Value Microcaps Junior Miners

[dr_airtime]

AVK.TO - putting the pieces together.

I am a shareholder now with thesis that in short term Avnel's Kalana project is one of the most undervalued (~0.4X NAV at spot) shovel-ready high grade, low AISC gold open pits in West Africa. Their presentation is excellent in this regards if you link back to last post.

If current sector rally just consolidates I think money will move into AVK.TO. Just look at the volume on the chart if you link one post back. 85% is closely held by institutions.

Here is another short outline of the company.

https://ceo.ca/@kipkeen/this-2-million-ounce-gold-deposit-is-eminently-financeable

65% shareholder is Elliot Management - a NY Hedge Fund. This is the biggest black-eye as Elliot exerts control. However, as I mentioned in the last post this is the 5th best development project in West Africa with the other four tightly held or recently acquired (B2Gold - Fekola, EVD.TO - Hounde, PRU.TO - Yaoure, SMF.TO - Natougou). This means Elliot group could put up Kalana for sale as an alternative to financing it, though I think this is unlikely as Elliot Group's Paul Singer has been vocal about positive fundamentals for gold.

So how does Kalana get financed in a fashion that protects Elliot's current equity interest? The answer may lie in this newly formed mine finance shop by Elliot Management, the former CFO of Barrick. The pieces should unravel pretty soon though I would expect perhaps a combination of equity, a stream and external debt.

March 2016

http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/barrick-cfo-shaun-usmar-stepping-down-after-year-into-job/article29266276/

May 2016 - Paul Singer's thoughts on gold

http://business.financialpost.com/investing/trading-desk/singer-says-gold-rally-just-beginning-as-goldman-sees-losses

No other official news announced on the new Toronto mining finance shop.