Tocvan traded 86,000 shares on Friday and over 310,000 shares for the entire week. The big news this week was a proposed $2.25 Million financing. I am very encouraged that Tocvan was able to raise money in such a depressed resource market.
The first part of the financing consists of "a non-brokered private placement with a lead order from an institutional investor. The company has executed a term sheet in connection with a $1.5-million private placement with the investor." with "the first tranche of the institutional offering for gross proceeds of $1.5-million is expected to close on or before April 22, 2024, and will consist of the issuance of 4,285,714 units."
"The units issued to the investor under the institutional offering will be subject to the terms of an escrow agreement. The company will receive $62,500 per month from the closing date of the institutional offering over the next 24 months. The offering structure is an extension of the private placement structure previously disclosed by the company in its news releases dated June 30, 2022, and March 29, 2023."
I am very pleased that the Institutional Investor "Sorbie" continues to support Tocvan since their initial investment in June 2022 and second follow-on investment in March 2023.. They clearly believe that Tocvan is on the right track to achieve production and/or be acquired by a third party. Make no doubt about it, this is the pay day they are betting on and are willing to continue with follow-on investments.
"In addition, the company will complete a concurrent private placement for up to $750,000 to other eligible investors, for an aggregate issuance of 6,428,571 units of the company at a price of 35 cents per unit, for aggregate gross proceeds of up to $2.25-million. Each unit will consist of one common share of the company and one share purchase warrant, with each unit warrant entitling the holder to purchase one additional common share at a price of 50 cents per unit warrant share, for a period of 36 months from the date of issue."
The Term Sheet and conditions of the concurrent private placement was filed on Sedar April 11th. If you are a shareholder and want to leverage down your position at a great price, as well get a kicker purchase warrant at $0.50 to further leverage your future profits, I suggest you call the company, the process is simple, and will go a long way to supporting a larger drill program and calculation of a maiden resource for Pilar.
Brodie Sutherland posted on Twitter yesterday that Tocvan is currently drilling hole number 6 as of April 12th, with 3 holes already at the laboratory.
"The first drill hole will follow-up on JES-22-62, which returned 108.6m of 0.8 grams per tonne Au and 3 grams per tonne Ag. The drill rig mobilized to site April 1st and began drilling hole JES-24-73 on April 2nd.". This is excellent progress since April 2 indicating how efficient this drill rig is, not only drilling fast, but also quickly moving between holes.
Of particular interest to me is what Brodie said in a recent interview, "they drilled an additional 50 meters in hole number 1". This indicates to me that mineralization is deeper than the intersected mineralization discovered in JES-22-62. This is very encouraging as it could have huge implications in the final size of the resource. Remember that JES-22-62 was initially drilled at a significant angle in order to cross the maximum vertical and horizontal distance to learn the most about Pilar's geology. The vertical infill holes now being drilled allow for inspection of the ground beneath this hole. My guess is there is strong mineralization below this drill intercept or they wouldn't have continued to drill.
Gold continued its surge over $2,400 USD yesterday, with the markets taking a wild ride later in the day. There are still strong fundamentals suggesting that the price of gold is going higher, which effectively increases the value proposition of Tocvan when they reach production.
Lastly, my dad said "averaging down by participating in a Private Placement is a good way to leverage your investment, as well get a free warrant to sweeten the profits when the share price is higher as a company nears production".