Pennaluna & Company

News Nuggets: Hecla, Silver Predator, Sunshine Silver Mines, Archean Star

Tom Wobker — Tue, 05 Feb 2013 09:36:10 +0000

* * * Hecla Mining of Coeur d’Alene (NYSE: HL) earlier this month presented at the Emerging Miners Conference in New York City. CFO Jim Sabela reported the firm has found underground resources at its Star Morning and Noonday deposits and also a possible link between the You Like vein at the Star Morning Mine in Burke and the 30 Vein Trend at the Lucky Friday in Mullan. He noted at year end HL had $233 million in the bank… a $150 million credit line… and no debt.

It’s also reported that the Lucky Friday, closed for a year to correct MSHA deficiencies, is expected to start production again this quarter. The stock of this old timer has a 52-week range of $3.70 and $6.94 and is trading now at about $5.40 .

(http://www.hecla-mining.com/)

* * * Silver Predator (TSX: SPD) – the Canadian outfit that last fall moved from Vancouver B.C. to Hayden, Idaho just outside Coeur d’Alene — said earlier this month that last year’s soil sampling program at its Taylor silver project in White Pine County, Nevada included results as high as 1.7 g/t gold and 58/t silver.

SPD says it plans more soil sampling and some reverse circulation drilling in the first half of the year. Along with most other juniors, the stock’s been clobbered in recent months and is now at about .15, off a high around .45. (http://www.silverpredator.com)

* * * Sunshine Silver Mines – Excitement is building out here over this planned $250 million IPO, although there’s still no official word on the timing. The firm says in a recent S-1 amendment that it plans to start ore production at the historic mega-producer during the first quarter of 2014. Remember, though, an S-1 can be amended many times so nothing is set in stone yet.

You can read the amendment here:

http://www.sec.gov/Archives/edgar/data/1517006/000119312512513382/0001193125-12-513382-index.htm

Or save time by reading a synopsis written by Caleb Soptelean of the Shoshone News Press:

http://www.shoshonenewspress.com/news/article_d27dd4e8-64d6-11e2-8a9f-0019bb2963f4.html

* * * Archean Star Resources of Vancouver (TSX:ASP) said Wednesday the TSX has given final OK to its previously announced $500,000 private placement. The firm says among other things proceeds will go to fund an option agreement and winter work program on the Monitor Copper Gold Project in the Coeur D’Alene Mining District.

The Monitor is an old historic producer a stone’s throw south of Saltese, Montana, the burg just over Outlook Pass from the Silver Valley. Shares of the little explorer are trading near .14, the top of its 52-week range.

The number of Canadian outfits with operations of one sort or another in The Gem State has escalated in recent years. We hope to examine this interesting development a little later in 2013. (www.archeanstar.com)

* * * Ray of hope? You may find reason for optimism in the national survey released yesterday by the Pew Research Center for the People and the Press.

The major finding: “for the first time, a majority of the public says that the federal government threatens their personal rights and freedoms.”

Read it here: www.people-press.org/2013/01/31/majority-says-the-federal-government-threatens-their-personal-rights/

Thanks for reading. See you next time.

Selling Restricted Canadian stock in the U.S.

Tom Wobker — Sun, 03 Feb 2013 19:07:47 +0000

By Timothy Major and Tom Wobker

From the Pennaluna Prospector – Coeur d’Alene, Idaho ** First Published June 2009**

“So how do I sell my restricted Canadian shares here in the States?”

As Canada’s resource stocks begin to heat up again, customers lately are asking us questions like this more often.

Many of these folks are quite comfortable with normal cross-border trading. But selling restricted stock is a specialized transaction with more moving parts than the average trade — so they sometimes scratch their heads about how it works.

If you’re curious too, here’s a brief overview of the process that should take you about four minutes to read.

Please note that this isn’t legal or investment advice… we’ll paint with a broad brush… and we’ll describe only the run of the mill retail transaction.

Restricted stock needs exemption

First of all, recall that U.S. securities law requires stock to be registered with the SEC before it can be publicly traded in this country.

