Mineral exploration entrepreneur Randy Turner has a strong track record in the mining business.
He’s been involved in multiple discoveries and takeouts, including founding Winspear Diamonds (sold for C $305 million in 2000) and Silver Quest Resources (sold for $131 million in 2011).
When New Gold acquired Silver Quest in 2011, they were after the company’s 25% interest in the Blackwater gold project in B.C. The takeout was timely for Silver Quest, as the project is now on care and maintenance amid weak metals prices four years later.
Silver Quest had a number of non-Blackwater projects in its portfolio, including the 3Ts project nearby as well as a considerable land position in the Yukon that was staked following Kaminak’s Coffee discovery and Underworld Resources’ White Gold discovery in 2010. These assets and roughly $15 million were spun out into a new company, Independence Gold (TSXV:IGO), which hasn’t raised money since.
Turner and his team took the reigns at Independence, but its investors were mostly institutions and arbitrage funds that came into Silver Quest during the takeover. Turner says these institutions relentlessly sold down the stock in the free spin-out company. This created a market valuation for Independence today that is considerably less than its cash position, and assigns no value to its projects and team.
IGO’s market cap is $3,066,000 based on a last trade of 7 cents and 43.8 million shares outstanding. The company reported working capital of $6.8 million at June 30, 2015, more than twice its current market cap. Independence did, however, spend a few million dollars this summer exploring its Yukon properties and will report a somewhat lower cash balance this quarter, but is still expected to be valued at considerably less than its cash position.
That exploration work – RC drilling at two of Independence’s Yukon properties adjacent to Kaminak Gold’s Coffee discovery – have turned up three promising high-grade gold zones. Turner says this is just the tip of the iceberg. More assay results from this summer’s work program are imminent and the company will do a follow-up program next year.
Mr. Turner gave a presentation at last month’s Subscriber Investment Summit in Vancouver and all CEO.CA readers are encouraged to watch it, as well as follow IGO. At one point during the presentation, a guest in the audience’s phone rang. Turner quipped, “I hear a phone ringing, if that’s a broker, tell him to buy some IGO: it’s a good deal today.”
Independence Gold is a very speculative penny-stock and could go to zero. This is for informational purposes only and is not intended to be investment advice of any kind. Always do your own due diligence and independently verify all information contain herein. See Independence Gold’s profile on www.SEDAR.com for important risk disclosures. Mr. Turner’s statements were made in a forward looking context which means they may not come true. You are responsible for your own trades.