Romarco: A Remarkable Masterpiece!! (Part 2)Multibagger, anyone? 2007 will be R's!!
R-v
Part 1:
https://www.stockhouse.ca/blogs.asp?page=viewpost&blogID=514&postID=8244
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VALUATION CRITERIA:
- In Catanava's veins riches abound:
https://72.14.203.104/search?q=cache:aR0sMxZUKE0J:www.findarticles.com/p/articles/mi_m0EIN/is_2005_April_7/ai_n13562179+%22Minera+Apolo+SA+de+CV&hl=fr&gl=ca&ct=clnk&cd=6
"The areas of most interest are vein intersections, which reportedly have resulted in many bonanza gold zones in the Pinos District. "
Since veins from the Old Pinos District converge in Catanava (New District) and assuming the estimated grades to be accurate, Romarco will likely obtain assay drilling results close to if not in excess of 60 gr/ton gold and 500 gr/ton silver.
- Infrastructure worth millions of dollars: Pinos shafts/underground workings
https://www.stockhouse.ca/blogs.asp?page=viewpost&blogID=391&postID=7322
35 out of 54 historical shafts/underground workings are in working condition. They were built in the 1800's. "These shafts will save millions of dollars in drilling and provide easy access at depth for sampling."
- To project develop Pinos heavy financing is needed (CFO):
Romarco recently closed an 8.5 million $ financing (they asked for 6 million $, they were offered 10.5 million $). They have the needed financing that will in large part be used on the Pinos assets.
- Donald McLeroy from Minera Apolo knows better than anyone what resides in the Pinos properties:
https://72.14.203.104/search?q=cache:aR0sMxZUKE0J:www.findarticles.com/p/articles/mi_m0EIN/is_2005_April_7/ai_n13562179+%22Minera+Apolo+SA+de+CV&hl=fr&gl=ca&ct=clnk&cd=6
"Between 1975-1983, Bethlehem Steel ("Bethlehem") entered into a joint venture with Industrias Penoles ("Penoles") to explore and exploit the Pinos District. To carry out this joint venture, Minera Apolo S.A. de C.V. was formed with Bethlehem as the operator. Bethlehem accessed and mapped various underground workings, sampled the veins in all available workings, sampled surface dumps and tailings and also conducted a limited surface drilling program […] However, Bethlehem withdrew from joint venture in 1983, before implementing a mine development program, reportedly due to corporate financial constraints related to the company's steel operations. Penoles did not advance the project and, in 1993, sold its interests in the concessions and Minera Apolo to the former manager of the joint venture, the current president of Minera Apolo. Since 1993, MA has entered into two option agreements, the most recent with Hecla Mining Company that conducted various exploration programs, including drilling, on portions of the concessions during the period 1995-1997. There has been no significant work done on the concessions since 1997, other than limited programs carried out by MA, in part, due to depressed gold prices during the period 1997-2001."
Don McLeroy's Minera Apolo is part of a 50/50 joint venture with Romarco. He knows better than anyone the historical sample and drilling results on the property and Catanava's potential. As to why he didn't conclude an option as to a potential joint venture before 2005, he surely made a conscious decision: As he waited until sectoral macroeconomics (ex. gold price and anticipated one) would answer his needs best and facilitate heavy financing.
FYI: "Can-Cal Resources Ltd. Signs Option Agreements to Acquire 29 Gold-Silver Concessions in Mexico Business Wire, April 7, 2005
LAS VEGAS -- Can-Cal Resources Ltd. ("the Company") (OTCBB:CCRE) is pleased to announce that its wholly owned Mexican subsidiary, Sierra Madre Resources S.A. de C.V. ("SMR"), has signed two option agreements to acquire interests in the mining rights to 29 gold-silver concessions, covering approximately 3,100 hectares (approximately 7,700 acres). The concessions are located in a historic mining district in the Municipality of Pinos, Zacatecas State, Mexico (the "Pinos District") and are owned by a private Mexican company, Minera Apolo S.A. de C.V. ("MA").
LAS VEGAS, NEVADA, Jul 18, 2005 (CCNMatthews via COMTEX) -- Can-Cal Resources Ltd. ("the Company") (CCRE) and its wholly owned Mexican subsidiary, Sierra Madre Resources S.A. de C.V. ("SMR"), announce that following extensive consultation, and based on the Company's due diligence review, that it will not proceed on its proposed joint venture with Minera Apolo S.A. de C.V. ("Minera") otherwise known as the "Pinos Project. "
At the time of the option agreement signing, CCRE had a maximum of 21,017,603 shares outstanding trading at 0,11$/share. When CCRE renounced the option its stock price was 0,10$/share. Gold was roughly 420$/oz. Thus the financing of the exploration and exploitation of the project would have been a colossal undertaking and CCRE was in debt:
https://72.14.203.104/search?q=cache:GYW9Jr5Bdu8J:bankrupt.com/TCR_Public/050722.mbx+can-cal+pinos+debt&hl=fr&gl=ca&ct=clnk&cd=6
At Mar. 31, 2005, Can-Cal Resources Ltd.'s balance sheet showed a
$791,000 stockholders' deficit.