Stock that isn’t registered is “restricted” from public trading. It may be lawfully sold only under an exemption from registration. The share certificate itself usually bears a prominent legend that warns of this requirement.

Restricted shares raise special concerns for brokerage firms, since participating in an unlawful distribution of unregistered securities is a large no-no. Thus, brokers tend to handle such sales carefully to help keep everybody out of legal hot water.

For guidance concerning offshore securities transactions, including Canadian, U.S. brokers look to Regulation S under the Securities Act of 1933. Reg S confirms– in the charmingly impenetrable language of lawyers – that this nation’s registration requirements do not apply to strictly foreign activity. At the same time, it throws up barriers to end runs around U.S. securities laws when they do come into play.

Reg S safe harbors

The complexity of securities regulation is notorious. One nice thing about Reg S is that it cuts through a bit of the fog and offers some relatively straightforward “safe harbor” provisions for investors.

A safe harbor provision gives you virtually guaranteed protection from a law’s penalties when carefully followed in good faith. While it may not be the only possible way to comply, the certainty such a provision supplies gives you the opportunity to sail behind a minesweeper instead of charting your own course through the minefield. Your odds are better.

Rule 904 under Reg S offers a safe harbor for sales by the ordinary investor — persons who aren’t issuers, distributors or affiliates. (Another rule offers some protection to these others, but that’s outside this overview.)

How the process works

Here’s how the Rule 904 process generally works for an average investor in the States who wants to sell restricted shares issued by a Canadian company (often referred to as “the issuer”).

Initially your broker will need to know when you bought the shares. This is to be sure the required holding period has expired. Usually that’s the time mandated by law, but occasionally the issuer itself imposes a longer delay.

Also the broker will want to know how you paid for the stock. That’s because shares that weren’t bought for cash – say, for example, shares received in return for consulting services – may raise other concerns to be addressed.

The broker will provide you with a Stock Power form to facilitate transfer and a Rule 904 Seller’s Representation Letter, sometimes called a Declaration For Removal of Legend. He’ll ask you to sign both and send them to him along with the stock certificate.

Seller’s Letter

The Seller’s Letter is important. In it you’re asked to make representations to help verify that your sale falls within the safe harbor. Among other things, you’ll typically confirm that:

You aren’t an affiliate of the issuer (Affiliates generally include 10% shareholders, officers and directors).

The buyer of your stock is not in the U.S. and/or the stock will be sold on a designated offshore securities market — Canadian markets qualify — and you have no knowledge that the buyer is in the States.

Neither you nor anyone acting for you is making “directed selling efforts” into this country. These could include advertising or other promotion aimed at boosting public demand for the shares in the States.

You truly intend to sell the shares now… meaning you aren’t trying to wash the legend off the cert so you can use it in some other, perhaps unsanctioned, transaction (This is one reason cleaned up stock generally can’t be transferred out of an account unless the restricted legend is first replaced).

Your sale isn’t part of a scheme to evade registration.

The issuer or its transfer agent may also require a Rule 904 Broker’s Letter. In that case, the broker must make several of the same representations.

Sent on its way

Once the paperwork is complete, the compliance cops give the documentation a once over. Then together with the certificate it’s sent off to the transfer agent used by the issuer.

These days virtually no public company handles its own stock transfers. So most transfer agents maintain securities records for a number of issuers. As a result, many have grown large and in certain cases a little slow when it comes to restricted shares.

After the transfer agent receives the package, staff in due course examines the documents and checks the relevant stock records. If all is in order, the issuer is asked for approval to remove the restricted legend.

Some issuers want a legal opinion before they’ll sign off on this. If so, counsel gets into the act at this point, conducting a review and giving the thumbs-up if everything passes muster.

Home again

Once the issuer says OK, the transfer agent removes the restricted status notation on the company’s stock records and issues a new, clean certificate that it sends back to the broker for deposit to the customer’s account.

Thereupon your broker will call with the happy news that you are now at liberty to sell your free trading Canadian shares.

(Check your watch. Four minutes or less?)

