5 Top TSXV Stocks: Encanto Gains 100 Percent on Offtake MOU
Encanto Potash was the top gaining resource stock on the TSXV last week, followed by International Lithium, Lithium X, Renaissance Gold and Santacruz Silver.
It was another strong week for the S&P/TSX Venture Composite Index (INDEXTSI:JX) last week, with the exchange rising 4.95 percent to close at 633.84 points.
Several resource stocks were on the rise as well. This week’s top gainers included:
- Encanto Potash (TSXV:EPO)
- International Lithium (TSXV:ILC)
- Lithium X (TSXV:LIX)
- Renaissance Gold (TSXV:REN)
- Santacruz Silver (TSXV:SCZ)
Here’s a closer look at those companies:
Encanto Potash gained 100 percent to reach $0.13 last week following news that the company had signed an expanded memorandum of understanding (MOU) with Metals and Minerals Trading Company of India (MMTC) regarding a potash offtake agreement. Terms for the offtake have been expanded to 2 million tonnes of annual supply from Encanto’s Muskowekwan potash project in Saskatchewan.
Furthermore, under the terms of the MOU, MMTC would act as Encanto’s exclusive worldwide distributor of potash.
Shares of International Lithium rose 72.41 percent over the last week to hit $0.25. On Monday, the company announced that it had recently commenced a 1,750 meter diamond drill program at its Avalonia lithium project in Ireland. Development of the project is being fully funded by International Lithium’s partner, China based Ganfeng Lithium.
Headed by Paul Matysek and Brain Paes-Braga, Lithium X is focused on developing its Sal del los Angeles project in Argentina, and is also exploring a large land package in Clayton Valley, Nevada. The company received a permit for its drill program at Clayton Valley on March 23 and began trading on the OTCQB Venture in the US on March 29.
However, there was no other news from the company to explain last week’s price rise. Lithium X rose 66.45 percent last week to finish at $2.53 per share.
Renaissance Gold is a gold and silver focused exploration company with properties in Nevada and Utah. On February 26, Renaissance provided an update on its exploration properties, announcing that it would sell the Trinity silver property to Liberty Silver for US$1 million. The company also released its second quarter results on February 29.
There has been no new news from the company to explain last week’s rise in share price. Shares of Renaissance Gold gained 53.33 percent last week to hit $0.345.
Finally, Santacruz was up 58.93 percent last week to $0.445 per share. The company released its Q1 2016 production results last week, reporting that its Rosario mine had produced 290,569 silver equivalent ounces, up 8.3 percent from the fourth quarter of 2015. Santacruz also reported that commissioning of its Veta Grande mill is progressing well, with the mill finishing the first quarter at an average throughput of 330 tonnes per day.
“Management is pleased with the performance of both operations in the first quarter of 2016,” stated Arturo Préstamo, CEO of Santacruz, in last Thursday’s release. “The Rosario Mine has now reached Level 4 and we are confirming a strong vein system, which together with improved mining methods has resulted in less dilution yielding improved head-grades at Rosario. At the Veta Grande Mine we are seeing significant progress both in terms of the milled tonnes and mine development, which will set us up very well for the second quarter.”
Data for 5 Top TSXV Stocks articles is retrieved each Friday after market close using The Globe and Mail’s market data filter. Only companies with a market capitalization greater than $10 million prior to the week’s gains are included. Companies within the mining and precious metals sectors are considered.
Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.
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