Gold Bull Market: Dealflow Picks Up

Written by Nick Hodge
Posted June 24, 2020

I’m taking the week off. 

My parents are in town, and I haven’t seen them in nearly a year — the longest stretch ever. (Whole lotta “evers” still going around in markets, politics, and life right now.)

That also means my kids haven’t seen their grandparents in nearly a year. 

So much is being made up for this week. 

Monday we took the girls horseback riding. 

Yesterday my dad and I floated down the Spokane River with a cooler and a couple of fly rods, nymphing rainbows in the boat along the way. 

This morning I got up to write this editorial at 5 AM. Made the coffee. Opened the laptop. And here the kids came down the stairs. With everyone else still asleep, they headed right to my office. 

“What do you want to do today?” I asked my four-year-old as she climbed up in my lap. 

“Play in the pool,” she said. “And probably eat a popsicle. That sounds like fun.” 

“What else?” I prodded. 

“Go on a mule ride to the pond and catch a fish.”

We got ourselves a plan. 

Goin' Goldfishin’

My parents — and most of my family and friends for that matter — have a tough time figuring out what I do. My mom often says I write stories. My dad knows I write about and invest in stocks. 

Both correct but that's not a full picture. 

So on the way back from fishing yesterday I called one of my closest contacts to discuss a few things. The four-minute call covered:

  • An upsized silver financing for a company in Argentina
  • Financing a new gold deal with a one-million-ounce asset in British Columbia
  • Buying a block of stock — a cross — in a Peruvian explorco via an Australian brokerage house

My dad had questions. 

“So you buy shares right from the companies?” he asked. 

“Sometimes,” I said. “Most of these companies aren’t selling anything yet, so they sell shares to certain investors to generate capital.”

“And you get to buy them at a discount?”

“Not all the time,” I answered. 

He certainly was paying attention to the call. And after explaining how private placements and crosses work, I could tell he was starting to better understand what I spend my days doing.

Then I went on to give a real-time example that crystallized it for him. And I thought I should share it with you so we’re all on the same page here. 

I have spent over a decade simultaneously building a reputable publishing brand while also creating a deep network of players in the microcap space. They’re symbiotic. 

Here’s the example:

One of my better recommendations as a newsletter writer was Atlantic Gold. 

It was a great company not only because it delivered several hundred percent gains for all shareholders, but it also put a mine into production, and was acquired by a larger mining company for a premium. 

It checked all the boxes — ran the length of the field, scored, and spiked the football. 

It was a beautiful thing to watch unfold. It was one of the highest quality teams I’ve been involved with and they operated at a masterful level, driven by Chairman Steven Dean. 

Steven had put mines into operation before Atlantic Gold. 

When Atlantic Gold was bought out for C$722 billion, shareholders also got shares in a SpinCo. 

That SpinCo is Artemis Gold, which just acquired the Blackwater gold project from New Gold for C$190 million. It’s a tier one asset in a good jurisdiction at the feasibility level and it’s already cleared some significant permitting hurdles. 

Artemis is raising C$175 million to buy the asset. And I’m getting involved, just like I did with Atlantic, which ended up being a win for everyone involved. 

Right now I’m only involved in the financing. And with gold in a firm bull market, it will have no problem raising the money. In fact, the financing is already full and people are getting cut back. 

As Artemis continues to develop, it may become a recommendation in another publication just like this. 

I’ll write a story about it, or something. 

Now I’ve got popsicles to eat and fish to catch. 

Call it like you see it,

Nick Hodge Signature

Nick Hodge

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Nick is the founder and president of the Outsider Club, and the investment director of the thousands-strong stock advisories, Early Advantage and Wall Street's Underground Profits. He also heads Nick’s Notebook, a private placement and alert service that has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world. For more on Nick, take a look at his editor's page.

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