In light of the 12% gain seen in Signal Gold Inc. (OTCQB:SGNLF) on Tuesday, it is likely that the stock is going to be on the radars of investors this morning. However, in order to get a better idea, it is important to get a better idea about the trigger that led to the gains.
Key Sale Completed
On November 5, Signal Gold announced that it had successfully completed the sale of its Tilt Cove Gold Project located in Newfoundland. The sale had been made to FireFly Metals Ltd. As per the terms of the sales agreement, FireFly picked up the entirety of the common shares in Tilt Cove Gold Corp., which had previously been a fully owned subsidiary unit of Signal Gold. In the news release, it was also stated that Signal Gold continued to hold all the rights, obligations, and licenses related to the project.
Key Details
Thanks to the sale, Signal Gold got $570,000 in cash and 2,317,869 common shares in FireFly Metals. The common shares commanded a valuation of $2,500,000 as of yesterday. Additionally, the company also stood to receive $1,000,000 in the form of milestone payment if a mineral resource estimate is announced by FireFly.
Management Quote
“We are pleased to announce the completion of the sale of the Tilt Cove Project to FireFly Metals, as we believe the combination of the highly prospective Tilt Cove properties and FireFly’s Green Bay Copper-Gold Project will generate significant value for the shareholders of each company. We look forward to being a shareholder of FireFly going forward as they continue to advance their projects in the Baie Verte Peninsula in Newfoundland.”
| +/- EMA(20) | 0.0639 (+4.85%) |
| +/- SMA(50) | 0.064 (+4.69%) |
| +/- SMA(200) | 0.0709 (-5.50%) |
| 5-Day Perf. | -2.62% |
| 1-Month Perf. | +3.55% |
| 3-Month Perf. | +1.52% |
| 6-Month Perf. | -13.21% |
| YTD Perf. | -34.63% |
| 1-Year Perf. | -46.7% |
| RSI(14) | 56.2 |
| ATR(14) | – |
| ADX(14) | 36.4 |
| Beta (5Y) | 0.64 |
