venture Exchange.
Net proceeds from the private placement will be utilized to finance the proposed work programs on StoneShield's El Mercado property, Colombia; on the Geldenhoof property, British Columbia; on the company's Risby copper property, Northwest Territories; and for general working capital.  

Eric Sprott Blog

I have added Eric Sprott blog to my site and it is linked on the blog role section on the right hand margin. I like what he has to say and encourage you to read his take on silver, gold and the markets overall.

http://ericsprott.blogspot.com/

Interesting 60 Minutes piece on the US housing situation

Some weekend viewing that makes you happy our home ownership and banking system is not like our neighbors to the south. It looks like the USA house of cards is collapsing and that will bode well for silver and gold.

This is pretty crazy

http://www.cbsnews.com/video/watch/?id=7361572n

Continued bleeding in Saint Augustine Gold SAU.TO

Long term resolve is a much harder discipline than the emotions of fear and greed. Hence it is hard to watch the continuous bleeding of shares of Saint Augustine SAU.TO into a soft market. Unfortunately selling begets more selling.  I did not expect the shares to be trading in the $0.60/share range and at this point I hope it goes lower so that I can buy more shares at a cheaper price.

I did a little digging into the continuous sell off of the shares and I have noticed that CIBC World Markets are constantly on the sell side. The amazing thing is that on January 18 2011,  BMO, CIBC and Dundee raised $40 million dollars for Saint Augustine at $1.10 and here we are today with CIBC selling into the $0.60/share range. I don't know about you but who ever at CIBC is dead set on loosing money for their clients with the buy high sell low policy. My assumption is that some fund at CIBC holds the shares and when a new portfolio manager comes in they tend to sell stocks that don't meet their criterion. Obviously long term resolve is non existent.

Since January 1 2011, Haywood Securities and CIBC World Markets have been the largest net sellers. Haywood Securities for the most part are in the money with financing the original IPO of Ratel Gold at $0.20/share so I have no issues with that. But whatever CIBC is doing makes me glad that they do not manage any of my money. The net for selling from Haywood is 1.4 million shares and the net selling from CIBC is 5.8 million shares since January 1 2011.

 

At this point I would expect further erosion in share price until CIBC has exhausted its' position and the selling pressure stops. I would expect a large cross of stock between CIBC and another brokerage firm as an indicator that CIBC has unloaded the tail end of their position. My bet is that it will be at the $0.50/share mark and I will put an open order in for 10,000 shares to buy at $0.51/share.

Latin American Minerals LAT.V going into production

It looks like Latin American Minerals has all the pieces in place to start a small scale exploitation of their Paso Yabai gold property. The Company just received their environmental permit and is near the implementation of a pilot plant for production. Latin American Minerals pretty much flies under the radar and is trading at a paltry $0.27/share as I write this. With 87 million shares outstanding it gives Latin American Minerals a market capitalization of $24 million.

Latin American Minerals reminds me of another small scale gold producer that was bought out a few years back called Castle Gold. The President, Miles Rideout sees gold production starting in the second half of this year.

Latin American Minerals Inc. is releasing interim drill results and pilot plant implementation advances for the Paso Yobai gold project, located in Paraguay.
The Paso Yobai district has been a historically small-scale gold producer for 10 years, producing an estimated 150,000 ounces from surface workings. Over the last four years, the company has mapped a 100-square-kilometre epithermal mineral system on its Paso Yobai mineral concessions. The gold-bearing Discovery trend is the company's most advanced target in this large system.
The company is developing the Discovery trend pilot plant operation on the 70-per-cent-owned Minera Guaira mining concession, part of the company's larger Paso Yobai gold project. The objective of the pilot plant is to facilitate resource evaluation the Discovery trend, which is characterized by coarse gold mineralization extending from surface to greater than 100 m depth. The "nuggety" distribution of the gold complicates conventional resource estimation by diamond drilling due to the small sample volume extracted in exploration holes.
The company's strategy to develop the Discovery trend target is to detect and delineate mineral shoots by trenching and diamond drilling, then to verify the grades of these zones by bulk sampling. The Discovery trend pilot plant will allow the company to expand these operations to a commercial scale in order to accelerate the development of a resource. To prepare the initial evaluation pit area, localized delineation drilling began in February, 2011.
The stage 1 delineation drill program was designed to increase the sampling density of previous drilling, yielding geologic information on 25-metre sections through a 200 m zone of the much larger Discovery trend. The results from the initial 2,000 m of diamond drilling are not yet complete, thus interim results are provided at this time.
Highlights of the delineation drill program include:

