Featured Company /
Stratabound Minerals Corp.
Valuations are moving targets on Wall Street and Bay Street, targets that often leave experts scratching their heads about what just happened. Any seasoned trader has learned not to question when a stock goes down on a positive acquisition or an upbeat quarterly report. Rather, when this happens, it is more pertinent to evaluate the opportunity due to the reaction and move if warranted before the market corrects itself.
Take the case of upstart exploration and development company Stratabound Minerals Corp. (TSX-Venture:SB) (OTCQB:SBMIF). Shares of SB, which made a 52-week high in November at $0.38 (all figures in Canadian dollars) were trading at 19 cents per share as of last Tuesday’s close, equating to a market capitalization of approximately $16 million. Last Wednesday morning (April 21st), Stratabound announced a definitive agreement to acquire California Gold Mining Inc. (CSE:CGM), a company trading at 11 cents per share, or at a market valuation of about $7.5 million.
In an all-stock deal, Stratabound agreed to pay 1 share of SB for each share of CGM, representing 22.3 cents for a California Gold share based upon the 20-day volume weighted average price of Stratabound stock. The prize of the merger is Stratabound getting CGM’s flagship asset, the Fremont Gold Project located in Mariposa County, California within the prolific Mother Lode Gold Belt that has produced over 50 million ounces of gold.
Fremont is an advanced stage project with excellent exploration upside to add to reserves. The project hosts two historical underground gold mines across approximately one kilometer out of a total four kilometers of strike along the regional Mother Lode Shear Zone extending across and beyond the property. A National Instrument 43-101 mineral resource on Fremont shows 515,00 ounces of gold grading 1.71 g/t gold in the Indicated category and another 364,000 ounces Inferred at 1.44 g/t gold. The estimate only considers one area (the Pine Tree-Josephine zone) at the 3,351-acre Fremont property.
879,000 ounces of gold at today’s price of $1,782 per ounce is $1.6 billion. Granted, there is work to be done to reach production and capex involved with the whole process, but the overview provides some color anyway as to the value of Fremont today.
The new asset makes Stratabound an international firm, with Fremont joining the company’s existing projects of Golden Culvert (gold) project in Yukon Territory and the McIntyre Brook (iron oxide-copper-gold (IOCG)) and Captain (copper, cobalt, gold, silver) projects in New Brunswick.
Despite adding Fremont, shares of SB dropped to 17.5 cents at the close of trading last Friday. The full valuation of the merged company upon execution of the acquisition (which includes issuing 65.1 million shares to CBM shareholders) would still be just $24.6 million. This, after SB was trading at a valuation of $30.3 million in November and CGM traded at a median valuation of approximately $15 million over the last year, in line with the acquisition price. This is a case of bad math by the market, most likely simply owning to gold prices slipping from the record high at $2,089 an ounce set in August.
While it’s arguable that Fremont alone could command the $24.6 million market cap on its own, the other Stratabound properties, while earlier in development stage than Fremont, also deserve value for the opportunities they present.
Golden Culvert is an 84-square-kilometer property along 24 kilometers of mineralized trend. It is located 24 kilometers north of Seabridge Gold’s (NYSE:SA)(TSX:SEA) high-grade 3 Aces gold project that discovered 5,401 g/t gold in 2003. Exploration at Golden Culvert has shown multiple gold-bearing zones within a 130-meter-wide gold vein corridor along 970 meters of strike that remains open both directions and at depth below 225 meters. Discoveries up to 320 g/t gold (Au) at surface have been reported at Golden Culvert. The best trench result so far assayed 95.0 g/t Au over 1.5 meters.
In March, the deepest intersection to date was made: 4.83 g/t Au over 1.5 meters at 225 meters below surface.
Results from a recent 6-hole in-fill drill program showed each hole to intercept gold mineralized quartz vein and breccia structures yielding between 0.36 g/t Au over 12.1 meters in GC20-13 and 86.6 g/t Au over 0.6 meters in GC20-16 down-hole. Apropos, this topped the previous best drill result of 60.1 g/t gold over 0.9 meters. Hole GC20-15 intercepted a high-grade interval of 10.2 g/t Au over 0.7 meters immediately in bedrock at 4.3 meters below the overburden surface.
