Junior Mining Trader - Buy Alert: MRO Buy Alert: Millrock Resources (TSX-V: MRO ) (OTCQB: MLRKF) Written by Gerardo Del Real Posted December 2, 2019
As I explained in the latest Junior Mining Trader issue, tax-loss selling season is almost behind us but we are not quite there yet. The next few weeks will present opportunities and, though I have a few new trades in mind, the time is not yet right to pull the trigger on those.
Instead I want to make sure I highlight trades that make sense in light of tax-loss sells that provide great upside and very little downside.
Millrock Resources (TSX-V: MRO ) (OTCQB: MLRKF) recently announced a US$20 million exploration deal with Great Northern Metals to aggressively explore the massive Goodpaster gold project.
Drilling will commence in early 2020. The program could deliver significant discoveries that allow for a rapid re-valuation of Millrock shares.
That’s the good news. The bad news is the stock is down 8% on the Canadian side and 27% on the US side on significant value. That presents a very compelling opportunity.
Where is the selling coming from? Impatient shareholders that are raising cash by selling the shares from a private placement that just came free trading. Millrock’s market cap is down from C$20 million last month to just over C$11 million now.
The sell-off will likely last a few days as there are over 13 million shares that are now free trading at a price of C$0.075. Use the weakness to establish or increase your position (if it fits your speculative criteria) in Millrock Resources.
Millrock Resources (TSX-V: MRO ) (OTCQB: MLRKF) is a strong buy at these levels. Place a limit order, good until filled, at C$0.115/US$0.09.
To your wealth,
Gerardo Del Real Editor, and Junior Mining Trader