The authors – Timothy Major, an Idaho native, holds a degree in commerce from the University of the Witwatersrand in Johannesburg, South Africa. For 14 years he has been a broker with Pennaluna & Company, a FINRA broker-dealer and market maker with its main office in Coeur d’Alene, Idaho. Tom Wobker holds degrees in journalism and law and is a principal with the firm. Founded in 1926, Pennaluna trades stocks on all U.S. and Canadian exchanges, Nasdaq, OTCBB and Pink Sheets. Phone 800-535-5329 or visit www.pennaluna.com or www.penntrade.com.

News Nuggets: Thunder Mountain, New Jersey Mining, Midas Gold, Western Pacific

Tom Wobker — Tue, 22 Jan 2013 09:26:41 +0000

* * * Thunder Mountain Gold of Boise (TSX-V:THM/OTCQB:THMG) said yesterday it has signed a letter of intent with a Boise private equity group to advance its flagship South Mountain Mine toward production. The group can earn up to 75% interest by investing 18 million dollars.

The 1,200-acre South Mountain property in Owyhee County, Idaho, was first operated in the late 1800’s. It was heavily mined underground during World War II and for some years after. Thunder Mountain says between 1940 and 1954, the mine shipped over 53,000 tons of ore… containing nearly 16 million pounds of zinc; over 2.5 million pounds of lead; nearly 1.5 million pounds of copper; over 500,000 ounces silver; and over 3,000 ounces of gold. A mill on the property processed another 20,000 tons of ore.

In 2009, the company identified a new gold target at the mine, and in 2010 completed a NI 43-101.

THMG has been as high as 40 cents in the past year, and is trading now at about 14 cents. (www.thundermountaingold.com)

* * * New Jersey Mining of Kellogg (OTCBB:NJMC) last week reported more drill results from the Golden Chest Mine, its JV with Marathon Gold (MOZ:TSX) of Toronto, with one 5-meter intercept returning 12.4 g/t. New Jersey said two drills are operating on the property now and after snow melt they will move to the high-grade Katie-Dora area to target the extension of the open pit resource to the north.

New Jersey has been working at the mine on a small scale for several years and has taken about 2,000 ounces of gold. In late 2010, it inked the JV deal with Marathon, which allows Marathon to spend $ 4 million to earn half interest in the mine and New Jersey to operate the project.

The JV produced its first 43-101 report last month. NJMC is trading lately at about a quarter, MOZ at about CDN .85 (www.newjerseymining.com)

History Note: The Golden Chest is near Murray, in the old time gold rush part of the District. That area over the years has yielded something like 300,000 ounces of gold. The mine is thought to be the District’s largest historical lode producer, delivering about 65,000 ounces of historical gold.

We wrote a short piece about the gold rush last year. To read “Gold and the Coeur d’Alene Stampede”, go to this page and scroll about half way down: www.pennaluna.com/2011/11.

* * * Midas Gold of Vancouver (TSX:MAX) reported last week it has nearly completed a 17,000-meter winter drilling program at the Golden Meadows Project in the Stibnite – Yellow Pine Mining District of central Idaho. Midas says it plans on “significant additional drilling” for the rest of the year, cutting back to two drill rigs during spring break up and then increasing to seven or more for summer and fall drilling efforts.

The outfit spent nearly $ 24 million at Golden Meadows last year on drilling, exploration and related work.

Midas, which has its exploration office in the Spokane Valley, is consolidating ownership of the 90-year old district and has defined a multi-million ounce gold mineral resource. MAX has a 52-week high-low of CDN$ 3.00 and 4.90 and has fallen lately to about 3.20. (www.midasgoldcorp.com)

* * * Western Pacific Resources of Vancouver (TSXV:WRP) on Monday released results for the first three holes of the 2012 drilling season at its Mineral Gulch project in southern Cassia County, Idaho, not far from the Utah line. One hole returned 1.37 grams of gold per tonne and included a section showing 1.88.

