Alphastox initiates coverage on Lakeland Resources (LK).Dear Alphastox Subscribers,
In the last 12 months, there have only been a few names on the TSX Venture that have performed very well and have given investors substantial upside. Alpha Minerals (TSX.V: AMW) and Fission Uranium (TSX.V: FCU) are two of those names, both with exponential growth (FCU over 300% and AMW over 1000% increase) and both are in the uranium space. The uranium sector is considered a “hot commodity” at the moment, and we feel we are bringing you the next successful deal in the uranium space. I want to introduce to my subscribers, Alphastox’s and Transcend Resource Group’s first ever pure uranium explorer: Lakeland Resources Inc. (TSX.V: LK).
Lakeland is a pure play uranium exploration story in the Athabasca Basin in Saskatchewan, Canada. The Athabasca Basin is one of the world’s leading uranium districts because of its high grades (in excess of 20%), infrastructure and political stability. There has been significant M&A activity in the area in the last year and a half with Rio Tinto acquiring Hathor for $654 million, Fission Energy acquiring Pitchstone, Denison acquiring JNR Resources and then later acquiring most of Fission Energy’s basin assets in a deal valued at approximately $70 million. Lakeland has secured over 100,000+ hectares in the area. One of the most interesting things that everyone needs to know is that Dahrouge Geological Consulting Ltd. is the group that will be driving the company technically. The consulting group is led by famous and well known successful uranium explorer Jody Dahrouge who is the same geologist that helped find and put together the land package for Fission Energy which was taken over by Denison. His team contributed to discoveries at Waterbury Lake and Patterson Lake South and is now in the process of doing it again with Lakeland.
The company has not only surrounded itself with experienced consultants that are major shareholders (Jody Dahrouge now owns 1.6 million shares of LK) but is also led by a very successful advisory board with Rick Kusmirski who was the former exploration manager at Cameco (CCO) and later President and CEO of JNR Resources’ which was eventual bought out by Denison (DML) and Zimtu Capital’s (ZC) Dave Hodge and Ryan Fletcher coming on board. The company is not only led by the right management team, but is also well structured financially for success.
Lakeland sits today at around a $2.1 million market cap, and approximately 22 million shares outstanding. Zimtu Capital owns approximately 4.5 million shares, Dahrouge owns 1.6 million shares, while other insiders, management and advisors own another 3-4 million shares, keeping the company very tightly held. Zimtu Capital are long term holders who share the same vision for the company as management.
The deal has just begun. The company is just beginning to market their story and you will hear a lot more of Lakeland’s success in the next few months. I love the tight structure and the fact that Jody Dahrouge is backing this deal. His success in the area brings a lot of clout and credibility to the deal, so don’t be surprised if you see Lakeland trading at higher valuations in the near future.
As always, if you have any questions, please do not hesitate to e-mail or call me anytime. I look forward to hearing from my subscribers.
Best Regards,
Etienne
Disclosure: Transcend Resource Group has been paid a consulting fee for initiating a report and for providing consulting services to Lakeland Resources.