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Orca Gold announced that it has made the third and final option payment of $3 million to secure a 17% interest in the Block 14 mineral license in Sudan.

This was expected and is a positive for the company as it secures its ownership in the deposit, which contains 1.7 million ounces of gold in resources.

Orca Gold remains well funded and I estimate the company has $39-40 million in cash with zero debt after the payment. I think shares are a buy here.

Orca Gold (OTCPK:CANWF) announced Tuesday that it has increased its interest in the Block 14 property to 70% as it made the third and final option payment of $3 million to Meyas Sand Minerals Co. Ltd, for total considerations of $9.5 million.

In my first article on the company, I argued that Orca Gold has huge upside potential. The company's Block 14 license hosts the Galat Sufar South prospect, which contains an initial mineral resource of 1.3 million ounces of gold indicated (1.84 g/t), and 400,000 ounces of gold inferred (1.9 g/t). This is a decent size property; however, Orca's initial resource estimate is based on just 1 year and 35,000 metres of drilling, as mentioned in my first article, and many targets have yet to even be tested.

Orca's final $3 million payment to increase ownership in Block 14 is positive news for the company as it has now fully earned into a 70% interest on the property, which contains 1.7 million ounces of gold (1.19 million ounces attributable to Orca) with excellent exploration remaining. With a market cap of just $60 million, $39-40 million in net cash and an official 70% interest in a growing 1+ million ounce gold deposit, I think Orca Gold is a compelling buy at current prices. The company also announced that it will soon release an update of summer exploration programs, which could provide another catalyst for share price appreciation.

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