( PARBEC ) Motherlode... Cha-Ching: Renforth Resources in the Money
Renforth CEO Nicole Brewster’s notes to her shareholders are always a treat. Clear, often hilarious and full of useful information. The note accompanying the Press Release confirming the close of the sale of Renforth’s New Alger property on the Cadilac Break in Quebec to Radisson.
We are in the money!
It is exciting to have money in the bank, even more so when it is a lot of money.
But what does that mean?
Well, we will continue to operate as we do, with the bulk of the money going into the ground (last year that % was ~90% of funds raised in the ground fyi).
So guess what? Drill will be on Parbec next week. Here we go!
So - my thoughts on the bank we have now.
1 - we are not going to need to do any PP for the foreseeable future, our exploration is funded for a good while. If the stock trades up we will hopefully see some warrants exercised, time will tell. That means that we will be pretty non-dilutive for the next while, a potential new shareholder will have to buy in the market, there will also not be an overhang of institutional flow through stock hitting the bid (been there, done that). On that note Radisson becomes a shareholder, however, we have entered into a mutual agreement where, in the spirit of our partnership, we have restrictions on selling the stock which extend for 3 years, limiting potential market impact. (eliminating dilution risk)
2 - there is no danger - whatsoever - of Renforth facing challenges in funding going forward BECAUSE WE DON'T HAVE TO! Not for a while. So no threat of the Company having trouble meeting its' obligations. (eliminating financing risk)
3 - We keep Parbec, which was our more mature asset on the Cadillac Break, an open pit constrained gold deposit, with additional areas of mineralization identified on the property. We are well funded to continue to mature this gold deposit and develop the resource. This deposit is located adjacent to the Canadian Malartic Mine, which is Canada's largest open pit gold mine. Given that they chew through 50,000t of rock per day, utilizing several on site above and underground crushers (5 if I recall correctly, but I could be off), CM Mine is also arguably Canada's largest rock quarry. And that beast needs to be fed. Or maybe they have some custom milling capacity? It is hard to say, we have options. But first we drill. Oh, immediately joined to the east side of our Parbec property is the East Amphi Mine part of the CM Mine property (the very NW of CM Mine property), seems our neighbour is now actively drilling there, started earlier this year. SO we will be like our neighbour, drilling away. (eliminating - except we never really had any - asset risk) (BUT - we have no jurisdiction risk, we are in NW Quebec and beside a giant mine in a historic mining camp and operating mining area....we are pretty secure, little chance of a military overthrow or occupation etc.)
4 - We have other properties - 4 of them, in the Company. In the background we are still working on Surimeau, I look forward to having something to tell you about our maiden work there in likely the next 2 weeks. We are assessing next steps for Malartic West, our copper/silver discovery also tied onto the CM Mine property. And we have Nixon-Bartleman in Ontario, really hoping we can get out there this fall. Our Denain-Pershing Property is in the hands of O3, they are earning in on their option. All of this is in the background for now, but we have lots of options. Our focus is on Parbec. (This is also eliminating the asset risk we don't have.....)
Ok. Enough of this.
Bottom line, we have the goods (literally the gold), in the right location, and we are well funded.
And, personally, I think our timing is just right.
So, stay tuned! Have a lovely week.
Oh, wait - I am at the Mines and Money conference this week, as well as the Global Mining Symposium hosted by the Northern Miner.
Come and see me if you want!
Sign up links minesandmoney and Global Mining Symposium both are online and do offer sign ups to qualified investors.
Something new I am doing, focussing on marketing, which I really only started doing post PDAC this year, in the midst of a pandemic....lots of online and virtual initiatives, all of which is much more relevant today. Any interested parties this effort creates now have to come into the market to buy....
Ok, good-bye, stay well, talk to you after our long weekend, everyone be safe - Nicole