Value Microcaps Junior Miners

[Bobwins]

IRT.to/mrllf C$.07

bought a tiny position in Minera Ltd. Developing a gold mine in Peru. 1 million oz so far. Govt of Peru thru it's development bank COFIDE is participating in setting up financing. This is the first time COFIDE has done this type of deal.

http://www.stockhouse.com/news/press-releases/2015/06/08/minera-irl-announces-us-70-million-bridge-loan-and-mandate-letter-for-up-to-us

IRL is producing around 20,000 oz/yr from a small mine that running out of reserves. Estimated to continue operating thru early 2017. Their flagship mine at Ollachea has probable mineral reserves of just over 1million oz at a projected cash cost below $600.

At .07/share, market cap is around C$16million. Dirt cheap for a mine projected to produce 100K oz/yr for 9 years with exploration upside.

Recent developments have been negative and caused price to fall from C$.11 in the last two months.

1. founding director died
2. company had expiring debt that made investors nervous. Been paid off with new announced financing at lower rates.
3. Company seeking 1 for 10 reverse split, which many investors hate.
4. Financing still needs to be secured for the majority of the mine buildout. COFIDE is structuring the deal and will sit on the board but still not done. Expected to be closed by 12/15. Could involve more equity issuance and dilution. At this market cap, dilution could be substantial.

Based on the extreme cheapness of this deal, I decided to nibble for a tiny position. Gold is probably headed lower short term and this mine isn't projected to be in production before early 2017, which probably means 2018+. But the COFIDE assistance in mining friendly Peru seems to be a vote of confidence that the govt wants this mine built. They have the support of the surrounding communities and some day mining stocks will rebound.

http://www.minera-irl.com/files/images/investor-centre/MIRL-Investor-Presentation.pdf