• Drilling has defined the continuity of oreshoots along more than 200 m of the Discovery zone, from surface to approximately 120 m depth;
• Visible gold was found at 121 m depth in DDH-53, the deepest occurrence of visible gold at the project to date;
• Gold mineralization was encountered in all of the holes analyzed so far in this drill campaign;
• Multiple mineralized zones were crossed in DDH-49, 51, 52, 54, 56 and 58;
• Visible gold was encountered in DDH 53, 54, 56 and 58;
• The best intersection to date in this drill campaign was 17.03 grams over 2.55 metres in DDH-49.

The accompanying table provides a summary of the most significant intersections tested in new drilling.
Miles Rideout, president and chief executive officer of Latin American Minerals, summarized: "We continue to get excellent results from the Discovery trend, characterized by high-grade gold in near-surface oreshoots. Of particular importance is that the tight drill spacing now appears to resolve the plunge of oreshoots, facilitating drill targeting to depth."

INTERIM 2011 DELINEATION DRILLING RESULTS FOR THE DISCOVERY TREND TARGET

                                         Width (m)              Observation

DDH-49              66.30       68.85        2.55        17.03  fire assay
DDH-51              77.50       78.20        0.70         2.67  fire assay
DDH-53             121.02      121.52        0.50        17.02  fire assay
                   121.02      121.52        0.50         6.29  screen assay
DDH-54              67.55       68.05        0.50         37.6  fire assay
                    76.80       77.30        0.50         1.42  fire assay
                    77.30       77.80        0.50         2.13  screen assay
                    77.80       78.30        0.50         1.22  fire assay
DDH-56              81.35       81.95        1.64         4.77  fire assay
DDH-58              83.10       83.90        0.80         2.52  screen assay
                    85.05       85.55        0.50        18.85  screen assay

Figure 1, shown on the company website, provides a composite view of Discovery trend trench results (upper image) and historical and new drilling (lower image) over 1,000 m extent of the Discovery trend. The complete table of interim drill results and the composite figure of trench and drill results are posted on the company website.
Also within the Minera Guaira concession, the company continues to develop the 4,500 m long Discovery trend gold target by mechanically excavating trenches along its unexplored northern extent to expose, map and sample new oreshoots. Drilling will continue on new targets as interpretation and modelling information becomes available.
The permitting and construction of the pilot plant continues on track to have the plant operational at the end of July, 2011. Significant developments associated with this undertaking include:

• The environmental permit for mining on the concession has been received from the Paraguayan authority;
• Site and tailings dam construction is under way;
• The mill and gravity-concentrator machinery for the plant is in final assembly and testing stages with the manufacturer, Sepro Systems in Canada and the United Kingdom. The pilot plant will be installed on site during July, 2011;
• The 2,000 m stage 1 delineation drill program has concluded in the area of the initial evaluation pit. Interim drill results confirm the continuity of high gold grades along the apparently elongated oreshoots;
• Excavation of new trenches at 25 m intervals along the gold trend is under way in the area of the initial evaluation pit. These trenches, combined with the infill drilling, will allow the company to produce geologic sections at 25 m intervals through the area of the initial evaluation pit;
• Small-scale bulk sampling program continues in historical and new trenches, to produce more accurate grade measurements at a project where the nugget effect is prominent.

Mr. Rideout commented on the recent advances: "The production of gold at Paso Yobai in the second half of 2011 will mark an important milestone. In addition to accelerating the resource estimate, it provides a starting point for upscaled gold production at a future date."

