Markets have edged lower in trading today even as investors digested a weaker-than-expected jobs report for September. The report has lowered the possibility of a rate hike in 2016, which is positive for equities. However, investors’ sentiment has been weighed down by a sharp pullback in oil prices.
The U.S. economy added 156,000 jobs last month, compared to consensus forecast of 166,000 job additions. The fact that the economy added fewer jobs than anticipated is likely to have an impact on the Federal Reserve’s decision to hike rates in 2016 itself.
Markets though have been pushed lower by a pullback in Energy and Basic Materials sectors. Both sectors are down on a pullback in oil and commodities.
Shares of Cruz Capital Corp. (TSX-Venture:CUZ), though, are bucking the trend seen in the broader market. Based in Vancouver, Cruz Capital is a mineral exploration company, engaged in the identification, acquisition and exploration of mineral properties. The company’s mineral properties include Ontario Albany East Hydrothermal Graphite Prospect, Clayton Valley West Lithium Prospect, Quebec Gaspe Bay Aluminous Clay and Rare Earth Prospect, Yukon Quartz Claims and Ontario Kenagami Hydrothermal Graphite Prospect.
The Clayton Valley West Lithium Prospect consists of approximately 10 claim blocks, located in the Clayton Valley in Nevada, the United States.
CUZ shares are gaining momentum after the company announced that it has acquired the Idaho Star Cobalt Prospect in Idaho. This prospect is located approximately 9 miles (15 kilometres) southwest of Saltese, Montana, and 19 miles (30 kms.) southeast of Wallace, Idaho. This new prospect consists of 44 contiguous claims within the Idaho Cobalt Belt.
Commenting on the acquisition, James Nelson, President of Cruz Capital, said that the company is very pleased to acquire the Idaho Star Cobalt Prospect, strengthening its presence in the prolific Idaho Cobalt Belt. Nelson further said that geological data was gathered showing this prospect area to have been active for mining of cobalt, silver and copper in the past, which was the reason for the immediate acquisition.
He added that recently, the company was able to sell a different Idaho Cobalt asset in exchange for shares in the acquiring company and this sale allows it to create added capital to the company with no dilution to the shareholders, thus following through on its goal of being North America's foremost cobalt project generator and developer.
At last check, CUZ shares were trading 4.69% higher at $0.670 on volume of 142,550, which is above the daily average volume of 95,611. Shares have been on a tear since mid-June and currently are trading at 52-week highs.
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