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VANVOUVER, BC / ACCESSWIRE / February 3, 2015 / Gainey Capital Corp. (GNC.V) (GNYPF) ("Gainey" or the "Company") is pleased to announce its 100% owned/controlled Mexican Sub Corp, Minera Buena Fortuna S.A. DE C.V., has signed a new "Working Agreement" with the San Francisco De Lajas Indian Community in the State of Durango, Mexico. Gainey owns and operates mining concessions of approximately 6,000 Hectares in Durango and has recently identified several new mineral targets in these concessions. The agreement includes increased access to a large number of skilled local workers, which will facilitate Gainey's plans to begin bulk-sampling its own ore from its advanced 300 TPD mill and processing centre in 2015. The agreement will also support the company's aggressive 2015 exploration plans, details of which Gainey expects to announce by the end of February.
David Coburn, CEO of Gainey Capital, commented, "Our 2015 plans are aggressive, both for ore processing at our mill and also exploration. Durango is a very pro-business and pro-mining State and we're excited to begin exploration work in our Durango concessions this February, as per the agreement."
Gainey now followed by BMR:
http://bullmarketrun.com/?p=26179" rel="nofollow" target="_blank" >http://bullmarketrun.com/?p=26179[Gainey Capital Corp. (GNC, TSX-V)[/tag]
Mexico is 1 of our favorite jurisdictions, and there’s another company with good things happening there that we suggest our readers check out and perform their due diligence on – Gainey Capital Corp. (GNC, TSX-V)
GNC is an intriguing and emerging force among juniors in the prolific Sierra Madre region where the company is generating cash flow from its 300-tpd mill and processing center in Huajicori, Nayarit State…Gainey operates the only gravimetric/flotation processing center in the area…
What also has us particularly excited about Gainey is the company’s El Colomo Gold-Silver Project that covers 19,000 hectares with multiple high-grade targets…a drill program is being lined up for El Colomo which should definitely generate some excitement in the market…
Financially, Gainey is in solid shape (cash flow positive) and reported approximately $2.5 million in working capital as per its latest financials (Sept. 30)…
Gold Makes Reverse H&S Breakout, Junior Gold Miners (GDXJ) Bouncing Off Support at 20 DMA
The big banks are finally realizing that the US Fed may not be so quick to raise rates in 2015. Investors may wake up when the Fed institutes more QE to keep up in this global currency war. Eventually, investors should want precious metals.
Gold Stock Trades readers are already positioned for the scenario which is currently being played out. By now my readers should own a considerable amount of physical gold and silver bullion as well as high quality junior miners on the verge of major growth. If gold steadies around $1300 a lot of junior miners are going to breakout.
For instance two weeks ago, I highlighted Gainey Capital (GNC.V or GNYPF) as an interesting cash flow opportunity in the junior mining sector as it owns an interesting property and a mill in the heart of the Sierra Madre Gold/Silver Trend. Unlike many juniors it has cash and near term cash flow.
Recently, Gainey announced a 10k ton per day processing agreement with Belmex Resources. I hope to hear more deals announced in the coming weeks as Gainey owns the only gravimetric/flotation processing plant in the area which is designed to increase recovery rates. Its also operated by an experienced milling supervisor George Cantua who supervised Barrick’s 24k ton per day mill in the Dominican Republic.
Investors should look where Gainey’s mill is located in relation to some of the other gold-silver deposits nearby. As gold and silver comes back into favor, miners may look to process increasing amounts of their ore with Gainey. I hope to hear positive developments with more processing agreements and the beginning of exploration on El Colomo.
See the latest news release on the processing agreement by clicking on the following link:
http://gaineycapital.com/component/content/article/8-news/56-gainey-signs-10-000-ton-ore-processing-agreement.html
Gainey Signs 10,000 Ton Ore Processing Agreement
Gainey now taking delivery of high-grade ore at its advanced mill and processing centre
Gainey Capital Corp. (TSXV: GNC) (OTCQX: GNYPF) ("Gainey" or the "Company") is pleased to announce that Belmex Resources has engaged Gainey to process a minimum of 10,000 tons of high-grade gold ore at its 300 TPD (tons per day) mill and processing centre in Mexico's prolific gold and silver region of Sierra Madre. Gainey has begun taking delivery of the ore (assay grades from 5.8 to 12.2 GPT), delivered by truck from Belmex's facility just 22km from the mill.
