Benchmark Continues to Deliver
I introduced Benchmark Metals to my readers just a week ago and they continue to deliver. The company’s main project is in the Golden Triangle that continues to attract investor attention even in an especially boring market for resources. For most companies I fear little or no action until tax loss selling has once again passed. That’s another six weeks. But good results in the Golden Triangle will generate higher prices for shares even in a dismal market.
On the 27th of October the company made an interesting press release that I suspect few investors actually understood. It seems the Lawyer’s Gold and Silver project had been drilled for a private company in 2015. The private company wanted to save money so they only assayed part of the 1,051 meters of core. When Benchmark took over the project and the stored core, they assayed both above and below the already tested drill core. Much to their pleasure and surprise, the additional lengths of core showed good results.
Hole CC15-06 added seventeen meters of mineralization. Hole CC15-22 added fourteen meters of mineralization above the previously assayed material and three meters below.
While the liquidity of Benchmark has been excellent recently there is an overhang of about 22 million warrants that the company has repriced lowering the exercise price by 33-50% but requiring an acceleration clause. Basically if the share price is over $.28 for over ten days, the warrant holders have 30 days to exercise the warrants at $.225. It was both a good deal for the company and early investors. Benchmark has major financial commitments at Lawyer’s so can use the $4.5 million but investors are getting a great discount. So far the share price has been $.28 or over for eight days in a row.
The stock has traded some nine million shares in the last seven days. Astute investors are selling shares to lock in a profit and putting the money right back into the cheap warrants. Until the 30-day period has been complete, expect artificial selling that is good for any new investors. I expect a lot of good news from the company over the next month as a result. They want those warrants exercised. But once the 30-day period is over, the forced selling will stop and I think the shares will go up. Maybe a lot.
Benchmark is an advertiser. I own shares bought in the open market. Do your own due diligence.
Benchmark Metals Inc