Stoneshield STS.V commences their 2011 exploration program

A little news this morning confirming my post on Monday

Stoneshield Capital Corp. has commenced work for the 2011 field season at its Geldenhoof gold project. Geldenhoof lies approximately four kilometres east of Blackwater gold property where over 4.2 million ounces of gold recently discovered prompted a $550-million buyout of Richfield Ventures Corp. by New Gold Inc.
Stoneshield has entered into a service contract with Terracad Geoscience Services Ltd. to conduct phase one exploration at Geldenhoof. Terracad has instructed a prospector and two geologists to conduct a thorough survey and geological mapping at Geldenhoof. A second Terracad crew will also grid and procure approximately 530 plus geochemical soil samples from Geldenhoof's magnetically anomalous regions and surrounding areas. The crew will also collect 40 plus stream sediment samples to test for anomalous gold and other metals throughout the entire property. Terracad has also initiated the permitting process for both geophysical IP surveys and a future drill programs to test for gold mineralization at depth.
Company president and chief executive officer Kris Kottmeier commented: "Stoneshield is excited to be back in the field exploring for gold. Geldenhoof's close proximity to one of the largest gold discoveries in Canada in recent years has prompted the company to commence exploration as soon as possible at this highly prospective region of British Columbia."

A new Capital Pool Company "Credent Capital Corp."

I got an e-mail from one of my brokers over at Pacific International Securities. I recently invested in another one of their CPC's called Cabre Capital CCB-P.V.

This one is being put together by John Versfelt, the last 2 deals he structured where eventually taken over by the Hunter Dickinson Group. Once again this is one of those $0.10/share deals with a minimum undertaking of 7000 shares. I have signed up for 20,000 shares.

If interested please email me and I will ask if they are open to new clients to get involved if so I will provide the contact details.

Video link to Stoneshield Captial STS.V

I found this link over at Stockhouse.com, it is a promotional video high lighting Stoneshields properties.

Great idea to use an attractive woman to tout your company, I wish I thought of it first.

Enjoy

http://www.investmentpitch.com/media/894/Stoneshield_Capital_Corp._-_TSXV:_STS_News_Alert/

Layman's summary of Stoneshield Capital's STS.V prospects

Last week I got the opportunity to sit down with Stoneshield Capital's President Kris Kottmeier and Chief Geologist Peter Kurisoo and discuss the Companies opportunities.

Originally Stoneshield started off as a Capital Pooled Company in 2007 and managed to complete its' Qualifying Transaction and financing before the collapse of the markets in 2008. That being said Stoneshield is still an early stage exploration company and Kris has done an extraordinary job of keeping the burn rate down and the shareholder structure tight in 4 years.

As of April 2011 the Company had $400,000 in the treasury and 17,974,994 shares outstanding. There are a further 5,000,000 warrants exercisable at $0.25/share (December 2013) and 7,530,000 warrants exercisable at $0.185/share (June 2011) then $0.235/share (June 2012).

With the assistance of Allen Ambrose, Stoneshield has acquired 3 early exploration properties of significance. The Geldenhoof property in British Columbia, the Risby property in North West Territories and the El Mercado property in Colombia.

To begin with all 3 properties are early stage properties that require basic mapping, line cutting, chip and stream sampling and airborne surveys to delineate prospective drill targets.

At present the Geldenhoof  property is the first to be approached for exploration. This property is the easiest to access and has crews working in the area. The close proximity to Richfield Ventures Blackwater Gold discovery has made this area a priority with many junior mining companies.

Residual Total Magnetic Field Survey on the northern portion of Geldenhoof indicates a strong magnetic high similar in size and geophysical anomalies at the Blackwater deposit. The Company feels that this high suggests a potential intrusive gold source and will focus their 2011 exploration activities on this anomoly.

The next slide is from their latest presentation and highlights their plans. Although a lot of ground work needs to be done, Stoneshield will apply for drilling permits and if possible implement a limited drill program this year.

