After a slow start to the year the TSXV soared as one of top performing exchanges in the world. Led by a rally in commodities and recently Medical Marijuana there was much to cheer about.
Our timing on many of the Gold names like BRI and GPY was impeccable. A name we first invested in 2015 and continue to add to is GGC.V. Soon to be renamed White Gold, they've had a break out in recent months becoming the largest landholder in the White Gold area of the Yukon. With a tremendous land package, considerable money spent on exploration and smart people running it, we believe there will be a discovery in 2017. Last weeks announcement of Agnico Eagle's private placement to acquire 19.9% at a premium to market ($1.20, no warrant) gives us further optimism.
The lithium deals we have financed including Millennial Lithium (ML.V - $1.60) and Neo Lithium (NLC.V - $1.20) continue to perform and we remain long, as they are best in class.
In the MMJ space, OrganiGram a company we took public in 2015 at $35 million, is now trading at a resounding $350m market cap and continues to impress. Emblem, the other MMJ company we featured in our August letter that we offered access to the Pre-IPO shares $0.75 and $1.15 IPO came to trade this week at $3.40 (EMC.V). Congratulations to those who participated.
The groups next deal has just gone live. The Green Organic Dutchman (GOD), is a Licensed Producer and is currently raising money at a $33m valuation which we anticipate to do just as well as EMC, if not better, when it comes to trade in 2017.
With the Trump election we have seen a surge in demand for base metal commodities such as copper, lead and zinc. The trillion dollars Donald plans to spend on infrastructure beefing up the aging bridges, airports, roads means opportunity. A particularly interesting company is Darnley Bay (DBL.V). They have just acquired the 5th largest zinc deposit (lbs) in the world that is a past producer and permitted mine. We are shareholders of DBL and will be placing some of the current ($0.20) financing with our network. It's a good one to own with robust economics.
As always do you own due diligence, our goal is to provide you with a snap shot of the deals we find to be the most promising. I wish you a safe holiday season and a prosperous New Years.
Justus Parmar
