John Kaiser On The Recent Buzz Around M&A’s in the Junior Gold Space
John Kaiser of The Bottom Fishing Report discusses with Al Korelin why he believes 2012 will be dominated by M&A stories and who he believes are a few eligible takeover targets.
To learn More please visit:
http://www.kaiserbottomfish.com
Al, I bring this up because you mentioned Northern Gold. Check out Moneta Porcupine Mines, ME.TO. Very similar situation, northern ontario, exploration company, except Moneta now has over 3M ounces. CEO Ian Perez owns 6M shares and runs a very tight ship. I’d encourage you to give him a call and dig a bit deeper here— they are still receiving less than $20/ounce in the open market, institutions are started to get involved, and they just raised $5M just below mkt via a brokered financing, w/ *no warrants*, and *no fee to the brokerage*; I think that’s saying something.. you might even be able to get in on the financing…
The only financing I found was done last March for $6.6M. It was done ABOVE market, which is better, of course. They did pay a 3% finders fee. With 143M shares out and 160M fully diluted, I sure wouldn’t call it a tight ship, at least not from a paper standpoint. There is also a rather large short position of over 7M shares. If the longs are right about the company, a big short position is a good thing. No one buys with the urgency of a trapped short — rocket fuel for the share price!
I had never even heard of the company until now, so no one should read much, good or bad, into these observations.
Ian took over as CEO of Moneta about 3 yrs ago. Very tight ship since then.
here’s the latest financing from the other day:
http://www.marketwire.com/press-release/moneta-porcupine-mines-announces-5-million-bought-deal-financing-tsx-me-1623834.htm
Thanks. I don’t know how I missed that. The market obviously likes ME.TO. Big volume just took it up 100% in about a month. Perhaps the $20/oz has something to with the grades and concerns (warranted or not) about permitting an open pit in the area. Or it could simply be due to the nasty correction the sector just enjoyed! To be clear, value is what matters most. Past dilution is obviously not a problem for new investors, and with the new financing, it should be a while before more money is needed. On top of that, the new shares can’t be sold for 4 months.
Last week I commented that some of the silver and gold juniors would become dividend paying stocks. I changed my thoughts to; they will be eaten up by the mid-caps that will become dividend paying stocks. The large-caps are in a dream world now waiting for a gold incrusted meteor with 6 million ounces in it to land on their properties or something!
Niogold is looking good in the Quebec Abitibi region.
Dan
I totally agree. Enough work has been done at Niogold’s Marban property that it’s just a matter of time, in my opinion, before shareholders get rewarded in a BIG way.
Volume pressure on the buy side for Niogold. Big sellers are gone for now it appears.
Dan
Yeah, Niogold buyout!
…and dont forget VOL the day after!!
Whats VOL?
Volcanic Metals.
Thanks for the response – SD.
Marc
I keep holding Rye Patch and they keep going up. Their only exit strategy is a buyout. What do you think ??
Al, thanks for the ideas. Last week i thru out MDMN and only got one reply from Marc. I also own TDC.v. One up big the other down big. Any thoughts from my friends here in korelinland on either of these?