“The abundance of high-grade surface samples collected in float-trains reported on November 17, 2020 that included 93 samples up to 320 g/t Au, averaging 13.27 g/t Au over 670m of strike across an 100m width overlie and are sourced proximal to this latest drilling area. We remain encouraged to definitively pin down that source,” said R. Kim Tyler, President and CEO of Stratabound in a recent news release on the drilling. He added that the next stop is compiling, interpreting and 3D modeling of all the data to data to evaluate all criteria “that may further control the higher-grade gold grade distribution in the larger system.”
SB’s Captain Cu/Co/Au/Ag project is situated in the heart of the renowned Bathurst Mining Camp in northeast New Brunswick. The project has been the subject of a NI 43-101 report showing 1.0 million tonnes @ 1.03% copper, 0.051% cobalt and 0.2 g/t gold in the Measured and Indicated categories. The Inferred resources per the report are 960,000 tonnes @0.64% copper, 0.039% cobalt and 0.12 g/t gold at 0.6 copper equivalent cut-off based on total in situ metal.
In March, results from three holes in a 15-hole program showed more intersects of high-grade mineralization consistent with previous reports. This drilling was particularly important because it represented the completion or work ahead of a study to investigate small-scale, high-grade, direct-shipping mining project to generate near-term cash-flow.
Highlights Included:
• Hole CP-20-49 yields 5.39% copper equivalent (CuEq) over 2.5m within broad lower grade halo of 3.34% CuEq over 11.5m true width,
Twelve of the fifteen holes completed intercepted significant copper-cobalt-gold-silver mineralization within 6-9 meters of surface at the bedrock interface, across an average 9.6 meters true width and along approximately 120 meters of strike length.
“We are moving ahead with the evaluation of a small-scale, direct-shipping mining project whereby a plant, concentrator, tailings, ancillary facilities, and associated capital cost and permitting delays would not be required,” said Tyler. He added, “It bears repeating that the Captain Deposit's high grades, road access, proximity to a rail head, and the deep-water port at Belledune near Bathurst, New Brunswick make for a very attractive direct-ship cash-generating opportunity.”
SB’s McIntyre Gold Project, located about 80 kilometers west of the Bathurst district, has two known gold occurrences 1.5 kilometers along strike of each other, dubbed the McIntyre Brook and the Big Pit showings. McIntyre represents an exciting new exploration model that has only recently been recognized to occur in the Maritimes with geological features comparable to world class IOCG deposits such as Olympic Dam Mine in Australia (2.95Bt @ 1.2% Cu, 0.04% U, 0.5 g/t Au, 6 g/t Ag) and Candelaria Mine in Chile (600mt @0.95% Cu, 0.22 g/t Au, 32.9 g/t Ag).
While early in exploration, McIntyre features 40 significant gold values between 0.20 and 41.56 g/t gold out of a total 46 grab samples collected from bedrock exposed in trenches along 300 meters of strike length. The zone remains open at both ends and occurs within a 480-meter wide, 8 to 165 ppb gold-in-soil anomaly that remains open beyond 500 meters of strike length. Rock samples from outcrop at the Big Pit returned up to 1.44% copper and 9.53 g/t gold.
Amongst other compelling findings so far, a trench sample at the main showing turned up 41.5 g/t gold; 7.9 g/t gold were found in outcrop; 16 g/t gold assayed in float; 1.6 g/t gold and 6.5% copper in soil and 2.76% copper in trench discovered on southwest part of project (near 109.5 g/t gold found in outcrop on Puma Exploration property).
As with its other projects, McIntyre is an opportunity for constant value building and news flow. For instance, the company optioned 26.75 kilometers of new claims in November increasing the land position by 110% and results pending from 2,500 soil geochemistry samples across the entire project.
