Natan Grabs a Sample of 438 g/t Gold
Over the years I have discovered that the very best indicator mineral for gold, is gold. Someone contacted me recently and told me that he wanted to advertise a company that had just found a grab sample on surface with a big blob of gold smack dab in the middle. I liked that a lot and said, “Send me a picture.” And was told that pictures of the rock came in the “burn before reading category” and I was going to have to wait to see it like everyone else. Rats!
Eventually, in what seemed like eons later, the company announced closing the deal and put out the assays. They were barn burning especially given they were mostly channel samples taken at the surface.
(Click on image to enlarge)
The agreement was between Natan Resources (NRL-V) and Globex Mining (GMX-T) on the Montalembert property in Quebec where gold was first discovered in 1949. The project consists of a 5,516 square ha bit of ground. Prior work by another operator in 1973 showed an average grade of 20.8 g/t gold over 78 samples taken on a 123-meter strike length at surface.
Globex staked the ground in 2015 and owns 100% of the project. During 2015 and 2016 Globex sampled two veins, the primary Galena vein and the Number 2 vein and came up with results of 84.0 g/t, 64.5 g/t, 36.3 g/t and 17.3 g/t gold.
The agreement calls for Natan to pay Globex a total of $2.7 million over five years, to issue 8.5 million shares and to spend $15 million on exploration to get a 100% interest. That sounds expensive but the deal is rear end loaded, over half the money to be paid to Globex takes place in 2019 and the serious exploration expenses are due starting in 2019.
It’s a great deal for both companies. Natan just did a major financing and has $4 million in the bank. If the CEO and President of Natan, Steve Roebuck, can pick up a 438 g/t piece of rock just by wandering around I’d like to suggest that if a team of geologists can’t find a resource worthy of the name with $4 million to spend they should be drawn and quartered on the YouTube for everyone to view.
In addition to the cash, shares and exploration commitment, Natan will also pay a 6% Gross Metal Royalty on the first 150,000 ounces of both gold and silver and 3.5% GMR after 150,000 ounces.
I really like the ability to gain 100% of a project and while the terms of the agreement are highly favorable to Globex given that they just staked the property, Natan has a deposit they can get serious numbers from right at the surface and a lot of money to play with. The placement was for a unit consisting of a share and a half warrant at $.40 for two years. That would bring in another $4 million in cash and with high grade gold at surface; the company should be well on the way to production with $8 million to work with. I see the company being worth a lot more than a $6 million dollar market cap very soon.
Naturally I needed to go to both web sites to verify my information. The webmasters of both sites need smacking on the bum. In the news section of Natan resources, the press releases talking about the private placement were broken and on the Globex site looking at the Montalembert page, the map at the bottom of the page had an invalid link and couldn’t be viewed.
I wasn’t willing to wade through all the information on the Globex site since they claim over 140 land packages. I suspect the company is very cheap but when you have that many projects going, it’s very hard for an investor to actually put a value on more than one or two properties.
Natan on the other hand is simple to understand. They have one major project with high-grade gold veins on the surface in Quebec, which is one of the best jurisdictions in the world for gold mining. The company is both very cheap and well cashed up with a project that a properly trained monkey could spot drill locations for.
Natan is an advertiser. I have bought shares in both the open market and in a private placement. Naturally I am biased. I am as biased about Globex but I do not own shares. You are responsible for your own due diligence.
Globex Mining Enterprises