Gold prices rallying and finding support above the $1800 an ounce level is one reason gold stocks are bullish in the market. Expectations are high that companies will continue to ramp up mining and exploration activities and generate solid results given the high gold prices.
Altamira Capital Raise
Altamira Gold Corp. (CVE:ALTA) (OTCPINKEQTRF) is the latest company to affirm plans to ramp up exploration activities at 3 of its main projects as part of its growth strategy. The company is fresh from raising an additional $1.11 million from warrant exercises bringing in total proceeds from recent exercises to $2.54 million.
With its treasury standing at about $6.1 million, the company is well-financed to undertake aggressive exploration and mining operation. The company has already launched a 3D induced Polarization and Resistivity ground survey at its Apiacas Project in Mato Grosso State, Brazil.
Avino Silver & Gold Mines Drill Program
Avino Silver & Gold Mines Ltd. (ASM: TSX) (NYSE American: ASM) is another company preparing for the recommencement of production activities as part of its drill program. The company is planning to locate new mineralized zones within the Avino ET production area. The drill program should allow the company to take advantage of the current high gold prices.
The company is fresh from reporting first-quarter results where it ended with $27 million in cash balance and $31 million in working capital. The company also trimmed its debt liabilities by $0.8 million. However, the company incurred$1.8 million net losses from continuing operations.
Apollo Gold Acquisition
Separately, Apollo Gold & Silver Corp (TSX.V: APGO) has reached an agreement to acquire all issued and outstanding shares of Stronghold Silver Corp. The acquisition will result in the creation of a US Pure Silver exploration and development company.
Stronghold comes into the deal with three large scale silver projects. The project should allow Apollo Gold & Silver to become the leading US exploration and development company. According to Apollo chairman, Andrew Bowering the acquisition marks an important transformational moment for Apollo shareholders. The merger will result in the creation of a team with deep technical and operational experience.