Small Cap Updates & New Recommendations – February 8, 2014
This week we have updates on Global Minerals (CTG), Oroco Resource Corp (OCO) and Advanzeon Solutions, Inc (CHCR).
Yesterday, Global Minerals’ (CTG – $0.25) shares started trading on a split-adjusted basis after its 1-for-5 reverse stock split. Concurrent with the reverse split, the Company raised $3.25 million in a private placement. As a result of these two events, Global now has a little over 35 million common shares issued and outstanding. The Company’s ticker symbol remains the same.
Now that the financing is over, the Company can again concentrate on moving its Strieborná Silver/Antimony project forwards. More specifically, Global will use the proceeds to collect a bulk sample from the Strieborná vein. In order to reach the vein, miners will have to make a 100 meters long tunnel, starting from the existing underground tunnel at level 6, located approximately 180 meters below surface. This will take no more than six months.
Global needs the sample to conduct as realistic as possible metallurgical tests to exactly determine the silver and antimony content of the vein. The latest analyst report on Global Minerals mentioned: “Antimony is a product of which the reserves are expected to run out in the next 8 to 12 years. Based on the current resource estimate, Strieborná contains about 56 million pounds of antimony with a gross market value of $250 million.” It’s critical to conduct these tests because producing antimony as a by-product will have a significant economic benefit to the project.
Despite tough market conditions for commodities companies, Global was able to raise over $3.3 million, which illustrates the strong confidence of institutional shareholders in the Strieborná project. We share that feeling. CTG remains a buy. Profile Page
Also Oroco Resource Corp. (OCO – $0.11) announced terrific news yesterday. The Federal Tribunal of Mexico confirmed that the Company’s subsidiary, Minera Xochipala, S.A. de C.V, is the sole registered owner of each of the Celia Gene and Celia Generosa concessions, jointly called the Xochipala Property. This decision settles a years long legal battle between the Company and Mr. Avinadain Bautista, who claimed to own a 50% interest in the Celia Gene and a 100% interest in the Celia Generosa concessions. The decision of the Federal Tribunal is final, with no appeal available.
Thanks to this announcement, Oroco’s shares skyrocketed to 11 cents, or up 214.29 percent. With more than 14.1 million shares exchanging hands, Oroco became one of the most actively traded companies on the TSX Venture Exchange.
Oroco’s Xochipala Project is located in the southeast extreme of the original Morelos National Mining Reserve, a 47,600 ha federal mineral reserve which includes the most promising and expanding gold reserves in Mexico. This region encompasses a northwest trend of intrusions with associated gold bearing iron skarn deposits and is part of a wider area which has come to be known as the Guerrero Gold Belt.
The GGB is currently the focus of aggressive exploration, delineation, development, and mining by a number of well-known mining companies: Goldcorp (Los Filos-El Bermejal Projects), Newstrike Capital (Ana Paula Project), Torex Gold Resources (El Limon-Guajes Project) and Cayden Resources (Morelos Sur Project) to name a few, are all exploring and delineating gold reserves in the GGB. To date over 16 million ounces of gold have been discovered in the belt.
According to the Albinson Report, prepared for Britannia Gold Corporation in 1997, the Xochipala claims cover ground in the Guerrero Gold Belt sufficient to potentially generate reserves greater than 1 million ounces gold in ore bodies similar to the productive high-grade ore bodies that have been discovered in the past within the region.
Past work at Xochipala, including exploration and artisanal mining, has mainly focused on the high grade showings on the properties. Future exploration will focus on the high grade showings on the properties and potential for medium to lower grade deposits amenable to open pit mining.
Oroco will soon join the select club of companies active in the GGB. Yesterday’s enormous amount of shares traded confirms that investors’ interest in the Belt is still very high. And as we wrote last week, Oroco is, and will continue to be, sufficiently funded to advance its Xochipala Project thanks to its agreement with Goldgroup. Profile Page
It’s been a while since we did an update on Advanzeon Solutions, Inc. (CHCR – $0.03). The name may not immediately ring a bell, but Comprehensive Care Corporation recently changed its name to Advanzeon Solutions, Inc. Its ticker symbol will also change in the near future.
Advanzeon Solutions, Inc. is a leading pharmacy management and behavioral health services provider. It offers its unique Pharmacy Value Management Services Program, which saves the client at least 10% off its previous year’s pharmacy expenses and backs it up with a performance bond that names the client as the beneficiary
Several people have recently asked us if something was wrong with the Company because its stock priced dropped from about 20 cents, eight months ago, to 3 cents today. In fact, nothing is wrong with the Company and it’s probably in even better shape than it was a year ago. It appears that a fund dropped close to 1.4 million shares in the market and with a thinly traded stock like Advanzeon, it caused a disaster. The good news is that it looks like this fund has sold most, if not all, of its shares.
Since our previous update, Advanzeon has strengthened its management team to position itself for much expected growth. It recently named Ramon Martinez President of Advanzeon Solutions, Inc. and elected Mr. Martinez to serve on Advanzeon’s Board of Directors. In April 2013, Mr. Martinez was named President of CompCare Pharmacy Solutions, Inc. Prior to that appointment, he served the Company as Senior Management Advisor focusing his attention on building and refining the infrastructure necessary to market and fulfill the Company’s promise of delivering its innovative pharmacy cost containment program.
Advanzeon has also retained Dr. Mark Heidt as Sales and Marketing Consultant. Mr. Martinez commented: “As one of the nation’s premier experts in developing superior sales systems, mass marketing media programs, and recruiting, training and leading top-sales closing teams, Dr. Heidt brings to the Company over 35 years of hands-on, front line, technical, operational, and artistic core competency. Dr. Heidt is a nationally-recognized thought leader in designing innovative, resilient sales and marketing methods that have historically resulted in generating hundreds of thousands of new customers as well as hundreds of millions of cash-flow profits for his clients.”
Dr. Heidt added: “As a media pioneer, award-winning producer, writer and director, I am confident that I can assist the Company to bridge the gap between the “old school,” one-to-one sales and marketing techniques and the rapidly developing modern-day platforms and technologies, which effectively employ the web, mobile, cloud, video, and social medias.”
Advanzeon has positioned itself to start generating meaningful revenues from its Pharmacy Value Management Services Program, which creates substantial savings for its clients. We continue to believe in the Company and its services. We should start to see the fruits of the Company’s efforts in the coming quarters. With its stock at an all-time low and its sales prospects at an all-time high, it looks to us to be a solid buy opportunity. Profile Page
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