The mining industry has taken a back seat these past few years on the Canadian exchanges, as investors are sinking their teeth into the hot new sectors emerging. Last year, blockchain companies reigned supreme, and mining penny stocks were seeing little movement. Now, cannabis has taken over.
There are a copious amount of junior mining companies within Canada still though, so it would be silly to ignore the industry completely.
Let’s take a closer look at one mining penny stock that is falling this morning and the details behind its bear movement.
Calibre Mining Corp. (TSXV:CXB)
Calibre Mining is based out of Vancouver, BC—where many junior mining companies are headquartered in Canada. Calibre operates as an exploration stage company that engages in the development, exploration, and acquisition of base and precious metal properties in Nicaragua.
Earlier this morning, Calibre announced a non-brokered $5 million private placement and 10:1 share consolidation. The private placement is set to close the week of October 29th, 2018. Proceeds of the placement will go toward loan repayment, exploration, project generative activities, and general working capital of the mining penny stock.
The formal announcement clarifies:
“Each Unit will consist of one post-Consolidation common share and one common share purchase warrant. Each warrant will entitle the holder to acquire an additional common share for $0.95, on a post-Consolidation basis, for a period of five years from the date of closing of the Private Placement. Sprott Capital Partners, a division of Sprott Private Wealth LP, and its affiliates will act as finders in the Private Placement.”
CXB Stock Movement
According to Yahoo Finance, the mining penny stock is currently trading at $0.045 a share, down -$0.010 (-18.18%). This morning, shares fell as low as $0.035. In the last five days, CXB shares are down -18.18%, and for the month, the mining penny stock is down -25%.
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