News

November 11, 2008

Cangold May Be Small But It Could Play An Interesting Role As A Consolidator

By Charles Wyatt

The chief executive of Canadian listed Great Panther Resources, Bob Archer, was in London last week to talk about his company’s silver mines in Mexico – Topia and Guanajuato – where profitable production is on the increase. Bob reckons that the institutional fund managers are hibernating until there is real evidence of an upturn in metal prices next year, but retail investors are still on the prowl. The UK has nothing like the retail base of Canada, thanks to the negative attempts at regulating distribution of research by the FSA and compliance officers, but shares move when the bloggers and bulletin board jockeys are in pursuit. This is one of the reasons why Commodity Watch, owner of minesite.com, has just merged with Rivington Street Holdings as the latter has a database of over 60,000 high net worth investors.

Bob has another junior exploration company in his stable called Cangold and it is worth taking a look at this as it exemplifies the action that many of its peers should have taken earlier this year when the dark clouds began to gather. First, it raised just over C$1 million late in March by the sale of  shares and warrants to fund continuing exploration at its Los Venados and Plomo properties which are also in Mexico. Second, it  sold its 51 per cent interest in the Thorn property in...