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CEO.CA members discuss high-risk penny stocks which can lose their entire value. Only risk what you can afford to lose.
@tommySpending a few minutes on Cooper’s debut deal…. Gonzaga Resources $GN, which has acquired a past producing Nova Scotia goldmine from a Scott Gibson affiliated group (I’m pretty sure), and is raising $1.8 million to get going. A few newsletter writers are already talking about it.
I go to SEDAR and have a look at a recent quarterly Management Discussion and Analysis for Gonzaga Resources, and take a quick scan to learn a bit about the financials and operating history of the company. The “Management information circular - English” is another goldmine for intel on any public company.
Gonzaga Resources is the go-public vehicle and it’s essentially a broke shell with 13,292,333 shares. Greg Davis (holds 2,220,000 GN shares) and Robert Clemens (holds 1,125,000 GN shares) have just resigned from the board. The shell is getting about a $3.3 million promote, which I am not that offended by (because I'm biased and believe we've entered a better junior market period for a while longer).
Jeffrey Wilson was appointed CEO and a Director Dec 30, 2016. Jeff is a seasoned mineral exploration executive. He’s CEO of PRG and former VP Corp Dev at GIX.
Gonzaga is spending $1 million cash over 3 years and issuing 5,840,000 Gonzaga shares for a 100% interest in the Goldenville Property and 3 other early stage Nova Scotia projects with historic production. Seller keeping royalties on each of the projects. I believe the seller is affiliated with Scott Gibson, a Vancouver-based mining investor, promoter and producer of the Metals Investor Forum conferences. [I don’t mean “promoter” in the derogatory sense, Scott is a very hardworking and nice guy to just about everyone in the industry. That’s not to say he’s doing this for charity.]
I don’t know much about the property, but I had heard about Scott picking something up in Nova Scotia a couple years ago.
“The Goldenville property hosts a historical inferred mineral resource of 244,730 ounces of gold in 533,739 tonnes grading 14.26 grams per tonne (g/t) and a historical indicated mineral resource of 37,000 ounces of gold in 106,976 tonnes grading 10.76 g/t, using a cut-off of two g/t gold, as reported in a historical technical report dated effective March 1, 2005, prepared for Acadian Gold Corp. by Mercator Geological Services Ltd. entitled "Technical report on mineral resource estimate -- Acadian Gold Corp. -- Goldenville property -- Guysborough county, Nova Scotia, Canada.””
Brandon Macdonald, P. Geo., prepared an updated independent Technical Report on the Goldenville Property. That’s our buddy @Brandon on CEO.ca!
Millennial geologist Cooper Quinn, a Wyoming-bred transplant to Vancouver, has been appointed President and a Director of Gonzaga. Cooper spent a few years working with @RobMcLeod and is a bright and charming young guy from my generation.
Adrian Fleming and Greg Beischer are directors, two seasoned guys.
Three newsletter writers, Eric Coffin, Brien Lundin, and Gwen Preston already mentioning Gonzaga, before it’s first financing. A good sign for retail support and testament of Scott’s good connections.
Gonzaga announced a $1.8 million financing today at $0.25 per Unit, with a 18 month half warrant at $0.40.
Here’s a crude cap table…
Shell: 13,292,333 shares
Property: 5,840,000 shares
Financing: 7,200,000 shares
Total: 26,332,333 shares plus 3,600,000 warrants and I assume some options.
$6.33 million market cap @25c.
My opinion? A cheap trade if you believe we are in a new commodities bull market. Expensive if you still have the bear market — trading under cash or else — mentality.
I might take a small position if they’ll have me because millennials have been good to me but don’t expect me to disclose when I sell… I am not endorsing it. This is not investment advice. Always do your own due diligence and consult a licensed investment advisor about your personal financial situation prior to making trading decisions. Gonzaga is a very high risk stock and could go to zero. I don’t have business relationships with anyone mentioned here, except Coffin. He and I run a marginally profitable conference together.
This is the sum of 24 minutes of due diligence. I am trying to share more! #newbies#mbgtrends
@MiningBookGuy@tommy RE: https://ceo.ca/mbgtrends?f0655f04c8e4
This was really cool and thanks for tagging #mbgtrends! Especially valuable as a case study for doing #DueDiligence in less than 30 minutes (as mentioned by @anonymous)...if I was just getting started as a junior mining speculator, I'd be flabbergasted that all this information could be compiled so quickly! But over time, you start to pick up on people/patterns in the industry, and this isn't overwhelming at all. I'd never be able to do a write-up like this so quickly. But as I scanned it, it's a similar way to how I piece together info on a new company, with the various components fitting together, helping to make a decision on whether or not to buy shares, and what needs to be researched further. Again, great model for people to look at!
As a sidenote, cool to see @Brandon@RobMcLeod & @cooperquinn_wy mentioned! All 3 of these guys used to post a lot more at CEO.CA, and @Brandon did quite a bit in #mbgtrends when it was the only alternative to the 'index' (prior to creation of 'panels'). Obviously they are now all super-busy being far more productive with their time. But CEO.CA is awesome because 'nobodies' like some of you (and me) can mingle with these guys, who are serious professionals in the industry! Just wanted to point this out for the #newbies, that you never know who you might be interacting with, or who might be following all the chitter-chatter.