Gainey's facility is the only one in the region that includes a gravimetric/flotation processing center to optimize gold and silver recovery rates. Its operational team is run by Gainey Operations Manager, George Cantua, who previously supervised Barrick Gold's 24,000-tpd mill in the Dominican Republic.
David Coburn, CEO of Gainey Capital, commented, "We located our facility close to a large number of ore bodies specifically because there was no other mill in the region. We began sampling ore from multiple sources just days after completing our upgrade program and today's announcement shows we have started the next phase of the toll processing part of our business."
About Gainey Capital Corp.
Gainey Capital is a gold and silver exploration, development and ore processing company exploring an aggregate of 18,766 hectares strategically located in the gold/silver-rich Sierra Madre Occidental Trend in western Mexico. The company's Mill, located on its El Colomo property property, is capable of processing up to 300 tons of ore per day and the company has the capability, including permitting, to upgrade to 600 tons per day with low capital expenditure. Additional information on Gainey Capital, its current operations and its vision is available on the Company's website at www.gaineycapital.com or from info@gaineycapital.com .
News ! Gainey Signs 10,000 Ton Ore Processing Agreement
Link
01/22/2015 [ACCESSWIRE]
Gainey now taking delivery of high-grade ore at its advanced mill and processing centre
VANCOUVER, BC / ACCESSWIRE / January 22, 2015 / Gainey Capital Corp. (TSXV:GNC) (OTC:GNYPF) ("Gainey" or the "Company") is pleased to announce that Belmex Resources has engaged Gainey to process a minimum of 10,000 tons of high-grade gold ore at its 300 TPD (tons per day) mill and processing centre in Mexico's prolific gold and silver region of Sierra Madre. Gainey has begun taking delivery of the ore (assay grades from 5.8 to 12.2 GPT), delivered by truck from Belmex's facility just 22km from the mill.
Gainey's facility is the only one in the region that includes a gravimetric/flotation processing center to optimize gold and silver recovery rates. Its operational team is run by Gainey Operations Manager, George Cantua, who previously supervised Barrick Gold's 24,000-
tpd mill in the Dominican Republic.
David Coburn, CEO of Gainey Capital, commented, "We located our facility close to a large number of ore bodies specifically because there was no other mill in the region. We began sampling ore from multiple sources just days after completing our upgrade program and today's announcement shows we have started the next phase of the toll processing part of our business."
About Gainey Capital Corp.
Gainey Capital is a gold and silver exploration, development and ore processing company exploring an aggregate of 18,766 hectares strategically located in the gold/silver-rich Sierra Madre Occidental Trend in western Mexico. The company's Mill, located on its El Colomo property property, is capable of processing up to 300 tons of ore per day and the company has the capability, including permitting, to upgrade to 600 tons per day with low capital expenditure. Additional information on Gainey Capital, its current operations and its vision is available on the Company's website at www.gaineycapital.com or from info@gaineycapital.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"David Coburn"
David Coburn, Chief Executive Officer
For information, please contact the Company:
Phone: 480-347-8904
E-mail:info@gaineycapital.com
Website: www.gaineycapital.com
Just what the world needs...another gold miner with great propects who owns leases on property in Mexico just waiting to be mined. Good Luck Senor'
Gainey Capital Generates Cash Flow With Gold Mill in Mexico
Gainey Capital Generates Cash Flow with Gold Mill in Mexico
Financial Press / Jan 21, 2015 / So far, gold is having a good year. In 2015, the spot price of gold is up 6%, ishares Silver Trust (SLV-NYSE) is up 12% and the gold junior ETF (GDXJ-NYSE) has surged 20%. The combined assets of SLV and GDXJ are now $6.7 billion.
The U.S. Mint has also set a new sales record for its American Eagle silver bullion coins, with sales of 43 million coins. Physical bar & coin consumption is now 46% of industrial demand – a 500% increase in the last six years.
The most successful junior metal companies are generating cash by processing gold from 3rd party miners. The share price of Inca One (IO-TSX.V) - operating a gold milling facility in Peru - is pushing a 52-week high. Dynacor Mines (DNG-TSX.V) also operates a gold ore-processing business. Its share price has risen from .20 to $1.65 in the last 5 years – an increase of 1,300%.
