Post by
goldspinner on Dec 03, 2016 12:21pm
MTO FINANCIAL POST
https://business.financialpost.com/news/mining/small-cap-news/metanor-the-pieces-fit Small Cap News Metanor: The Pieces Fit Resources Wire | Jay Currie | November 30, 2016 7:00 PM ET More from Resources Wire | Jay Currie . Metanor drill deployed at Barry property in the Province of Quebec. Metanor ResourcesMetanor drill deployed at Barry property in the Province of Quebec.. Metanor: The Pieces Fit Speaking with Ron Perry, Metanors Vice President and Treasurer, you very quickly realize Metanor (V.MTO) has a strategy and the conviction to carry it out. If you look at a map of our Barry project youll see that we fit into the Osisko Windfall project like a jigsaw piece, said Perry. Part of our property sticks right into the Osisko property. Metanor is not shy about the fact it believes its property is right on the same trend that Osiskos Windfall mine is operating on. This drill hole intersects two gold bearing zones associated with sulphide (15%) in proximity to a regional fault. As per the drill holes, this dominant geological structure has a minimal length of 6 km, toward the Windfall property belonging to Osisko Mining. A segment of 3 km of this structure extends on the Barry property belonging entirely to Metanor Resources. reads Metanors October 31 Press Release. This drill hole was very rich indeed with gold values to 70.9 g/t AU over 2.6 meters. This hole was 4.7 km from Osiskos Windfall pit. said Perry. We basically mirrored the Osisko deposit with this hole. It is easy to understand Metanors awareness of Osisko. Metanor has a market cap of $23.37 million, Osiskos market cap is $360 million. It is a frustrating position to be in. Obviously, the management team at Osisko has an outstanding track record. They are able to raise money easily in the market and, realistically, they have nine drills out to Metanors one. But in the exploration business none of that really matters. What matters is the land position. Osiskos Windfall has presently 1.6 million ounces, Metanors Barry Pit has 1.3 million. But Metanor has a fully permitted mine and an operating mill and a book value of 56 million dollars. Having a piece of the Osisko Windfall mine jigsaw is a potentially huge upside for Metanor. Being in the right place at the right time has been a challenge for Metanor. While it has a producing mine, as we discussed in our earlier interview , that mine is subject to a royalty agreement. The exploration which Metanor is engaged in at its Barry property is designed to produce material for the Metanor mill which is not subject to royalty provisions. It is also designed to bring higher grade material to the mill. At the same time, Perry is very much aware of the fact the land Metanor has adjacent to the Osisko project has significant value. We started drilling about nine weeks ago. Obviously, Osisko is interested, said Perry. Would there be a possibility of a takeover? Perry will not be drawn into speculation but he points out that Metanor would present an interesting target. We have tax losses worth about 15 million dollars. We have a fully permitted mill not very far from the Osisko Windfall mine. And we have the extension of the structure Osisko is mining at Windfall. Plus, if you look at our balance sheet we have several million dollars in cash and gold in our treasury. In the junior resource space opportunity comes in a variety of ways. One is when, for a variety of reasons, a company is undervalued on a market cap basis. For Perry, seeing Metanor trading at less than 10% of the market cap of its next door neighbour, suggests that there is a lot of value being missed by the market. Were trading for much less than the value of the sum of our parts. said Perry. Value plays like Metanor often fail because, while there is indeed missed value, market conditions, the price of the resource or the financial situation of the company are unattractive. Plus, in many value situations, the companys asset is distressed or the company itself cannot, realistically, carry on in business. With an operating mine in hand, money in the bank and a new and highly prospective set of targets adjacent to a highly valued mining operator, Metanor can afford to wait. Perry is excited at Metanors prospects but he is just as excited about the companys continued operations as a stand-alone gold producer. Metanor and our shareholders will win either way. said Perry. At time of writing, Metanor was trading at $0.055 with 436.19 million shares outstanding for a market cap of 26.17 million dollars
Comment by
romara on Dec 03, 2016 3:26pm
And how is MTO going to process all that sulphite Ag ore.... there maybe good Ag readings, but if it's sulphite Ag it will be ahard process to extract that sulpite Ag ore..... what everyone wants is easy to process oxide Ag ore ..... Richard