If your risk profile permits investment in the illiquid and information-deficient sector of private equity, but your broker isn't providing access, then I have a suggestion: Check out the stocks listed on the TSX Venture Exchange. They will likely have a longer track record, better financial disclosure through the System for Electronic Document Analysis and Retrieval (SEDAR) and a board of directors that is familiar with the current thinking on governance.
Equally important, you can invest smaller amounts so as to create a diversified portfolio, your transaction costs can be close to $10 a trade and you will have some degree of liquidity if the investment turns sour.
Based on the Globe Investor Gold website, the number of Canadian common stocks listed on the Venture Exchange is just more than 1,700. If we remove those with a market capitalisation less than $2-million on the grounds that they are even less liquid than private equity, we are left with a new total of just more than 1,000.
Your immediate reaction is probably that many of these 1,000 are still illiquid resource stocks that are little more than mining claims or oil exploration long-shots. Analysing these investments requires another specific skills-set, not traditional ratio analysis since a big portion of their balance sheets are intangibly in-the-ground. These investments will succeed or fail only on a few factors, largely as a result of a correct forecast of commodity prices and forecast of the company's ability to raise capital and spend wisely.
Here are 4 companies that have been fairly successful at most of them this week.
Cipher Resources Inc
Cipher Resources Inc (TSX-V: CIFR) announced this week that it has closed its non-brokered private placement offering of 41,779,000 units of the Company at a price of $0.10 per Unit for gross proceeds of $4,177,900.
Cipher Resources is a Precious Metals exploration and development company. Formally known as Dorex Minerals Inc, Cipher Resources intends to use the net proceeds for project evaluation and working capital expenses!
Power Metals Corp
Power Metals Corp (TSX-V: PWM) announced this week that it has entered into a letter of engagement with Eight Capital as lead agent, which Eight Capital has agreed to offer for sale flow-through units of the Company, on a “best efforts” private placement basis, subject to all required regulatory approvals, at a price per Unit of $0.58, for total gross proceeds of up to approximately $2,000,000. Each Unit shall consist of one flow-through common share of the Company and one-half of one common share purchase warrant of $0.85 for period of 24 months. What that means is that Eight Capital has committed to sell shares at a price higher than the market price today, and the buyer will also be entitled to buy again at $0.85 within 2 years after buying at $0.58!
Power Metals Corp is a lithium miner with hard-rock assets in Ontario Canada. They have also announced the discovery of a new dome at their flagship project Case Lake, in addition to the Henry Dome which has already yield them 5 (North, Main, South, East and Northeast) confirmed spodumene mineralised zones.
Juggernaut Exploration Ltd. (TSX-V: JUGR) announce this week that it has received $510,494 more, after it has raised $1,000,000 on June 8th 2018. This is in addition to raising $2,743,000 on April 26th 2018 recently, which was also over subscribed.
Both financings allowed Juggernaut to receive $4,253,494 in total!
“The company is well funded and continues to garner attention and support of senior miners, institutions and strategic investors alike. Juggernaut looks forward to reporting results in the near future from the fully funded inaugural drilling and exploration programs on its 100% controlled Midas and Empire properties. Both projects have road access and are in close proximity to excellent infrastructure in Terrace British Columbia”, said Dan Stuart, President & CEO.
Blue Sky Uranium
Blue Sky Uranium (TSX-V: BSK) announced it has received $200,000 more, after it has raised $3,286,922 on June 4th 2018. Total gross proceeds is $3,486,922. The proceeds of the financing will be used for exploration programs on the Company’s projects in Argentina and for general working capital.
Blue Sky Uranium Corp. is in uranium discovery in Argentina. It has the exclusive right to over 434,000 hectares (equiv. to 1,072,437 acres) of property in two provinces in Argentina. The Company’s flagship Amarillo Grande Project was an in-house discovery of a new district. The Company is a member of the Grosso Group, a resource management group that has pioneered exploration in Argentina since 1993.
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