Loading ...An Examination a of mini micro cap Gold Explorer
Bikoo has brought some hope to a certain stock in this sector.
It is a sector that seems to bring out the beast in gold bugs from time to time.
Secova Minerals SEK.TO is a 5 cent stock presently ( this after many many negative splits over the last few years)
BUT when it first listed in 2006 it immediately ran up to the equivalent of $44 ! in 6 Short Months.
Now THERE is a Spectacular Pump and Dump.
It is incredible that explorers like this one hang on and do not get delisted.
The whole market cap of this one complete with its HUGE land holdings ( see website) is $2.5 Million.
Thats the average price of a home in some modest neighborhoods in Toronto
They always seem to find someone willing to fund the day to day activities even though there is an endless supply of new shares minted causing catastrophic dilution.
I have participated in a private placement in SEK a few years back.
Looked very promising but alas it crashed and burned and the warrants expired worthless.
Zoomed in ..lets see if there are signs of life.
Nope
But They do have a LOT of Property and it is in Quebec
Here is the website. See for your self. These things ALWAYS have a great story.
But truly with a stock price history like this one..what are the odds if it ever amounting to anything ?
IF a Real Gold fever episode strikes however ..these things can go Nucking Futs for very short periods.
The way I see it ..if you are in some quality real Gold Miners and making money perhaps take a small flyer in these 5 cent types.
My 2 cents
Thanks for nice writeup. Holding?? what that means? Do they have claim on minerals or owns property.
Stock was reverse split so it never traded at $44.
Yes it is hopeless and there are lot more of them the good ones.
I happen to own shares in DRS of Secova, unfortunately, via a private placement. I am not sure that the phrase “pump and dump” applies well to this company. It has great assets. I made tons of money by buying Oban, which became OSK when Spock recommended avoiding it. I actually bought more stock when it went down in price after his recommendation. Oban was a company associated with a prime person associated with Secova if I recall correctly. Secova has a lot of property near Oban’s property, which became OSK’s Windfall. I am going by vague memory and have not checked, but I am probably correct. Secova when I bought it could have become another Oban/OSK. We did not know. Maybe it will still become one. Probably not.
I certainly wish I had not done the private placement but it is not so much because it did not work out. These things happen. It is because I am stuck with the DRS paper which no US brokerage will accept or even rule as worthless. I am supposed to report it to the US feds every year. It is a pain. I, who had not been involved in private placements, had stupidly imagined that these details had been worked out. As far as the company as an investment or speculation, it was never supposed to be a sure thing, and it still has some potentially fine assets, although they gave up the asset that I liked the most.
In 2006 , long before you or I ever heard of it , this stock went from an equivalent ( in todays price after all the splits) of $4 to $44 in 6 months and then fell back just as fast and has bee dropping ever since.
Someone was pumping and dumping back then
It is o.k. to attack the extreme cases of pump-and-dump — the ones where people are paid to get the naive to think if they put money in just one single company they are likely to make lots of money soon, or perhaps a tiny number of companies. I don’t think SEK was such a case.
Investing/speculating in these penny stocks successfully for retail investors for real is actually a dreary business involving lots of hard work that, with luck, skill and knowledge, can yield decent returns that involve an averaging of many poor results, often devastating, in with occasional good or even great results, so as to equal, if one is fortunate, approximately what one might get with good handling of a more traditional portfolio probably.
I often think of a comment I saw in Zero Hedge, where someone wrote of his uncle, who, though without more than a high school education, studied multivariate statistical analysis in detail, and spent his waking hours studying horses for the race track. He had his multiple criteria, laboriously derived through the most painstaking study of prior results and characteristics of horses, jockeys, track conditions, etc. Then came his calculations using those criteria. Self-employed as a horse-track gambler, it was his job. He lived off a very modest living at the race track. Time-consuming analysis of disparate data, gathered with difficulty, to yield a modest yield when the losses and wins were averaged. I suspect he was pretty bored by those who jumped up and down when Secova came in first or who acted angry or despondent.
One can do similarly with two or three dozen “juniors” if one has some broad knowledge and some sense and works at it. Overall one can do ok over the long run I think even taking into account up and down gold markets. Luck does of course help.
It is not a romantic thing. It is work. It is not a thing worth getting too excited about, getting angry at or too happy about.
I am getting a bit too old for it. More important, US tax laws (PFIC etc) are making it too much of a pain for me to continue, so I dumped most of my holdings late last summer and continue to dump. I have been putting my proceeds esp in recent weeks in stocks many of which I would have previously scorned as old fuddy duddy stocks: FNV, WPM, AEM, SSRM, PAAS… Probably Monday there is an order for GOLD, then depending on its chart maybe BTG, maybe more FNV, WPM–???BVN ?????others????? as I keep selling off the other stuff.
Like lost mining stocks. And especially the speculative ones. This has gotten slammed.
Is this a surprise to anyone. Is tech any different. And so on
This stock has a lot of land in a highly valued neighborhood. I own some. And plan in buying more. As it seems someone is buying stock despite lack of any news. So why is that happening I wonder.
