We are pleased to bring you our newest Special Feature Alert. Many of you have noticed the considerable rebound in the mining sector as of late with numerous small and mid-cap exploration names up handily from their recent lows in late 2015 and early 2016. Year to date returns in precious metals have been robust as gold, silver and platinum lead the charge. We believe the underlying macro economic factors continue to favour increased exposure to the precious metals sector, with a particular bias towards small cap gold explorers for the increased leverage to the commodity price that they provide. An example of such a company is one that we have been following on and off for a number of years We believe the recent developments with this small cap gold stock have provided an opportune time for investors to take a closer look. As such, we would like to bring your attention to Nulegacy Gold Corporation (TSX.V – NUG). Nulegacy is focused on their flagship Iceberg deposit in the prolific Cortez Trend in Nevada. In December of 2015 they completed an earn-in of 70% in the Iceberg project with none other than Barrick Gold, the world’s largest gold producer. More recently, in March of this year, Barrick became Nulegacy’s largest shareholder by exchanging the remaining 30% working interest in the project in return for 32 Million shares of NUG. The fevered pace of high calibre industry and institutional investment into Nulegacy continued in April. First, OceanaGold completed a strategic investment into NUG to the tune of $6.67 Million at $0.14/share. Then, just 10 days later, it was disclosed that a well known institutional investor (Tocqueville Gold Fund – a preeminent gold investor) acquired 19.5 Million shares at $0.20/share on the open market.
In addition to the considerable backing of these well respected groups, various industry observers have begun to chime in on the Nulegacy story.
Some recent comparisons to Gold Standard Ventures Corp. (TSX.V – GSV), another highly regarded up and coming Nevada gold explorer, have been made. Interestingly, OceanaGold is also a strategic investor in GSV.
Generally speaking, it is wise to pay attention to what the “smart money” is doing. Similar to Nemaska Lithium (TSX.V – NMX), where Johnson Matthey came to the table, for a gold exploration company like NUG, having the backing and support of Barrick, OceanaGold, AND Tocqueville is a tremendous vote of confidence!
We believe there is significant potential for a solid return on Nulegacy and we are pleased to announce it as our next Special Feature Alert.
Investors are encouraged to learn more by Logging Into the Nulegacy Gold Module where you will find NUG’s Corporate Presentation, Project Video, Historical News and more.
TREZ CAPITAL (TSX:TZZ) Important Update!
In other news, we are pleased to announce that our Trez Capital Mortgage Investment Corp (TSX – TZZ) pick has finally received the news we have all been waiting for!
“SPECIAL COMMITTEE ANNOUNCES COMPLETION OF STRATEGIC REVIEW PROCESS AND SETTLEMENT WITH THE CONCERNED SHAREHOLDER GROUP”
READ THE NEWS HERE
As was first reported with our special coverage on TZZ we saw an interesting opportunity to capitalize on a unique situation and participate alongside the activist investor group that was urging for change at TZZ. To-date, the pick has stayed in the black while delivering dividends throughout the process.
We believe the break-up value for TZZ will be somewhere around $8.80 which is the lower end of our initial target price.
As always, our picks are 100% transparent and investors are welcome to track our real-time performance on our website. Happy investing!
Please conduct your own due diligence and be sure to consult your financial advisor regarding the suitability of all investments. Prosperity Stock Report is for informational purposes only and should not be construed as a solicitation to buy or sell any securities. Please review the disclosure statement on our website as we may hold positions in the companies mentioned. Our opinions may be biased.