Bullboard - Stock Discussion Forum Victoria Gold Corp VITFF

Metals & Mining Gold

Victoria Gold Corp. is a gold mining company. The Company’s flagship asset is its 100% owned Dublin Gulch property, which hosts the Eagle, Olive and Raven gold deposits along with numerous targets along the Potato Hills Trend including Nugget, Lynx and Rex Peso. Dublin Gulch is situated in the central Yukon, Canada, approximately 375 kilometers (km) north of the capital city of Whitehorse. The... see more

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Victoria Gold Corp > VGCX Clear Creek Property Sale to Sitka

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Post by HoneyBadger77 on Jun 24, 2024 12:04pm

VGCX Clear Creek Property Sale to Sitka

So let's see....

Victoria recently buys Brewery Creek, Gold Dome and Clear Creek properties for about $11 million and then soon after sells just one of these properties - Clear Creek for approximately $4 million in Sitka shares (based on today's price of .185 cents a share), plus $11 million in cash by June 2027, a 5% net smelter royalty AND $10 million in cash within 60 days if / when Sitka discovers 2 million ounces in gold (or gold equivalent) on the property verified through an NI 43-101.

So all in all about $15 million EXCLUDING the 5% royalty and the potential for an additonal $10 million if Sitka proves a 2 million ounce reserve. So Victoria essentialy got Brewery Creek and Dome Gold for free and even made money and the market gives this deal a BIG YAWN.

Now I'm sure some Victoria shareholders are dismissing this deal because Victoria didn't get any upfront cash and yes upfront cash is always nice but this deal by far makes up for the delayed cash return. And the other positive here is that with Cleer Creek having now been sold, that's just one less property for Victoria to thow more exploration dollars at.

There's really only one main reason I believe Victoria shares are still trading in the mid $7 range with gold at ~ $2350 US an ounce and that's simply because investors are waiting for Q2 and Q3 production results and then we'll finally be past all this nonsense. We should see Q2 production results by mid July and Q3 results by mid October. Decent Q2 production results should move Victoria share price to around $9 and decent production in Q3 should move the share price to $11. With significant debt reduction and gold prices holding around today's price or headed higher, by this time next year I expect Victoria shares will be at least $15. The days of Short sellers, institutional funds, and day traders having their way with this stock will end soon enough.

My opinion only, please DYODD.

HB77

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