Gainey Capital (GNC-TSX.V) is a junior gold/silver company following the same business model as Inca One and Dynacor. The cash positive company is a toll-processor and exploration company operating in Mexico.
“Last year we spent about $500,000 upgrading our systems to optimal efficiency,” stated Gainey CEO & Director David Coburn in an exclusive interview with Financial Press, “Negotiations for long-term milling contracts are ongoing and include mom-and-pop mining operations in Mexico and publically traded miners.”
Gainey plans on Bulk Sampling 30,000-60,000 Metric Tons of Material through its 300 TPD Mill/Processing Center in 2015. Revenues are projected around $5.8 million USD with EBITDA in the 35% level. GNC employs a conservative $940 an ounce gold benchmark in analyzing the economics of processing/bulk sampling from its fully owned Mineralized zones. The 300 tpd facility is planned to be increased to 600 tpd by the end of Q4 2015.
Gainey’s mill/processing center is the only one in the region to include a gravimetric/flotation processing center, which optimizes gold and silver recovery rates.
“Gravitational separation is a cost effective system that uses an inclined table with a shaker to move the material along a table,” explained Coburn, “The combination of gravitational separation and floatation achieves extremely high recovery rates.”
Gainey’s best-in-class mining team includes former Barrick Gold management Jorge Valenzeula Cantua a Mexican silver veteran who has strong ties to the local community, exploration leaders Minera Cascabel and MAG Silver’s Dr. Peter Megaw and technical board member Larry Segerstrom who was the Geological Manager for Freeport McMoRan at Grassberg, one of the largest gold mines in the world.
“Our proximity to power, transportation, water and skilled labor has kept operating costs well below industry standards,” stated Coburn, “We are connected directly to the federally operated power grid.”
The water systems have also been upgraded with new pumps and motors. With power and water issues solved, Gainey is projected to maintain below-industry operating costs in the future.
The mill/processing center is located 15 kilometers on a paved road from Highway 15 South, which is a main Federal highway connecting the many ports and airports to the USA. It is only 5 km from a large military base, ensuring high security and a strong supply of skilled labor.
“We’ve formed a strong relationship with the local Huajicori community, which has been supplying skilled and unskilled labor,” stated Coburn, “We are also renting equipment from them, which has saved money and strengthened our working relationship.”
Gainey’s flagship El Colomo property is about 19,000 hectares. A detailed prospecting program around the main vein systems will be announced by the middle of February, 2015 and will commence in Q1 2015. With dozens of visible outcrops of substantial size, prior exploration delivered grades as high as 13.75 grams per tonne gold equivalent.
Gainey’s strategy of combining toll processing and exploration activities mitigates risk by generating revenues from the mill to fund exploration and development in this mineral rich area of Sierra Madre in western Mexico.
Gainey’s largest single investor is Mexican billionaire Ernesto Echavarria who operates a conglomerate of companies close to El Colomo.
Gainey’s mill/processing center is paid in full and is currently processing ore. By the end of 2015, the company intends to process its own ore and become a fully sustainable mining/processing company with positive revenues from its own gold/silver production.
“We have about $2.5 million in cash and no underlying debt,” stated Coburn, “Optimizing relationships with metal producers in the area and ramping up tonnage at our modern processing facility, we are positioned to become a profitable gold and silver producer in 2015.”
To date, GNC has delivered on its publically stated financial and operational milestones.
Gainey Capital is currently trading at .20 with a market cap of $8.7 million.
Latest feature article on Gainey Capital. Good to see some news outlets picking up the Gainey story. Please check out link.
http://www.baystreet.ca/articles/stockstowatch.aspx?articleid=20564
Hopefully news coming out this week on Gainey Capital. Strong stock price movement so far today, (Tuesday)
Hopefully news coming out this week on Gainey Capital. Strong stock price movement so far today, (Tuesday)
This company is absurdly cheap if they can execute their business plan. Once Gainey buys another ball mill, it will have 600 tonnes per day (tpd) capacity. Compare that to Inca One at 100 tpd and Dynacor at 250 or 300 tpd. Mexico a safer place to do business then Peru
Gainey is coming across some high grade ores from neighbors seeking toll milling. Grades not as high as Dynacor's, but still quite strong.
