Resource Rally: Fresh Financings, A Major JV Deal, and Exploration Success Fueling Sector Momentum
Published: 10/28/2024
Author: FRC Analysts

This week, several juniors in the resource sector made strides, from financing announcements to major JV deals and impressive exploration results. With gold and silver prices hitting record highs, the sector's recent surge in M&A suggests that major players are eyeing acquisitions to strengthen their asset bases.
Key Segments
- Updates and insights on companies under coverage
- Top picks and standout performers from the past week
- This week, several juniors in the resource sector made strides, from financing announcements to major JV deals and impressive exploration results. With gold and silver prices hitting record highs, the sector's recent surge in M&A suggests that major players are eyeing acquisitions to strengthen their asset bases.
Commentary on Resource Companies Under Coverage
Denarius Metals Corp. (DMET, DNRSF)
PR Title: Announces an $8.25M equity financing
Analyst Opinion: Positive – Proceeds will be allocated to the Zancudo gold-silver project in Colombia, and the Aguablanca nickel-copper project in Spain. DMET is on track to bring both projects into production within the next six to 12 months. The company has already secured offtake agreements for both.
Power Nickel Inc. (PNPN.V, CMETF)
PR Title: Additional results from an ongoing drill program at its polymetallic Lion zone (Quebec)
Analyst Opinion: Positive – Recent results from two additional holes in a 30,000 m follow-up drill program at the Lion zone continue to show mineralization over extensive intervals, including 39.6 m at 4.19% CuEq – the largest intersection recorded in this zone to date. We project the Lion zone could host up to 1 Blbs of high-grade CuEq. Lion is one of two main mineralized areas within the Nisk project, alongside the nickel-rich Nisk Main deposit, which hosts 178 Mlbs of NiEq.
Skyharbour Resources Ltd. (SYH.V, SYHBF)
PR Title: Completes earn-in and forms a JV with Rio Tinto (LSE: RIO) at the Russell Lake uranium project, Saskatchewan
Analyst Opinion: Positive – SYH has acquired a 51% interest in Russell Lake. Results from a geophysical survey conducted earlier this year will be used to identify targets for an upcoming drilling program. Russell Lake is strategically located between SYH’s Moore uranium project, and Denison’s (TSX: DML) Wheeler River project, and close to Cameco’s (TSX: CCO) Key Lake mill and MacArthur River mines.
Grid Battery Metals Inc. (CELL.V)
PR Title: Completes a drill program at the Clayton Valley lithium project (Nevada)
Analyst Opinion: Positive – Recent drilling at the Clayton Valley lithium project intersected hot spring alteration, indicating potential geothermal activity that could have mobilized lithium from deeper layers to the surface. The company is awaiting assay results. The property is located adjacent to Albemarle’s (NYSE: ALB) lithium mine, and Century Lithium’s (TSXV: LCE) advanced-stage lithium project.
Tartisan Nickel Corp. (TN.CN, TTSRF)
PR Title: Commences construction work on an all-season road for the Kenbridge nickel project (Ontario)
Analyst Opinion: Positive – This all-season road will significantly reduce exploration costs. Kenbridge hosts high-grade open-pittable/underground class 1 nickel resources, essential for lithium-ion batteries in electric vehicles (EVs).
Kingman Minerals Ltd. (KGSSF, KGS.V)
PR Title: Announces a $2M equity financing
Analyst Opinion: Positive – Proceeds will be allocated to an exploration program at the Mohave project in Arizona, which includes the former Rosebud mine. We are pleased with this financing, particularly since the company has been relatively inactive since 2021.
Updates on Financials, Technology, Energy, and Special Situations Companies Under Coverage
Condor Energies Inc./TSX - CDR
PR Title: Promising results from workover programs at natural gas fields in Uzbekistan
Analyst Opinion: Positive - Shares are up 52% since we launched coverage earlier this month. CDR has completed five out of seven planned workover wells, adding 740 boepd of new production, reflecting a 7% increase in overall output. The company is planning additional workover wells. Q3 results are anticipated next month, where we expect record production and EPS. We project a 17% YoY increase in production for 2025. CDR holds a 20-year contract with the Government of Uzbekistan to operate eight gas fields. Management aims to increase production by over 50% in the next three to four years using proven Western technologies.
FRC Top Picks
The following table shows last week’s top five performers among our Top Picks. The top performer, New Age Metals, was up 9%. NEM and its joint venture partner, Mineral Resources Ltd. (ASX: MIN), are advancing exploration at several lithium projects in Manitoba. Additionally, NAM owns an advanced-stage PGE project in Ontario.
Top Five Weekly Performers | WoW Returns |
New Age Metals Inc. (NAM.V) | 9.1% |
Transition Metals Corp.(XTM.V) | 7.7% |
Lake Resources NL (LKE.AX) | 6.2% |
Kootenay Silver Inc. (KTN.V) | 5.1% |
Hot Chili Limited (HHLKF) | 3.7% |
* Past performance is not indicative of future performance (as of Oct 28, 2024) |
Source: FRC
Our top picks have outperformed the benchmark (TSXV) in all seven time periods listed below.
Performance by Sector
Total Return | 1 Week | 1 mo | 3 mo | 6 mo | 1 yr | 3 yr | Since launch |
Mining | 3.3% | 18.2% | 18.2% | 6.8% | 22.4% | -33.9% | 3.9% |
Cannabis | N/A | N/A | N/A | N/A | N/A | -34.6% | -23.6% |
Tech | 0.0% | -7.7% | -25.0% | -47.8% | -36.8% | -37.0% | -4.8% |
Special Situations (MIC) | -2.8% | -2.7% | 33.1% | 55.2% | 73.3% | -25.6% | 9.7% |
Private Companies | N/A | N/A | N/A | N/A | 6.7% | 20.5% | 30.5% |
Portfolio (Total) | 1.8% | 12.4% | 19.6% | 11.1% | 26.1% | -18.6% | 10.0% |
Benchmark (Total) | -1.2% | 6.0% | 7.3% | 4.4% | 19.9% | -35.2% | -30.5% |
Portfolio (Annualized) | - | - | - | - | 26.1% | -6.6% | 0.9% |
Benchmark (Annualized) | - | - | - | - | 19.9% | -13.5% | -3.3% |
1. Since the earliest initiating date of companies in the list of Top Picks (as of Oct 28, 2024) | |||||||
2. Green (blue) indicates FRC's picks outperformed (underperformed) the benchmark. | |||||||
3. Past performance is not indicative of future performance. |
Our complete list of top picks (updated weekly) can be viewed here.