As you say, it has some good property. Management I think is smart. If I still went to the track everyday to bet on each of the races, I would consider placing a small bet on SEK at 0.04 cents Canadian as one of many bets of the week. I would not go around jumping up and down complaining “pump and dump” if it did not come in first nor would I bounce all over the place if it went up tenfold in price because I’d have a lot more horses I’d have bets on, many losing bets. It would be just one race of many of the month.
If some tip sheet were to happen to tout it, no big deal, other than that if I happened to know that the tip sheet and the owner of the horse were likely to be in cahoots in a way that might make it hard to figure out how to bet. Or something like that.
Here’s the latest news release from SEK below.
SECOVA AND DNA CANADA EXECUTE FORMAL AGREEMENT FOR SECOVA TO ACQUIRE THE MONTAUBAN PROJECT
VANCOUVER, BRITISH COLUMBIA – December 16, 2019 – Secova Metals Corp. (“Secova” or the “Company”) (TSXV: SEK, Frankfurt: N4UN, USA: SEKZF) and DNA Canada Inc. (“DNA”), are very pleased to announce that they have entered into a purchase agreement dated December 12, 2019 (the “Agreement”) whereby Secova has agreed to acquire the mining claims and concessions that comprise the DNA Property (the “Property”) owned by DNA as well as certain immovable assets (the “Immovable Assets”) to be used in connection with the Property.
KEY HIGHLIGHTS
Secova shall acquire from DNA the following assets:
152 mining claims located in the Montauban and Chavigny townships, in the county of Portneuf, in the province of Quebec; and
The buildings, immovables, and other assets and operating permits located on, or with respect to, the property.
Upon completion of the regulatory approvals, Secova will then set out to update, where required;
· the plans for refurbishment of the tailing pond;
· the restoration plan;
· detailed blueprints for the mill; and
· pricing for the mill equipment that has not already acquired.
As the operating permit is very specific on the process used to extract the gold and silver, the only changes required may be related to current pricing. We do not anticipate any increase in the price projections and hope that this process, which will start in the first week of January, will not take long to accomplish.
Brad Kitchen, President & CEO of Secova commented, “Due to the hard work and significant capital that DNA has put into the project over the last seven years, Montauban will be ready to be in production before the end of 2020. We appreciate the support and confidence that DNA Management and Shareholders have shown Secova by working hard to complete this transaction”
The consideration to be paid to DNA for the Property and the Immovable Assets will consist of the issuance of common shares of Secova (the “Shares”) in three tranches in accordance with the following schedule: (i) 15 million Shares will be issued on the date that is four months and one day following the closing; (ii) 15 million Shares will be issued on the date that is eight months following the closing; and (iii) 20 million shares will be issued on the date that is one year following the closing of the acquisition. DNA has agreed to distribute the Shares issued pursuant to the Agreement to its shareholders. Secova has also agreed to assume or satisfy up to $100,000 in current obligations of DNA and to pay certain amount owing by DNA to the town of Notre-Dame de Montauban.
In other unrelated corporate business, the Company announces that it has closed its Private Placement announced on September 27, 2019 and increased on October 30, 2019 (the “Financing”) raising gross proceeds to the company of $1,625,000 by the issuance of 32.5 million units at a purchase price of $0.05 per unit. Each unit consists of one common share of the Company and one common share purchase warrant (the “Units”). Each warrant entitles the holder to purchase one common share of the Company at a purchase price of $0.05 per share for a period of nine (9) months from the date of the closing of the Financing. In connection with the Financing, the Company will pay a cash finder’s fee of $7,600 and issue 152,000 finder’s warrants (the “Finder’s Warrants”). The Finder’s Warrants will be exercisable into common shares for a period of nine (9) months at an exercise price of $0.05 per common share.
The net proceeds of the offering will be used for exploration and development of the company’s existing gold projects in Quebec and for general corporate purposes.
Completion of the acquisition and the separate financing is conditional upon, among other things, receipt of all necessary regulatory approvals, including approval of the TSX Venture Exchange.
Any Shares issued pursuant to the Agreement and the Financing will be subject to a 4 month and one day hold period pursuant to applicable securities laws.
About Secova Metals Corp.
Secova Metals Corp. is a Canadian exploration company focused on building a strong asset base through exploration of undervalued projects in Canada. Management has demonstrated expertise in advancing gold exploration projects into acquisition targets, most notably in the province of Quebec. The Company’s main focus is its 100% ownership of the Eagle River project which is adjacent to and on-trend to several gold projects in the Windfall Lake district of Urban Barry in Quebec. Secova will use its expertise in early stage exploration to create shareholder value by attempting to prove out the potential resource in these assets.
For more information on Secova Metals Corp. please contact info@secovametals.com, Tel: +1 604-506-7555 or visit the website at http://www.secovametals.com for past news releases, media interviews and opinion-editorial pieces by CEO and Chairman Brad Kitchen.
On Behalf of the Board of Directors,
SECOVA METALS CORP.
“Brad Kitchen”
Chairman, CEO and Director
Tel: +1 604-506-7555
info@secovametals.com