Categories: Base Metals / Energy / General Market Commentary / Precious Metals
Topics: General Base Metals / General Energy / General Market Commentary / General Precious Metals

Three Revealing Questions to Ask Any Junior Miner

Three Revealing Questions to Ask Any Junior Miner

Written by Nick Hodge

Having just spoke at New Orleans Investment Conference, I got to meet with a lot of junior resource companies — existing recommendations, future ones, and ones to steer clear of.

One of my presentations, along with Gerardo Del Real of Resource Stock Digest Premium, was about four stocks we think will do well in the new resource bull market.

Along with us were two videographers and editors who weren’t well-versed in the junior mining space. Their eyes glazed over with grades and tonnages and ores and never-ending project names… they asked how Gerardo and I get to the heart of these companies when the representative at each both made it seem like his or her mining or exploration project was the best there was.

After thinking about it for a bit, Gerardo and I came up with three questions our newbies could ask that would reveal much about not only the project, but the people involved.

They were

Who Owns All the Cheap Paper?

This question catches a lot of people off guard.

When looking at a junior mining deal, it’s important to know who’s invested and at what price. A common junior mining ruse is to issue $0.05 shares or cheaper — so-called “cheap paper” — to a select group of insiders whose aim is more to blow out, or sell, that paper than it is to explore for minerals.

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