Erik Wetterling – Value Proposition For First Nordic Metals, Headwater Gold, and Amex Exploration Based On Recent News Releases
Erik Wetterling, Founder and Editor of The Hedgeless Horseman website, joins me to discuss three junior gold exploration companies with recent news out to the market; where he is attracted to the current value proposition.
- First Nordic Metals Corp. (TSXV: FNM) (OTCQB: FNMCF) announced on September 9 an exploration update on its 100%-owned Storjuktan project located on the Gold Line belt, northern Sweden. We discuss how this Storjuktan Project along with the Paubäcken project represent the kinds of blue-sky upside along the 100km of strike, while the Barsele gold project, with significant gold resources underpins the current value of the company.
- Headwater Gold (CSE: HWG) (OTCQB: HWAUF) announced on Sept 9th that the Company and Centerra Gold Inc. have agreed to a strategic investment under which Centerra will acquire 9.9% of the issued and outstanding common shares of the Company. Erik was surprised that their recent news of staking the two new projects in Nevada, that we discussed last week, or this news of bringing in a larger producer as a strategic investor didn’t do much to change the company valuation and just speaks to the sentiment environment we are still in.
- Amex Exploration Inc. (TSXV: AMX) (OTCQX: AMXEF) announced September 5th, that it has completed a Mineral Resource Estimate ("MRE") on the company's flagship Perron Project in the northwestern Abitibi region of Quebec. The MRE showed open pit and underground stope constrained 594,100 of measured and indicated ounces at 4.28 g/t Au and 1,049,650 of inferred ounces at 3.80 g/t Au, for a total of 1.6Million ounces of gold in all categories. The stock sold off by over 40% initially, and then over 50% since releasing this resource estimate, and we discussed the potential overreaction by the market that was expecting a larger MRE and the potential value arbitrage.
* In full disclosure, the companies mentioned by Erik in this interview, are positions held in his personal portfolio, and also may be site sponsors of The Hedgeless Horseman website at the time of this recording.
* In full disclosure, Shad is also a shareholder of Amex Exploration at the time of this recording.
