As a long-term investor in Explor Resources Inc., I’m really excited about the proposed amalgamation of the Company with Pure Nickel Inc., TSX.V-NIC, announced by both miners August 22
nd, 2019.
https://explorresources.com/assets/docs/news/2019-08-22_NR_EXS_ENG.pdf.
https://www.purenickel.com/s/NewsReleases.asp?ReportID=856189.
Pure Nickel’s May 13
th, 2019 acquisition of the Neal GOLD Project in Idaho, (
https://www.purenickel.com/s/NewsReleases.asp?ReportID=850332) gave them not only a great GOLD property, but also an important new investor. Pure Nickel immediately engaged an economic geologist to develop an NI 43-101 technical report for the property. That report was filed just two weeks after the acquisition, indicating to me these guys are very well connected, aggressive, and very committed. In my experience, generally speaking, an NI 43-101 takes months to develop. The history and quality of the Neal property makes it clear Pure is very interested in GOLD properties of merit.
Having read their August 22
nd NR, it’s pretty obvious Pure is really excited about Explor’s Timmins Porcupine West GOLD property. The News Release goes into extensive detail about the TPW; immediate 35,000meter drilling plans to further delineate the Open Pit potential, and to confirm some of the deeper drilling results developed by Explor over the years. They also intend to do what it takes to get a PEA (Preliminary Economic Assessment) done as soon as possible. A PEA is an independent study, which will include an economic analysis of the potential viability of the TPW, confirming Explor’s plan to start with an inexpensive Open Pit operation, and then eventually moving underground. The PEA will also describe the net value of the project at various GOLD prices; the internal rate of return and the projected payback period of the required financing.
The single most important reason to be excited about the amalgamation is the source for the NIC $3million Convertible Debenture earmarked for the proposed TPW drilling. When converted, and added to the 10,221,732share consideration received for the Neal property, this exceptional financier would have 70million really good reasons to see the amalgamated equity grow in value. Given his organization’s track record spanning decades, I can only imagine what impact their influence might have?
Explor’s President & CEO Chris Dupont negotiated this deal over a long period of time, going back & forth until this mutually beneficial amalgamation was reached. Now, he is finalizing the AGM (Annual General Meeting) documents which will be in shareholders’ hands shortly. On receipt, please read the documents carefully, then go online and vote your choices. Personally, I think this amalgamation is the best option we shareholders have. I have been inundated with calls from many of my investor friends on the heels of the August 22
nd NR, and shared my thoughts on why this is a good deal for us. Once the votes are counted, & the transaction clears all the regulatory authorities, I think we will hold stock in one of the most promising & potentially profitable entities in the mining exploration sector.