The Risby property in the North West Territories is the type of property that I feel could be a "Company Maker" for Stoneshield. This area is called the Coates Lake District and has to date been underexplored. There is a  potential that the Coates Lake district could host what is deemed as a  "World Class" sedimentary copper deposit. The three claims that Stoneshield acquired are the Keele, Hayhook and Griff properties. It is the Griff property that lies just north of Western Copper's (WRN.TO) Redstone discovery.

This area is pretty remote and from what I understand in 2011 the Company will compile 35 years of exploration data, examine the known mineralization in the field, permit a drilling program (2012) and stake additional lands. This area will undoubtedly garner more attention in the coming years by Stoneshield and other companies going forward.

2011 Stoneshield will focus most of their efforts on the Griff claim, the Fortress Mountain area will be the subject of most of this years exploration.

The next 2 slides are from Stoneshields presentation as to the potential of this area.

Although this area is exciting I would not expect any drilling on these claims until 2012 season.

The last area of interest is the El Mercado Project in Colombia. Stoneshield recently acquired, this 1,943 hectare property is in a prolific exploration area for gold. Greystar Resources GSL.TO and Galway Resources GWY.V area very active in the El Mercado area.

I believe this property will see limited exploration during the next few summer months and the Company will focus on El Mercado during the winter when Geldenhoof and Risby are snowed in.

Currently the El Mercado property has small scale artisanal miners on the property extracting gold from small adits. Once again this is an early stage exploration property and I believe that this property will be drill ready until 2012. Below is a summery of the property.

With all the properties in place the recently contracted National Media out of Florida will have a story to get out. I would expect some liquidity to arrive in the market in the near future.

Going forward Stoneshield will be in need of financing and Kris indicated that this might happen around the $0.25/share mark with a further financing in the fall for Tax Flow purposes. 

My strategy will be to sell some of my free trading position and to re invest it into the next financing. The purpose of my strategy is to increase my warrant position for the future. I currently have 105,500 shares plus a further 40,000 warrants.

Stoneshield Capital adds to their Geldenhoof area play

I sat down with President Kris Kottmeier and Chief Geologist Peter Kurisoo of Stoneshield Capitial yesterday. The Company gave me a run down of their properties and game plan going forward. I will post my take on Stoneshield on another post. In the meantime the Company did add to the Geldenhoof area play. 

STONESHIELD ACQUIRES FURTHER LAND AT BLACKWATER GOLD DICTRICT , BRITISH COLUMBIA ; APPOINTS NEW DIRECTOR

StoneShield Capital Corp. has signed a property purchase agreement to acquire the TUK claim adjacent to the Company's Geldenhoof property in the Blackwater gold discovery area of British Columbia .

The TUK claim borders the Geldenhoof property to the northeast and totals 483 hectares. These additional claims cover a portion of a geophysical magnetic high which Stoneshield is targeting with upcoming surface mapping and geochemical sampling during June. The sampling program will be extended to cover the TUK claims.

The claim block lies approximately 6km east of Blackwater gold property where over 4.2 million ounces of gold discovered prompted a $550 million buyout of Richfield Ventures Corp. by New Gold Inc.

Under the terms of the option agreement, StoneShield can acquire a 100% interest in the TUK Claims by making a one-time cash payment of $2,000 and issuing 15,000 shares to the property vendor within upon TSX Venture Exchange acceptance ("Acceptance").

StoneShield is also please to announce that Mr. Toma Sojonky has joined the Company's Board of Directors. Mr. Sojonky brings over fifteen years of venture capital and business development experience to Stoneshield. He has served as an officer, director and financier of a variety of resource and technology companies, with industry experience in industrial minerals and real estate development. Mr. Sojonky has been active in the private equity arena since 1998, having invested and raised early round funds in the mining (precious and industrial mineral exploration), oil & gas (upstream), and technology (Internet/information, clean) sectors. He was a founding officer and director of Ansell Capital Corp. and is currently President, CEO & Director of Driven Capital Corp. both mining issuers on the TSX Venture.

Stoneshield STS.V acquires Colombian El Mercado property

 Another property has been picked up by Stoneshield now they have to raise some money for all these properties that need work.

