Probe Metals (PRB:TSXV) ripped 16.8% higher Tuesday on 150,000 shares traded. Volume in Probe has picked up in the past 3 days since the company broke through $1 per share. Some could argue, as we have in recent articles, that trending stocks attract more attention and can sometimes move higher following that attention. In Probe’s case, you can see a spike in Google’s search queries leading up to its breakout.
Probe Metals – Google Search Queries
Probe Metals – 6 Month Chart
Gold stocks have taken flight on the TSX Venture. Despite the metal remaining firmly under $1,300 it has shown resilience in 2016 and is outperforming equities thus far on the year.
On June 10th, Probe Metals announced that it had acquired all the outstanding common shares of Adventure Gold to create a well-funded Quebec and Ontario focused gold explorer and developer.
Probe has used its shares as currency, issuing an aggregate of 31,585,765 common shares to the former shareholders of Adventure Gold. This has proven to be an effective way for gold companies to grow when the market allows.
In conjunction with the completion of the acquisition, Probe announced the closing of a private placement transaction. The company has reportedly raised gross proceeds of $2,904,000. The Offering consisted of the sale of 4,440,000 common shares (each, a “Share”) at a price of $0.66 per Share. This seems like a steal given the fact Probe closed at $1.18 today; however, the company was trading as low as $0.78 on June 3rd.
Goldcorp increases stake in Probe Metals
And, who purchased the shares in Probe’s latest financing? Below is an excerpt which explains exactly that:
“Goldcorp Inc. (“Goldcorp”) purchased all 4,400,000 Shares, and now beneficially owns and controls 10,577,846 common shares of Probe which represents approximately 15% of Probe’s issued and outstanding common shares. Probe also granted Goldcorp the right to maintain its pro rata ownership percentage during future financings and the right (but not the obligation) to participate in any future equity financings to the extent required to allow Goldcorp to increase its equity ownership interest in Probe to a maximum of 19.9% of the issued and outstanding common shares…”
Click here to read the entire press release.
With Goldcorp’s buyout of Kaminak Gold (which we wrote about here) fresh in the minds of investors, it’s no wonder the company’s shares have been climbing ever higher in recent sessions.
Cave2 breaks into June Stock Challenge Top 50
Despite selecting Probe Metals for June, member ‘Cave2‘s other selection – POET Technologies – has not been performing as well as he’d hoped. The long-time member of nearly 3 years finished the day with a15.42% return for the month.
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