The Mineral Gulch property includes the historic Black Pine Mining District and adjacent exploration areas. Reportedly the district produced over 500,000 ounces of gold between the start of mining in around 1915 and the time Pegasus Mining stopped worked there in the mid-1990’s. WRP staked the area in 2009 before going public. WRP is quoted lately at about CDN.27. (www.westernpacificresources.com)

News Nuggets: Coeur d’Alene Mines, New Jersey Mining, Midas Gold, Sunshine Silver Mines

Tom Wobker — Fri, 18 Jan 2013 09:35:27 +0000

* * * New Years Resolution – Your editor was MIA last autumn, buried by compliance and regulatory paperwork and hounded by some nagging health problems. But it’s a new year now, hope springs eternal, and there’s a good bit of mining news in our region. So we plan to publish the full size Prospector and the shorter News Nuggets more often in 2013, and we’re making some changes in the office to pull this off. (Meantime, our double-your-money-back subscription guarantee continues to apply.)

* * * Coeur d’Alene Mines Corporation (NYSE:CDE) our neighbor down 5th street and a North Idaho institution since 1928 confirmed just before Christmas that it may move headquarters from Coeur d’Alene to the mining hub of… Chicago, Illinois. A final decision has not yet been announced.

Shares are trading now at about 24.50, down from a 52-week high around 32. (www.coeur.com)

* * * New Jersey Mining of Kellogg (OTCBB:NJMC) yesterday updated last March’s NI-43-101 resource estimate for the Golden Chest gold mine in Murray. The Mine is owned 50% by NJMC, which operates it, and 50% by Toronto’s Marathon Gold Corporation (MOZ-TSX).

Compared to last March this new resource calculation shows a 25% increase in the amount of gold in the global resource. Grade and quality increased too. Also, an underground resource was reported for the first time.

NJMC is trading under a dime a share, down from a 52-week high near a quarter. (http://www.newjerseymining.com)

* * * Midas Gold of Vancouver (TSX:MAX) yesterday reported final results for last year’s drilling program at the Scout Prospect on its Golden Meadows Project in the Stibnite – Yellow Pine Mining District of central Idaho. The company says drilling revealed a large gold-silver-antimony system on the Scout trend. (Factoid: antimony is mainly used as a fire retardant.)

MAX has previously defined a multi-million ounce gold resource in three deposits on the 10,000-hectare property: the Hangar Flats, West End and Yellow Pine deposits. The company completed over 41,000 meters of core drilling there last year alone.

Midas, with its exploration office in the Spokane Valley, is consolidating ownership of the 90-year old district. Shares are trading today at CDN$ 2.01. (www.midasgoldcorp.com)

* * * Sunshine Silver Mines – Still no official word on this $250 million IPO. The company filed an initial S-1 with the SEC in July 2011. There were a couple of amendments to the S-1 later that year… and then nothing. But at the end of last month a new amendment was filed. Does this mean something’s cooking again? Don’t know yet.

You can read the amendment here:

http://www.sec.gov/Archives/edgar/data/1517006/000119312512513382/0001193125-12-513382-index.htm

We’ll let you know if we hear something.

Disclosure: Pennaluna & Company is a FINRA broker-dealer and market maker. As such, it frequently buys or sells stocks for its own account, or in order to make a market. Consequently, Pennaluna may at any time buy or sell or make a market in any stock mentioned herein, and associated persons may also buy, sell or hold such stock at any time. The firm and/or associated persons may also engage in private placements or other investment banking activities with any company mentioned. Some securities mentioned may be small-cap stocks and subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information; some may be foreign securities and subject in addition to currency, political and other risks. Mention of a security does not imply an endorsement. Comments and opinions are solely those of the writer. This publication is not investment advice; is not a research report and provides insufficient information upon which to base investment decisions; is intended solely to provide readers with information; is not a solicitation for the purchase or sale of any security; and is not intended to be nor should it be used as tax advice, which should be sought from a professional familiar with your individual financial situation. Mention of a company or stock does not in any manner constitute a recommendation, unless specifically so stated. Information is believed accurate but accuracy is not guaranteed. Any websites mentioned other than www.pennaluna.com and www.penntrade.com are not under the control of the firm and it can take no responsibility for information found on such sites.

Pennaluna Prospector – Special Report – Direct registration of shares – 10 facts to know

Tom Wobker — Thu, 13 Sep 2012 09:34:37 +0000

Rattled by the failures of MF Global and Peregrine Financial and jittery about the financial system, some market observers are suggesting that investors transfer stock from their brokers to company transfer agents for direct registration.

