By Andre Brand | Wednesday 3 May 2017
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
A £2 million placing by Ortac Resources (OTC) clearly shows a return to a more positive attitude by investors to fund exploration risk. Having said that, developments do see investors follow more than $30 million of investment risk capital already sunk into Casa Mining’s, DRC-located, Misisi gold project.
Following the placing, Ortac has increased its prospective stake in Casa to 45%, which would make it Casa's largest shareholder, and also provided funds to prove-up its flagship Akyanga deposit - where Casa is looking to secure a 2 million ounce+ gold resource.
With tensions riding high in North Korea and with political and economic uncertainty everywhere we look, the prognosis for gold to continue to track above the $1,200 ounce range looks, in my mind at least, to be a nailed on certainty.
Accordingly, most major gold miners will want to add more ounces to their portfolio, and are certain to be looking to pick up advanced stage assets, in jurisdictions where they can fast-track those assets into production early (the DRC is renowned for that), so as to take advantage of this cycle within the market.
With that in mind, Casa must surely start to appear on the radar screens by potential suitors - Misisi ticks all the boxes and it’s certainly not an early stage play. Ortac has got more of its teeth into a great project, just at the right time. Watch this space.
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