The Home of the Next U.S. Gold Rush
I’ve long thought — in my non-geologist, amateur way — that Idaho has some of the most favorable geology in the United States.
I’ve also thought that companies that were smart enough to recognize the opportunity would do well to use the bear market to look at past-producing projects with fresh eyes.
That’s exactly what companies like Midas Gold and Revival Gold, among others, are doing. In the case of Midas Gold, the smart money is starting to nibble at the better-positioned companies.
On May 9, 2018, Midas Gold (TSX: MAX) announced that mining giant Barrick Gold was making a strategic investment in Midas to own 19.9% of outstanding and issued shares.
Barrick purchased 46.5 million shares at C$1.06 for total gross proceeds of US$38 million.
For most of the past two years you could’ve bought shares — and I’ve repeatedly urged you to — at much cheaper prices.
A large part of the reason that companies like Barrick are following Teck and patient money like John Paulson, Jeff Phillips, and Ernesto Echavarria is the state’s overwhelming support for mining.
Midas is looking to have a permit in hand by the end of 2019 and looking to invest $1 billion in the project.
The company predicts it will create 1,000 jobs, and an annual direct and indirect payroll of $55 million.
Barrick President Kelvin Dushnisky said in a statement, “Midas Gold’s Stibnite Gold project in Idaho offers a compelling investment proposition, with low geopolitical risk.”
I spoke with Midas CEO Stephen Quinn about the recent investment from Barrick and the overwhelming bipartisan support Midas has received.
You can listen to that here.
The governor of Idaho, C.L. “Butch” Otter, recently participated in “Idaho Investor Days”, which were held in Toronto and New York.
The Idaho Investor Days highlighted the world-class mining opportunities that exist in Idaho, the “Gem State.” Governor Otter, state officials, industry experts, and fellow mining company representatives also presented at the event to discuss why Idaho is an excellent place to invest.
Several companies with flagship projects in Idaho participated, including Midas Gold, Revival Gold, and Otis Gold. All companies with excellent management teams and excellent assets.
Outsider Club founder Nick Hodge recently presented in Vancouver. The title of his presentation was “Is Idaho Home of the Next U.S. Gold Rush?”
You can view that here.
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Barrick and Teck are already invested in Midas. Orion Mine Finance — a large (recently closed a $2.1 billion raise) resource-specific fund that looks to write bigger checks down the road — has already established a strategic relationship with Revival Gold.
Agnico Eagle is involved with Otis Gold. I could go on but hopefully you get the picture.
Looking ahead, I see companies like Barrick consolidating the entire region.
In an environment where geopolitical uncertainty is a permanent part of the resource investment landscape, it is refreshing to see such a transparent approach to responsible mining by lawmakers in Idaho.
As an investor, you would be well served to make sure you own Midas Gold and Revival Gold and make each — you should’ve already done this — a permanent part of your portfolio.
Yes, we may still get one last downturn in gold and yes, the junior resource space may continue to trade sideways for a bit longer than any of us would like.
But that doesn’t mean that there aren’t meaningful gains to be made as well-funded companies with catalysts and the management teams to deliver them execute and set up their respective companies for the bull market we all know is on the way.
I’ll be at the 121 Mining Investment Conference this week.
It runs from June 5-6, 2018, at Convene, 730 3rd Ave, New York, NY 10017.
If you can make it, you’re welcome to apply for a complimentary investor pass and attend alongside some of the leading fund managers, project financiers, and commodity analysts already confirmed for the summit.
These passes are only available to institutional investors, buy- and sell-side analysts, and sophisticated investors who are not linked to the mining industry in an executive role.
You can register for a free pass here.
To your wealth,
For the past decade, Gerardo Del Real has worked behind-the-scenes providing research, due diligence and advice to large institutional players, fund managers, newsletter writers and some of the most active high net worth investors in the resource space. Now, he is bringing his extensive experience to the public through Outsider Club, Junior Mining Monthly, and Junior Mining Trader. For more about Gerardo, check out his editor page.
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