The stated goal is to foil theft or misuse of shares and to protect stock ownership in case a clearing corporation goes bust or the entire economic structure collapses.

The Direct Registration System (DRS) of Depository Trust Company allows eligible stock to be sent to the transfer agent and held there electronically in the owner’s name.

If you’re considering DRS, you know it is a personal decision that ultimately depends on your individual situation and viewpoint. Here are ten things to keep in mind about it. This information applies generally to most brokers who clear thorough major clearing firms, although specifics may vary.

Read the Full Issue: Direct registration of shares – 10 facts to… More

News Nuggets: Stillwater, United States Antimony, Sunshine Silver, Coeur, Hecla, RX Gold & Silver

Tom Wobker — Wed, 22 Aug 2012 09:34:11 +0000

* * * Stillwater Mining over in Billings (NYSE: SWC) watched its stock jump after a bloody miners strike at Lonmin’s platinum mine in South Africa gave investors a bad case of the jitters. Over 30 strikers were killed and more than 70 injured during a confrontation with police there last week.

Stillwater is the only U.S. producer of palladium and platinum and the largest primary producer of PGM outside South Africa and Russia. Investors apparently see it as benefiting from possible production short falls by SA producers. SWC stock is up nearly $1.70 since last Wednesday, closing today at 10.73… still well below its 52-week high of 15.95. (www.stillwatermining.com)

* * * United States Antimony Corporation (NYSE MKT: UAMY) in Thompson Falls, Montana, says it has started mining and milling antimony, silver, gold, and mineralized rock from its Los Juarez, Mexico property and expects assay results shortly. Last month the outfit reported it would accelerate exploration and development at Los Juarez, while boosting milling and smelting capacity.

UAMY has a 52-week range of 1.85 to 4.95. It’s trading now at about 2.50. (www.usantimony.com)

By the way, NYSE MKT is the new name for the old American Stock Exchange (AMEX).

* * * Sunshine Silver Mines – Still no word on this IPO. The company filed an S-1 with the SEC about a year ago. While last winter’s fire at the ‘Shine may have thrown a monkey wrench into things, the blaze was officially declared extinguished in mid-June and initial reports were that damage didn’t look severe.

We’ll let you know when we hear something.

* * * Connecticut approved our registration during the Olympics and we welcomed the state to Team Pennaluna. We can now open new accounts for residents there.

* * * Coeur d’Alene Mines Corporation (NYSE:CDE) said last week that a court-appointed Special Master has advised against a preliminary injunction that would stop CDE from entering some disputed mining claims during its legal battle with Rye Patch Gold(TSXV: RPM) of Vancouver B.C.

The dust-up started last winter after Coeur failed to pay maintenance fees on unpatented claims for a chunk of its Rochester Mine gold and silver property in Nevada. The Canadian junior stepped in, staked the ground, and accused Coeur of claim jumping by operating on the land.

Both outfits raced to the courthouse, where Coeur got a preliminary injunction that bars Rye Patch from entering Coeur’s active mining areas. Shares of Coeur are trading now at about 22.12, down from a 52-week high of 30.99. Rye Patch is now trading at about C.48 (www.coeur.com) (www.ryepatchgold.com)

* * * Hecla Mining of Coeur d’Alene (NYSE: HL) earlier this month lost a hostile bid to acquire fellow Silver Valley miner US Silver Corporation (TSX:USA) for over $100 million cash. USA shareholders instead voted to merge with Toronto-based RX Gold in an all share deal that gives them about 70% ownership while RX Gold essentially operates the new company.

USA controls around 14,000 acres in the Valley — including mines like the Galena, Coeur, Caladay and Dayrock. Together they have produced over 200 million ounces of silver during the past sixty years.

RX Gold operates the Drumlummon gold and silver mine in Montana. About 25 miles from Helena, it’s a storied mine that reportedly produced rich quantities of gold and silver back in the late 1800’s.

