Gold Standard Ventures Corp. (NYSEMKT: GSV) recently announced commencement of drilling activities at both North Bullion Deposit and Pinion Oxide Gold Deposit. The management said that three rigs have been commissioned and two more will be added in the future. But as Gold talks about commencing drilling at the two projects, the question on investors’ mind is whether the projects would help improve the company’s financial performance.
In 2015, Gold Standard Ventures Corp. (NYSEMKT: GSV) logged a net loss of $4.5 million amid ballooning expenses. Lower commodity prices, soft commodity demand and higher costs of operations combined to frustrate Gold in 2015. However, the management appears to be exuding confidence that the future will be better than the past as the company begins work at the North Bullion and Pinion Oxide deposits. Gold owns 100% of the two deposits.
Result of diligent work
According to Gold Standard Ventures Corp. (NYSEMKT: GSV)’s VP of Exploration, Mac Jackson, the company is in the process of testing multiple and high-quality targets at its Railroad-Pinion Project. Jackson further stated that diligence, persistence and systematic geological work helped the company to quickly get to the point it has got with the Railroad-Pinion Project.
Gold Standard Ventures Corp. (NYSEMKT: GSV) and its latest acquisition
Gold Standard Ventures Corp. (NYSEMKT: GSV)’s update on the progress of North Bullion Deposit and Pinion Oxide Gold Deposit projects follows the company’s recent acquisition of a stake in Battle Mountain Gold.
Gold invested nearly $3.7 million in Battle Mountain to acquire about 10.5 million shares of the company’s common stock. With that, Gold now owns 19.9% of Battle Mountain, but the stake could increase if the company exercises its warrants to purchase additional shares of Battle Mountain’s common stock.
Gold Standard Ventures Corp. (NYSEMKT: GSV) is entitled to a warrant to purchase more than 5.2 million additional shares in Battle Mountain at the price of $0.37 apiece. The warrant stands unless shareholders of Battle Mountain alter the agreement. If Gold exercises its warrant fully, its stake in Battle Mountain would swell to 27.15%.
The acquisition of stakes in other entities appears to be a strategy by the management of Gold to spread risks and maximize shareholder value.