Now all we need is some press releases out of the company
CEO BLOG CLICK HERE
MOST RECENT NR:
Gainey (GNC:TSXV, GNYPF:OTC) Provides Update On Toll Processing Negotiations And Exploration Strategy
12/10/2014 [ACCESSWIRE]
Vancouver, BC / ACCESSWIRE / December 10, 2014 Gainey Capital Corp. (TSXV: GNC) (OTCQX: GNYPF) ("Gainey" or the "Company") is pleased to provide an update on ore processing negotiations and exploration plans. In addition, the company has finalized an agreement with the Municipality of Huajicori, which will enable Gainey to use the Municipality's heavy equipment, such as backhoes and front end loaders, at attractive rates.
Cash Position: As at September 30, 2014, the Company had a total of approximately CDN$2.8 million in cash reserves. This, along with the positive operating margin and cash flow from ore processing, will be used to fund the Company's exploration strategy.
Ore Processing: Gainey has now completed the ore sampling process with multiple local mining companies and is in negotiations regarding long-term processing contracts. The Company has received cash deposits from processing customers and has ore stockpiled at the mill. The Company's mill and processing centre, which benefits from competitive operating costs, has consistently delivered recovery rates in excess of 90%.
The Company expects to generate a positive operating margin and cash flow from its processing operations, which will be used to further fund exploration initiatives. Gainey plans to begin sampling its own ore in early 2015.
Exploration: Gainey is finalizing its exploration strategy and plans to announce details, in January 2015, of the upcoming program. The Company's advanced gold/silver project at El Colomo is located in the gold/silver-rich Sierra Madre Occidental Trend in western Mexico. The project has a number of high-priority drill targets already established and exploration will be headed up by renowned geologist, Peter Megaw.
David Coburn, CEO of Gainey, commented, "It has been a busy period for Gainey since the acquisition of our assets in Mexico closed in Oct 2013. Our ore sampling program has enabled us to build relationships with the many independent mining operations in the region and we can now move towards arranging long term tolling contracts. The mill's high efficiency and low operating costs are a particular advantage for the toll processing part of our business model. We are well-funded and are looking forward to the upcoming exploration and toll processing opportunities as 2015 approaches."
About Gainey
Gainey is a gold and silver exploration, development and ore processing company exploring an aggregate of 18,766 hectares strategically located in the gold/silver-rich Sierra Madre Occidental Trend in western Mexico. The company's Mill, located on its El Colomo property property, is capable of processing up to 300 tons of ore per day and the company has the capability, including permitting, to upgrade to 600 tons per day with low capital expenditure. Additional information on Gainey, its current operations and its vision is available on the Company's website at www.gaineycapital.com or from info@gaineycapital.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"David Coburn"
David Coburn, Chief Executive Officer
For information, please contact the Company:
Phone: +1 602-315-1231
E-mail: info@gaineycapital.com
Website: www.gaineycapital.com
Northern Miner: Gainey Capital aims to fast-track production at El Colomo
VANCOUVER — Over two years ago Gainey Capital (TSXV: GNC) CEO David Coburn saw promise in a private Mexican precious metal operation 135 km southeast of Mazatlan — along the border of the States of Nayarit and Durango — called El Colomo. It may have taken some time, but Coburn managed to put together a deal for the project, and the company now hopes its newly-acquired processing facility will allow it to leverage quick cash flow into exploration success on a 190 sq. km property package.
El Colomo includes five known mineral occurences, namely: the La Nueva Victora, Las Minitas, Higuera, El Arrayan, La Bufa, El Guayabo, and El Penon deposits. According to technical reports gold and silver mineralization appears to be restricted to low-sulphidation, epithermal quartz veins within fault zones, which constitute the most common form of deposit in the Sierra Madre Occidental volcanic province. All showings found to date consist of steeply-dipping auriferous and argentiferous epithermal quartz veins.
Gainey picked up the project from a private mining outfit called Golden Anvil, which invested roughly US$5 million in constructing a 300-tonnes-per-day gravity-flotation plant around 63 km by road from the mine in the town of Huajicori. According to documentation submitted to Gainey the pilot plant processed roughly 4,276 tonnes of material in mid-2011, which resulted in 61.3 dry tonnes of concentrate averaging 61 grams per tonne gold and 2,874 grams per tonne silver.
