U.S. Markets open in 4 hrs 26 mins

Streetwise Reports Examines Small-Cap Firm with Royalty on Prime Nevada Gold Deposit

SAN FRANCISCO, March 21, 2019 (GLOBE NEWSWIRE) -- Knox Henderson explains why he believes Terraco Gold Corp. (TEN:TSX.V; TCEGF:OTCPK), with two big catalysts coming and a royalty in a large Nevada gold deposit, should be trading at three times its current share price...at the very least.

Company mentioned:  Terraco Gold Corp.

The beauty of running a private equity (PE) firm is the "private" component. So, in late 2015 when a subsidiary of PE firm Waterton acquires the 5.1-million-ounce Spring Valley gold deposit in Nevada from a very public Barrick Gold—and its then junior partner, Midway Gold—the flow of information comes to a grinding halt. This leaves other stakeholders, like the shareholders of Terraco Gold Corp., which has an up-to 3% royalty on the lion's share of the deposit, lost in the dark.

Terraco Gold has an approximate average 2.5% royalty on 5-million-ounces of gold, so it is sitting on at least $100 million in solid gold value cash flow over the life of mine.

Terraco completed its transaction with a subsidiary of Waterton on June 17, 2016, where one option for Solidus/Waterton was the ability to convert its debenture into Terraco at $0.18/share. This means Waterton/Solidus valued Terraco at that time at a minimum $0.18/share. The disconnect for valuation is substantial.

Continue reading this article: 'Multi-Million-Ounce Gold Giant' Is Stirring. . .and the Stock Is at an All-Time Low

About Streetwise Reports

Streetwise Reports shares investment ideas in many sectors. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.  


The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Terraco Gold. Click here for important disclosures about sponsor fees. An affiliate of Streetwise Reports is conducting a digital media marketing campaign for this article on behalf of Terraco Gold. Please click here for more information.  As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Terraco Gold.

Knox Henderson: I, or members of my immediate household or family, do not own shares of any of the companies mentioned in this article.

The full disclosure is provided at the article's end: 'Multi-Million-Ounce Gold Giant' Is Stirring. . .and the Stock Is at an All-Time Low

For more information, please contact Carmen Guzman, Cguzman@streetwisereports.com.