Brien Lundin, editor of the Gold Newsletter, has taken a look at gold firm Balmoral Resources Ltd's (TSE:BAR, OTCQX: BALMF) and rates shares a 'hold'.
The Quebec-focused company is looking to raise up to C$7mln for activity on its Detour Gold project there and plans to issue 5.7mln flow-through shares at 71 cents a throw in Canada.
In a separate offering, only in Quebec, it is offering 3.33mln flow-through shares at 90 cents each.
Lundin supports these financings even though they are dilutive, noting the cash will likely be used to explore the Detour project's Martiniere property, where he sees "considerable" potential.
He will, it was reported, keep Balmoral's stock as a hold while he waits to see how Balmoral spends its fresh cash.
Earlier in September, Balmoral announced it had started summer drilling at Detour and it had already discovered a new extension to the Bug gold trend.
The initial four holes testing the new Bug NW gold discovery threw up intercepts ranging from 16.39 to 64.70 metres in down-hole width, with grades ranging from 0.39 to 1.58 g/t (grams per ton) gold, the mining group said.