Stocks have bounced back in trading yesterday, with the optimism continuing in today’s trade. All major North American indexes are trading higher after oil reversed its recent downward slide.
As mentioned, the focus on traders' minds today seems to have shifted to the oil markets. Oil prices have seen a rebound after a sharp pullback in recent days amid concerns over the glut in the downstream market.
In fact, it was the glut in the downstream market that had first sparked a selloff in oil two months after it bounced back from its February lows. The main worry is that the huge glut would force refiners to cut back on their production, which would eventually hurt crude demand.
With no indications of a production freeze from major members of the Organization of Petroleum Exporting Countries (OPEC), oil could remain under pressure even after today’s bullish bounce. Even with oil on an overall downward trajectory over the last few days, gold prices have seemed to hold onto most of their gains thus far as investors continue to jump into gold as a safe haven trade.
Among the stories we saw cross the tape yesterday concerned Probe Metals Inc. (TSX-Venture:PRB). Based in Toronto, Probe Metals is a leading Canadian gold exploration company focused on the acquisition, exploration and development of highly prospective gold properties. The Company is well-funded and controls a strategic land package of over 1,000-square-kilometres of exploration ground within some of the most prolific gold belts in Ontario and Quebec: Val d'Or, West Timmins, Casa-Berardi and Detour Quebec.
It is focusing on the discovery and development of high quality gold projects, including its key asset the Val-d'Or East Gold Project. Major gold mining firm Goldcorp Inc. (NYSE: GG) currently holds a 14% stake in PRB.
Probe Metals are gaining today after the company announced that it has acquired 100% interest in six mining claims from Richmont Mines (TSX: RIC) contiguous to it Val-d'Or East Project, Quebec. The claims are located immediately west of Probe's New Beliveau deposit, which contains the majority of the 770,000 ounce NI 43-101-compliant gold Mineral Resources reported in 2013.
Owing to their close proximity to New Beliveau, the six claims enhance Probe's strategic land position by adding significant exploration and potential development value to the Val d'Or East project
In exchange for the six claims, Probe transferred four isolated mining claims, comprising its Beaufor West property, to Richmont. The claims are located wholly within Richmont's Beaufor Project and were considered non-core to the Val-d'Or East project.
PRB shares have been on a fantastic run in 2016 rising close to 500% since their February lows. The stock is giving up some near term gains in today’s trade, likely as a result of profit taking with shares down close to 3% at $1.98 in mid-day trading.
