Large gold mining companies are beginning to make strategic acquisitions… This summer, we saw Goldcorp take over Kaminak Gold and take a 20% stake in another gold junior.
The research we have revealed to you in the last year is setting us up for a flood of mergers and acquisitions. Call it peak gold, like Goldman Sachs, or blame it on a 5-year bear market, the fact is that gold mining discoveries have absolutely collapsed.
Since 2009, exploration budgets have failed to deliver any meaningful discoveries, which puts the entire industry on edge.
Every major gold mining company in the world is looking for where their future supply will come from. As the Royal Bank of Canada put it, “there is a shortage of near-term production gold projects available for acquisition, especially in geopolitically safe areas.”
Here is why First Mining Finance (TSXV: FF & US: FFMGF) is a prime takeover target in 2017
- FF has accumulated all prime advanced-stage gold projects in the safe region of Canada. All are specifically in the mining-friendly jurisdictions of Ontario, Quebec, and Newfoundland.
- The infrastructure is already in place or in very close proximity to FF’s gold resources.
- A king deal maker… FF is headed up by the who’s who in the junior resource market, and the fact is the high-quality management teams tend to be attracted to people they know well. And no one is better known for delivering value than Keith Neumeyer, FF’s Chairman and founder.
First Mining Finance has a robust gold portfolio of nearly 14 million ounces… But you have to connect the dots to see who would be high on the list to take them over.
This is pure speculation on my part, of course, but look at these two maps of FF’s projects and their proximity to a very specific major mining giant.
FF’s Springpole project (over 5m oz.) and Pickle Crow Mine (1.3m oz.) are practically next door to Goldcorp’s Red Lake mine and Musselwhite mine.
I should note that the Springpole project ranks amongst one of the largest undeveloped gold assets in the world, and would be a highly lucrative asset for any major mining company to own.
In my opinion, given the current gold market and bull run we have in front of us, this single project alone could justify FF’s current market value.
Keith Neumeyer and his team have been very aggressive in acquiring high-quality ounces in the ground at ridiculously cheap prices, and now, the benefit for current shareholders is watching those ounces in the ground get re-valued under new management and benefit to the upside as the gold price itself rises.
President, FutureMoneyTrends.comEditors Note: In addition to Goldcorp, Barrick Gold Corp has active gold mines in the region, along with a dozen other large producers.Any major that took over FF would immediately become the largest dominator in the region with the marriage of an active gold producer and First Mining Finance, who has the largest resource of any non-producer in Canada.
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