We Never Question Anything Highlander Silver (TSX: HSLV) Management Does
We never question anything Highlander Silver (TSX: HSLV) management does. Even North Peak Resources (TSXV: NPR) whose Executive Chairman Harry Dobson founded Kirkland Lake Gold the most successful high-grade gold miner of the past quarter century… we question why are they drilling right now at a waste dump? Why are they waiting until October to drill hard rock? They insist the Prospect Mountain Mine Complex was so high grade back in the day that the waste dump may contain CRD material that would be considered high grade today, and they probably consider it a safe bet for strong sounding press releases, but still… we want to see hard rock drilled right now not in October!
Richard Warke’s talent of knowing now is the time to raise $75 million at $3.75 per share is probably the most important thing about his management abilities in addition to his ability to pick the right projects in advance that he knows the majors will want to acquire in the future! Did he sell Augusta Gold (TSX: G) to AngloGold Ashanti (AU) too early? Yes, but by selling it when he did it means he wanted us to focus on Highlander Silver (TSX: HSLV). If we were still focused on Augusta Gold (TSX: G), maybe HSLV would have only raised $75 million at $3.25 per share instead of $3.75 per share. They need to keep dilution to a minimum so that they can sell HSLV in the future for the highest possible share price hopefully $30 per share or more.
Remember, when J David Lowell sold the adjacent Pierina gold project to Barrick for $1 billion back in 1996 it would be the equivalent today to selling San Luis for $10 billion. Even if HSLV’s San Luis only contains half of Pierina’s high-grade gold resources, HSLV will likely become a $5 billion market cap company next year.
The only thing that pisses us off about HSLV is the name Highlander Silver. Although it is the best name and they should definitely keep it… we hope it doesn’t take a spot away from Minaurum Gold (TSXV: MGG) in the SILJ ETF on November 21st. MGG is much more of a silver focused play than HSLV.
Minaurum Gold (TSXV: MGG) is the company that J David Lowell personally got behind and backed financially through Lowell Copper (now owned by Richard Warke’s Solaris Resources)! It needs to get into the SILJ ETF it deserves to be in it! If HSLV makes it but not MGG it will be upsetting. It feels like with MGG we are getting a company of equal quality to HSLV and Solaris Resources (TSX: SLS) at a fraction of the market cap.
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 may buy or sell at any time. NIA’s President has purchased 60,000 shares of NPR in the open market and intends to buy more shares. NIA has received compensation from NPR of US$50,000 cash for a six-month marketing contract and previously received US$50,000 cash for a six-month marketing contract which has since expired. NIA has received compensation from MGG of US$30,000 cash for a three-month marketing contract and previously received US$30,000 cash for a three-month marketing contract which has since expired. This message is meant for informational and educational purposes only.
