4 Tempting Takeover Targets for Richmont Mines Inc. (TSE:RIC)

    Richmont Mines CEO Renaud Adams mentioned a growth strategy at the Mines and Money Americas conference but didn’t provide details

    SmallCapPower | September 29, 2016: In Q2, before May 27, 2016, Richmont Mines Inc. (TSE:RIC) had profitable operations, enough cash to pay off all its current liabilities and then some, yet still went to the market to raise an additional $27 million in a bought deal that sold 2.6 million shares at $10.40 per share. This deal brought Richmont Mines’ cash account to $95 million as of June 30, 2016, a very healthy 10-1 cash to long-term debt ratio. On September 27, 2016, at the Mines and Money Americas conference, Richmont CEO Renaud Adams, in a 10-minute mining spotlight, described his company’s projects as well as its expanded exploration area. As well, he hinted that he had a growth strategy but didn’t provide details. Today we have identified some gold juniors that could be a good fit for Richmont Mines, all of which have market caps of less than $50 million with operations in Quebec and/or Ontario, in close proximity (relatively) to Richmont’s existing operations.

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    SciVacYorbeau Resources Inc. (TSE:YRB.A) – $0.11
    Gold

    Yorbeau Resources Inc. is a Canada-based company, which is engaged in the exploration of mineral properties in the Province of Quebec. The Company’s mining properties, and exploration and evaluation assets include Rouyn, Beschefer, Kistabiche, Scott Lake, Lemoine, Selbaie West, Estrades-Caribou and Normetal West. The Company’s exploration program will include a total of approximately 4,490 meters of diamond drilling at the Scott Lake property, which will allow over seven intercepts in the Gap Lens. The exploration program will also include a geophysical survey over the main target horizon of the Beschefer property and the preparation of an exploration drilling program. Yorbeau has not yet generated any revenues.

    • Market Cap: $28.72 (mm)
    • YTD Stock Price Change: +50%
    • Net Debt: $-0.34 (mm)

    SciVacWest Red Lake Gold Mines Inc. (CSE:RLG) – $0.32
    Gold

    West Red Lake Gold Mines Inc. is focused on exploring and developing a gold resource at its approximately 3,100 hectare West Red Lake Project property in Canada. With about three former producing gold mines in the Red Lake Gold District, the Company’s project is situated on the Pipestone Bay-St Paul Deformation Zone, which strikes east west across the approximately 10 kilometers property and then continues east towards the town of Red Lake, Ontario. The Mount Jamie Mine property and Rowan Mine property are situated on this regional geological structure and present the Company with approximately 10 kilometers long exploration horizon. The Rowan Mine property consists of approximately 120 claims, including over 50 patented, approximately 20 leased and over 50 staked claims. The Mount Jamie Mine property consists of approximately 30 claims. The Red Summit Mine property consists of approximately two patented claims situated within the Rowan Mine Property.

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    • Market Cap: $32 (mm)
    • YTD Stock Price Change: +950%
    • Net Debt: $0.16 (mm)

    SciVacBonTerra Resources Inc. (CVE:BTR) – $0.36
    Gold

    BonTerra Resources Inc. is a Canada-based junior mineral exploration company that is engaged in the business of acquiring, exploring and evaluating natural resource properties. The Company is focused on gold zones on its Gladiator Project, which is located in the Urban-Barry Greenstone Belt within the Abitibi Sub province, which hosts various deposits and has produced over 180 million ounces of gold. Its Gladiator Project consists of three properties: West Arena, East Arena and Coliseum Properties. These properties are located approximately 170 kilometers of Val-d’Or and approximately 125 kilometers to Chibougamau in the Urban, Barry and Bailly townships in Quebec. It has interest in approximately 95 claim blocks in Quebec near Windfall Lake, 27 mineral claims located in the James Bay area in Quebec and 57 mineral claims located in east of the Urban-Barry Township in Quebec.

    • Market Cap: $31.56 (mm)
    • YTD Stock Price Change: +91.9%
    • Net Debt: $-0.35 (mm)

    SciVacAlexandria Minerals Corp. (CVE:AZX) – $0.08
    Gold

    Alexandria Minerals Corporation is a junior gold exploration company, with a focus on under-explored mineral properties in gold and base metal mining districts of Quebec, Ontario, and Manitoba, Canada. The Company is focused on exploring the Cadillac Break Property Group, which is located in Val d’Or, Quebec. This property is approximately 35 kilometers long, continuous group of over 645 claims, on which the Company has built approximately three gold resources on its Orenada, Akasaba and Sleepy projects. Its projects also include the WIM and Hudvam gold-copper-zinc-silver projects. It also holds other, early-stage, exploration properties in northern Ontario and Quebec.

    • Market Cap: $27.64 (mm)
    • YTD Stock Price Change: +220%
    • Net Debt: $-0.13 (mm)

    To find out more about West Red Lake Gold Mines Inc., please visit the company’s Investor Hub.

    Ubika Research/SmallCapPower has received compensation from West Red Lake Gold Mines to provide analyst research coverage. For full disclosure please visit here >