In fact, Stratabound’s news feed shows the company is constantly moving with a purpose to advance its projects. The unrelenting progress speaks to the quality of the venerable group of experts leading Stratabound whose C.V.s include senior positions at miners including Barrick Gold, Jaguar Mining, Cominco, Vale, Rio Tinto, Jerritt Canyon (owned by billionaire mining investor Eric Sprott) and more. Speaking of Jerritt Canyon, the company owns 12 million, or 14.9%, of the outstanding shares of Stratabound, plus 4.5 million warrants, or 16.4% partially diluted.
Reasons abound as to why a re-valuation is coming for Stratabound Minerals to make it more reflective of its metal assets, leadership and cash position, which stood at $3.3 million at the end of September. The company had fundamental strength before the California Gold acquisition and is now really in a strong position going forward to start positioning to transition from an explorer into a producer, which should land SB squarely on the radar of the North American investment communities soon.
About AllPennyStocks.com:
AllPennyStocks.com Media, Inc., founded in 1999, is one of North America’s largest and most comprehensive small-cap / penny stock financial portals. With Canadian and U.S. focused penny stock features and content, the site offers information for novice investors to expert traders. Outside of the countless free content available to visitors, AllPennyStocks.com Pro (premium service) caters to traders looking for that trading edge by offering monthly stock picks, daily penny stock to watch trade ideas, market commentary and more.
As a result of its commitment to journalistic excellence and abundance of information in a particular area of equity investing (micro-cap investing) where there aren’t many credible sources of information, AllPennyStocks.com continues to have one of the largest audiences of micro-cap investors on the internet.
Corporate Snapshot:
Stratabound Minerals Corp.
Stock Symbol:
CA
Stock Exchange:
TSX-Venture
Sector:
Natural Resources
52 Week High:
$0.3800
52 Week Low:
$0.0600
Alt Exchange/Ticker:
OTCQB:SBMIF
Current Stock Quote / Chart / News: Click here
Information as of
April 27, 2021
Valuations are moving targets on Wall Street and Bay Street, targets that often leave experts scratching their heads about what just happened. Any seasoned trader has learned not to question when a stock goes down on a positive acquisition or an upbeat quarterly report. Rather, when this happens, it is more pertinent to evaluate the opportunity due to the reaction and move if warranted before the market corrects itself.
Take the case of upstart exploration and development company Stratabound Minerals Corp. (TSX-Venture:SB) (OTCQB:SBMIF). Shares of SB, which made a 52-week high in November at $0.38 (all figures in Canadian dollars) were trading at 19 cents per share as of last Tuesday’s close, equating to a market capitalization of approximately $16 million. Last Wednesday morning (April 21st), Stratabound announced a definitive agreement to acquire California Gold Mining Inc. (CSE:CGM), a company trading at 11 cents per share, or at a market valuation of about $7.5 million.
In an all-stock deal, Stratabound agreed to pay 1 share of SB for each share of CGM, representing 22.3 cents for a California Gold share based upon the 20-day volume weighted average price of Stratabound stock. The prize of the merger is Stratabound getting CGM’s flagship asset, the Fremont Gold Project located in Mariposa County, California within the prolific Mother Lode Gold Belt that has produced over 50 million ounces of gold.
Fremont is an advanced stage project with excellent exploration upside to add to reserves. The project hosts two historical underground gold mines across approximately one kilometer out of a total four kilometers of strike along the regional Mother Lode Shear Zone extending across and beyond the property. A National Instrument 43-101 mineral resource on Fremont shows 515,00 ounces of gold grading 1.71 g/t gold in the Indicated category and another 364,000 ounces Inferred at 1.44 g/t gold. The estimate only considers one area (the Pine Tree-Josephine zone) at the 3,351-acre Fremont property.
879,000 ounces of gold at today’s price of $1,782 per ounce is $1.6 billion. Granted, there is work to be done to reach production and capex involved with the whole process, but the overview provides some color anyway as to the value of Fremont today.
The new asset makes Stratabound an international firm, with Fremont joining the company’s existing projects of Golden Culvert (gold) project in Yukon Territory and the McIntyre Brook (iron oxide-copper-gold (IOCG)) and Captain (copper, cobalt, gold, silver) projects in New Brunswick.
