Gold Sector Sees Strategic Financing Boost for West African Ventures
Sanu Gold Corp. (SANU:CSE; SNGCF:OTCQB; L73:FRA) has announced a non-brokered private placement of up to 100 million common shares at five cents per share, for total gross proceeds of up to US$5 million. See how AngloGold Ashanti PLC and Capital DI Ltd. plan to play a key role in the future of Sanu Gold.
Sanu Gold Corp. (SANU:CSE; SNGCF:OTCQB; L73:FRA) has announced a non-brokered private placement of up to 100 million common shares at five cents per share, for total gross proceeds of up to US$5 million. AngloGold Ashanti Ltd. (AU:NYSE; ANG:JSE; AGG:ASX; AGD:LSE) and Capital DI Ltd., the investment subsidiary of Capital Ltd., are the lead participants in this strategic financing.
One of the world's top producers of gold, AngloGold Ashanti, has expressed its intent to acquire 33.4 million common shares for US$1.67 million. This would result in an ownership of 14% post-financing. Capital DI Ltd. will also subscribe to 24 million common shares for US$1.2 million. This would represent a 10% ownership stake. Money from the investment will primarily be used to advance exploration on the Diguifara and Daina permits in Guinea, West Africa, the location where Sanu operates its gold exploration projects.
Subject to regulatory approval, the placement also includes provisions for a four-month hold period on issued securities as per Canadian securities law. Eventus Capital Corp. has been appointed as a finder in connection with the placement. Expectations are that the transaction will close as soon as all regulatory approvals are received.
Looking At The Gold Market
The gold market has remained strong in the face of investor confidence. Highlighted on September 9 by Barron's, gold's upward track appeared far from over. Expected U.S. interest rate cuts could drive prices even higher. In the report, ING analysts stated that central bank purchasing, safe-haven demand driven by geopolitical tensions, and a resurgence of ETF interest have all contributed to this rally. The estimate from ING further was that gold would average US$2,580 per troy ounce in 2024's final quarter, with expectations that this would continue into 2025.
In a separate September 3 report, Yahoo! Finance cited Goldman Sachs' positive gold outlook. Analysts have advised investors to take advantage of the continuing strong performance and attributed this momentum to record-breaking central bank buying in Q1 2024. Uncertainty has contributed as well, with gold remaining a key focus for portfolio diversification.
US Global Investors' Frank Holmes expressed optimism on September 3 regarding the potential for gold stocks, noting their unique value as both a hedge and a high-reward investment. "Gold stocks not only provide protection during economic uncertainty but also offer considerable upside as gold prices increase," Holmes remarked. With forecasts from major institutions such as UBS and Goldman Sachs predicting gold prices to reach US$3,000 by 2025, the sector's outlook appears robust.
The Catalysts For Sanu Gold
AngloGold Ashanti's role as a lead investor has been marked as a significant catalyst for Sanu Gold's growth. The company brings extensive experience as one of the world's top-tier gold miners. Having operated its Siguiri mine in Guinea for over 25 years and producing between 200,000 to 300,000 ounces of gold annually, the company's decision to invest in Sanu signals confidence in the prospectivity and quality of Sanu's assets in West Africa.
Capital DI Ltd., a subsidiary of Capital Ltd., further solidifies this financing by adding its operational expertise in the mining sector. Its expanding presence in West Africa, Capital's support through investments, drilling, and laboratory services provides the company with the operational backing needed to accelerate its exploration activities.
In connection with AngloGold Ashanti's investment, Sanu Gold will enter into an investor rights agreement. This agreement will grant AngloGold rights to participate in future equity issuances and involvement in technical oversight on the Diguifara project, indicating a long-term commitment to Sanu's exploration and development efforts.
Experts On Sanu Gold
*On September 6, expert John Newell emphasized that Sanu Gold is "well-positioned to capitalize on Guinea's untapped potential and the growing global demand for gold." He noted how Sanu's Bantabaye project already produced "spectacular" results, including gold intercepts such as 11.4 grams per tonne (g/t) gold over 15 meters. Newell pointed out that the company's successful Phase 1 drilling at strategic landholdings across Bantabaye, Diguifara, and Daina provides a drive towards future projects. Based on these factors, he rated the stock a Buy.
Bob Moriarty from 321gold.com had expressed similar optimism on May 20, citing Sanu Gold's operations in one of the world's most prolific gold regions. He highlighted their impressive land package and the early success of the Bantabaye project and its other exploration efforts. Moriarty indicated that Sanu's share price had declined by 80% over the past two years, presenting a potential buying opportunity before the broader market recognizes its value. He mentioned how the company is "likely to be among the first to benefit" once market sentiment shifts toward gold exploration companies.
Streetwise Ownership Overview*
Sanu Gold Corp. (SANU:CSE;SNGCF:OTCQB;L73:FRA)
*Share Structureas of 9/12/2024Source: Thomson Reuters*That same month, Technical Analyst Clive Maund called Sanu Gold an "Immediate Strong Buy." Maund praised the company's strategic position in a world-class gold district. He remarked on the company's potential for further high-grade discoveries, noting how Sanu had already made significant progress at its Bantabaye project. Maund's analysis of the stock's charts indicated a strong upside potential, with the possibility of the company potentially being acquired by a larger player in the sector due to its valuable landholdings and exploration success.
Ownership and Share Structure
According to Refinitiv, 11.65% of Sanu Gold is owned by management and insiders. Of those, President and CEO Martin Joachim Pawlitschek owns the most with 4.23%, Director and Co-Founder Fatou Sylla Gueye owns 3.83%.
4.38% of Sanu Gold is held by institutions with Palos Management Inc owning the most at 2.55%
The rest is retail. The market cap for Sanu Gold is US$5.62 million with 122.33 Free Float Shares. The 52 week range for the stock is US$0.03-0.15.
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Important Disclosures:
As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Sanu Gold.James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.
* Disclosures for the quote from the John Newell and Clive Maund articles published on September 6 and May 8
For the quoted articles (published on September 6 and May 8), the Company has paid Street Smart, an affiliate of Streetwise Reports US$1,500 and US$2,250.Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing the article quoted. Maund received his UK Technical Analysts' Diploma in 1989. The recommendations and opinions expressed in the article accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressedAuthor Certification and Compensation: [John Newell of John Newell and Associates] was retained and compensated as an independent contractor by Street Smart for writing this article. Mr. Newell holds a Chartered Investment Management (CIM) designation (2015) and a U.S. Portfolio Manager designation (2015). The recommendations and opinions expressed in this content reflect the personal, independent, and objective views of the author regarding any and all of the companies discussed. No part of the compensation received by the author was, is, or will be directly or indirectly tied to the specific recommendations or views expressed.Clivemaund.com Disclosures
The quoted article represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be only be construed as a recommendation or solicitation to buy and sell securities.
John Newell Disclaimer
As always it is important to note that investing in precious metals like silver carries risks, and market conditions can change violently with shock and awe tactics, that we have seen over the past 20 years. Before making any investment decisions, it's advisable consult with a financial advisor if needed. Also the practice of conducting thorough research and to consider your investment goals and risk tolerance.