Precious Metals


A recent article by RCKS Talk highlighted Aurania Resources Ltd. (TSXV:ARU), Maverix Metals Inc. (TSXV:MMX) and Unigold Inc. (TSXV:UGD).

A recent article by RCKS Talk highlighted Aurania Resources Ltd. (TSXV:ARU), Maverix Metals Inc. (TSXV:MMX) and Unigold Inc. (TSXV:UGD).
As quoted in the article:

Aurania Resources Ltd. (TSXV:ARU) announced it has entered into a definitive agreement to acquire EcuaSolidus S.A., a private company that owns the ~2,080 km2 Lost Cities – Cutucu project in Ecuador. Consideration for the proposed transaction is C$500,000 and 1.0 million Aurania shares. Lost Cities is potentially the first project where professional historical archival research is coupled with modern exploration techniques. Findings from archives suggest the project area might host two major 16th and 17th century gold mines. The project is based at the foothills of the Andes, covering the core of a mountain range adjacent to that which hosts Lundin Mining Corp’s (TSX:LUN) 7M oz Au Fruta del Norte deposit. It was the team of Dr. Keith Barron, who currently is the President and CEO of Aurania, that discovered Fruta del Norte in 2006. Dr. Barron aims to apply the same exploration strategy this time, which might potentially lead to the expedited identification of drill targets. Dr. Barron is giving a special presentation on the Lost Cities and the process of finding them at our Pre-PDAC Conferencetomorrow.
Maverix Metals Inc. (TSXV:MMX) provided guidance for its attributable gold production in 2017, the company’s first full year of operations. The company is guiding for net royalty revenues of C$17.5-20.0 million, based on a US$1,225/oz Au price and annual production of 13.4-15.0k oz AuEq. The majority of the revenue, or 93%, is driven by gold sales with the balance coming from silver (5%) and nickel (2%) sales. Based on working capital expected to amount to 13-14% of net revenues and the company’s current cash position, we believe the company is able to acquire additional small to medium sized streams and royalties. Although Maverix has growth potential in our view, we note that Maverix currently trades at a discount to peers on a P/NAV and 2017e EV/EBITDA basis.
Unigold Inc. (TSXV:UGD) provided an update on its Neita exploration concession. The company has received notice from the Ministry of Energy and Mines of the Dominican Republic that it is going to uphold Unigold’s exclusive right to reapply for the exploration concession pursuant to applicable laws. Unigold expects to receive a final decision once the evaluation of its application is completed; however, this could take several months, as we have seen with other companies in the Dominican. We view this very positively and believe Unigold is likely to maintain control of the Neita concession, which should help it start closing the valuation gap to peers. Unigold currently trades at C$3/oz, a steep discount to peers at C$54/oz.

Red Cloud Klondike Strike Inc. connects mining companies with suitable investors that qualify under available regulatory exemptions. RCKS Talk aims to provide unique investment ideas for everyone. Red Cloud KS may hold long or short positions in companies mentioned and/or may have provided or provide in the future services to these companies. See their full disclaimer for details.


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