At the depths of the 11'-15' gold bear market, when gold companies were shutting down operations, turning off the lights, and handing in their office keys to the landlord, Mr. Keith Neumeyer was like a hunter during game season.
Along with his team of mining experts, they constructed a watch list of what they perceived as the best gold projects they'd love to get their hands on.
Investors were very cautious of supporting entrepreneurs in the resource sector and the consensus was that gold mining was dead.
In classic contrarian fashion, Keith Neumeyer, the CEO and founder of First Majestic Silver, one of the largest mining conglomerates listed on the New York Stock Exchange with a market cap of USD$4.5 billion, decided this severe bear market was actually an ideal time to consolidate gold projects into one new company at possible liquidation-like prices.
The result was a company that had acquired a number of world-class gold projects in Canada.
Keith Neumeyer is the founder and chairman of First Mining Gold (TSX: FF & US: FFMGF) and there's a one-time, time-sensitive event that's happening as we speak that should result in a Special Dividend equal to approximately 10%!
All one has to potentially do to be eligible to receive this distribution is to become a shareholder of First Mining Gold (US: FFMGF & TSX: FF) before July 14th!
I've rarely seen the setup that management of First Mining Gold (US: FFMGF) has been able to secure, so I am alerting you to this opportunity immediately!
One of the company's tier-1 assets is the Goliath/Goldlund gold complex, which is being developed by their partner on the project, a company called Treasury Metals (US: TMRSF). First Mining (US: FFMGF & TSX: FF) received approximately 43 million shares, and approximately 11.7 million warrants, of Treasury Metals (TML), when they sold the Goldlund project to Treasury Metals.
The management of First Mining Gold (US: FFMGF & TSX: FF) is going to distribute approximately 23 million shares of TML, and approximately 11.7 million warrants of TML, to First Mining’s shareholders in mid-July, pending a shareholder vote that is scheduled to be held on June 30!
Anyone who owns shares of First Mining Gold (US: FFMGF) on the record date (which is expected to be on or around July 14th) will be eligible to receive their pro rate share of the TML shares and TML warrants in this distribution!
This means that, for every 1,000 shares of First Mining Gold that you own as of July 14th (the expected record date for the distribution), you will receive 33 shares and 16 warrants of TML, which works out to a 9.2% yield, based solely by the value of the TML shares and warrants compared with First Mining's (US: FFMGF & TSX: FF) market cap!
Conduct your due diligence on First Mining Gold immediately. When do you, keep the following in mind: Based solely on the chart below, First Mining Gold is one of the cheapest gold developers out there!
As you can see, First Mining's valuation is discounted by 80% compared with the average gold developer and by 84% in comparison with advanced gold developers!
First Mining’s share price would actually need to rally by 400% just to be average!
This begs the question of what could cause a re-rating in the company's market cap, and the answer is Springpole, one of the largest gold development projects in the world, which currently has an NPV of USD$995M, even though First Mining's market cap is only USD$216M.
As you can see, recent mergers and acquisitions in the Canadian gold sector have been completed at anywhere between 0.6x and 0.9x NAV. If we are very conservative and assume that First Mining Gold receives its environmental assessment and advances the Springpole project to the point of having it "mining-ready," with the NPV being USD$995M, the 0.6x calculation values it at USD$600M, which is 200% higher than First Mining’s share price today!
If First Mining Gold (US: FFMGF) didn't have USD$40M in cash and liquidity, if it didn't have multiple assets and partnerships (Cameron, Pickle Crow, Hope Brook, and others), if it didn't hold shares of Treasury Metals, Auteco Minerals, and Big Ridge Gold, and if it didn't have a robust royalty portfolio and just had Springpole to its name,Springpole's implied value alone would still suggest that today's market cap is 66% below the 0.6x NPV of Springpole alone! Do your your number crunching on this, because it shows you the clear picture.
In simple terms:
- Springpole's implied value if listed for sale once getting it "mining-ready": USD$600M {NPV $995M * 0.6 M&A multiple, per the chart above}.
- First Ming Gold’s partnership portfolio: USD$110M.
- First Mining Gold's current cash & marketable securities position: USD$40M.
- First Mining Gold’s current market cap: Only USD$216M.
The company's assets are priced below its peers and, on or around July 14, Keith Neumeyer-led First Mining Gold (US: FFMGF) plans to distribute shares and warrants of TML to shareholders, and if you hold your First Mining shares in a brokerage account, you will see the shares and warrants of TML in your account within a couple of days of the distribution.
You don’t need to do anything else – you just need to own settled shares of First Mining as of July 14th (the expected record date for the distribution).
This is a special moment for the company! The value proposition is detailed, in simple terms, below:
Notes:
1. First Mining Gold needs to obtain the approval of its shareholders in order to effect the distribution. The company has called a meeting of its shareholders for June 30, 2021, and expects to receive the required shareholder approval at the meeting.
2. First Mining Gold also needs to obtain final court approval for the distribution. Assuming it receives shareholder approval, First Mining plans to obtain the final court approval on July 5th, and once the company has that approval, it will provide confirmation of the exact record date for the distribution, as well as the exact date on which the distribution will take place.