For Coburn the operation demonstrated a lot of promise, but needed the right amount of investment capital and an experienced team to head up exploration and fine tune the mill. Enter geologist Dr. Peter Megaw, whose Mexican discoveries include MAG Silver's (TSX: MAG; NYSE-MKT: MVG) Juanicipio deposit. Megaw was familiar with the asset and took a meeting with Coburn in Tucson, Arizona.
“When we started looking at the project I went down to meet with Dr. Megaw who knew [El Colomo] very, very well. His team had actually been trying to purchase the property since 1993, and he really just wanted to know how we were going to secure the entire land package because it's a large area that's going to be a district play,” Coburn recounts during an interview. “We worked with the previous Mexican owners to patch the whole thing together, which was somewhat complicated since the company we purchased it from had between 35 and 40 investors in a private corporation.”
In the end the terms of sale included 12 million shares of Gainey, plus the issue of special warrants that award Golden Anvil one additional share per ounce of gold (or gold equivalent) categorized as mineral reserves by October 2015. The warrants are capped at 3 million additional shares. To solidify his management team Coburn added George Cantua — who spent two years as operation supervisor at Barrick Gold's (TSX: ABX; NYSE: ABX) Pueblo Viejo gold facility — as operations manager.
“George is doing a great job,” Coburn continues. “He's training our people down there, and we're only really running one shift right now. We're sampling a lot of different ore, which basically makes this a pilot or pre-production operation for us. Between sampling and running some production we've actually been cash flow positive this past month. We've been quite happy with the results as they pertain to our operating costs versus sales output. My goal after we closed our qualifying transaction was to get the mill operational and profitable as quickly as possible.”
Megaw would come aboard to manage Gainey's exploration strategy through his Minera Cascabel technical company. Gainey closed a US$2.7 million non-brokered private placement in mid-May wherein it issued 13.6 million units at a price of 20¢ per unit. Coburn explains the funds are earmarked for an initial exploration program that will include stream-and-sediment geochemical work aimed at identifying the most promising targets on the property package.
There has been a variety of drilling across a few of El Colomo prospects. La Nueva Victoria is the site of the majority of exploration and development; as such it hosts a historic resource of 401,000 tonnes at an average grade of 13.75 grams gold equivalent. There is also a potential bulk-tonnage target at the La Higuerita open pit, which holds a historic resource of 18 million tonnes averaging 1.37 grams gold equivalent. Coburn points out that only around 3% of the total property package has been explored using modern geological concepts and technology.
“There are a number of historic resources on the property, and we could have come up with a compliant resource for our initial technical report, but we opted to let our own geologists take a look prior to doing that,” Coburn explains. “We plan on doing some of our own drilling, which will include verifying a number of the historic holes. We'd like to get a diamond drill in there. One of the comments Peter made was that his team couldn't believe how much gold was left on the table. There's plenty of opportunity with stock piles, and we're working on that as well.” As Megaw and his team work towards defining an exploration program at El Colomo, Coburn has his eyes set on making Gainey cash flow positive through toll milling third-party deposits. He says the facility is one of the only gravity-flotation plants in the region, and that a number of companies with available ore bodies have contacted him about trucking in ore to the pilot operation. Gainey is also exploring an upgrade that would bring El Colomo's throughput to 750 tonnes per day through the purchase of an additional ball mill.
“Everybody has been looking at the Dynacor Gold Mines (TSX: DNG; US-OTC: DNGDF) model in Peru, and though it took a while to get it tweaked we think it's a great idea,” Coburn adds. “We're searching for that leverage in the early days, though eventually we would like to process our own ore. I could actually see us having two facilities: one that will process ore from site; and one that will process trucked-in ore. We've already trucked in material, and we're processing it as we speak. We're one of the few facilities in a large area that has the processing availability.” Gainey has traded within a window of 10¢ and 54¢ since its qualifying transaction in September 2013. The company is up around 100%, or 24¢, since mid-May en route to a 47¢ close at the time of writing. Gainey maintains 43 million shares outstanding for a $20.4 million press time market capitalization.
GAINEY CAPITAL CORP. (GNC:TSX-V) (GNWPF:OTC) A GOLD MINING COMPANY WITH MONEY TO BURN
One of the reasons that gold companies don’t make it is “burn rate.”
They are undercapitalized, and so they burn through their cash, using up their funding during the expensive exploration stage. As a result, they run out of money and close their doors before they can even begin to produce.
