3 TSX Penny Stocks Poised to Soar: Mining and Crypto Plays in Canada's Fiscal Stimulus Wave

As Canada's federal government ramps up fiscal stimulus to bolster critical minerals, infrastructure, and digital innovation, three penny stocks are primed to capitalize on these tailwinds. Azimut Exploration (TSXV:AZM), BIGG Digital Assets (TSXV:BIGG), and Western Copper and Gold (TSX:WRN) all boast market caps exceeding CA$40 million, debt-free balance sheets, and strategic projects that could transform into multi-baggers. Here's why investors should act now.

Azimut Exploration (TSXV:AZM): Canada's Next Big Copper-Gold Story

Azimut Exploration is a rare gem in the TSXV's penny stock universe. With a market cap of CAD 54.08 million (as of May 2025), the company is debt-free and focused on advancing its high-grade copper-gold projects in Canada's prolific Red Lake and Abitibi mining districts. Recent success includes a CAD 5.66 million private placement to fund drilling at its flagship Tasiuyak project in Quebec, which hosts an inferred resource of 1.4 million ounces of gold.

The company's timing couldn't be better. Canada's Critical Minerals Strategy, which includes CA$3.4 billion in funding for domestic projects, directly aligns with Azimut's mandate. A reveals a stock that's quietly built a base while its peers surge—a potential breakout catalyst.

BIGG Digital Assets (TSXV:BIGG): Bitcoin Meets Fiscal Stimulus

BIGG Digital Assets isn't just a crypto play—it's a CAD 48.03 million market cap (as of May 23, 2025) company with a razor-sharp focus on Canada's emerging digital asset ecosystem. Despite a net loss of CAD 25.83 million in 2024, BIGG generated CAD 12.43 million in revenue from its cryptocurrency mining operations, and its debt-free balance sheet gives it room to pivot strategically.

The company's recent shift toward AI-driven mining algorithms and partnerships with Canadian tech hubs position it to benefit from Ottawa's CA$2.3 billion push to boost digital infrastructure. A shows a stock that's weathered crypto's volatility—a resiliency that could pay off as institutional adoption grows.

Western Copper and Gold (TSX:WRN): A Copper Giant with Federal Backing

Western Copper and Gold's USD 247.46 million market cap (CAD ~332 million as of May 23, 2025) reflects its scale and strategic moat. The company recently secured CAD 40 million in federal funding to advance its critical infrastructure project—a high-voltage transmission line linking the Yukon to British Columbia's grid. This project underpins its Cascades copper-gold mine, which holds reserves of 2.3 billion pounds of copper and 1.2 million ounces of gold.

With Canada's Critical Minerals Infrastructure Fund prioritizing projects like these, WRN's stock could surge. A shows a stock trading at CAD 1.63 on May 26—well below its 2023 highs—despite its massive resource base and government support.

Why Act Now?

These three stocks are at inflection points:
- Azimut's Red Lake project is within striking distance of a feasibility study, potentially unlocking a 10-bagger.
- BIGG is a low-cost crypto miner with a CA$40 million market cap—far below its peers' valuations.
- WRN's federal funding removes a key execution risk for its mine, which could start production by 2027.

With Canadian fiscal stimulus pouring into mining and tech, and these stocks trading at discounts to their peers, the risk-reward is compelling. The debt-free balance sheets and sector-specific catalysts (e.g., infrastructure funding, critical mineral demand) create a trifecta of upside.

Final Call to Action

The window to buy these three TSX stocks at current valuations is narrowing. Azimut Exploration's exploration success, BIGG Digital Assets' pivot to institutional-grade crypto infrastructure, and Western Copper and Gold's federal-backed mine development all point to multiyear growth trajectories. For investors seeking asymmetric upside in Canada's resource renaissance, now is the time to act.

Risk Disclaimer: Penny stocks carry high volatility and risk. Due diligence is advised.

This article is for informational purposes only. Always consult a financial advisor before making investment decisions.