RE:Aw English Translation
Short squeeze !?
Tocvan CEO announces ‘‘ Phenomenal ‘‘ to both new and old shareholders
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Guest author: Stephan Bogner
June 7th, 2021, 7:51 am | 510 readers
Will we shareholders soon take our (golden) hats off to Derek Wood and his team?
The brief correction in emerging gold stock Tocvan Ventures Corp. (CSE: TOC; WKN: A2PE64) apparently ended on Friday when a strong countermovement of + 23% (from $ 1.01 to $ 1.24 or € 0.868) was the order of the day.
An interview with CEO Derek Wood published on Friday after the stock market closed shows what a "phenomenal" news flow we can look forward to in the coming weeks. The hotly debated topic of "US stock exchange listing" should become a reality at Tocvan as early as next week, which would make Tocvan shares tradable in the US for the first time - a huge investor market meets an extremely tightly traded share with an exceptionally low free float at only overall 28 million shares issued.
In addition, the next round of drill results from the ongoing Phase 2 drilling program can arrive at any time.
Full screen / precision landing! After the strong rise of the past few weeks, the share corrected to the green trend channel, from where a new upward trend began on Friday. At the same time the "gap" was closed - another bullish signal.
The chart shows that the Tocvan share was taking a (well-deserved) breather after the sharp rise in recent weeks. Since reaching the $ 1.50 mark, the stock has corrected to $ 1.01 last Thursday. Technically, this was a perfect spot landing, as this is where the green uptrend channel ran, which had proved stubborn resistance in the months before as the price failed to climb above it. In May the time had come: the price shot above this resistance, tore a "gap" between $ 1.10 and $ 1.20 (i.e. no shares were traded in this price range) and catapulted itself to $ 1.50. A correction followed, on the one hand to close the gap (often, but not always, a gap is "closed" or "filled" with a subsequent correction) and, on the other hand, to test the previously resistant (green) trend channel as a new support and confirm. Technically, the way is now clear for a new uptrend that apparently started on Friday.
The interview:
Source: https://youtu.be/9sjimq9W2Lc
German short version:
• Derek said the drilling was "extremely good" - a testament to the great team on site in Mexico led by resident exploration manager and geologist Rodrigo Calles.
• According to Derek, 20 holes (out of an estimated 23) have been completed to date, with an increase in the Phase 2 drill program to up to 44 additional drill locations recently approved (plus 7 trenches of 20 m each) and immediately following the ongoing drill program can be done.
• 11 days ago (May 27th) the results of the first 3 drill holes were published (see here), the so-called "stepout" drillings from the established Main Zone, which successfully increased this deposit by 40 meters.
• The next drill results should also allow for the expansion of the Main Zone, with much of the drill program being designed to make new discoveries on other portions of the property that Tocvan has identified over the past few months.
• The primary goal is to enlarge the main zone in order to go into production even faster ("to make it a near-term production story quicker"). "We can look forward to that," said Derek. The 3 drill results published to date have demonstrated economically minable mineralization 40 meters outside the Main Zone. "And then we went further afield to drill areas that had never been explored before, so we hope that we can eventually connect these new discoveries to the Main Zone."
• Derek noted that Tocvan has approved 44 additional well locations and 7 trenches. The aim of the dismantling of the 7 trenches (directly on the surface of the main zone) is to be able to assess the metallurgy (processing ability to gold bars) even better. To date, Tocvan had tested several samples from one well that had "great" metallurgy results. Derek said: "Now is the time to get even more meaningful results on a larger scale by mining ore directly on the surface of the earth, then proceeding to a" bulk sample ", after which hopefully production on Pilar can begin . "
• Derek said that with each new phase of work, the entire Tocvan team has become happier and happier with the decision to take on the Pilar project in order to acquire 100% project shares. "It's going phenomenally, at a great pace, thanks to our team, which is getting happier and happier."