A Junior Gold Company with Deep Pockets
One under-publicizing junior mining company in Mexico, Gainey Capital Corp. (GNC:SX-V) , won’t have this problem.
That’s because they have $3 million in cash and zero debt. More important, the company owns its own mill. And they can earn great revenues processing gold for other mines near El Camino in the prolific Sierra Madre Occidental Trend, located extremely close to a number of high grade ore bodies for toll processing. Nearby mines include Primero, First Majestic, Great Panther, and Goldcorp.
$2 million a year potential cash flow – before even one ounce of gold is pulled out of the ground.
The mill uses a modern gravity and floatation plant, equipped with a fully permitted tailing reservoir, powered by the national utility grid in Mexico. Recovery rate for gold and silver is over 90%.
The mill can process 300 tons of gold ore a day for its customers.. When it runs 5 days a week, 52 weeks a year, the mill will bring in $2.1 million in annual cash flow. If demand increases, management can double the mill production to 600 tons per day without further permitting.
As. J. Taylor, editor of Gold, Energy & Tech Stocks, notes: “Companies that can generate cash flows from which to fund exploration offer a huge advantage. These shares offer a bargain.”
Spending money to make more money
Cash and mill revenues will be used to explore the company’s 46,950 acres including the El Colomo Dome, which is in the center of the property -- without depleting cash, diluting the stock, or seeking additional funding.
The mine’s high-grade targets are exemplified by La Nueva Victoria vein. This rich vein has a historical drilled resource of 442,000 tons at an average grade of 13.73 grams per ton Au-Eq, non-NI 43-101 compliant. The mineralized body is open along strike and death.
Put your trust in Mexico’s top exploration geologist
The company’s chief of exploration, Dr. Peter Megaw , has a 30-year track record of successfully discovering profitable new gold and silver deposits throughout Mexico. A PhD in geology, he is a Certified Professional Geologist by the American Institute of Professional Geologists.
Dr. Megaw’s major discoveries include Excellon Resources’ Platosa Mine, the highest grade operating mine in Mexico, as well as MAG Silver’s, Batoplas, Santa Eulalia, and Juanicipio properties – the latter being one of the world’s largest silver discoveries.
Dr. Megaw has advised over 25 companies including Kennecott, Teck, and BHP on precious metals exploration in Mexico. Peter’s clients and their shareholders have profited handsomely from his discoveries. In just 2 ½ years, Excellon Resources gained 1,029% and MAG Silver was up 282%. Another firm Dr. Megaw worked for, Garibaldi Resources, gained 358% in 6 months.
The bottom line is: there is no geologist on the planet with a track record of finding and developing profitable gold and silver mines in Mexico equal to that of Dr. Megaw.
"Mexican billionaire loves the stock!"
Mexican billionaire Ernesto Echavarria is so bullish on Gainey Capital Corp. that he bought 15% of the company for $1.3 million. Says Echavarria: “I am excited to participate as a major investor, because it is in an area that contains very high gold and silver mineralization and has an operational mill.”
Management has kept the wraps on this gem of a gold mine as they quietly put the mill and other infrastructure in place. They’ve built a cash reserve and an income stream to comfortably fund exploration without fear of running out of funds. The first gold production should begin in 5 to 6 months, and once that happens, the announcement could send the stock price higher.
For a free copy of J. Taylor’s research report on the stock, normally available only to his paid subscribers, CLICK HERE NOW
INVESTOR INTEL: Epstein’s gold junior pick with tremendous upside — Gainey Capital
Gainey Capital Corp. (TSXV: GNC) is a gold and silver exploration and development company exploring an aggregate of 18,766 hectares strategically located in the gold/silver-rich Sierra Madre Occidental Trend in western Mexico. Surrounded by major and mid-tier TSX and NYSE precious metals producers First Majestic Silver, Primero Corp, Chesapeake Gold, Goldcorp, Endeavor Silver and Great Panther Silver, the Company’s flagship El Colomo property is largely underexploited and is the focus of the Company’s near-and long-term development plans.
