A lot has happened in the nine days since I made Aftermath Silver my top stock pick for November, and I’m not just talking about the stock going up, which it has done. In fact it went up at a time in which the price of gold and silver dipped to show strong relative strength on the technical analysis charts.
The stock trades as AAG on the Vancouver exchange and as FLMZF on the US OTC market. Here is the chart.
It looks like the stock is now trading with short-term resistance at 22 cents and support at 18 cents. However, the daily gyrations are only so important, because yesterday the company announced that it was closing a major private placement financing worth $3.3 million dollars, of which $2.98 was done by mining legend Eric Sprott. The shares were purchased at 20 cents Canadian and come with warrants to buy more at 25 cents.
With this purchase Sprott now is a major insider in the company owning 19.51% of outstanding shares.
Eric Sprott is on the Forbes billionaire list and is famous for having founded the Sprott Inc. Toronto based asset management company, since which he has retired from serving as Chairman of.
This news though should get even more eyes on the stock as a lot of people follow Sprott’s moves in the mining world and often buy what he buys. A few years ago I bought shares of Wallbridge Mining for under 10 cents. Sprott bought big positions and today the stock is over 60 cents. The company has demonstrated very impressive drill results and is another reason people think Sprott has a “Midas touch.”
Aftermath Silver started the year out as a development stage company – basically it’s shares were trading as a shell company. But that began to change last month when it announced that it closed the purchase of rights to explore and mine the Cachinal-Silver-Gold Project located in Chile.
Earlier this week it announced that it has signed a deal on an even bigger property in Chile – the Challacollo silver-gold project.
Mr. Ralph Rushton, President and CEO of Aftermath Silver, commented: “The acquisition of the high grade Challacollo silver project provides a platform for Aftermath to become a signficant silver-dominant exploration and development company. We are currently planning the 2020 exploration program and hope to start drilling in Q1, 2020.”
The SEC also approved shares of Aftermath Silver to move up to the US OTCQB market, which will enable most brokers in the country to now allow their customers to trade it.
You can see an interview CEO Rushton did with Steve Darling from Proactive Vancouver this week in this video.
It is easy to see that with the recent news of the transactions and the Sprott private placement that Aftermath Silver has completed nine days that have shaken the world – well the mining world that is.
I expect this to be the start of more good news to come for shareholders of Aftermath Silver.
Disclosure: Mike Swanson owns a position in Aftermath Silver. Because it is a small cap stock with less than $100 million in market cap he is placing himself on a voluntary 30-day trading restriction period from the date of this post in which he will not buy or sell shares of it.