GOLDEN VALLEY = GOLDEN OPPORTUNITY ??Golden Valley Mines, ticker is TSX.V: GZZ
GZZ is a "prospect generator" and as such, finds new discoveries and partners up with mining companies to fund the drilling/ permitting/ development of the prospects. This way, other companies pay the Lions share of the costs, meaning GZZ don't have to constantly raise fresh funds, by diluting investors, it's a smart business model. GZZ has 4mill C$ in cash and no debts, the current market cap is C$30m. They have ownership rights over 75 properties and substantial holdings in other companies.
This is where the stock becomes an incredibly compelling purchase, at today's levels.
One of it's main holdings is a 49.4% ownership of Abitii Royalties (ticker TSX.V :RZZ).
Abitii Royalty has a substantial amount of deals and is working on more all the time. It also has very large share holdings in Yamana gold and Agnico Gold...C$4m cash and no debt. Their holdings in Yamana and Agnico, along with their cash, comes to C$ 60.3m. Abitiis market cap, at the moment is C$ 104m...SO, GZZ has a mkt cap of 30m and owns half of a company that has a mkt cap of 104m....there is a clear arbitrage trade here, selling RZZ and buying GZZ and locking in the additional future prospects of GZZ, for FREE. (For me, I prefer, just to buy as much GZZ as is possible, at the currently undiscovered low levels)
Abitii is a great company too, it has 15 Royalties in place and a 3% NSR on Odyssey North at the Malartic...also Rob McEwen owns 12.3%(V smart cookie)...AND they have a buyback program in place so the share count is going down, not up! Their ongoing relationship with Yamana and Agnico should continue to be very lucrative. THE BEST WAY TO OWN ABITII, IS TO BUY GOLDEN VALLEY MINES....to lock in the discount price that GZZ trades at. I wouldn't be surprised to see either Yamana, Agnico, Abitii or some other miner, come in at these levels and try to buy out GZZ on the cheap, it would also make sense for Rob McEwen. I intend to buy GZZ at the open today and will happily leave them in my pension fund account for the foreseeable future. Thanks for taking the time to read this, I hope it works for you, best of luck,tc
P.s. If anyone out there has other arbitrage opportunities please let me me know,t
p.p.s. in the interests of full disclosure, the stocks below are what i own as of today, biggest axes first,
PMNXF
SLW
SAND
FFMGF
XRA
MIDLF
MPUCF
GSV
GARWF
GPL
IVPAF
ALACF
TOGOF
SSPXF
MRDDF
OCANF
OBNNF
EANRF
MXGIF
DRLDF
BALMF
USAPF
Also like Burey Gold ASX: BYR...they have just struck gold in a major way stating "EXCEPTIONAL" results for the first few holes...bureygold.com...all the best,tc
Golden Valley = Golden Opportunity??
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