However, what makes Gainey Capital unique is its 100% ownership of a completely refurbished gold processing facility operating at 300 tonnes per day, “tpd,” capable of being upgraded to 600 tpd with minimal additional capital. This is the ONLY facility in the area to include a gravimetric/flotation processing center, which optimizes recovery rates. Gainey is in active negotiations with multiple parties about toll milling their ores. Toll milling will generate meaningful cash flow to fund exploration and development of Gainey’s own properties. The company could be mining its own ore and processing it at its own mill within 6-9 months. [Please See Video Clip of Mill at the bottom of the company’s homepage]
Under-Promise & Over-Deliver, Everyone Says it, CEO David Coburn Does it
I have been speaking with Founder & CEO of Gainey Capital Corp., David Coburn about his plans for the company. I had been hearing that Gainey was a company to watch. Then on June 13th, Jay Taylor put out an excellent report on Gainey. I called Coburn. Over the years, I’ve spoken with hundreds of management teams. One of the more frequent things I hear from them is that, “I want to under-promise and over-deliver!” While that’s a great corporate philosophy, rarely does it seem to happen….
That’s why it was so refreshing to speak with someone with vast experience running successful companies efficiently and delivering on promises. As CEO, he has very little support staff and ends up doing a wide range of work himself, which he’s happy to do–it’s in his DNA. Proof of his prudent corporate governance came just recently when Gainey was offered C$10 million in equity capital. Coburn conservatively took only C$2.7 million to avoid excessive dilution.
Exceptionally Strong Team for a Junior Company
Like any successful manager, David surrounds himself with top-tier talent. For example, in charge of Gainey’s 300 tpd gold processing facility is George Cantua, Mexican Operations Manager. He was hired from Barrick Gold where he supervised a 24,000 tpd milling facility. George was responsible for Gainey’s mill upgrades coming in on time and under budget. Board member Larry Segerstrom was Geology Manager at the largest gold mine in the world for 7 years, Freeport McMoRan’s Grassberg project as well as COO of Paramount Gold/Silver. Gainey also has Peter Megaw on the team. His company Cascabel is heading up the explorations strategy. He is the most successful exploration geologist in Mexico. Peter is the technical brains behind Mag Silver.
Strong Financial Team
David Coburn has also assembled some of the smartest, “precious metal” investment bankers and investors in the USA/Canada/Mexico whose investment in Gainey Capital have been lead by Mexico Billionaire Ernesto Echavarria. Coburn explained that this investment by Echavarria of $1.3 Million is a key strategic play for both Gainey and Echavarria given Gainey’s operations are literally in Mr Echavarria’s back yard and that Mr Echavarria is an extremely intelligent & successful precious metal investor among his other business holdings. Mr Echavarria was quoted as saying,
“I am excited to participate as a major investor in Gainey Capital given it is in an area that contains very high gold and silver mineralization ” Echavarria went on to say “this is a unique opportunity given that Gainey has a operational Mill that is in one of the best areas in Mexico”.
Comparison Made to Peru’s Dynacor, Gainey Capital Even Better
Jay Taylor made a compelling comparison between Gainey Capital and Dynacor, based in Peru. Dynacor has proven the business model of toll milling for strong cash flow and deploying that cash into exploration & development. However, Gainey has a market cap that’s one third that of Dynacor and Mexico is a safer location to do business than Peru. Make no mistake, I like Dynacor a lot and think that stock could double in the 12 months. Gainey Capital hopes to expand Mill capacity to 600 tpd. Coburn believes an expansion to 600 tpd could be accomplished within 6 months at an all-in cost of just C$100k-C$200k.
In a prime example of under-promise and over-deliver, Coburn’s team got its 100% owned processing facility up and running in June without fanfare. Instead of a grand press release, Coburn has been methodically operating the plant and, importantly, testing local ores, to work out the kinks. While Coburn is not prepared to discuss the profitability of the 300 tpd facility, he has every indication that profitability should be robust. As a proxy, investors have publicly available data on Dynacor’s gold processing facility. That plant is fed with higher grade material than Gainey’s facility has access to, but Dynacor’s facility reported net income in 2013 of C$9 million. That C$9 million was ENTIRELY from toll milling third party ores.
If Gainey could reach a run-rate of just half of that amount, C$4.5 million of profit on a C$19 million market cap, that alone would be a solid outcome. However, with margins possibly rising next year if the company starts processing its own ore AND with throughput possibly doubling to 600 tpd, Gainey could be looking at annual run-rate profits of greater than C$4.5 million next year, without selling a single share of stock or borrowing any money. Did I mention that I like this story very much?