Despite adding Fremont, shares of SB dropped to 17.5 cents at the close of trading last Friday. The full valuation of the merged company upon execution of the acquisition (which includes issuing 65.1 million shares to CBM shareholders) would still be just $24.6 million. This, after SB was trading at a valuation of $30.3 million in November and CGM traded at a median valuation of approximately $15 million over the last year, in line with the acquisition price. This is a case of bad math by the market, most likely simply owning to gold prices slipping from the record high at $2,089 an ounce set in August.
While it’s arguable that Fremont alone could command the $24.6 million market cap on its own, the other Stratabound properties, while earlier in development stage than Fremont, also deserve value for the opportunities they present.
Golden Culvert is an 84-square-kilometer property along 24 kilometers of mineralized trend. It is located 24 kilometers north of Seabridge Gold’s (NYSE:SA)(TSX:SEA) high-grade 3 Aces gold project that discovered 5,401 g/t gold in 2003. Exploration at Golden Culvert has shown multiple gold-bearing zones within a 130-meter-wide gold vein corridor along 970 meters of strike that remains open both directions and at depth below 225 meters. Discoveries up to 320 g/t gold (Au) at surface have been reported at Golden Culvert. The best trench result so far assayed 95.0 g/t Au over 1.5 meters.
In March, the deepest intersection to date was made: 4.83 g/t Au over 1.5 meters at 225 meters below surface.
Results from a recent 6-hole in-fill drill program showed each hole to intercept gold mineralized quartz vein and breccia structures yielding between 0.36 g/t Au over 12.1 meters in GC20-13 and 86.6 g/t Au over 0.6 meters in GC20-16 down-hole. Apropos, this topped the previous best drill result of 60.1 g/t gold over 0.9 meters. Hole GC20-15 intercepted a high-grade interval of 10.2 g/t Au over 0.7 meters immediately in bedrock at 4.3 meters below the overburden surface.
“The abundance of high-grade surface samples collected in float-trains reported on November 17, 2020 that included 93 samples up to 320 g/t Au, averaging 13.27 g/t Au over 670m of strike across an 100m width overlie and are sourced proximal to this latest drilling area. We remain encouraged to definitively pin down that source,” said R. Kim Tyler, President and CEO of Stratabound in a recent news release on the drilling. He added that the next stop is compiling, interpreting and 3D modeling of all the data to data to evaluate all criteria “that may further control the higher-grade gold grade distribution in the larger system.”
SB’s Captain Cu/Co/Au/Ag project is situated in the heart of the renowned Bathurst Mining Camp in northeast New Brunswick. The project has been the subject of a NI 43-101 report showing 1.0 million tonnes @ 1.03% copper, 0.051% cobalt and 0.2 g/t gold in the Measured and Indicated categories. The Inferred resources per the report are 960,000 tonnes @0.64% copper, 0.039% cobalt and 0.12 g/t gold at 0.6 copper equivalent cut-off based on total in situ metal.
In March, results from three holes in a 15-hole program showed more intersects of high-grade mineralization consistent with previous reports. This drilling was particularly important because it represented the completion or work ahead of a study to investigate small-scale, high-grade, direct-shipping mining project to generate near-term cash-flow.
Highlights Included:
• Hole CP-20-49 yields 5.39% copper equivalent (CuEq) over 2.5m within broad lower grade halo of 3.34% CuEq over 11.5m true width,
Twelve of the fifteen holes completed intercepted significant copper-cobalt-gold-silver mineralization within 6-9 meters of surface at the bedrock interface, across an average 9.6 meters true width and along approximately 120 meters of strike length.
“We are moving ahead with the evaluation of a small-scale, direct-shipping mining project whereby a plant, concentrator, tailings, ancillary facilities, and associated capital cost and permitting delays would not be required,” said Tyler. He added, “It bears repeating that the Captain Deposit's high grades, road access, proximity to a rail head, and the deep-water port at Belledune near Bathurst, New Brunswick make for a very attractive direct-ship cash-generating opportunity.”
