The junior resource stocks we’ve dug up have higher than average trading volume and could see increased interest following the pending acquisition of Nevsun Resources by Zijin Mining
SmallCapPower | September 6, 2018: On Wednesday, Zijin Mining Group Co. (SEHK:2899) agreed to acquire Nevsun Resources Limited (TSX:NSU) for C$1.86B. This acquisition may act as a catalyst to reinvigorate the recently dormant mining market. Today we have uncovered five junior resource stocks with similarities to Nevsun based on geography or mining projects. These companies offer investors a great opportunity for large returns should the mining market rebound in the near to mid-term. The average daily volume of shares traded in the past 30 days is significantly higher than in the last 12 months for some of these companies, possibly due to speculation of additional acquisitions.
Dundee Precious Metals Inc. (TSX:DPM) – $2.77
Diversified Mining
Dundee Precious Metals is a mining company with operations in Bulgaria and Namibia. The Company mines gold, silver, and copper. The Company’s primary mining project is the Chelopech mine, located 70KM east of the country’s capital Sofia. DPM is also advancing a project in Serbia.
- Market Cap: $494.5 Million
- Avg Volume last 30 days: 176,511
- Avg Volume last 12 months: 166,457
Tethyan Resources PLC (TSXV:TETH) – $0.25
Diversified Mining
Tethyan is a junior exploration company engaged in the exploration and development of gold, copper, and silver. Current operations are concentrated in Serbia and Bulgaria, but the Company is also exploring opportunities in Macedonia. The Company has secured 643 sq. km of land in the Tethyan Mineral Belt in the Balkans, a highly-prospective region for gold, copper, lead, and zinc deposits. Starting in September, the Company plans to begin drilling within the Rudnica region, which has seen little development to date.
- Market Cap: $8.4 Million
- Avg Volume last 30 days: 18,068
- Avg Volume last 12 months: 12,403
Euromax Resources Ltd. (TSX:EOX) – $0.15
Diversified Mining
Euromax Resources is a Canada-based mining company with operations in southeastern Europe, including a development project in Macedonia. The Company’s Ilovica-Shtuka gold and copper mine in Macedonia produces an average of 83,000 oz Au and 16K tonnes Cu/year. The estimated life of the mine is 20 years, with projected gold reserves of over 2Moz.
- Market Cap: $25.0 Million
- Avg Volume last 30 days: 14,846
- Avg Volume last 12 months: 8,828
Lydian International Ltd. (TSX:LYD) – $0.20
Gold
Lydian International is a gold mining company advancing the Amulsar Gold Project in Armenia, which designed to be a large scale, low cost operation generating high cash flows. Mining operations are set to commence in Q3/2018. The Company expects to produce 225,000oz Au/year over a 10-year period.
- Market Cap: $151.0 Million
- Avg Volume last 30 days: 470,622
- Avg Volume last 12 months: 312,129
Mundoro Capital Inc. (TSXV:MUN) – $0.165
Diversified Mining
Mundoro Capital is an explorer focusing on Serbia and Bulgaria. In Serbia, the Company is advancing projects within the Timok Magmatic Complex, which is host to Au-Cu porphyry and Cu-Au epithermal deposits. A 5,000m drill program, sole-funded by Japan Oil, Gas and Metals National Corp., is currently underway on its Borsko license.
- Market Cap: $11.4 Million
- Avg Volume last 30 days: 114,259
- Avg Volume last 12 months: 101,283
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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