Tight Capital Structure, Zero Debt, C$ 3 Million of Cash, Surrounded by Majors….
What’s not to like? Gainey is sitting on C$ 3 million in cash, it should be cash flow positive in August, it has no debt and a tight capital structure with 42.4 million shares outstanding. Of that amount, 19.2 million shares are in escrow from 1-3 years. The basic market cap at C$ 0.45 per share is C$ 19 million, again with zero debt and C$ 3 million of cash on hand. That’s an Enterprise Value, “EV” (market cap minus cash + debt) of C$ 16 million.
Mexico is a top mining jurisdiction and there are several well known players nearby including Primero, First Majestic, Great Panther and Goldcorp. Unlike many juniors who are out of cash and increasingly desperate to sell out to a major, Gainey is in the opposite position. Not only does Gainey not need to turn to larger neighbors for help, those neighbors may turn to Gainey as some have highly prospective, non-core properties to sell…. Properties that are worth a lot more to Gainey because it owns the only gold processing facility in the region to include a gravimetric/flotation processing center, which optimizes gold and silver recovery rates. Yes, I know, I already said that, but it’s worth repeating.
Opportunity For Near-Term Production
How many times have I heard this, “near-term production.” Near-term appears to range from next month to next decade! How close is Gainey to first production of its own ore? The company could begin mining ore from an owned, fully permitted property within about 6-9 months. This could be a potential game-changer, especially if the company expands to 600 tpd of processing capacity before that time. Again, all of this could be achieved with no additional shares or debt.
Dynacor is printing money in Peru and deserves the praise it receives for operating a highly successful toll milling business model. To reiterate, Dynacor is ONLY toll milling third party ore, exactly like Gainey is. If Gainey can double capacity to 600 tpd AND start to process its own mined ore, upside on the stock could be significant. NOTE: This is my opinion only. Coburn will continue to take things one step at a time, under-promising and over-delivering.
That means making sure the existing 300 tpd facility is running at high efficiencies. It means doing some further work on its owned, permitted property that might have three mineralized veins, not just one. It means signing toll milling customers to fill the 300 tpd mill and possibly installing a new ball mill to expand to 600 tpd. This is not pie-in-the-sky long-term dreams… this is highly actionable neat-term activities that should cause the stock price to rise.
Conclusion
Investors in natural resources stocks have had a rough 2-3 years. Hundreds of junior miners are out of cash and out of time. They are desperate to be acquired or are looking at continued equity dilution for years to come. Gainey Capital breaks the mold, it’s entirely different. Gainey has all the blue-sky upside of a junior miner, but is poised to be cash flow positive, has no debt, no need to raise additional equity and is sitting on C$ 3 million of cash. Run-rate annual profits could exceed C$4.5 million next year for a company with an EV of C$ 16 million as CEO David Coburn executes on specific, relatively low-risk operating plans in a proven, low-risk jurisdiction.
To access the Gainey Capital Corp. corporate presentation, CLICK HERE
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Capital Structure March 2016
Common Shares 57,262,273
Escrow Shares 6,673,698
Common Shares (Total) 63,935,971
Options 4,225,000
Warrants 13,472,986
Common Shares (Fully Diluted) 90,871,159
Debt $0
TSX Venture Exchange Trading Symbol GNC
DESCRIPTION: https://www.otcmarkets.com/stock/GNYPF/profile
Gainey Capital Corp. is a gold and silver exploration and development company exploring an aggregate of 18,766 hectares strategically located in the gold/silver-rich Sierra Madre Occidental Trend in western Mexico. Surrounded by major and mid-major TSX and NYSE precious metals producers First Majestic Silver, Primero Corp, Chesapeake Gold, Goldcorp, Endeavor Silver and Great Panther Silver, the Company's flagship El Colomo property is largely underexploited and is the focus of the Company's near- and long-term development plans.
Vancouver, British Columbia – Gainey Capital Corp. (TSXV: GNC) (OTC: GNYPF) (“Gainey” or the “Company”) is pleased to announce that it has completed upgrades to its Huajicori mill and anticipates processing the mineralized bulk sample material during the coming weeks.
https://gaineycapital.com/news/gainey-capital-completes-upgrades-at-huajicori-mill/
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