Joe Mazumdar, Mining Analyst shares his views on a prospect generator stock that’s up 10x since they first bought Mirasol Resources. MRZ : TSX.V | MRZLF : OTC
There are many different types of mining companies. One such and possibly less risky, is the Prospect Generator Model, that’s when a company’s technical team is so talented, that they find discoveries, then form partnerships with a large mining company, who then pay for the development. Joe Mazumdar, mining analyst shares one of his top picks in this space.
Mirasol represents a prospect generate and prospect generators. We tend to hold for a long time so Mirasol we’ve held since 2009 and the stocks up almost 10 times more. So what you need in a prospect generator is a good team, a good technical team which Mirasol have. You need good working capital. They’ve recently raised about 10 million so they got more than 20 million in cash. But most of the money spent is usually by a JV partner. Two of their projects already JV’s with majors AngloGold Ashanti, which operates a goldmine in Cerro Vanguardia and Santa Cruz and also Yamana which has gold projects in Chile. So that’s always a good thing with respect to getting a joint venture partner. What we’re looking for is for them to find an asset that gets advanced and gets sold just like what they had with Joaquin which got sold for 60 million and then begin again. And their shared structure is still pretty tight after the last placement that they did.” Joe Mazumdar, Mining Analyst, Exploration Insights
“We really discovered the mineralization that we bring forward in the projects. We do that through a high-end integrated geoscience approach, highly capable field exploration team and a management team in the country that can really deliver both projects and deals to our potential partners. We’ve recently announced some initial but very encouraging drill intersections from our Claudio joint venture. We’re exploring, therefore, satellite resources that could deliver new-term cash flow to Mirasol through development and processing through the plant. These results of the grade antennae that we need to see to be able to deliver on the objectives of that joint venture. Discoveries are a drug. It’s what gets people up in the morning. It’s an exciting time to be part of a team that’s full of people that have a similar focus.” Stephen Nano, President & CEO, Mirasol Resources
“Importantly, also I guess we could add, is that in terms of management insider ownership we are already talking 35%. So they’ve got a definite interest in what the share price does. There’s not very many teams that marry the technical expertise that they have, the relevant experience in the jurisdiction in the deposit type with the working capital and the support from their shareholders. There’s not too many that have that kind of downside protection and upside potential” Joe Mazumdar, Mining Analyst, Exploration Insights.
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