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Rokmaster has Gold for $23 an Ounce CAD

Bob Moriarty

Jan 13, 2021

It’s an interesting company with an interesting chart. The shares were as low as $.24 in October before blasting higher into early January of this year at $.76. They recently released a resource showing over two million ounces of gold in British Columbia but trying to determine the value of the company is a little difficult.

The company is Rokmaster Resources (RKR-V). They have an option on an interesting polymetallic deposit in Southeast British Columbia. They released a PEA on December 8th showing an after tax NPV at 5% of $423 million Canadian with a 29.5% IRR and a 2.6-year payback. For annual Life of Mine production of 124,000 Oz in AuEq, those are all solid numbers.

I’m convinced that what has investors avoiding the story is the terms of the option. The Revel Ridge project has been around for a long time and in the hands of a dozen or more companies. It comes with a 40-man camp, 41,000 meters of diamond drilling and 3km of underground workings. It is just off a major access highway good all year around.

Placer gold was discovered nearby as long ago as 1865. Exploration work on the main zone began in 1912. Between 1912 and today tens of millions of dollars were spent on advancing the project. Alas, the decline in the gold price soured the company that held the option and in 2020 Rokmaster picked it up.

The deal calls for Rokmaster to pay $44 million CAD over a five-year period to get 100% ownership with no share payments, no NSR, no minimum work commitments and no back-in rights. In addition Rokmaster can pick up a tax-loss carry forward of $35.9 million and a Resource Tax Pool of $18.3 million.

The payments are backend loaded with $1 million due at the end of the first year, $4 million on the 2nd anniversary, $5 million on the 3rd anniversary, $13 million on the 4th and a final $20 million at the end of the five years. If you believe the price of gold is going a lot higher and the dollar lower, this is the deal of a lifetime.

Naturally the agreement lights a fire under the management of RKR. If they get cranking and produce, they have a great deal. It would not be a good idea for them to take their time. They are facing a burning candle and when it goes out, so do they.

There is a lot of blue sky potential. They have a 7-8km strike length with up to 80% of the mineralized zones undrilled. They are fully funded having completed a $9.1 million financing two weeks ago. The share price has gone up so much the warrants are already in the money and will bring in an additional $11 million.

At today’s price the company has a market cap of about $40 million and an enterprise value of about $20 million if you count the value of the in the money warrants. If they manage to spend the money wisely and swiftly, they should go a lot higher. I think they will end up with something over 4 million ounces of AuEq and that will make them very attractive.

I have bought shares in the open market in the past but did not participate in the latest private placement. I am biased so do your own due diligence.

Rokmaster Resources Corp
RKR-V $.53 (Jan 12, 2021)
RKMSF-OTCQB 71.6 million shares
Rokmaster Resources website


Bob Moriarty
President: 321gold

321gold Ltd

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