Avrupa Regains Alvalade Property and Traction
I’ve had an interesting couple of weeks. I had been staying in the South of France when the chance to see my friends at Avrupa Minerals (AVU-V) came up. The company’s main focus is in the part of the Iberian Pyrite Belt located in Southern Portugal. I thought it would be an interesting drive so I took a two-day trip through Spain and ended up in Lisbon. I did my site visit and drove back to France through Spain in another couple of days.
Then this last weekend I needed to go to the wedding of a friend in Munich. It was both too far and too hot to drive so I made a couple of hour-long flights to Germany. So in the preceding few weeks I have gotten to see a bit of France, some of Spain, a quick trip to Lisbon and southern Portugal and finally Munich Germany. As a result I think I am beginning to understand the European Union and why Germany thinks unlimited immigration is such a wonderful idea.
When you visit small towns in France, Spain and Portugal, the number of shuttered small, middle class owned and operated shops is scary. There are for-rent and for-sale signs everywhere. Unemployment rates reach to the sky. Clearly the EU has been a disaster for many countries in Europe. Unlimited immigration literally threatens the historical culture and heritage of Europe due to demographic changes resulting from birth rates too low to sustain population.
In short, the French, Spanish and Portuguese are not reproducing fast enough to maintain the native population. The only way you could keep the population level (really meaning labor and consumer levels) growing is to encourage immigration. But the groups being encouraged to move to Europe do not share the same cultural, religious or work ethic of Europeans. They do tend to breed a lot more and that seems to be the attraction.
But Germany stands out. You don’t see for-rent and for-sale signs. The country is booming with a low unemployment rate and everyone seeming to drive about in shiny new BMWs and Mercedes cars. I suspect that Germany has accomplished in a 4th Reich what Hitler couldn’t do in the short-lived 3rd Reich. Germany now dominates Europe. They produce the goods and most of the rest of Europe serves as the dumping grounds for the consumer goods pouring out of Germany by the tractor-trailer load.
Germany needs unlimited immigration to maintain a supply of ready low-cost labor and ships the resulting goods to the remainder of Europe. Germany produces and profits while the role of the rest of Europe is to provide the consumers. It’s a great deal for Germany and not so good a deal for the other countries. One day soon the EU minus Germany will begin (or better put, continue) the world-wide revolution I predicted in the last two pages of my book written in November of 2015, The Art of Peace.
The European Union was an attempt to circumvent the provisions in the Treaty of Westphalia that ended the bloodiest war in human history, the 30 Year War. The Peace of Westphalia began the concept of independent and sovereign nation states. It provided a period of almost 250 years of relative peace that ended at the conclusion of WW II when the United States began a series of wars based on nothing more than providing profit to the Congressional/Military/Industrial Complex.
Nation states no longer are sovereign. The United States maintains they have the sole right to attack any country under any excuse no matter how flimsy. The CMI complex has benefited from the 82% of wars the US has started since 1945 but for the rest of the world it’s been an unmitigated disaster. Germany has benefitted greatly as they can pick and choose from the record number of 65 million conflict and economic refugees seek a safer home.
But back to Avrupa. Avrupa uses a project generator model. That is they acquire projects, do some initial exploration work and enter into joint ventures with other junior mining companies. One of the biggest problems with companies using that model is the inability of investors to get to grips with valuation of multiple projects. If a project generator company has one project, investors give it a valuation of X. If that same company has two identical companies, the stock market will give it an additional .5 X for the second project and if there are more, a decreasing valuation for each succeeding property.
Avrupa has a nice size gold project located in Kosovo they have partnered with a company named Byrnecut. Byrnecut has earned 75% of the property and can earn an additional 10% by completing a pre-feasibility study. Byrnecut is an Australian gold production company and clearly intends to put the Slivovo gold mine into production. At the end of the day, Avrupa will end up with an NSR and income of a couple of million dollars free and clear at the point the project goes into production. That’s what project generators do.
But the big home run project for Avrupa was their Alvalade VMS deposit located in the Iberian Pyrite Belt where they partnered with another Canadian junior named Colt Resources. Alas, the president of Colt made a 500,000 Euro investment in a Turkish company without the required approval of the board and the whole thing was a Turkish scam. Colt blew up and put the Alvalade project into limbo. Colt was required by terms of the JV to advance certain sums to Avrupa for exploration but all of Colt’s money seemed to have vanished into Money Heaven.
The lack of a clear way forward on their flagship project has taken much of the money and all of the time from Avrupa management for the last five months but just now the company has announced they have regained a 100% interest in the property. For Avrupa, it’s the best of all worlds. They have ended up with more of the project and Colt spent the money on exploration but Avrupa gets all of the benefit.
While I was visiting Avrupa they had just added a new geologist named Joshua Coder who was taking over responsibility for exploration on another project called the Alvito VMS project. He made a very interesting and I think valid comment about the future of Avrupa within the Iberian Pyrite Belt. He said words to the effect that you should think of mines within the mining history of 3000 years as being elephants. And certainly in both Spain and Portugal there is a history of hundreds of mines both going back tens of centuries but also in production today.
Avrupa is looking for an elephant deposit in a belt of elephants past and present. Coder commented that elephants like to hide behind bushes. The best way to bag an elephant is to shoot into a bush. Sooner or later you are going to hit an elephant. I think that’s a very accurate thought and I think Avrupa will succeed.
Avrupa is an advertiser and I own shares. I am naturally biased and all investors should do their own due diligence. One of these days Avrupa is going to hit an elephant and shareholders will be a lot better off than today. The shares are cheap.