@JamesKwantesMissed #MIF today, sounds like it was a good show. Coming in for VRIC tomorrow a.m. and presenting at 1 pm: The #Yukon: From Deep Freeze to Mining Hot Spot, and moderating a 2:30 Golden Triangle panel featuring @robmcleod of $IDM Greg Beischer of $MRO Adam Travis of $CXO and somebody from $AOT
@JamesKwantesJust watched the Don McLeod tribute video - what a character, what a track record and storytelling at its finest. On the minebuilding front, cool to see son Bruce McLeod pushing $SBB's Back River through some permitting adversity towards a mine build. And nephew @robmcleod at $IDM's Red Mountain of course #gold
@robmcleod@tommy congrats on 1 million monthly page views! I remember when you were a young dreamer with an idea for 'a mining conference in your pocket', now you're this mining tech guru rainmaker! Very proud of you buddy!
@MiningBookGuyQuick shout-out to @Stateside!
I listened to about 80% of the last podcast. Really happy he got a new sponsor $GIS. In fact, I had barely looked at it up until this point. While I know other sponsors cover it, @stateside sold me on getting a small position earlier this week (did a bit of additional DD, and it sure helps that @RobMcLeod and former Underworld team are involved!).
Anyway, thanks @stateside, and looking forward to more coverage of $GIS and all the other stocks. also, i support the #StatesideReport rebranding and your reasons for it (though the 'Comanus' story is really cool and glad you shared some details in this podcast!) http://comanusrising.com/
@robmcleodIf you are a savvy geologist/prospector, some of the best money you can make is to stay private, and option 100% interest in claims for cash, shares and a royalty. That's how John Robins got his start. If you like the property, hold the stock. If you don't, sell it in the market after the escrow comes off.
@robmcleodSome of successful project generators in the past (Altius, Eurasian) are transitioning into royalty companies. Others, such as Almaden and Virginia, had their greatest successes from drilling 100% owned projects, rather than JV's.
@robmcleodProspect generators are often the only game in town during brutal bear markets, where cash is difficult to raise and highly dilutive; funding from majors or well-financed juniors means some newsflow. During bull markets, many investors want to see 100% interest in projects rather than minority interests, so many project generators fall out of favour. Hybrids such as Almaden, Kaminak and Virginia that drill their 100% owned best properties end up having some of the most success, in part to a loyal shareholder base.
@CriticalInvestor@robmcleod Yes, work on their 100% owned assets is key here. Remember Reservoir crashing when drilling their own property failed miserably, investors didn't like that a lot despite the almost established Tier I discovery with Freeport
@robmcleodOver the past several years, prior to 2016 the time between the Roundup and PDAC conferences have been the strongest market for juniors and best time to raise money, and then markets fell apart in late March. My friend and goldbug Jeff Sundar sent me an email with a fascinating commentary on post-PDAC markets during bull and bear markets. See below: I have attached two charts comparing our current gold equities market to the late 1990’s crash and 2000’s recovery. (Using the HUI gold producer index)
The 1996-2000 bear market in gold mining shares (HUI) was one of the worse bear markets lasting 4.5 years from peak to trough.
The 2011-2016 bear market in gold mining shares was similar in terms of price decline and total time.
Notice on the first chart, the PDAC curse was in full effect after March each year of the BEAR market between 1996 to the year 2000. (Except for 1999). In the subsequent recovery and BULL market of 2001, 2002 and 2003, the gold equities had a further run after PDAC. (Marked by the blue vertical lines on the chart). The HUI continued to run into the spring during their seasonal strong period of April/May. We do know that markets do not repeat but they often rhyme.
We now know that we have completed the worse bear market in terms of time and price since 2011 through January 2016. After over four poor years of gold stock performance, the probability favors a post march rally at some time in the spring of 2017. Keep in mind that the 2016 fall correction for gold fell below trend and cut deeper than investors wanted to see. This may push back a more bullish rally until the second half of 2017.
@anomalloyNice work @robmcleod With so many geopolitical insecurities between Russia/Ukraine/NATO, China/Asia, Syria/Russia/Turkey, Euro elections and especially Trumps tweets and his unattainable promises that promote inflation, the US deficit and an eventual pullback of the U.S. dollar, I don't see anything but strength for gold at least until late spring, when investors see some strong indicators as to where we are headed.
@robmcleod@Goldfinger those are Jeff Sundar's charts from $GIS. I just know that markets were hot post-PDAC in 2016, and shitty in the prior five years. Hence some urgency and zeal by many junior CEO's to finance this month!
@Goldfinger@robmcleod Yes, I've definitely noticed a concerted push to get financings done. It makes a lot of sense given their paper is worth more than it was a couple months ago and March can often be lackluster month.
@robmcleodGood to see you at PDAC @BenjaminCox; for you or others, Paradigm Capital's 'takeover 20' by Don Blythe and Don MacLean is a well respected and read report for juniors in the gold-space. They independently analyze fundamentals in detail. It's very interesting to see how the different juniors compare over time...
@robmcleod$GTT highest grade soil samples I've ever seen in western Canada, managed by one of the best geologists in Golden Triangle, Charlie Grieg. Going to be a really interesting Phase 1 drilling program! #ownit
@Markedtofuture@murat thx $GTT@stateside writes: still waiting to see if someone wants out from the PP.If not there will be no more financings until they release drill results. @robmcleod writes: highest grade soil samples I've ever seen in western Canada, managed by one of the best geologists in Golden Triangle, Charlie Grieg. Going to be a really interesting Phase 1 drilling program! #ownit - thx!