Canadian Gold Co. Set to Advance After Closing Financing

This morning, Sanu Gold Corp. (SANU:CSE;SNGCF:OTCQB) announced it had closed its CA$3.45 million non-brokered private placement. This private placement was originally announced in September and was comprised of 69,000,000 common shares at a price of CA$0.05 per share.

The gold company was pleased to be able to secure funding in such a tumultuous market and will use the funding to advance its highly prospective gold projects in Guinea, West Africa.

In light of the news, President and CEO Martin Pawlitschek said, "In a challenging market for exploration companies, Sanu Gold has been able to successfully secure funding to continue to advance our highly prospective gold projects in Guinea, West Africa. The next phase of exploration will focus on our flagship Bantabaye Gold Exploration Permit, where we made an exciting new discovery in our inaugural drill program earlier this year."

Sanu noted that the next phase of its exploration plans will be to hone in on its flagship Bantabaye Gold Exploration Permit.

The company made an exciting discovery at that project earlier this year and is anticipating further developments at the project. 

Why Gold?

Gold has been historically seen as a hedge against inflation. As such, when people begin to worry about the value of the U.S. dollar, they tend to hold tightly onto precious metals, specifically gold. 

"[Gold] can be expected to break out to the upside and ascend to unimaginable heights as the ordinary population heaps piles of fiat paper into wheelbarrows in order to go and buy a loaf of bread."

In early October, Technical Analyst Clive Maund shared his thoughts on gold. He shared three charts, saying, "Given that money creation continues to expand exponentially, which means that hyperinflation is inevitable, it is hardly likely that gold's nominal price in dollars will drop significantly — on the contrary, it can be expected to break out to the upside and ascend to unimaginable heights as the ordinary population heaps piles of fiat paper into wheelbarrows in order to go and buy a loaf of bread."

Around the same time, Goldmoney put out an article titled "Have Central Banks Lost Control of the Gold Price?" In it, they write, "Gold has always been able to retain its purchasing power over the long run. But now it seems that gold is the only form of money left that retains value. All other monies are just wildly fluctuating against each other. It appears that gold is a better arbiter of value today than it has ever been since President Nixon suspended the gold standard in 1971."

It seems only time will tell where gold goes, but experts are leaning toward it heavily.

Ownership and Share Structure

Headquartered in Vancouver, Canada, Sanu Gold Corp. has a market cap of CA$11 million. It has 138.5 million shares, 5.8 million warrants, and 5.7 million options. It trades in the 52-week period between CA$0.06 and CA$0.46.

According to data from Reuters, insiders and management at the company own around 17% of the total shares outstanding.* The largest individual insider shareholder is Fatou Sylla Gueye, with over 7% ownership and 5.10 million shares. Martin Joachim Pawlitschek owns 4.19% with 2.91 million shares, Vince Sorace owns 3.60% with 2.50 million shares, Galen Stuart McNamara owns 0.97% with 0.68 million shares, Gavin Cooper owns 0.58% with 0.40 million shares, and Fiona C. Childe owns 0.26% with 0.18 million shares.

Institutional investors own around 7% of the company. The largest institutional shareholders are Commodity Capital AG, with nearly 4% and 2.62 million shares. U.S. Global Investors has around 2% and 1.29 million, and Palos Management has around 1% ownership, with 0.80 million.

The company does not report any strategic investors or partnerships. The remaining shares are held by retail and high-net-worth investors.

The company's monthly burn rate is CA$150,000. Its monthly drilling cost varies according to how much drilling they do at any one time, but the average all-in drill cost is US$120 million. 

_{*All ownership information is based on the share count prior to the financing.}

Important Disclosures:

1. Sanu Gold Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Sanu Gold Corp.
3. Katherine DeGilio wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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