Gold mining stocks have seen a pullback this week as the market turned into risk on mode.
Market sentiment was boosted last week following the stronger than expected jobs report for the month of June.
Following Friday’s jobs report, shares of one the biggest gold mining company, Barrick Gold Corporation (NYSE:ABX) have fallen more than 3.50%. Shares of Goldcorp Inc. (NYSE:GG) have fallen more than 1%. Year-to- date though, shares of both companies remain sharply higher.
ABX is up more than 190% for the year and GG shares are up more than 64% for the year.
Going forward, the outlook for gold mining stocks will depend on gold prices. If prices continue to slide then we can see a sharp pullback in gold mining stocks. Remember that gold mining stocks outperform when gold prices gain and vice versa.
Rapier Gold Inc. (TSX-Venture:RPR) is a Vancouver, Canada-based exploration stage company in the business of exploring for gold and is active in the Porcupine Mining District on the Pen Gold South, Pen Gold North and Pen Gold East properties (collectively the Pen Gold Project) located approximately 75 kilometres south west of Timmins, Ontario.
The Pen Gold Project consolidates a land position with a total area of over 16,900 hectares on the western extension of the Porcupine-Destor Deformation (Fault) Zone. The Pen Gold Project consists of three property packages: The Pen Gold North property consisting of 5,600 hectares of 52 leased and subleased mining properties and 30 mining claims, the Pen Gold South property consisting of 10,384 hectares of 57 mining claims, and the Pen Gold East property consisting of 464 hectares make up Pen Gold East.
Rapier Gold today announced that it has entered into an agreement for the purchase of the Pen South property. On completion of the terms of the purchase agreement, he Company will pay $325,000 and issue 1,500,000 common shares.
The terms of the purchase agreement include acquiring 100% of the Pen South property, subject to a 2% NSR. The entire NSR may be purchased for $3,000,000. The agreement covers 10,848 hectares and replaces the option to explore for gold on the Pen Gold South property entered into at the time of listing the company.
RPR shares are down sharply in trading today. At last check, the stock was trading 7.69% lower at $0.0600 on volume of 39,399, which is more than three times the daily average volume of 11,121.
That being said, as with most of the gold sector, shares of RPR have been in an uptrend for all of 2016, and this trend still looks to be in place at time of writing.
