BHT Financing Gives it Clear Path to Production!

At Braveheart Resources (TSXV: BHT)'s current share price of $0.13 its enterprise value is an insanely low US$17.75 million. BHT's 165,000 tonne surface stockpile of ore alone is estimated to contain approximately US$18 million worth of copper equivalent. This means BHT is receiving no value for its NI 43-101 indicated resource of 1,511,000 tonnes grading 1.911% copper, 0.407 g/t gold, and 15.6 g/t silverBHT is also receiving no value for its 22,000m of underground tunnels across seven levels providing for direct access to its indicated resource! BHT is also receiving no value for its 750 tpd mill and adjacent crushing facilities plus significant additional surface infrastructure.

By far the biggest uncertainty that has been holding BHT down at extremely low valuations has been concerns about their ability to raise sufficient capital to complete surface upgrades while successfully achieving the re-permitting of the Bull River Mine, which would then allow for the planned restart of mining and milling operations. After BHT's huge announcement last night that the company has entered into a financing facility for up to CAD$8.0 million with Alumina Partners... BHT's biggest uncertainty is no longer an issue! Moving forward, BHT at any time can now instantly draw down on equity private placement tranches of up to $250,000 at a time with the ability to draw down up to CAD$8 million over 24 months.

BHT will immediately begin advancing the Bull River Mine in a phased approach wherein a surface stockpile of mineralized material will provide the initial feedstock to the upgraded mill facility. Although we are not making any projections for BHT, we have good reason to believe that the processing of the initial feedstock could generate massive free cash flow, thereby allowing BHT to retire its long-term debt after the first 8 months of operations!

In order to process the surface stockpile the company needs to complete the commissioning of a new substation, installation of a flotation circuit, installation of a filtration circuit and civil works associated with the development of a dry stack tailings storage facility. Total initial CAPEX is estimated to be only CAD$5 million

Between January 16th and March 23rd, China's economic shutdown caused copper prices to decline by 30.1% from $2.89 down to $2.02 while the Global X Copper Miners ETF (COPX) crashed by 53% from $20.47 down to $9.62. Since then, China's economy has been rapidly recovering. After reporting a record 6.8% decline in 1Q 2020 GDP, China today reported an amazing 3.2% recovery in 2Q 2020 GDP. From March 23rd through today, copper has rebounded by 43.64% from $2.02 up to $2.90 while COPX has gained by 102.5% from $9.62 up to $19.48!

With the highest quality gold stocks like Fiore Gold (TSXV: F) beginning to reach fair valuations for the first time in many years... investors are beginning to shift their focus to discovering the highest quality copper, zinc, nickel, silver, and platinum plays because those five metals are the most undervalued relative to gold! Similar to Fiore Gold (TSXV: F), we believe BHT is one of the most highly leveraged companies to rising metals prices and deserves to far outperform COPX just like Fiore has far outperformed GDX.

With the financing now in place we expect BHT to make tremendous progress in the weeks/months ahead. In our opinion, BHT's Bull River Mine belongs at the very top of the list of advanced copper projects with the highest chance of reaching near-term production!

Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA has received compensation from BHT of USD$30,000 cash for a six-month marketing contract. This message is meant for informational and educational purposes only and does not provide investment advice.