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7/14/16

Since The IKN Weekly published on Orla Mining (OLA.v-H) last Sunday...

...in IKN374, the price of this famous-name shell has popped from 52c to 75c. That 44.2% and that's not a bad little move for this stock. We also found out (thanks to sources who read The IKN Weekly) that OLA is in discussion with Pershimco (PRO.v) about its Cerro Quema property in Panama. That development was covered in this post earlier in the week.

Here's the note from last Sunday evening:

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Orla Mining (OLA.v-H): Something is brewing
Up until recently Orla Mining (OLA.v-H) was a ten cent shell stock sitting on the NEX end of the TSXV and doing nothing. That’s now changed, as this 2016 price chart shows.


So far in price moves we’ve seen:

  • Spotty purchases between mid-February and end May around the 15c level
  • New activity in June that got it to 20c
  • Then a sudden rush up to the approx 50c level on new levels of volume

At face value that’s quite impressive for what’s nothing more than a shell at this time, but once we check out a few of the details of the company it becomes more obvious why this shell is creating noise. To do so, let’s zero in on the company’s latest NR dated July 8th  in which it announced the closure of a $7m round of financing (28). This was the funding round of a soon-to-be unleashed new junior on the block. Its backers have already got in on various rounds of early financing at cheap prices (6c, 8c, 10c) from mid-2015 up to February 2016, but it’s when you see the names of the main players that things start to get interesting. After this latest 50c financing round in which they all participated, Marc Prefontaine, Hans Smit, Troy Fierro, Richard Hall, John Graham and Pierre Lassonde between them own a total 66.3% of Orla’s fully diluted share count and if you don’t recognize those names as the top table A-Team of the Canada mining scene, then I suggest you change your sector of interest immediately. Just seeing one or two of those names connected to a start-up junior would be enough for my blood, all five and the bells should be ringing already.

As for what it owns and plans to do, its flagship property at this point is the Blue Quartz project which is described in these terms in its most recent MD&A:

The Blue Quartz Property is located approximately 12 kilometres north-northeast of Matheson, 73 kilometres east-northeast of Timmins and 56 kilometres northwest of Kirkland Lake, all located in the Province of Ontario.

It then goes on to describe Blue Quartz in more detail, including the results of limited drilling programs back in 2010 and 2011 which returned hits such as 2.0m of 13.95 g/t gold at a depth of 340m. It finishes the description with “To date the mineralized zone is open to depth and down plunge with indications that the hydrothermal alteration system is increasing in intensity along with both the grade and width of the mineralization”, which is probably going to be connected with the promo on this stock if Blue Quartz turns out to be the main thrust of OLA this year. However, OLA may have other plans and a new project to fold into the company, I have no special information to offer you on that.

All in all, just the calibre of the mining men on board this play makes it very interesting and with the $7m placement now signalling that the company is about to come alive, this is your heads up on a potential exploreco trade for the second half of 2016. At present I do not own any shares and I don’t plan to change that in the near future. If I decide to buy I’ll tell you first.



Disclosure: I neither own or recommend OLA or PRO.