Three Things That Caught Our Eye Yesterday

Author

Wingman
February 08, 2024

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The pit-constrained MRE is contained in two near/on-surface deposits: The Airstrip and Powerline deposits in the road-accessible AurMac Project.

All for a market cap of ~C$94 million. Disconnect? Seems like it…

Sun Peak will recommence work on three exploration licenses at the Shire Project in the first half of 2024, which will include drilling to test multiple copper-gold VMS targets developed by the Company. Further information about upcoming work programs, including a detailed summary of the drill targets, will be forthcoming.

So why did this stock close at C$0.47 ⬆️ 0.145 (44.6%)?

Well, a couple of things:

  1. They weren’t able to explore before, but now they can. It was neglected and written off for a long time.

  2. They have C$6.4 million, so there's no dilution in the near future.

  3. The share structure is tight, with approximately 87 million shares outstanding and NO warrants.

  4. The potential looks huge here.

However, they are in Ethiopia and do not know much about exploration there. Nevertheless, the team seems to know the region rather well. It's worth putting on the watchlist.

A large exploration target immediately adjacent to the Berg deposit has been identified and is termed the SW Berg Target. This target is described below and due to its immediate proximity to the advanced Berg Cu-Mo-Ag-Au resource has become the highest priority new exploration target on the Berg Property. The East Sibola copper in soil target has been significantly expanded during 2023 work and is a second high priority untested exploration target. New early stage targets have also been identified at NE Fire and an area immediately north of the N. Whiting Creek Target.

The market did not react to the news as they closed at C$0.075 ⬇️ 0.005 (6.3%).

They also mentioned this in the news release:

Share Based Compensation

The Company announces that all of its executive management team members have agreed to receive a portion of their 2023 annual discretionary compensation in the form of common shares of the Company, on the basis of the 5-day volume weighted average price on the TSX Venture Exchange (being $0.085 and calculated as of February 1, 2024), which would result in the issuance of 2,146,816 common shares of the Company (the “Employee Shares”). The Employee Shares are subject to TSX Venture Exchange acceptance and disinterested shareholder approval at the Company’s upcoming annual general meeting and will be subject to a four month hold.

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