The moniker of the combined firm is RX Gold & Silver, Inc. It trades under the symbol USA…and the shares are lately a little above C$ 2.00. (www.hecla-mining.com) (www.us-silver.com)

* * * In other Hecla news, the century old firm announced yesterday it will acquire 20 million shares of Canada’s Dolly Varden Silver Corporation (TSXV:DV) for about US$3.2 million, subject to OK by the TSX Venture Exchange.

DV is an exploration outfit focused on exploring and developing the Dolly Varden silver project in northwest British Columbia.

Hecla is trading now at about 5.25, well off a 52-week high of a shade over 8.00. DV shares are going for around C .25. (www.dollyvardensilver.com)

Disclosure: Pennaluna & Company is a FINRA broker-dealer and market maker. As such, it frequently buys or sells stocks for its own account, or in order to make a market. Consequently, Pennaluna may at any time buy or sell or make a market in any stock mentioned herein, and associated persons may also buy, sell or hold such stock at any time. The firm and/or associated persons may also engage in privateplacements or other investment banking activities with any company mentioned. Some securities mentioned may be small-cap stocks and subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information; some may be foreign securities and subject in addition to currency, political and other risks. Mention of a security does not imply an endorsement. Comments and opinions are solely those of the writer. This publication is not investment advice; is not a research report and provides insufficient information upon which to base investment decisions; is intended solely to provide readers with information; is not a solicitation for the purchase or sale of any security; and is not intended to be nor should it be used as tax advice, which should be sought from a professional familiar with your individual financial situation. Mention of a company or stock does not in any manner constitute a recommendation, unless specifically so stated. Information is believed accurate but accuracy is not guaranteed. Any websites mentioned other than www.pennaluna.com and www.penntrade.com are not under the control of the firm and it can take no responsibility for information found on such sites.

News Nuggets: United Silver buys 100% of Crescent Mine in Silver Valley

Tom Wobker — Wed, 30 May 2012 09:33:32 +0000

* * * United Silver Corporation of Vancouver (TSX: USC.TO/OTCQX: USCZF) — 80% owner of the Silver Valley’s Crescent Mine – said yesterday it has acquired the remaining 20% interest in the high-grade historical silver producer from joint venture partnerGold Finder Explorations Ltd. (TSXV:GFN) of Kelowna, B.C. USC said it paid $400,000 plus a 2% NSR on all future commercial production.

Here’s a snippet about the Crescent’s history from one of last summer’s Prospectors:

“Next door to the Sunshine, the Crescent Mine is also being revived. Starting in 1917, Bunker Hill Mining ran the Crescent for over six decades. During that time, the mine produced around 25 million ounces of silver at average reported grades above 27 opt… said to be highest in the District.

The Crescent sits between two other silver heavyweights: the Sunshine (360 million ounces) and the Bunker Hill (161 million ounces). They butt up against each other like three fat guys in a pick up truck. All told, the trio has delivered well over 500 million ounces of silver.”

USC — along with most mining stocks — has been battered in recent months. From a 52-week high a hair above CDN 80 cents, it is now down to about CDN 20 cents. (www.unitedsilvercorp.com)

News Nuggets: Formation Metals, Midas Gold, Atlanta Gold, AMEX, Sunshine Silver Mines, Timberline

Tom Wobker — Tue, 22 May 2012 09:32:30 +0000

* * * Formation Metals of Vancouver (TSX:FCO) reported earlier this month it is now on the COMEX approved refiners and brands list, making its “Sunshine” silver brand deliverable against contracts on the exchange.

Formation owns the Sunshine Precious Metals Refinery, part of its Big Creek Hydrometallurgical Complex in the Silver Valley outside Kellogg. To clarify things: Sunshine Mining once owned the Refinery, but that ended some years ago. Nor is the Refinery related to Thomas Kaplan’s Sunshine Silver Mines.