Stoneshield Capital Corp. has signed an option to acquire up to a 100-per-cent interest in the El Mercado gold property located eight kilometres north of the 8.9-million-ounce-gold and 59.6-million-ounce-silver Angostura project owned by Greystar Resources Ltd., and the 3.5-million-ounce-gold and 19.2-million-ounce-silver La Bodega gold project owned by Ventana Gold Corp. in the Santander department of Colombia.
El Mercado is a mining concession contract that totals 1,943 hectares. One of the five gold-bearing regional fault zones which control all known gold deposits in the district crosses the El Mercado property. Preliminary rock samples at El Mercado returned assay gold values up to 4.5 grams per tonne (g/t) Au and 35 g/t Ag. Artisanal gold workings are present on the property with shallow adits having exposed mineralized veins. Limited, initial stream sediment samples have returned up to 60 parts per billion (ppb) Au and 170 ppb Ag.
El Mercado exploration plans
Stoneshield is excited by the prospects at El Mercado and by the proximity to two of the largest gold discoveries in Colombia during the past five years. The company is now planning exploration to include geologic mapping, geochemistry and geophysics to delineate specific drill targets.
El Mercado property
El Mercado is located in the mountains of the eastern Cordillera of South America, approximately 400 kilometres north-northeast of Santa Fe de Bogota and is 55 kilometres from Bucaramanga, the capital city of Santander department. Bucaramanga is serviced by frequent daily jet and turbo-prop flights from Bogota. The villages of California, Vetas and Surata are all within approximately 10 kilometres of the project, which is serviced by local hydroelectric power.
Host rocks within the property consist of Jurassic to Cretaceous, coarse- to fine-grained, calcareous fluvial sediments and lesser early Paleozoic metavolcanics. Intrusive rocks similar to those at the La Bodega and Angostura deposits outcrop one kilometre to the west of the property. These intrusive rocks may be present in the subsurface of the property and may be the source of mineralization within and surrounding the project. Very little exploration has been completed on the El Mercado property. Mineralization is yet to be properly outlined but appears to consist of quartz veining within a sericitic-argillic alteration envelope, both containing disseminated sulphides. El Mercado is situated between 2,100 metres and 3,650 metres above sea level with over 75 per cent of the property below the 3,200-metre level.
The option agreement
Under the terms of the option agreement, Stoneshield, through its 100-per-cent-owned subsidiary Minera Centinela Inc., has the option to acquire a 100-per-cent interest in the mining title for the El Mercado property for a term of seven years by paying the option grantors the following consideration:

1. $25,000 (U.S.) within three business days;
2. $80,000 (U.S.) on Dec. 15, 2011;
3. $60,000 (U.S.) on June 15, 2012;
4. $100,000 (U.S.) on Dec. 15, 2012;
5. $120,000 (U.S.) on June 15, 2013;
6. $200,000 (U.S.) on Dec. 15, 2013;
7. For each year thereafter before exercising or rejecting the option on the part of the Stoneshield, the payment of the option price will double in comparison with the price paid for the immediately preceding year until:
   1. The option is exercised by Stoneshield;
   2. The option is terminated by Stoneshield at its sole discretion;
   3. The option term expires without Stoneshield having exercised the option.

The grantors grant the right to Stoneshield to acquire, during the option term, a 100-per-cent interest in the mining title for the El Mercado property for the additional sum of $971,922 (U.S.).

Sell in May and go away

That mantra seems to be in play in the last few weeks as my portfolio is in drift mode. I am sitting on some cash right now and have been picking away at Stoneshield Capital STS. V at $0.145/share and I now own over 100,000 shares of this deal. I understand that there is an announcement in regards to a South American property in the works. Whatever the news will be the Company will need to finance soon, hopefully at higher prices.

It would be nice to see George Duggan at National Media start to earn his $6000/month to bring liquidity to Stoneshield. This blog has probably brought more buying in and I am doing it for free...

That being said stocks that I am on the buy side are.

