Chinese investors may view the CAD 8,888,888 that Callinex Mines Inc. (CSE:CNX) just raised in an oversubscribed placement as a sign of good fortune. But one can also simply read it as evidence for the strong investor demand and the new found interest in the Flin Flon copper VMS district on the Saskatchewan-Manitoba border. The recent Callinex discovery coincides with a ten-year high in the copper price. Sometimes the timing just works out!
With the fresh money, Callinex is planning, among other things, a 30,000-meter drilling campaign at its Pine Bay project in Manitoba to further explore the high-grade Rainbow copper, gold, silver and zinc discovery there. Callinex is even using two drill rigs in parallel. This should provide a lot of newsflow in the foreseeable future and, if successful, bring Flin Flon even more into the focus of investors.
Other owners of exploration licenses around Flin Flon have a good chance to benefit from Calinex’ activity. First and foremost Searchlight Resources (TSXV: SCLT; FRA: A2JRPS), which with a 300 square kilometers of license area around Flin Flon is one of the largest landowners of all. If Callinex is successful (which is what investors are betting on), this will almost inevitably spill over into the entire district. Ultimately it could be like in real estate: the value of one’s property increases when a luxury resort is built across the street. Searchlight’s Beatty South VMS copper project is just a few kilometers from Callinex Rainbow discovery. Searchlight will drill there itself in the near future. That should also draw some attention to Callinex’ small brother.
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