This is the piece from IKN325 last Sunday evening.
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Midas Gold
(MAX.to): September 18th 2015 is a date for the diary
(MAX.to): September 18th 2015 is a date for the diary
The effective date of distribution
for the big (well, in 2015 terms at least) CAD$8m placement ran by Midas Gold
(MAX.to) earlier this year at 42c was May 20th (23) which means that the 19.1m
shares, along with their 9.56m half warrants (priced at 60c, valid for two
years) printed in the deal become free trading on Friday September 18th. That’s
now less than six weeks away, so this is your first headsup on a likelihood of
aVancouver
promo pump job in the making. What’s particularly interesting about this
set-up:
for the big (well, in 2015 terms at least) CAD$8m placement ran by Midas Gold
(MAX.to) earlier this year at 42c was May 20th (23) which means that the 19.1m
shares, along with their 9.56m half warrants (priced at 60c, valid for two
years) printed in the deal become free trading on Friday September 18th. That’s
now less than six weeks away, so this is your first headsup on a likelihood of
a
promo pump job in the making. What’s particularly interesting about this
set-up:
1) The
size:
The $8m placement run by MAX.to is chunkier than most, the right size for the
promotion world to be interested.
size:
The $8m placement run by MAX.to is chunkier than most, the right size for the
promotion world to be interested.
2) The
timing:
The shares and warrants come out of escrow just a couple of weeks afterUS
Labor Day, traditionally the point where people in the North turn away from vacation
life and get back to serious work. The end of the doldrum period, in other
words.
timing:
The shares and warrants come out of escrow just a couple of weeks after
Labor Day, traditionally the point where people in the North turn away from vacation
life and get back to serious work. The end of the doldrum period, in other
words.
3) The
recent newsflow. Or lack of, because there has been virtually nothing from MAX.to. News
releases since May 20th have been minor and we haven’t even had an update of
the corporate presentation since April (24). This is a companydel
hibernation.
recent newsflow. Or lack of, because there has been virtually nothing from MAX.to. News
releases since May 20th have been minor and we haven’t even had an update of
the corporate presentation since April (24). This is a company
hibernation.
4) Price
support.
Yes we’re down from the 42c placement price, but the 34c we see in MAX.to this
weekend isn’t that much of a drop compared to the carnage we’ve seen in other
junior mining issues in the June and July period (no need to remind this
audience about that).
support.
Yes we’re down from the 42c placement price, but the 34c we see in MAX.to this
weekend isn’t that much of a drop compared to the carnage we’ve seen in other
junior mining issues in the June and July period (no need to remind this
audience about that).
5) The
project and company. Unlike many other pump jobs, we can at least look at Midas
and its main Stibnite project and say there’s plenty of substance there, it’s a
fairly decent junior prospect that has received thumbs up from several serious
mining professionals that I trust (e.g. Brent Cook likes the thing’s chances of
becoming a profitable mine one day). Today’s headsup isn’t really the place for
a detailed look (we’re about the pumpo here) but I’d direct you to that April 2015
corporate placement again (24) for a decent overview of what it’s all about.
What also plays to the promo pump set-up is the estimated timeline to
construction and production because this Idaho-located project still has plenty
of permitting hoops to jump through in order to become an operation, which
leaves a relaxed timeline to pump it up at the moment without treading on the
toes of a real mine and its objectives.
project and company. Unlike many other pump jobs, we can at least look at Midas
and its main Stibnite project and say there’s plenty of substance there, it’s a
fairly decent junior prospect that has received thumbs up from several serious
mining professionals that I trust (e.g. Brent Cook likes the thing’s chances of
becoming a profitable mine one day). Today’s headsup isn’t really the place for
a detailed look (we’re about the pumpo here) but I’d direct you to that April 2015
corporate placement again (24) for a decent overview of what it’s all about.
What also plays to the promo pump set-up is the estimated timeline to
construction and production because this Idaho-located project still has plenty
of permitting hoops to jump through in order to become an operation, which
leaves a relaxed timeline to pump it up at the moment without treading on the
toes of a real mine and its objectives.
6) The
people who bought the placement. There were a total of 83 persons (natural or
judicial) who took parts of the placement and in among them are many that are
involved in the typicalCana dian pump job.
There are more promo and insto names on the list of placement takers (23) than
you can shake a stick at, but by way of a sample…
people who bought the placement. There were a total of 83 persons (natural or
judicial) who took parts of the placement and in among them are many that are
involved in the typical
There are more promo and insto names on the list of placement takers (23) than
you can shake a stick at, but by way of a sample…
·
M&G Investment Management of
theUK
($1m of the placement)
M&G Investment Management of
the
($1m of the placement)
·
Sun Valley Gold Master Fund ($412k
of placement)
Sun Valley Gold Master Fund ($412k
of placement)
·
Jeff Phillips of Global Market
Development ($126k of the placement), who also earned $91k in finder’s fees so
there are plenty inside his sphere also in this deal
Jeff Phillips of Global Market
Development ($126k of the placement), who also earned $91k in finder’s fees so
there are plenty inside his sphere also in this deal
·
Casey Research via its KCR LLC fund
(25) ($420k of the placement), run in cahoots with Rick Rule and his entourage.
Casey Research via its KCR LLC fund
(25) ($420k of the placement), run in cahoots with Rick Rule and his entourage.
·
Marin Katusa ($42k of the
placement)
Marin Katusa ($42k of the
placement)
·
Plethora Precious Metals of The
Netherlands ($84k of the placement)
Plethora Precious Metals of The
Netherlands ($84k of the placement)
·
Sprott Funds via Exploration
Capital Partners fund ($840,000 of placement)
Sprott Funds via Exploration
Capital Partners fund ($840,000 of placement)
·
Kitco Gibson ($21,000 of placement)
Kitco Gibson ($21,000 of placement)
All
those and more with most of those less interested in the long-term wellbeing of
the Stibnite property and more interested in the near-term lining of their back
pockets. Between them, noise is bound to be made and we also note with interest
that MAX.to was one of the lunch sponsors at last week’s Sprott/Stansberry
conference, where those present got a plate of food while they watched the
company present and pitch.
those and more with most of those less interested in the long-term wellbeing of
the Stibnite property and more interested in the near-term lining of their back
pockets. Between them, noise is bound to be made and we also note with interest
that MAX.to was one of the lunch sponsors at last week’s Sprott/Stansberry
conference, where those present got a plate of food while they watched the
company present and pitch.
It’s nev
artists will hit the green light on a pump. It may come before the September
18th/19th escrow date, it may come afterwards. If I had to bet I’d say slightly
before (the timing with Labor Day is unlikely to be a coincidence) and the
other matter here is what gold the metal will do in the meantime.
artists will hit the green light on a pump. It may come before the September
18th/19th escrow date, it may come afterwards. If I had to bet I’d say slightly
before (the timing with Labor Day is unlikely to be a coincidence) and the
other matter here is what gold the metal will do in the meantime.
I think there’s a trade on the back
of these people at some point, though. If MAX is hanging around at its current
sub-40c levels come the end of August, stealing some of the pump’s fire for
ourselves may turn out to be a profitable trade over the course of three or four
weeks.
of these people at some point, though. If MAX is hanging around at its current
sub-40c levels come the end of August, stealing some of the pump’s fire for
ourselves may turn out to be a profitable trade over the course of three or four
weeks.