In a time where market sentiment seems to be turning slightly negative, with a Fed pivot still up for debate, Tectonic Metals (TECT:TSX.V; TETOF:OTCQB; T15B:FSE) doesn’t seem to have much trouble raising cash, as it doing a brokered private placement at the moment, aiming at gross proceeds of C$6M.

After experiencing an online version in 2021 because of COVID-19, and an in-person conference in June last year attracting a modest 17,445 attendees, the Prospectors & Developers Association of Canada (PDAC) was happy to go back to normal again,  scheduling in early March, and gathering a more average figure of 23,819 attendees to Toronto, enjoying beautiful sunny and dry weather, with comfortable temperatures all week, as opposed to freezing -10 to -30C ordeals in the not too distant past.

After raising C$2.3M @ C$0.06 (including a half 10c 2y warrant) in July of this year, Tectonic Metals (TECT:TSX.V; TETOF:OTCQB; T15B:FSE) recently received so much interest after CEO Tony Reda has been doing the rounds at conferences and roadshows, helped by Quinton Hennigh of Crescat Capital who has quite a bit of clout, that the company announced another financing on October 27, 2022.

At a time where Russia is annexing four provinces of Ukraine and threatening the rest of the world to use nuclear force to defend these “new territories”, shortages are everywhere from energy to food to materials and inflation isn’t under control yet, the stock markets are waiting for the Fed to pivot on their hawkish interest rate policies.

Despite increasingly challenging market sentiment, driven by incredible inflation, looming rate hikes, and a Russian “special operation” that isn’t just blocking commodity transport from the Ukraine, and Europe’s natural gas supply but seems to drag China into it as well, since the US would like to see a tougher stance on Russia, Tectonic Metals (TECT:TSX-V; TETOF:OTCQB; T15B:FSE) managed to close their recent private placement at C$2.3M.

Although Tectonic Metals (TECT:TSX-V; TETOF:OTCQB; T15B:FSE) launched their $3M private placement under challenging market conditions, their two largest institutional shareholders, well-known Crescat Capital and Alaska’s leading Native Regional Corporation, Doyon, increased their shareholdings in Tectonic to support what both believe to be a transformative year for Tectonic, with lots of new drilling and exploration.

It is always a good sign of confidence when a large, well-known and widely followed shareholder like Crescat Capital decides to invest more into a tiny junior explorer via a strategic financing, even though they have been buying in the open market at higher cost levels increasing their ownership to 17.5% on a partially diluted basis.

1. Introduction

Rarely do you get the opportunity to invest in a junior at rock bottom levels at the beginning of what might be a new bull market, with a management team that has been at the core of success story Kaminak Gold Corporation (acquired for C$520M by Goldcorp, now Newmont, in 2016).