Argonaut | The Natural Choice in Resources

U.S. stocks declined intraday as a round of lukewarm corporate earnings reports and renewed trade tensions weighed on sentiment. The Dow Jones Industrial Average fell 96 points, or 0.4%, to 25104. The S&P 500 shed 0.2%, and the technology-heavy Nasdaq Composite dropped 0.2%. The S&P's financial sector was the weakest of the 11 sectors in the broad index, falling 1.2%. Shares of big U.S. banks had risen over much of the past week after the firms posted results that generally beat market expectations. But reports from American Express, Bank of New York Mellon and Travelers weren't received as favourably. American Express fell 2.8%, despite reporting strong card-member spending and loan growth. Bank of New York slumped 5.7% after posting weaker-than-expected revenue, and Travelers dropped 3.5% as weather-related catastrophes dented its bottom line. Shares of Wells Fargo, meanwhile, were little changed after The Wall Street Journal reported the bank is in the process of refunding tens of millions of dollars in charges added to customers' accounts without their full understanding. The US gold price was down 0.4% at 1222.3 US$/oz

Mod Resources (MOD) has signed a binding agreement to acquire Metal Tiger’s (LON:MTR) 30% stake in the T3 deposit, the key asset in the greater Kalahari Copper Project in Botswana. The all scrip deal, comprising 17.2m MOD shares and 40.6m options (at zero exercise price), values the transaction at $26.6m based on MOD’s 20 day VWAP of $0.46/sh. This implies a see-through value of $87m for the T3 deposit. The transaction incorporates mechanisms to maintain MTR ‘s shareholding in MOD at <=12.5% and gives MOD the option to acquire 100% of joint venture (JV) exploration tenements within the project area. MTR has agreed to support MOD’s Board in any change of control recommendations. We see this transaction as a positive for MOD as it gains 100% of T3, increasing the Company’s control in the project and raising takeover appeal. We highlight MOD’s strategic value as one of the few listed companies globally with an economically feasible copper project and a belt scale land holding. Few acquirable copper plays remain listed on the ASX following the recent acquisitions of Avanco Resources (AVB) and Finders Resources (FND). BUY recommendation with revised target price of $0.83.

Argonaut Congratulates Gage Roads Brewing on the Highly Successful Acquisition of Matso's Broome Brewery and Equity Raising.  Argonaut acted as Financial Advisor to Gage Roads for the $16 million acquisition of Matso’s Broome Brewery, the iconic West Australian flavoured beer brand owned by the Peirson-Jones family. Argonaut provided key negotiation and transaction execution support and has helped deliver a strategic and highly accretive benefit to Gage Roads shareholders.