Doubleview Capital Corp. (DBV:TSX.V; DBLVF:OTCBB; 1D4:FSE) announced in a news release it entered into an option agreement regarding its Red Spring project in British Columbia with a private company recently acquired by Mucho Cobre Resources Inc.
Per the agreement, Mucho Cobre has the right to earn up to a 60% interest in the Red Spring copper-silver-zinc project over a five-year period provided it makes three aggregate outlays on a set schedule. One is $4 million, to be spent on exploration. The second is $500,000, to be paid to Doubleview. The third is 2 million of its common shares, to be issued to Doubleview. Mucho Cobre and Doubleview will split any accumulated exploration tax credits.
Subsequently, at commercial production, should the project get to that stage, Doubleview will retain a 0.5% net smelter royalty, all of which Mucho Cobre could buy for $600,000.
"The Red Spring property is a strata-bound 'redbed'-type copper deposit similar to those in several very large European and Asian copper mining districts,” said Doubleview President and CEO Farshad Shirvani. "Earliest property work in the 1970s included twelve short, widely-spaced drill holes, some of which intersected strong copper and silver values, including 136 feet (41.5 metres) with 0.54% copper and 0.61 oz/ton silver."
"Doubleview's geological and geochemical survey work since 2013 has confirmed the merits of the main Red Spring zone and identified new areas, that included values as high as 225 g/t silver, 3.89 % copper and 1.55 % zinc from the 2016 geochemical soil survey," Shirvani added.
The company noted that it has received a provincial Mines Act Permit for work including drilling at Red Spring.
Technical analyst John Newell of Fieldhouse Capital charted Doubleview on the TSX Venture Exchange and noted that its shares has broken the "Point of Recognition." He lists targets at 28 cents, 37 cents and 62 cents.
Chart courtesy of StockCharts.com.
John Newell is a portfolio manager at Fieldhouse Capital Management. He has 38 years of experience in the investment industry acting as an officer, director, portfolio manager and investment advisor with some of the largest investment firms in Canada including Scotia McLeod, CIBC Wood Gundy and Richardson Greenshields (RBC Capital Markets). Newell is a specialist in precious metal equities and related commodities, and follows a disciplined proprietary approach incorporating equity research, analytical frameworks and risk controls to evaluate and select long and short stocks primarily from the Canadian small and mid-cap coverage. Many large, midcap and junior precious metal companies use his technical charts. Newell is a registered portfolio manager in Canada (advising representative).
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Additional Disclosures and Disclaimer from John Newell, Fieldhouse Capital Management
Legal Notice / Disclaimer:
This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment.
John Newell has based this document on information obtained from sources he believes to be reliable, but which has not been independently verified.
John Newell makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of John Newell only and are subject to change without notice. John Newell assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission.
Furthermore, I, John Newell, assume no liability for any direct or indirect loss or damage or for lost profit, which you may incur because of the use and existence of the information provided within this Report.
John Newell manages the Fieldhouse Global Precious Fund Class G, which does not own shares of Doubleview Capital.
He was not paid by Doubleview Capital to write this article.
John Newell, or members of his household, do not hold shares of Doubleview Capital.
It should not be assumed that the methods, techniques, or indicators presented in these pages will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these pages are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.
Hypothetical and historical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical and historical performance results and the actual results subsequently achieved by any trading program. One of the limitations of hypothetical and historical performance results is
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Technical chart provided by John Newell.
