The Best Way to Make Money in the Junior Mining Space Today
Millrock Resources just received a strategic investment at a 100% premium to the market. Despite that, the shares trade near the same levels where they traded before the deal. The best way to make money in this space is by using these tough markets to add quality names at bargain prices. Millrock is another one of those names.
Here’s my interview with Millrock CEO Greg Beischer.
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.
P.S. Before I go, I just wanted to share three commandments that I use in my trading strategy. These commandments flip the script on everything Wall Street is doing and I’m showing them to you for the first time. Click here to see this strategy in action.
Gerardo Del Real: This is Gerardo Del Real with the Outsider Club. Joining me today is the President and CEO of Millrock Resources (TSX-V: MRO)(OTC: MLRKF), Mr. Greg Beischer. Greg, how are you this afternoon?
Greg Beischer: I'm doing great, Gerardo. Thank you very much for the call.
Gerardo Del Real: Thank you for coming on, Greg. I write this free weekly editorial for Outsider Club, and we all know that it is a tough resource market right now. The best service that I feel I can provide readers right now is to highlight companies that are executing despite the tough, tough market.
You were just able to pull off one of the better deals in the space in recent memory. You were able to secure a $1 million investment at basically 100% premium of your current share price in exchange for royalties that have been granted to EMX and shares. EMX of course, is a big player in the space. They are coming off a $67 million transaction. I believe this is their first strategic investment made since they realized that transaction and closed on that.
So first off, I want to congratulate you. Then I want to talk about this monster land package that you have been able to stake in Alaska. First things first. Congrats, Greg.
Greg Beischer: Thank you very much, Gerardo. It was a pleasure to do that transaction. We've known the folks at EMX for quite a number of years, and I've always admired their very strong technical team. We've worked with them closely on a couple of things. It was a real endorsement of our project. I know that they've been absolutely inundated with proposals on how to spend the money that they got from the sale of their Malmyzh Project, a Russian project.
Yeah, it's a good endorsement of our project and we're very happy to have worked with EMX. Millrock would like to achieve the success that EMX has achieved. We follow similar business models, and they made a great discovery. That's what we're after doing, too.
Gerardo Del Real: Let's talk a bit about the land package. It's 510 square kilometers, that's almost 200 square miles. This isn't just land in the middle of nowhere that you hope to poke some holes into. This is a land package that's right next to Northern Star's Pogo Mine, which of course is a large, high-grade, producing gold mine.
There are several very intriguing angles and options that you are going to be able to pursue as a result. I want to provide a bit of context. Millrock Resources has a market cap of approximately $5 million Canadian. You just secured a $1 million investment from EMX, at 100% premium. A large part of why you were able to do that, along with the technical expertise that Millrock brings, is the fact that you have a database that has district-wide geologic information that's cost about $15 million to create, three times Millrock's current market cap.
So with that being said, Greg, can we talk about the potential for this to become a new camp in Alaska? Because the bottom line is that jurisdictional risk is becoming more and more pronounced it seems like every month, and I can't think of a better place. There's maybe one or two just as good, Nevada and possibly Idaho, other than Alaska, right next to this Pogo Mine to have 200 square miles of high-potential mineral rights. Can we talk to that a bit?
Greg Beischer: Sure thing. You know, it's really still surprising to me that we actually pulled this off, that all that land was still available. Just a bit of history, Gerardo. Pogo was discovered in 1994. There's a huge staking rush. All the claims that we now own were staked out by various parties. There was a big surge of exploration and there's some other discoveries made, but only the Pogo Mine had gone into production. It's a great mine, producing 300,000 ounces. It's high grade, almost half an ounce of gold per ton mined.
We'd love to find one like that. I think this will be a camp one day. There's going to be multiple discoveries. But it's so rare that you get the opportunity to stake an entire camp like that. And I do believe it'll be a camp with multiple mines, along the lines of, for example, the Val-d’Or gold camp of Northern Quebec. That district's been mined for over 100 years now, there's been multiple mines, probably a dozen or more. And yet they're still finding new mines today.
I think the Goodpaster's going to be like that. And the thing is for Millrock, it was like walking into the Val-d’Or camp in the 1930s, before anyone really realized the potential of that district. Millrock's been interested for quite a while in it. We bought claims near the mine about five years ago, and along with that purchase came all the regional data that had been created in the late '90s and early 2000s by those companies. We have a huge proprietary geologic database that allowed us to select the very best land in the district to stake. It was a big staking job as you mentioned, over 500 square kilometers. Cost us several hundred thousand dollars to do that. We're just pleased as punch that we've been able to pull it off.
Gerardo Del Real: I've got to believe that the phone is ringing and I've got to believe that you're open to partnership, being that you are a project generator and you've got a whole heck of a lot of projects to generate here.