Update...
Had a great meeting with Dan and Mal on Friday. I tried to ask everyone's questions along with my own. Dan is a VERY impressive guy and to be honest I spent most of the time listening to what he had to say. I'll try to summarize all the facts.
=> Dan has an extensive background in metals, portfolio management & M/A. His goal is to change the direction of the company. No more pump marketing schemes. Lots of news coming out throughout the rest of the year. More drill results throughout the summer and fall. Also targeting a Springpole PEA updated in September, and he mentioned a potential Goldlund PEA which could be huge.
=> Dan and Mal realize they haven't communicated effectively with investors and they have a true appreciation for everyone who has bought and holding shares. Dan mentioned the company has never been properly marketed and he intends to change that. He realizes that the name/CEO changes have caused concern and hopes to explain this moving forward.
=> Company direction is to develop, de-risk and add value to the assets. This has been, and will continue to be the main focus of the company.
=> Dan did not rule out mining. However, he did mention that companies who run with a strategy of selling typically don't get good value. Sounds like they want to get to the point where the mine is ready and decide to sell or have someone fund the mine.
=> The first priority is to get a permit at Springpole. Targeting completion date end 2022.
=> In a quick financial exercise, Dan mentioned permitted projects typically trade between .4 - .6X net asset value which in the case of Springpole is $800mil USD. Do the math on Springpole alone and we are over $1+/share.
=> Dan is very excited about Goldlund, as well as Hope Brook, Pickle Crow, and Cameron. He mentioned that they have a lot of assets and they intent to focus on a select group. I believe this is the group they will target.
=> Raising capital is a high priority. They do not have any major institutional shareholders and look to improve this moving forward. Dan mentioned insiders plan to be a big participant in the next financing opportunity, and he in particular is planning to make significant contribution. Dan mentioned partnering with a strategic investor by the end of the year, which could be an individual or a mining company. I consider this to be significant... A game changer!
=> I specifically asked if First Majestic would be a consideration for strategic investor. Dan reminded me that First Mining Gold is focusing on Canadian assets and that First Majestic would not be a candidate due to its international exposure.
=> Sale of assets is very difficult, especially if they have not added value. It seems like this could be a way to generate revenue but this is a longer process. The next financing they do will be a bridge to this.
=> Dan is very high on Ken Engquist. Ken offers a very different skill set and he expects Ken to walk the projects through feasibility to be able to present to investing companies. He wants to focus on Hope Brook, Pickle Crow and Cameron and hope that each could have between $100 - $400mil NPV.
=> Gold price in Canadian dollars is close to an all time high at $1750. I found this interesting, as I typically refer to USD.
As I type this message I feel very good about the direction of the company. I hold a very large position already and intend to add more shares on Monday. My only concern is the short term strategy to raise capital, which I speculate could be through equity financing. I'm kicking myself now for not digging deeper into this. But at the end of the day I look at all the $0.20 stocks out there. Lots of fraud, corruption, scams, etc. This is a legitimate company with cash, assets, and the potential to explode.
Hope this helps!
