The markets are indeed hot, but the junior resource CEO’s who think strategically and creatively to build not only immediate/short-term shareholder value but all the foundational pillars for long-term success are in short supply. With Sassy Resources (SASY, CSE), President & CEO Mark Scott has taken experience and leadership abilities honed during his many years at top levels with Vale and is turning Sassy into an early and big success story after launching the company public only 6 months ago (stock is up 50% since its August listing).
Having skillfully managed a workforce of 1,800 as VP-Operations at Vale’s Manitoba Nickel Division, Mark Scott knows how to handle a team and build a business. With these Venture/CSE companies, superior management is critical. What Sassy pulled off Friday (read their news again) was amazing with its foray into the heart of the Gander Gold Belt – not just the quality of the land package, but how they structured the whole thing. The creation of Gander Gold as a wholly-owned subsidiary (great name and a highly strategic vehicle!) and the pending Nicobat deal into a private battery metals company destined for the CSE, will ultimately take Sassy to new all-time highs in our view, while attracting some marquee investors in the process. At the same time, of course, Sassy has pulled off an extremely rare grassroots drill hole discovery in the Eskay Camp at its 100%-owned Foremore Property.
At the end of October/early November last year, the company cashed up by raising nearly $5 million at 90 cents (hard) and $1.20 flow-through. With just 39 million shares currently outstanding, they’ve unquestionably got 1 of the best share structures of any company involved in the Eskay Camp or Newfoundland. Notably, Sassy is suddenly the only publicly traded company in the world with a major foothold in the 2 hottest Canadian exploration camps. Mr. Market responded well to the news Friday and we do expect very positive follow-up next week, so this is certainly a stock to be accumulating right now (and it has broken out technically from a healthy 3-month consolidation).
By the way, Mark Scott recruited GoGold Resources‘ (GGD, TSX) founder Terry Coughlan to Sassy last fall as a Technical Adviser. He hails from Atlantic Canada where he’s very familiar with Newfoundland (in fact, GGD’s qualifying transaction years ago was a Copper-Gold deal on the island). Don’t be surprised if he enters the Sassy story in a much bigger way very soon. Coughlan is extremely well respected in the resource sector as his last 3 deals have all turned into operating mines, with GGD currently profitable and commanding a $700 million market cap.