Cardero Resource (CDU: TSXV) had its best day in months Monday. The junior resource explorer is targeting copper and riding the wave the red metal has been on. Hence, we published an article on copper supply and technicals surrounding the base metal this morning. Click here to read Copper Prices Hit 6-Month High | Due for a Correction.
Cardero topped all stocks in October’s Stock Challenge Monday, rising 29.17% on almost no volume of just 25,000 shares.
Cardero Resource Closes Financing | Prepares to Advance Zonia Copper Project
On Friday Cardero Resources announced that it had closed anon-brokered private placement of up to 8,750,000 units at $0.10. The company raised gross proceeds of $875,000.00 in the process.
The company reported,
“Net proceeds will be used to advance the Company’s Zonia copper project in Arizona and, for general working capital.”
The beauty of projects in Arizona and much of the continental United States is that they can be operated on most of the year. Cardero continued,
“We are extremely pleased with the positive response to the offering and look forward to continuing the work on the Zonia copper oxide deposit in Arizona where the property has been drill tested with almost 700 drill holes (60,000 meters). This high-density drilling covers 30% of the property reducing technical risk on the deposit.”
Click here to read the entire press release from last week.
Cardero Hopes to Time Copper Cycle
The fact approximately 60,000 metres has been drilled on the project is a sign. It’s a sign that assets of this nature sometimes take more than one cycle to develop fully.
Sadly, Cardero’s 5-year chart looks like too many juniors. Certainly, long-time shareholders have seen their wealth almost completely eroded. Cardero traded for above $6 more than five years ago.
Cardero – 5 Year Chart
This is the danger of investing in junior resource companies at the wrong point in a cycle. Copper prices are in an upswing; however, the TSX Venture remains depressed below 800.
Pinnacle member ‘Trade Master‘ selected Cardero and finished the day with a 15.41% return. His other selection is a previously infamous TSX Venture healthcare-related stock, Patient Home Monitoring. PHM had a great run in 2015 to above $2 per share. It traded for just pennies in early 2013.
The TSX Venture flirted with cresting above 800 in early trading Monday – hitting 799.95. It fell 7 points from the high to close at 792.49. Furthermore, the Venture’s total combined volume has remained muted, failing to break 100 million in the past month.
With two weeks left, October’s Stock Challenge is heating up.