• When asked if Tocvan wanted to do other projects in Mexico besides Pilar, Derek replied, "Yes, we are looking for more projects. Fortunately, I spent some time there last winter and we have some great relationships with people in Mexico Mexico and Sonora in particular. Our Exploration Manager, Rodrigo Calles, has worked in the Mexican mining industry for more than 30 years. We are currently evaluating a number of projects in Sonora, which will result in more and more benefits for our current and future shareholders Our goal is to create "home run" opportunities for our shareholders and everyone who works with us. And we can do that by expanding our project portfolio while we continue to successfully demonstrate Pilar's viability work hard to keep our shareholder structure as tight as possible to allow the people inside us invest and believe in us, be able to gain advantages for yourself. We have really great shareholders and things are going phenomenally. "
Full screen
Short squeeze = price explosion !?
Exactly one week ago the current short positions became known, which are always published on the last day of the month and on the 15th of each month. When the stock was trading at $ 0.96 on May 15, there were 82,616 stocks that were "short", which means that these stocks were sold in the market even though the seller does not (yet) own these stocks, which means that he owns them Has to make shares available again later: Either he buys them in the market or he gets shares credited in some other way (e.g. by exercising warrants).
Two weeks later (last week Monday May 31st) the short position skyrocketed to 384,893 shares, at which point the stock was trading at $ 1.30. On the one hand, this means that in the 14 days between the middle and the end of May at least 384,893 shares were sold short or that on the reference date (May 31) 384,893 shares were still short. On May 25, the stock hit $ 1.50, so the short selling had put pressure on the stock's price. On the other hand, this means that some of the 384,893 short stocks have yet to be bought back in the market, which in turn should boost the stock.
It may well be that on Friday, when the share rose sharply ("only" 147,904 shares traded), there was such short cover and some shorters had to buy shares accordingly (in order to "close out" their short position). In the case of large short positions, this can quickly lead to a short squeeze (i.e. sharply rising prices because the shorters have to stock up on stocks, regardless of the price). Since Tocvan only has 28 million shares in circulation, many of which should be in steady hands, there can be such sharp price rises as on Friday when shorters have to buy in the market.
Overall, however, it must be stated that Tocvan is not a typical shorter stock because there are very few stocks available on the market. This is immediately very daunting for professional shorters who prefer liquid stocks to minimize their risk. Companies with more than 100 million shares issued can often lead to larger short positions or even targeted short attacks, especially if the share has risen sharply beforehand.
Tocvan: Takeover candidate # 1 in Sonoro
For the mining and investment giant Osisko Gold Royalties Ltd. (Market capitalization: $ 1.2 billion) good drilling results and a 50,000 t bulk sample were sufficient to buy into a young gold explorer for $ 10 million, which was used to pay for the mine construction (mine start expected soon). Today this once small gold explorer Minera Alamos Inc. has a stately market value of $ 314 million and has been one of the best performing gold stocks worldwide with> 800% return in the last 2 years. Minera's Santana gold project is just a 1-2 hour drive from Tocvan's Pilar property and is expected to be brought into production as quickly as Santana.
The Pilar Gold-Silver Project: In the midst of large gold mining projects
Tocvan's Phase 1 drill program (December 2020) has sometimes outperformed the majority of drill results from Argonaut Gold Inc. and Minera Alamos Inc.
Full screen / The Pilar project is located just 50-80 km from 2 major gold-silver projects: Argonaut Gold Inc.'s La Colorada gold mine (valuation: $ 977 million) and Minera Alamos' Santana gold mine (production soon) Inc. stock market valuation: $ 314 million).
Full Screen / The Pilar Project is located near gold mines (red) as well as gold development (orange) and exploration (green) projects. Source: Mexico Mining Center
Full image / The Pilar property map shows that Tocvan has discovered a 1200 m long gold-silver trend at the earth's surface in addition to the established Main Zone in the past few months, which is now being tested for the first time with drilling during the currently ongoing Phase 2 program. Thus, the announcement of major new discoveries may be imminent.
Company details
Tocvan Ventures Corp.
Suite 1150 Iveagh House,
707 - 7th Avenue S.W.
Calgary, Alberta, Canada T2P 3H6
Phone: +1 403 668 7855
Email: dwood@tocvan.ca (Derek Wood)
www.tocvan.com
ISIN: CA88900N1050
Shares in the market: 28,421,496
Full screen / source
Canada Symbol (CSE): TOC
Current Price: $ 1.28 CAD (6/4/2021)
Market Capitalization: $ 36M CAD