September 2018

Bonterra Resource Ltd. (TSXV:BTR) – “1 + 1 =3”: Bonterra Completes Metanor Merger

  • Research 
Impact: Positive The gold mining industry is notorious for dilutive mergers and destroying shareholder value. However, (too) rarely, a transaction occurs which actually makes complete and obvious sense and creates synergistic value. We believe that the merger of Bonterra and Metanor is one of those smart transactions and that “New” Bonterra will be a very attractive investment vehicle with plenty of news flow to attract attention from the market. We also expect the deal digestion to be relatively short and painless given the low complexity of the assets and obvious synergies between the two companies as detailed in this report. Another plus is that we estimate that the new company trades at a substantial discount to its peers as well.

Pacton Gold Inc (TSXV:PAC) – Adding Ground at the Egina

  • Research 
Impact: Positive Pacton Gold has announced a binding LOI for the acquisition of another project in the Egina region of the Pilbara, which we view positively. The Golden Palms property adjoins Pacton’s Friendly Creek project adding 35 k𝑚2 to its growing land package in the Pilbara.

Brixton Metals Corp. (TSXV:BBB) – Brixton Hits One of the Best Holes of the Year in Cobalt

  • Research 
Impact: Positive Based on peers in the Cobalt Camp, we believe Brixton remains undervalued based on these assets alone. The company has demonstrated an ability to acquire prospective, undervalued assets and is working to surface value on all four its projects. In our view, continued exploration success in the Cobalt camp, along with planned work at the company’s other properties, should benefit shareholders through Brixton.

Red Pine Exploration Inc. (TSXV:RPX) – More High-Grades from Historic Assays

  • Research 
Impact: Mildly Positive Red Pine Exploration announced additional results for historic holes sampled as part of its 2018 Historic Core Sampling Program at its Wawa Gold Project, located in Wawa, Ontario. The goal of the historic program is to convert gaps in the historic resource, where drilling exists but the core was not assayed.