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
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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
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