tunsteninvestingnews.com
Tungsten’s former golden child is showing some signs of life.
South Korea-focused Woulfe Mining (TSXV:WOF) has arranged a $4-million non-brokered private placement in principal amount of convertible unsecured subordinated debentures at a price of $1,000 per debenture. Woulfe plans to use the funds to complete the proposed $6.0 million work program on the Sangdong project, located in South Korea, which will include diamond drilling to better define the ore body on the project, as well as additional work on mine design, mining method selection, metallurgical process design, and much de-risking of other technical aspects of the project.
While the market hasn’t welcomed the news of the financing terribly well — Woulfe Mining closed at $0.115 per share, down 11.54 percent — investors might be interested to note that the company has also applied for a listing on the Canadian Securities Exchange (CSE), formerly the Canadian National Stock Exchange.
Known as the “exchange for entrepreneurs,” the CSE is aimed at making it easier for entrepreneurs to enter the costly capital markets. One of the big investors in the exchange is Ned Goodman, CEO and president of Dundee Capital Markets, who completed his investment through Dundee in September 2013. Mr. Goodman was also appointed to the exchange’s Board of Directors.
As to how this relates to Woulfe Mining, investors familiar with the tungsten company will know that in February 2013, Mr. Goodman joined Woulfe’s Board of Directors. With Woulfe’s application in for a listing on the CSE, one can hope that the revamped exchange will be the answer the company needs to rise up from the ashes of 2013.
As investors, we often hear that the key to success with investing in junior resource companies is people. Having the right people – technical teams, management teams, financial advisers – backing a company can mean the difference between success and failure. As such, it is important to monitor influential players in these free markets.