FCO also owns the 4,000-acre Idaho Cobalt project in Lemhi County, Idaho. The stock has a 52-week range of CDN 0.35 to $1.30. It is trading now at about .40.(www.formationmetals.com/s/Home.asp)

* * * Midas Gold of Vancouver (TSX:MAX) last week increased NI 43-101 estimates of its gold resource at the West End deposit of the Golden Meadows Project. Midas boosted indicated gold 32% over previous reports, to 1.48 million ounces, and boosted inferred gold to 0.61 million ounces. The company plans to start another 14,000 meters of drilling to upgrade resources at the West End shortly… and to later release 43-101 reports for the Yellow Pine and Hangar Flats resources at the same project.

Midas spent nearly $ 24 million at Golden Meadows last year on drilling, exploration and related work. The project is in the Stibnite – Yellow Pine Mining District in central Idaho. Midas has an exploration office in the Spokane Valley and is consolidating ownership of the 90-year old district, where it has defined a multi-million ounce gold mineral resource. MAX has a 52-week high-low of

CDN$ 2.90 and 4.90… and has fallen lately to about 3.15. (www.midasgoldcorp.com)

* * * Atlanta Gold of Toronto (TSXV:ATG/ OTCQX: ATLDF) said earlier this month it will issue four million common shares valued at a nickel each to pay finders’ fees for last December’s CDN $3 million convertible debenture financing. The company controls over 2,000 acres in Elmore County, Idaho, about 55 miles east of Boise.

The Atlanta Gold project is near the tiny town of Atlanta in the rugged Middle Boise Mining District. The area has a history of sporadic gold and silver production dating back before 1870, with total production of around 300,000 ounces gold and 2.6 million ounces of silver. There has been no commercial mining since the 1950’s.

(The story goes that the town was named when Southern miners heard reports of a big Confederate victory over General Sherman at Atlanta, Georgia. Of course this was totally wrong, but they kept the name anyway.)

ATG is trading lately at a couple of pennies. (www.atgoldinc.com)

* * * Sayonara, American Stock Exchange – Last week the 200-year old American Stock Exchange received another new name. The present owner, NYSE Euronext, had previously re-christened it the NYSE Amex.

But now NYSE Euronext has decided another new name is needed… and in a flash of creativity has determined the AMEX will forever after be called…. the NYSE MKT. Thus disappears the old exchange that once traded on the New York curbstones.

* * * Sunshine Silver Mines – Still no word on the IPO. Also no word on whether last winter’s fire at the ‘Shine will affect it. The blaze was believed extinguished about two months ago, and an investigation set to take place. No word on that either.

We do know this, however. Dr. Thomas Kaplan, the Forbe’s list billionaire who controls the company, is one of the most fascinating figures the Silver Valley has seen since Harry Magnuson. Besides collecting degrees from Oxford (he has three of them), apparently he also collects valuable ancient coins. Read more here.

* * * Timberline Resources Corporation of Coeur d’Alene (AMEX:TLR/TSX-V:TBR.V) said last week the non-binding letter of intent to buy out JV partner Highland Mining at the Butte Highlands Gold Project in Montana has been modified. To become sole owner, Timberline will now pay a mix of stock, a 5% NSR on all production at Butte Highlands, and a future cash payment of $6 million due not later than two years after start of commercial production.

TLR says it still expects the deal to close this quarter, subject to regulatory OK’s and closing conditions. TLR has a 52-week high-low of .27 and .99… and is trading now near the bottom of the range, at about 36 cents. (www.timberline-resources.com)

News Nuggets: Stillwater, Midas Gold, Coeur d’Alene Mines, Timberline

Tom Wobker — Fri, 27 Apr 2012 09:27:20 +0000

* * * Stillwater Mining over in Billings (NYSE: SWC) yesterday reported first quarter results that were below expectations. The Montana platinum and palladium miner said earnings were 2 cents a share, down from 34 cents for the same quarter a year ago. The company’s mines produced about 121,000 ounces last quarter, down 8% from first quarter last year.

Stillwater– the only major U.S. producer of palladium and platinum and the largest primary producer of PGM outside South Africa — saw its stock drop more than 5% on the news. With a 52-week high and low of $7.31 and $24.04, the shares are trading now at about $10.60. (www.stillwatermining.com)

* * * Midas Gold of Vancouver (TSX:MAX) on Monday announced an interim update on metallurgical testing of samples from its Golden Meadows Project in the Stibnite – Yellow Pine Mining District of central Idaho. Midas says that results from each of the three mineral deposits in the project confirm that conventional, low-risk metallurgical approaches achieve “excellent” results.