SB’s McIntyre Gold Project, located about 80 kilometers west of the Bathurst district, has two known gold occurrences 1.5 kilometers along strike of each other, dubbed the McIntyre Brook and the Big Pit showings. McIntyre represents an exciting new exploration model that has only recently been recognized to occur in the Maritimes with geological features comparable to world class IOCG deposits such as Olympic Dam Mine in Australia (2.95Bt @ 1.2% Cu, 0.04% U, 0.5 g/t Au, 6 g/t Ag) and Candelaria Mine in Chile (600mt @0.95% Cu, 0.22 g/t Au, 32.9 g/t Ag).
While early in exploration, McIntyre features 40 significant gold values between 0.20 and 41.56 g/t gold out of a total 46 grab samples collected from bedrock exposed in trenches along 300 meters of strike length. The zone remains open at both ends and occurs within a 480-meter wide, 8 to 165 ppb gold-in-soil anomaly that remains open beyond 500 meters of strike length. Rock samples from outcrop at the Big Pit returned up to 1.44% copper and 9.53 g/t gold.
Amongst other compelling findings so far, a trench sample at the main showing turned up 41.5 g/t gold; 7.9 g/t gold were found in outcrop; 16 g/t gold assayed in float; 1.6 g/t gold and 6.5% copper in soil and 2.76% copper in trench discovered on southwest part of project (near 109.5 g/t gold found in outcrop on Puma Exploration property).
As with its other projects, McIntyre is an opportunity for constant value building and news flow. For instance, the company optioned 26.75 kilometers of new claims in November increasing the land position by 110% and results pending from 2,500 soil geochemistry samples across the entire project.
In fact, Stratabound’s news feed shows the company is constantly moving with a purpose to advance its projects. The unrelenting progress speaks to the quality of the venerable group of experts leading Stratabound whose C.V.s include senior positions at miners including Barrick Gold, Jaguar Mining, Cominco, Vale, Rio Tinto, Jerritt Canyon (owned by billionaire mining investor Eric Sprott) and more. Speaking of Jerritt Canyon, the company owns 12 million, or 14.9%, of the outstanding shares of Stratabound, plus 4.5 million warrants, or 16.4% partially diluted.
Reasons abound as to why a re-valuation is coming for Stratabound Minerals to make it more reflective of its metal assets, leadership and cash position, which stood at $3.3 million at the end of September. The company had fundamental strength before the California Gold acquisition and is now really in a strong position going forward to start positioning to transition from an explorer into a producer, which should land SB squarely on the radar of the North American investment communities soon.
About AllPennyStocks.com:
AllPennyStocks.com Media, Inc., founded in 1999, is one of North America’s largest and most comprehensive small-cap / penny stock financial portals. With Canadian and U.S. focused penny stock features and content, the site offers information for novice investors to expert traders. Outside of the countless free content available to visitors, AllPennyStocks.com Pro (premium service) caters to traders looking for that trading edge by offering monthly stock picks, daily penny stock to watch trade ideas, market commentary and more.
As a result of its commitment to journalistic excellence and abundance of information in a particular area of equity investing (micro-cap investing) where there aren’t many credible sources of information, AllPennyStocks.com continues to have one of the largest audiences of micro-cap investors on the internet.
Forward Looking Statements
This report includes forward-looking statements that reflect current expectations about its future results, performance, prospects and opportunities. Stratabound Minerals Corp. has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause Stratabound Minerals Corp.'s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's growth expectations and ongoing funding requirements, and specifically, the Company's growth prospects with scalable customers, and those outlined above. Other risks include the Company's limited operating history, the Company's history of operating losses, consumers' acceptance, the Company's use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company's securities, the possible volatility of the Company's stock price, the concentration of ownership, and the potential fluctuation in the Company's operating results.
Disclaimer
AllPennyStocks.com feature stock reports are intended to be stock ideas, NOT recommendations. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. Information contained in this report was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable. For more information see our disclaimer section, a link of which can be found on our web site. This document contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by these sections. Actual results may differ materially from the Company's expectations and estimates. This is an advertisement for Stratabound Minerals Corp. The purpose of this advertisement, like any advertising, is to provide coverage and awareness for the company. The information provided in this advertisement is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country.
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