September 2018

First Cobalt Corp (TSXV:FCC) – Iron Creek Resource Starts the Transition to Developer

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Impact: Positive First Cobalt released the results of an updated mineral resource estimate for its recently acquired Iron Creek Project in Idaho. We view the resource positively, as it delivers a 277% increase in tonnes (underground scenario) over the historic resource with 10,800m of drilling and starts the companies transition from explorer to developer, making it easier for investors to value to the company.

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

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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.

Callinex Mines Inc (TSVX:CNX) – Blue Sky in Bathurst

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Impact: Positive Last week we visited Callinex Mines’ Nash Creek and Superjack properties in the Bathurst Mining Camp of New Brunswick, Canada. The highlight of the week’s visit was a combination of both the extensive mining infrastructure in the historic camp and the largely untapped mineral potential of Callinex’s 155km2 Nash Creek property.

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

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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

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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.