Original Alert Email – April 27th, 2017 to Equity Grade Subscribers
SPECIAL REPORT: Prize Mining (TSXV: PRZ)
In this business they say back winners and follow the smart money. This company has this in spades. Not to mention, it has also just acquired a couple of monster gold-copper properties with plenty of exploration upside. This company is called Prize Mining (TSXV: PRZ) and after being halted in December of last year it will begin trading TODAY. It was halted at $0.415 but we expect it to open higher and move up quickly.
As we mentioned, you have to invest in winners in this business. Prize is led by CEO, Feisal Somji, BSC, MBA and started his career over 20 years ago managing an exploration and mine development services company with over 100 employees and divisions including diamond drilling, ground and airborne geophysics, geological consulting, geochemical analysis and laboratory services. That sounds pretty good. Likely, just the sort of mining CEO you want at the helm of a couple YUGE resource projects that have some juicy exploration upside.
But wait, he gets better…a lot better: most recently Mr. Somji was the founding President and CEO of Rio Alto Mining Ltd, with its La Arena gold/copper mine in Peru, that achieved commercial production in 2011, and with a current annual production rate of approximately 150,000 ounces of gold from 4,000,000 tonnes of ore. Rio Alto was acquired by Tahoe Resources in 2015 for approximately $1.3 Billion. Wow. Dude delivered. He’s been biding his time, patiently waiting and seeking the right next deal.
Now on to that second part, following smart money – Prize just finished doing a private placement for $6 million (14.3M shares @ $0.35 and 2.2M flow-thru shares @ $0.45) and there were some impressive participants – including PowerOne Capital Markets.
This is a Toronto-based Merchant bank founded by former lawyer, Pat DiCapo turned banker to the stars. He has the golden touch and his middle name should probably be Freak or Animal – he’s about the best and smartest capital to attract. He’s a value-added financier. He doesn’t just place money for fees. He brings in an all-star calibre, dream team of domain expert investors.
We can’t stop there, Fort Capital Partners, a Vancouver-based boutique investment bank also placed some of the financing and is quickly becoming a key player in the mining finance arena. Fort founded in 2014 by veteran big-bank investment banker, David Bustos, recently lured Ali Pejman, one of Canaccord’s best and brightest stars in the mining investment banking division to join them and lead their resource investment and advisory business.
We so far have the horse to back and the players to follow. Now let’s look at their newly acquired projects.
An ideal stage resource company to invest in right now is one that has a sizeable resource with a lot of continued exploration upside in a geographically sound region. Oh look another box to tick.
Prize has an option to earn an 80-per-cent interest in the Kena and Daylight gold-copper properties located in the Nelson area of British Columbia, Canada. The Kena project has seen extensive past production and includes at least six, untested, historic gold mines. It also has a rather impressively Yuge, Bigly porphyry gold NI 43-101 resource of 490,000 indicated ounces gold and another 1,399,000 of inferred ounces gold. That’s a lot of the mellow yellow metal, almost $2.4 billion dollars worth of ore in the ground! Even at a much more conservative value of say $50/ounce that would give this company about a $100M market cap and that’s if the resource didn’t get any bigger but wait, it likely can.
Past drilling has investigated the deposit to a depth of only 200 metres from surface but deep drilling in two drill holes confirms mineralization extends below a depth of 400 meters. Additional deep drilling will likely be part of the plan to increase ounces.
KGM GOLD DEPOSIT – Nelson Gold District ‘The Golden Arc’
The KGM resource zone is enclosed in the black oval area to the left leaving a lot of potential upside from past drilling that has not been included in the existing resource calculation.
As you can see this company offers an intriguing opportunity that is likely to be significantly revalued in the coming days and weeks as the market starts to catch on to the potential for the vast exploration upside available and in whose hands this company is being led by.
In our opinion, Prize Mining (TSXV: PRZ) “Makes the Grade.”
We plan to be buyers in the market.