FinancialBuzz.com’s latest Buzz on the Street Show: Featuring Our Corporate News Recap on “Blue Lagoon Completes Acquisition Of Metal Mountain Resources Inc.”
Blue Lagoon Resources Inc. (OTCQB: BLAGF) (CSE: BLLG) is pleased to announce that it has completed the acquisition of Metal Mountain Resources Inc. in exchange for 12,151,220 common shares of the Company (the “Transaction”). Concurrently with the Transaction, Blue Lagoon issued 1,372,000 common shares of the Company to acquire 27.44% of Gavin Mines Inc.
Blue Lagoon Resources is a mineral exploration company focused on the acquisition, exploration and development of properties for the mining of gold and other minerals. The company is on track to own 100% of the Pellaire gold property located 160 km southwest of William’s Lake in the Chilcotin range of south-central British Columbia. The Pellaire project covers over 4,400 hectares and is known to have 10 gold-bearing veins on the property. The company also has an option to acquire an 80% interest in the Gordon Lake gold property, which consists of 2 contiguous mineral leases located 110 kilometers northeast of Yellowknife in the Northwest Territories of Canada.
Gold for June delivery GCM20, the most-active contract on the Commodity Exchange (Comex), fell by USD 17 or approximately 1% on Monday, to trade at about USD 1,636 an ounce. Yet, prices for the April contract, which is still among the more active, had increased by 9.5% last week for the biggest weekly jump since September 2008, according to FactSet data. Overall, the projections for gold seem to be positive. With record deficit spending and interest rates at zero, the economic environment is appropriate for the Federal Reserve to keep interest rates below the level of inflation for the near future until the markets normalize after the pandemic. And this is the right environment for gold bullion, as gold is often considered a safe-haven asset amid times of political or economic uncertainties.
The difference between the current crisis and the 2008 recession is that in this case, it is a government-mandated recession. The government had to take measures to close businesses in order to flatten the curve of the outbreak and as such, this will result in second-quarter GDP growth to be down double digits. However, if the measures implemented successfully reduce the number of new confirmed cases, the third-quarter GDP growth is expected to recover. In the meantime, according to a report by MarketWatch, Edward Moya, Senior Market Analyst at Oanda explained that “Gold’s supply chain for the physical metal was disrupted over the last 10-days, but that has now settled and taken away any momentum for higher prices… outlook remains bullish as world adjusts to never-ending promises of monetary easing, but the next rally may be more of an escalator ride than elevator one.”
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