Fairmont Resources (
TSX: V.FMR,
Forum) isn't sitting around waiting for the small-cap resource sector to rebound - it's starting the rebound itself. Fairmont's stock has more than tripled in the last month and it isn't just luck. The company has completed some major acquisitions in a depressed marketplace and is moving forward not only on the exploration side but on the production and cash flow side as well.
Fairmont successfully completed a small financing, which is a significant feat alone in this tight-capital market, and is on the verge of closing a major financing to complete the purchase of one of the larger granite producing assets in Europe that will bring near term cash flow through existing inventory sales and the re-commencement of production for finished granite products.
What's more is that the company has acquired a very prospective lithium property in Quebec, right next door to a formerly producing lithium mine which was just sold for approximately $200 million. Fairmont has obviously found the secret for success in a poor market and is just beginning to show some of its potential in a market which is still poised for a significant rebound.
"Fairmont Resources is positioning itself to be the antithesis of small cap resource stocks that led to the crash of the TSX Venture Exchange. Whereas those "companies" - if you can call them that - focused on promoting the paper bought by friends and family at cheap prices without a business plan, Fairmont intends to be the leading face of junior resource stocks by building a real company, with powerful foundations.”
“To this end, our acquisition of Grabasa out of bankruptcy will provide us with a solid underlying business that will generate significant cash flow, make us one of the largest Granite producers in Europe and bolster our balance sheet with significant assets that we acquired for pennies on the dollar. With that foundation in place, we can comfortably develop our Quebec based Quartz and Lithium properties without the pressures of constantly looking for cash. This is what small cap investors want and this is what Fairmont is going to give them."
Michael A. Dehn, CEO, Avanti Management & Consulting Limited
For more in-depth coverage on Fairmont Resources, you can access a
full report recently published by QIS Capital HERE.