Important NIA Update
At some point in the not-too-distant future Solaris Resources (TSX: SLS) will be acquired at a large premium, but we just don't think the premium will be anywhere close to what Augusta Gold (TSX: G) gets acquired for, which is the only reason we don't own SLS. When SLS gets acquired all of their non-Warintza assets will be spun off to existing shareholders as a new publicly traded Solaris Exploration company and it will initially trade with a market cap of approximately $200 million primarily for J. David Lowell's La Verde in Mexico.
Minaurum Gold (TSXV: MGG) is similar to SLS because it has so many good assets including J. David Lowell's Santa Marta in Mexico. Therefore, if MGG were to be acquired at some point in the future for its Alamos Silver Project just like MGG's co-founders saw their MAG Silver (MAG) acquired last month for $2.1 billion, we would expect all of their non-Alamos assets including Santa Marta to be spun off to existing shareholders as a new publicly traded company.
MGG's CEO said in a brand-new interview:
“The proverbial switch flipped about three weeks ago. Back in March, we attended PDAC in Toronto — one of the world’s largest mining conferences, with around 25,000 attendees. We saw the banks at receptions, attended a number of those events, and while there was always some interest — especially given our high-grade silver and growing scale — we were the ones initiating the conversations. But over the past three weeks, that’s changed. Now they’re the ones calling us. There’s a ton of interest.
A big driver has been MAG Silver — Peter Megaw, who discovered Juanicipio and other major deposits, was their key technical mind, and he’s still closely involved with Minaurum. That alone has brought a lot of attention. We’ve also brought on former SilverCrest personnel, including a senior resource modeler from Las Chispas, who’s been instrumental in advancing our upcoming maiden resource.
As we move forward, I think the interest is only going to grow. We’re not seeing the ‘big five’ Canadian banks — like BMO and TD — at the table just yet, since they typically wait until post-resource. But many of the well-known institutional banks that were previously hesitant to engage pre-resource are now coming forward. We're also setting up analyst calls almost daily, which hasn’t happened consistently since 2021. That kind of inbound attention went dead for about three years after the 2020 rush, but now it feels like it’s coming back in a more stable, growth-oriented way — not just another fleeting spike.”
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 232,200 shares of G and may purchase more shares. NIA has received compensation from MGG of US$30,000 cash for a three-month marketing contract. This message is meant for informational and educational purposes only and does not provide investment advice.