Midas has its exploration office in the Spokane Valley and is consolidating ownership of the 90-year old mining district, spending nearly $ 24 million at Golden Meadows last year on drilling, exploration and related work. MAX is trading now at about CDN$3.50. (www.midasgoldcorp.com)

* * * Coeur d’Alene Mines (NYSE:CDE/TSX:CDM), our neighbor down the street, said yesterday that the Kensington gold mine in Alaska is resuming full production ahead of schedule. Mine activity was cut in November while underground infrastructure and development projects were finished and new surface buildings constructed.

Coeur says the Kensington should produce between 82,000 and 87,000 ounces of gold this year. The firm will announce first quarter earnings on May 7. CDE is trading a little under $22, down from a past year high of $33.10. (www.coeur.com)

* * * Timberline Resources of Coeur d’Alene (AMEX:TLR/TSX-V:TBR.V) on Thursday announced a boost in the 43-101 gold resource estimate at its Lookout Mountain Project along the Battle Mountain-Eureka Trend in central Nevada. Measured and indicated resource was up 36% over 2010 figures, and inferred resource was up more than 7%.

Earlier this month Timberline reported signing a letter of intent to become 100% owner of the Butte Highlands Gold Project in Montana by buying out JV partner Highland Mining LLC. TLR is trading now near the bottom of 52-week range, at about 45 cents. (www.timberline-resources.com)

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News Nuggets: Timberline Resources, Mines Management, and Sunshine Mine fire

Tom Wobker — Wed, 11 Apr 2012 09:25:43 +0000

Pennaluna Prospector ™ — Coeur d’Alene, Idaho – April 11, 2012

* * * Timberline Resources Corporation of Coeur d’Alene (AMEX:TLR/TSX-V:TBR.V) said yesterday it plans to become 100% owner of the Butte Highlands Gold Project in Montana, inking a letter of intent to buy out JV partner Highland Mining LLC for stock and cash worth about $7 million plus a net smelter return production royalty. Highland Mining will also cancel a loan covering more than $24 million of development work so far completed at the mine.

TLR says it expects the deal to close this quarter, subject to regulatory approval and closing conditions, and plans to have water discharge and hard rock operating permits later this year. TLR stock has a 52-week high-low of .47 and $1.07… and is trading now near the bottom of the range at about 52 cents. (http://www.timberline-resources.com)

* * * Mines Management of Spokane (AMEX:MGN/TSX:MGT) reported yesterday it signed a deal with Vancouver-based Estrella Gold Corporation (TSX-V:EST.V) that would let MGN earn up to 75% of the La Estrella gold and silver project in central Peru. MGN will make option payments and spend US$ 5 million on exploration.

Mines Management controls the massive Montanore advanced stage silver-copper exploration project over in Lincoln County, Montana. The stock has ranged widely in the past year between $3.14 and $1.35. It’s trading now at about $1.50. (http://www.minesmanagement.com)

* * * Sunshine Silver Mines Corporation said nearly two weeks ago that the fire that broke out on the 3100 level of the Sunshine Mine on February 14 was likely out and carbon monoxide levels had dropped sharply. A company spokeswoman said once the firm is certain the fire is extinguished, it will investigate the cause and make plans to restart operations disrupted by the blaze. There has been no word since. (At least two dozen workers were laid off as a result of the incident, in which no one was hurt.)

Sunshine Silver Mines bought the ‘Shine in 2010 and filed papers with the SEC for a $250 million IPO last summer. The effect of the fire and work disruption, if any, on the IPO is presently unknown to us.

* * * Coming Attractions: We’re putting the finishing touches on a Pennaluna Prospector Special Report that will cover in some detail how a new government attack on microcap fraud and money laundering is hitting innocent investors as well as crooks. This SEC offensive is creating big changes in the way deposits of small cap stocks are handled by brokers and clearing firms. If you are a subscriber to the Prospector, we’ll notify you as soon as we finish and post it.