Great Bear Resources Ltd. (TSXV:GBR) believes in the project enough to send two advisors to GoldON Resources Ltd. (TSXV:GLD)
Bob Moriarty | October 26, 2020 | SmallCapPower: One interesting company I am following is named GoldON Resources Ltd. (TSXV:GLD). They did a deal with Great Bear Resources Ltd. (TSXV:GBR) and picked up ground that Great Bear just didn’t have the bandwidth to advance.
(The following is an article originally published on 321gold.com on October 15, 2020)
One is the West Madsen property adjoining the Pure Gold Red Lake Mine project valued at $1 billion. Terms call for GLD to spend $1.2 million in exploration over three years to get a 60% interest as well as paying Great Bear $175,000 over two years and issuing them 875,000 shares of GLD.
To pick up the remaining 40% interest GoldON needs to spend an additional $750,000 in exploration and either pays $500,000 in cash or will issue 500,000 shares to Great Bear. The agreement includes a 2.5% NSR on production.
Great Bear believes in the project enough that two of their personnel from GBR serve as advisors to GLD. A technical report just out suggests the Balmer-Confederation shear that hosts the mineralization at Pure Gold’s 7 km strike of a gold system continues onto the West Madsen property. A few drill holes will tell the story. Drilling begins in November.
I am known for suggesting investors keep things simple. Buy when things are cheap and sell when they are dear. GLD has a market cap of about $10 million. Pure Gold has a market cap of over $1 billion. The structure on Pure Gold’s project is the same as on GoldON’s West Madsen. I don’t know if Pure Gold is expensive but I do know that GoldON is cheap.
And GoldON has an additional four discovery-stage projects I haven’t even mentioned yet. The fact that you haven’t heard of GoldON is not a good reason to not buy it.
GoldON is an advertiser. I did participate in the past private placement and as such I am biased. I do not share in either your profit or your losses so do your own due diligence, please.
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