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We thought this stock was dead! đź’€
What the hell is going on over at Libero Copper?
Wingman
January 16, 2024
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.
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What the hell is going on over at Libero Copper?
We thought this stock was dead.
No new developments so far in the new year and not the most optimal news in the home stretch of 2023.
$LBC did sell their option agreement for the Big Bulk project and terminated their Esperanza option agreement. For those unfamiliar with the story, the company holds a 100% ownership stake in Mocoa, a significant copper-molybdenum porphyry deposit in Colombia.
Libero Copper drilled Mocoa in 2022 and intercepted 1,229 metres of 0.58% copper equivalent (see press release dated April 26, 2022). A pit constrained inferred resource at Mocoa contains 636 million tonnes of 0.45% copper equivalent (0.33% Cu and 0.036% Mo) generated using $3/lb Cu and $10/lb Mo, containing 4.6 billion pounds of copper and 511 million pounds of molybdenum (Technical Report dated effective November 1, 2021). The Mocoa deposit is open in both directions along strike and at depth. Current work on the property has also identified a cluster of additional porphyry targets.
Contrary to its substantial asset, the company's market capitalization is a mere ~C$5.75 million, and for some strange reason there was a lot of buzz yesterday without any formal news release.
While their average daily trading volume hovers around 380,000, yesterday had an eyebrow-raising amount of shares traded. It closed at C$0.035 ⬆️ 0.015 (75%).
The question arises: Is there a leak, anticipation of impending news, the market awakening to the stock's undervalued status, or is there some funny business going on here?
This anomaly, combined with the saying in the industry that 'volume precedes price,' suggests a possible shift in sentiment or a hidden catalyst. Whether it's related to permitting developments or strategic maneuvers by certain groups, the unusual trading activity demands attention.
*WARNING*
Before you go sell the car and put it all in $LBC, we better bring to your attention the other two headlines in that screengrab above.
On Nov 22, 2023, the company announced a rights offering in hopes of raising gross proceeds of $2,461,482.
How much did they actually get?
On Dec 28, 2023, they closed the rights offering for gross proceeds of $525,541 and issued 26,277,071 (so priced at $0.02). Now that’s not a lot of cash but better than nothing.
There is also a forest reserve that is not only over some of the porphyry mineralization but also through the proposed pit outline.
There is a reason why it is a penny stock, but to their credit, they aren’t shying away from this information; it can be easily found on their website.
Is there something positive happening here, or is this some funny business from some of the individuals in the recent rights offering who might want to run this stock up to $0.04 for a free ride?
This is an ultimate degen play. Such a depressed stock that could 10x overnight if favourable news happens.
Many stocks did have a strong day, so maybe we are overanalyzing this.
It could be a whole lot of nothing.
Stay safe out there.
Some Other Stocks With Double-Digit Closes
Copper Stocks
American Eagle Corp. C$0.375 ⬆️ 0.045 (13.6%)
Aston Bay Holdings C$0.11 ⬆️ 0.03 (37.5%)
Benton Resources C$0.19 ⬆️ 0.025 (15.2%)
Hercules Silver C$0.85 ⬆️ 0.11 (14.9%)
Nickel Stocks
Canada Nickel C$2.07 ⬆️ 0.39 (23.2%)
Fathom Nickel C$0.145 ⬆️ 0.025 (20.8%)
Another Stock That Moved On No News
Angold Resources C$0.215 ⬆️ 0.11 (104.8%)
Perhaps because of their Dec 22, 2023 news. They are looking at changing their name to Aero Energy and acquired some uranium projects in Saskatchewan.
Pursuant to the Arrangement Agreement, Orford's shareholders ("Orford Shareholders") will receive 0.005588 (the "Exchange Ratio") of an Alamoscommon share (an "Alamos Share") for each Orford Share held (the "Consideration"). The Consideration is calculated based on the 20-day volume weighted average trading price of Alamos Shares on the Toronto Stock Exchange for the period ending January 12, 2024. The Transaction is non-arm's length, as Alamos currently owns 61,660,902 Orford Shares, representing approximately 27.5% of the issued and outstanding Orford Shares.
A significant premium…
While this announcement may bring good news for those who entered the stock in Q4, potentially securing a 100% return, our thoughts are especially with those who invested during the first three quarters of 2023 when this stock was a retail favourite. For those who bought into the hype earlier, the current situation frankly sucks.
We’ve been there before.
Some Drill Results News
The market seemed to like $KG’s discovery announcement as it closed at C$0.115 ⬆️ 0.035 (43.8%).
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