Despite the recent pullback, 2017 started like 2016 finished — with the TSX.V outperforming every other major exchange in the world.
Tens of thousands of miners, financiers, country delegates will be gathering in Toronto this weekend for the annual PDAC; the largest such mining conference of its kind. Attendees will have reason for optimism as the bull market roars. TSX Venture listings are up 50% year over year, their market cap is up a resounding 86% and capital raised for companies is up 423% to $445.3 million. It’s been a good year.
With momentum at our back we are deploying money into a new name, Prize Mining (TSX.V: PRZ.H) which is halted pending the acquisition of a 1.89m ounce gold deposit. Prize has capable management, strong financial partners, and synergies with our other winners (TSX.V: WGO $1.71) and (TSX.V: GPY $1.50). Since this is the first round of financing, the demand has been very strong and we anticipate that Prize Mining will trade well once it resumes. There will be new drilling commencing, ounces should increase and step out drilling could yield many potential high-grade discoveries.
Our two lithium names continue to perform and both are on the cusp of significant milestones — NLC @ $1.45 and ML @ $1.50 — we continue to support them. Given our success in the space, we are making a new investment into a company called Liberty One Lithium (TSX.V: LBY.H). Liberty is currently closing a $3.5m financing and should start to trade well once the .H comes off. More to come on this in coming weeks.
Please feel free to reach out if you have quality deals in need of investment from value add shareholders: We are searching for our next 10x opportunity.
Justus Parmar is CEO of The Parmar Group