One Gold Stock with Ounces, Royalties, and Exploration
by Mike Fagan
GoldMining Inc. (TSX: GOLD)(NYSE-American: GLDG) chairman, Amir Adnani, has penned a Letter to Shareholders detailing the company’s recent accomplishments and growth objectives for the balance of 2021 — and we thought we’d share that with you.
The shareholder letter details GoldMining’s:
Successful IPO launch of Gold Royalty Corp. (NYSE-American: GROY)
Resource inventory of 30 million AuEq ounces (M&I plus Inferred)
Initiation of PEAs for La Mina and Yellowknife gold projects
Plans for fully-funded drill programs at Titiribi and La Mina gold projects
GoldMining Inc. (TSX: GOLD)(NYSE:GLDG) is pleased to issue the following letter from its Chairman, Amir Adnani, updating shareholders on the recent successful launch of Gold Royalty Corp. (NYSE: GROY) and plans for project advancement:
Dear Fellow Shareholders,
Since going public a decade ago, we entered the first phase of Goldmining's strategy, which was to acquire resource-stage projects in stable jurisdictions in the Americas at opportune prices during low points in the gold and copper cycle. In 2020, we embarked on the second phase of our strategic plan with a view to unlock the intrinsic value from our vast project portfolio. To this end, we created Gold Royalty Corp. to expose existing shareholders to a new and distinct form of value enhancement.
Last week, Gold Royalty completed its successful initial public offering and listing on the NYSE American, achieving a market capitalization of approximately $200-million (U.S.). The IPO was tripled from its initial size of $30-million (U.S.) to $90-million (U.S.), which provided GRC with one of the strongest balance sheets amongst its peers.
As a result of this transformative event, Goldmining holds 20 million GRC shares on its balance sheet. Importantly, Goldmining shareholders have continued indirect ownership of our 49-per-cent equity stake in GRC, which has a current market value of approximately $120-million (1).
As such, we view the IPO as an important value-crystallizing event for the company and a strong vote of confidence in our team and assets. I would like to take this opportunity to thank the Goldmining and Gold Royalty teams for all their hard work and effort to transform Gold Royalty from a concept into a highly successful IPO launch in less than nine months.
Since the IPO, the GRC team has hit the ground running. Just yesterday, Gold Royalty announced an agreement to acquire a 1.2-per-cent net smelter returns royalty on the advanced-stage Seguela project. The project is operated by Roxgold Inc., an experienced mine developer and operator that has reported being on track to make a construction decision in the first half of 2021. As the largest shareholder, we look forward to more positive developments at Gold Royalty.
Moving forward, we remain focused on identifying accretive acquisition opportunities, evaluating joint ventures with potential industry partners and increasing our efforts to daylight value from our projects. We control one of the largest global resource holdings amongst our peers, with an aggregate total of approximately 14.3 million ounces gold equivalent measured and indicated resources and 16.5 million ounces gold equivalent inferred mineral resources (see the included table for further information).
While our technical team continue key projects for advancement, we are initiating preliminary economic assessments at the La Mina gold-copper project in Colombia and the high-grade Yellowknife gold project in Canada. We expect these studies to be completed in H2 2021. In addition, diamond drilling programs to test geological targets and to better define, and potentially expand, existing mineral resources at the Titiribi and La Mina projects in Colombia are currently planned to commence in H2 2021. Details will be announced as the studies progress and as program details are refined and finalized. These programs will be financed with existing cash on hand and are subject to permitting and potential restrictions related to COVID-19.
We look forward to an exciting 2021 for Goldmining, Gold Royalty and all our stakeholders. We thank our shareholders for their continued support and look forward to reporting further progress as we execute our strategy.
Mike Fagan has mining in his blood. As a teenager he staked countless gold and silver properties in Nevada alongside his dad, Brian Fagan, who created the Prospect Generator model that’s still widely used today in the resource space. One of those staking projects was put into production by a major Canadian mining company — a truly rare and profitable experience. That background uniquely qualifies him as a mining stock speculator. One of the most well-known names in the business, Mike is now putting that experience to use for the benefit of Resource Stock Digest and Hard Asset Digest readers.