Where are we in the amalgamation process between Explor Resources TSX-V-EXS, NASDAQ-OTC-EXSFF, Frankfurt-E1H1, and Pure Nickel TSX-V-NIC, announced by both companies August 22nd, 2019? A $3million Convertible Debenture has been completed with NIC, and accepted by the TSX Venture Exchange. In large part, $2.5million of that is earmarked for a 35,000meter Definition & Infilling Drilling campaign at Explor’s Flagship property, the Timmins Porcupine West GOLD Deposit (TPW). Further, NIC, upon receipt of the Debenture funds, made a $500,000 Private Placement in EXS (at CDN.05), and that transaction has also been accepted, and approved by the TSX Venture Exchange. So, now its up to the shareholders of EXS to complete the amalgamation. The ‘Record Date’ for the AGM (Annual General Meeting) has been moved to December 11th, 2019. By Exchange rules, shareholders must be given at least 30 days to review the AGM package of materials. That would suggest we should all have the material in hand near the beginning of November. Of course, most of us expected to receive the package by now. Given the nature of the proposed amalgamation, the Exchange has a plethora of written requirements, well above and beyond a basic AGM package. To be compliant, the package, with all its assorted, additional addendums, will look much like a manuscript for a long movie. And therein lies the long wait. The production of this documentation has been an arduous task, but very close to completion. The final step in the process is the approval of the entire package by the TSX Venture Exchange. Then, and only then, can the document be printed, and mailed out.
The apparent toughest choice we have approving the amalgamation, is the fact our stock positions will be cut in half. However, Pure Nickel (NIC) has been trading in a range roughly twice that of Explor (EXS), so I, personally, don’t see a big drop in my equity position. Further, as the drilling campaign gets underway at the TPW, I’m quite confident the amalgamated equity will strengthen nicely, especially with decent results. And, given the power behind the Debenture funding, I’m guessing that will happen sooner, rather than later.
I’ve seen, touched and scrutinized the TPW core samples referenced by Pure Nickel in its August 22nd release, quote, “drill holes TPW 11-60 -- 7.8 m @ 114.76 Au g/t and TPW 11-65 -- 3.3 m @ 28.46 Au g/t” (confirmed and quoted in an NI 43-101 report on the GOLD Deposit). The delineated strike length of the TPW to date is 2,000meters (1.25miles!), ‘open’ at both ends, and ‘open’ at depth, with GOLD values rising the deeper you go. Applying the industry standard ‘Hollinger/McIntyre’ mine modelling system to the Deposit, the TPW GOLD Resource has a CONSERVATIVE potential of 20,000,000 to 30,000,000ounces of GOLD. The model has been continually confirmed, and updated, through the results of Explor’s drilling of 133 Diamond Drill holes, and 65 ‘Wedges’, (and, all historical Diamond Drilling done on the Deposit by others, prior to acquisition by EXS). Notably, the Explor team found GOLD in 95% of all those drill holes and wedges. That’s unprecedented!