Zijin Gold IPO: 6 Days Away
On September 8th, NIA sent out an alert entitled, ‘Zijin Gold to Launch Largest Gold IPO in History on Hong Kong Exchange This Month’.
In this alert NIA said, “Zijin Mining’s spin-off and IPO of Zijin Gold International this month is more than a gold play… it’s a sophisticated financial strategy to boost the parent’s copper acquisition firepower.”
NIA explained, “We already know that Zijin Mining has shown interest in acquiring Solaris Resources (TSX: SLS), owner of Lowell Mineral Exploration S.A., which was founded around the Ecuador projects originated by the late geologist J. David Lowell including its flagship Warintza copper project. By Zijin Gold International raising USD$3 billion in its IPO later this month, Zijin Mining will gain greater financial flexibility to be used for the acquisition of major new copper projects.”
Solaris Resources (TSX: SLS) gained by 11.01% today to a new 39-month high of $8.47 per share.
If Zijin Mining acquires Solaris Resources (TSX: SLS) everybody is going to reinvest their profits into Highlander Silver (TSX: HSLV).
So far based on what we see at Bonita they will probably discover 1 million oz of near-surface high-grade gold. Our guess is this is already priced into HSLV. With the $75 million that HSLV is about to raise they will be able to drill with multiple rigs including in the high-grade section further north on the property containing the historical resource estimate of 348,000 oz grading 22.4 g/t Au and 9.0 million oz grading 578.1 g/t Ag. They need to make the market believe that San Luis contains 3 million+ oz of total high-grade gold resources and then it will be revalued to $15+ per share.
For the average investor, HSLV is very high risk… and it is much more suitable to consider a company like Contango ORE (CTGO) that is already generating positive free cash flow today. CTGO’s Johnson Tract contains extremely high grades of gold, copper, lead, zinc, and silver!
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. NIA’s President has purchased 125,000 shares of HSLV and can buy or sell shares at any time. NIA has received compensation from CTGO of US$30,000 cash for three months of coverage and could receive a total of up to US$80,000 cash for ten months of coverage. This message is meant for informational and educational purposes only and does not provide investment advice.
