Categories: Precious Metals
Topics: Gold Stocks

A New Gold IPO Worth Checking Out

As we head into Q2, gold is outperforming the broader market more than twice over. 

The yellow metal is up ~7% for the year while the S&P is up less than 3%. And this outperformance is more likely to continue than not given renewed money printing and volatility as a result of multiple bank failures. 

It’s my belief that over the coming months gold stocks will begin to show their leverage to the gold price and move multiples higher from their current levels. 

One way to try to maximize this leverage is with private deals that are usually off limits to most investors. 

A Gold IPO Open to Anyone

With gold approaching $2,000 per ounce, I’ve found a gold initial public offering (IPO) that anyone can participate in. 

It offers the best of both worlds. 

It’s still private, so it hasn’t had the chance to be bid up by the market yet. And it’s going public via prospectus offering, meaning you can participate even if you’re not an accredited investor. 

The company is called U.S. GoldMining, and it’s being spun out of GoldMining, Inc. to list on the NYSE. 

The IPO is being done at US$10.00 per share, and each share comes with a full warrant at US$13.00 that will be tradable and good for three years. 

U.S. GoldMining’s flagship asset is the Whistler Project in Alaska. It’s a significant undeveloped gold-copper deposit that is fully permitted for exploration that can unlock its full potential.

The project already has a robust resource of 3 million ounces of gold equivalent in the indicated category and 6.4 million ounces of gold equivalent inferred.

Broken out by metal, it contains 6.6 million ounces of gold and 1.13 billion pounds of copper modeled from 70,000 meters of drilling across its three deposits — Whistler, Raintree, and Island Mountain.

Drilling is set to commence this summer, which will be the first exploration on the project in a dozen years. The 20,000 meter program will seek to upgrade the current resource and look for extensions of known deposits. It will also drill new targets, of which there are plenty across the 53,700 acre property.

Access is already easy. There is a winter road for equipment access and the property has an airstrip to accommodate the short flight from Anchorage, which is only 105 miles away. The Alaska Industrial Development & Export Authority is also proposing a new road that would link the Whistler project with Port Mackenzie. 

The new company will be led by Tim Smith, who was previously VP Exploration with Kaminak  Gold Corp where he led the field team to the discovery of the Coffee Gold Deposit in Yukon, Canada. It’s being chaired by Alastair Still, who is the current CEO of GoldMining. Both gentlemen have experience at major gold mining companies, including Goldcorp and Newmont. 

Pre-IPO, U.S. GoldMining has 10.1 million shares outstanding. The IPO round will sell two million shares at US$10 each, leaving the resultant public company with 12.1 million shares out and $17.8 million in the treasury. 

That would give it a post-money enterprise value of ~US$100 million, meaning it would be valuing the gold at just US$15 per ounce. The average valuation for development-stage companies is closer to US$40 per ounce. And that’s without assigning any value to the copper. 

With the gold price already moving higher, this could be a 2-3 bagger out of the gate. 

How to Participate in This Gold IPO

There are several ways you can participate in this gold IPO. 

The easiest way is to contact the company directly. You can do that at: 

U.S. GoldMining
Telephone: (604) 388-9788 
Email: info@us.goldmining.com

You can contact one of the joint book runners for the deal: 

For U.S. investors only, that would be H.C. Wainwright & Co.:

Email: placements@hcwco.com.

For U.S. or Canadian investors:

U.S. Investors: BMO Capital Markets Corp.
Phone: (800-414-3627)
Email: bmoprospectus@bmo.com 

Canadian Investors: BMO Capital Markets
Phone: (905) 791-3151 Ext 431
Email: torbramwarehouse@datagroup.ca

Alternatively, you can participate in this gold IPO through Webull or contact your current broker. 

It’s worth a look given the unfolding bull market in gold coupled with the excitement of a new big board listing.

Nick Hodge
Publisher, Daily Profit Cycle