Topic: Penny Stocks

Penny Stocks: Western Copper & Gold Corp. has cash for permits

Western Copper & Gold Corp

Western Copper & Gold Corp. is halfway through the permitting process for a mining site in the Yukon. While the company has enough cash to complete the process, it will need partners to build and operate the gold and silver operation.

WESTERN COPPER & GOLD CORP. (symbol WRN on Toronto; www.westerncoppercorp.com) owns the Casino project in the Yukon. The mining site is Western Copper’s sole asset. It contains an estimated 8.9 million ounces of gold, 65 million ounces of silver, 4.5 billion pounds of copper and 483 million pounds of molybdenum.

The company completed a feasibility study on the project in 2013. The operation would centre on an open-pit mine with a 22-year life expectancy.

Western Copper is now two years into the permitting stage. It should take another two years to complete.


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Penny Stocks: Copper prices challenge development

While the company has outlined a huge mineral deposit, the mine will cost $2.45 billion to build. Western Copper will need major partners to help finance its construction, which may be difficult unless copper prices rebound.

Meanwhile, Western Copper holds cash of $10.4 million. The money should be enough to see it through the permitting process.

The stock is okay to hold, but only for aggressive investors.

TSI Network recommendation: HOLD

For our advice on making the right choice in penny stocks and avoiding excessive risk, read Here are the best guidelines for picking penny stocks.

For a recent report on how one penny stock is responding to increased competition, read Koss Corp. reaches settlement with Amex.

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