Its decision not to persue surely had nothing to do with a diminished assessment of the quality of Minera Apolo's properties!!
- Free broadbased marketing: Institutional holders in 5 countries will make sure that the word gets out when favorable high grade assay results are known. They are:
Sprott Asset Management
US Global Investors
Sun Valley Gold
Zurich Funds / Banks
Baker Steel (UK)
RAB Capital (UK)
RMB Australia Holdings
- Cash and cash flow:
The company has 8 M$ in cash and has a potential of 18.5 M$ more if warrants are exercised.
The near term production pilot plant will enable the company cash flow.
Romarco has no debt.
- Top management with experience and notoriety.
- Significant financial and institutional backing.
- Favorable sectoral macroeconomics.
- Institutional ownership will remain strong (currently owns 80% of shares).
- Letter writers and mining sector experts own Romarco shares and/or follow it(provided by spexstox):
https://www.stockhouse.ca/bullboards/viewmessage.asp?no=13708590&t=0&all=0&TableID=1
"Confirmed today - Paul van Eden and Doug Casey have PP shares. Roger Wiegand purchased shares in August and has included Romarco in his most recent publication. He writes regularily on Kitco as well. Ken Gerbino - (letter writer)precious metals- also owns stock. Both very big in the business. L. Roulston recommended Romarco earlier this year and I would expect him to provide an update - in all fairness - to his subscribers. Stock trading very nicely and should be accummulated at these prices. Results from Nevada at anytime, however the Mexico situation is where it's at! Sampling at Pinos currently underway as per recent NR. "
https://www.stockhouse.ca/bullboards/viewmessage.asp?no=13735139&t=0&all=0&TableID=1
"RESOURCEWORLD Magazine has an article under the title: "Mining Stocks to Watch" written by Doug Hadfield, editor of Resourex Investor Newsletter (global publication). I expect more writers to follow - in the new year - as the Pinos project advances. NOW is the time to "load up" at these bargain prices. It's gonna happen! "
- Properties with prior production, better yet with an estimated extracted quantity priced today at over 3 501 250 000 US$ (Old Pinos District)!! This is assuming 636 US$/oz gold x 5 000 000 oz AND 12.85 US$/oz silver x 25 000 000 oz.
- Large number of shares outstanding: yes indeed!:
There are currently 92 080 194 shares plus 70 368 644 warrants. If all warrants become exercised, the total number of shares will be 162 448 838. That would consist in a 43% dilution.
What matters most is Romarco's potential market capitalisation. This will be derived from the above VALUATION CRITERIA.
ROI (AVG SHARE PRICE 0,30$)
MARKET CAP/NUMBER OF SHARES
92 080 194 (A) 162 448 838 (B)
(A)
50 000 000,00 81%
100 000 000,00 262%
150 000 000,00 443%
200 000 000,00 624%
300 000 000,00 986%
400 000 000,00 1348%
500 000 000,00 1710%
600 000 000,00 2072%
700 000 000,00 2434%
800 000 000,00 2796%
900 000 000,00 3158%
1 000 000 000,00 3520%
(B)
50 000 000,00 3%
100 000 000,00 105%
150 000 000,00 208%
200 000 000,00 310%
300 000 000,00 516%
400 000 000,00 721%
500 000 000,00 926%
600 000 000,00 1131%
700 000 000,00 1336%
800 000 000,00 1542%
900 000 000,00 1747%
1 000 000 000,00 1952%
The private placement shares can be traded as of December 29th (CFO). It is unlikely that the financial institutions sell great many shares at the time of sample or drilling results.Their expectations are surely a market capitalisation potential between 500 M$ to 1 B$ within 2 years and they will act accordingly.
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LINKS:
Diane Garrett's presentation in Dubai:
https://events.onlinebroadcasting.com/minellc/103106/index.php?mode=1&sel_date=1
Loonee's R-v : Romarco Minerals, more than gold exploration web blog:
https://www.stockhouse.ca/blogs.asp?page=viewpost&blogID=391&postID=7035
Loonee's R-v : Feliz Navidad - Silver Gold, Silver web blog:
https://www.stockhouse.ca/blogs.asp?page=viewpost&blogID=391&postID=7322
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In conclusion, Romarco will likely obtain assay drilling results close to if not in excess of 60 gr/ton gold and 500 gr/ton silver. If so, the company's future news release will send shockwaves through the markets, internationaly even. Market capitalisation will then in short time skyrocket to an eventual equilibrium (and a very big ROI), making many people rich in the process!!
Let's not forget the Old District...
We are fortunate enough to know of such a company and to be shareholders of it (or potential ones)!!
In Catanava's veins riches abound!!
Valuation_