Gold Junior Shines on Australian Investment

Novo Resources Corp. (TSXV:NVO), a gold junior, climbed after making a $4 million investment in Kalamazoo Resources

Sean Mason | January 15, 2020 | SmallCapPower

A notable investment in an Aussie resource stock sparked speculation in shares of a gold junior Wednesday. Here’s some small stocks making big moves on Wednesday, January 15, 2020 (as of 4 pm EST):

Novo Resources Corp. (TSXV:NVO) shares rose 12% to $3.64 on Wednesday after the gold junior announced that it has made a $4 million equity investment in Australian-listed Kalamazoo Resources Limited at a price of A$0.40 per unit, which would give Novo an approximate 8.17% stake in Kalamazoo. The Company added that Eric Sprott, a director of Novo, has also subscribed for an identical amount.

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As well, shares of Wesdome Gold Mines Ltd. (TSX:WDO) slipped 12% to $9 as the junior gold miner said it expects to produce between 90,000 to 100,000 gold ounces in 2020, compared with 91,688 ounces in 2019, with operating and all-in sustaining costs expected to be flat.

Organigram Holdings Inc. (TSX:OGI), meanwhile, reported first-quarter net revenue that more than doubled to $25.2 million from $12.4 million in Q1 2019. Organigram Holdings stock popped 44% to $4.05 following the announcement.

Finally, Kelso Technologies Inc. (TSX:KLS) shares gained 9% to $0.93 after the engineering product development company announced that its average monthly revenue increased from approximately US$500,000 in 2017 to in excess of US$1 million per month in 2018, to more than US$1.65 million per month for the nine months ended September 30, 2019.

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Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.

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