Almadex Minerals (TSXV: DEX): Possible “Event Driven” Stock
Almadex Minerals (TSXV: DEX) predecessor company Almaden Minerals (TSX: AMM) is trying to not have its mining claims for the Ixtaca Gold-Silver Deposit stolen by the Mexican government under Mexico's newly passed unfair mining legislation. AMM in December delivered to Mexico a Request for Consultations in accordance with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership relating to an investment dispute with Mexico. The filing of the Request for Consultations initiates a six-month consultation period between the parties, during which they are to attempt to amicably settle the dispute. If no settlement is reached in that six-month period, AMM may then initiate international arbitration proceedings against Mexico in accordance with the CPTPP after serving a notice of intent to submit claims to arbitration.
AMM's Ixtaca Gold-Silver Deposit contains a proven & probable reserve of 1.387 million oz of gold grading 0.59 g/t and 85.159 million oz of silver grading 36.3 g/t silver. A favorable settlement in the first half of 2024 would cause both AMM and DEX to make massive gains, because DEX owns a 2.0% NSR royalty in Ixtaca. DEX is currently receiving zero value for any of its 15 royalties, but NIA estimates that a favorable resolution in Mexico would immediately value DEX's 2.0% NSR royalty in Ixtaca at CAD$40 million.
The most important thing to know about DEX is that the company is unlikely to ever dilute in the future. As soon as DEX makes a significant discovery at one of the many properties it is about to drill in Nevada, Arizona, and New Mexico, DEX could immediately rise to $1+ per share on not a lot of volume because its shares are tightly held.
The Ixtaca Gold-Silver Deposit in Mexico is one of many significant discoveries that DEX management has made in the past. For the first time in history, DEX management is focused on the world's best mining jurisdictions in America.
DEX owns six diamond core drill rigs so not only is it cost-effective for DEX to do drilling on its properties, but DEX earns revenue/cash flow by acting as a drilling contractor for other companies that need diamond drilling done on their properties! DEX's drilling contracts and interest earned on its massive cash position allowed the company to generate $1.08 million in positive free cash flow last quarter!
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. This message is meant for informational and educational purposes only and does not provide investment advice.