Royce Resources ROY-H.V below $0.20/share
Cap-link Ventures CEV.V below $0.80/share
Saint Augustine SAU.TO below $0.80/share
Stoneshield Capital STS.V below $0.145/share

Stocks that I am on the sell side are:

Viper Gold VPR.V at $0.45/share
Gunpoint Exploration GUN.V at $1.70/share
Alange Energy ALE.V at $0.40/share
Paget Minerals PGS.V at $.40/share
Stoneshield Capital STS.V at $0.40/share
Teslin River Resources TLR.V at $0.20/share
Shield Gold SHG.V at $0.15/share
Latin American Minerals LAT.V at $0.40/share
Caza Gold CZY.V at $0.70/share
Ratel Group RTG.TO at $0.90/share

Profits from the above stocks will be rolled into the stocks that I have listed on the buy side.

Some interesting weekend reading

I have been busy with my real job, mortgage brokering in the past week and have not had the chance to post to this blog.

I have come across a few interesting articles and blogs in the past week that helps put things in perspective especially when it comes down to precious metals and their volitalty.

First off is Eric Sprott and Sprott Asset Management take on physical silver, click here to read his article

Another good read is Ben Rabidoux and his blog The Economic Analyst take on this weeks melt down, click here for his article.

I also found this on Ben's web site and it is Bob Farrell's 10 rules for investing see if any of these are applicable in the last few weeks. Ben applies these rules to the Vancouver real estate market and his article can be read here.

Bob Farrell's rules are as follows:

1. Markets tend to return to the mean over time
2. Excesses in one direction will lead to an opposite excess in the other direction
3. There are no new eras -- excesses are never permanent
4. Exponential rapidly rising or falling markets usually go further than you think, but they do not correct by going sideways
5. The public buys the most at the top and the least at the bottom
6. Fear and greed are stronger than long-term resolve
7. Markets are strongest when they are broad and weakest when they narrow to a handful of blue-chip names.
 8. Bear markets have three stages -- sharp down, reflexive rebound and a drawn-out fundamental downtrend
9. When all the experts and forecasts agree -- something else is going to happen
10. Bull markets are more fun than bear markets    


Interesting enough there was a harbinger to the correction of silver when my car was in for some body work after a small fender bender. The body shop guy was buying silver like crazy, I reckon it to getting a stock tip from the barber. Lucky for me I was not a buyer of silver over $30/ounce.

This weeks "Market Mayhem"

Throughout this weeks market mayhem I managed to add a little more Cap-Ex Ventures to my portfolio at $1.10/share. Cap-Ex seems to be pretty resilient here at this price.

This weeks down turn was healthy for the market going forward and presented a buying opportunity for some better quality speculative stocks.

In some would of, could of, should of moments that passed me by I should have sold my Paget Minerals PGS.V last week at the $0.33/share range and repurchased it this week at the $0.22/share range. I guess I neglected to follow my own rules in regards to taking money off the table and being able to buy it at any time.

Oakham Capital to start trading tomorrow

Oakham Capital Corp.'s capital pool company (CPC) prospectus dated March 8, 2011, has been filed with and accepted by the TSX Venture Exchange, and the British Columbia and Alberta securities commissions, effective March 22, 2011, pursuant to the provisions of the Securities Act. The common shares of the company will be listed on the TSX Venture Exchange on the effective date stated below.
The company has completed its initial distribution of securities to the public. The gross proceeds received by the company for the offering were $300,000 (three million common shares at 10 cents per share).
Commence date:  At the opening, Tuesday, May 3, 2011, the common shares will commence trading on the TSX Venture Exchange.
Corporate jurisdiction:  British Columbia
Capitalization:  Unlimited common shares with no par value, of which five million common shares are issued and outstanding
Escrowed shares:  Two million common shares
Transfer agent:  Equity Financial Trust Company
Trading symbol:  OKM.P
Cusip No.:  OKM.P
Sponsoring member:  Leede Financial Markets Inc.
Agent's options:  300,000 non-transferable stock options (one option to purchase one share at 10 cents per share up to 24 months)