1/ Coral Gold (TSX.V:CLH) has been active in Nevada for over 30 years, developing a meaningful relationship with Barrick Gold (TSX:ABX) that has already led to one significant asset sale. Coral Gold negotiated a nice royalty with a sliding scale for the NSR and annual payments...
2/ ...due if not the Robertson is not in production by 2025! Coral has several other assets nearby that could have similar success, but CEO Mr. David Wolfin has already described the royalty on the Robertson as a potential company maker.
3/ Bell Copper (TSXV:BCU) has a deal with Kennecott Exploration under Rio Tinto (LSE: RIO, ASX:RIO) for a porphyry project in Arizona that is close to becoming a copper porphyry. Bell Copper is still the majority owner for the project, but their partner is earning in quickly.
4/ Bell Copper will ultimately retain 25% of the Kabba project if the deal is fully executed, at which point they may be able fund ongoing expenditures at the project to retain that stake or monetize it in some way.
5/ These are two particular examples of one exit path for successful juniors: retain some residual ownership stake after selling a project. The other exit paths are to sell the company outright or try to advance the project yourself. They may get more attention, but these...
6/ ...residuals can be really valuable down the line.
7/ Royalties can pop up in surprising places decades later generating cash flow (Callinan Royalties, anyone?). Look to EMX Royalties (NYSE:EMX), "The Royalty Generators", for more on the virtues of all this.
8/ But there's always risk -- where is it?
9/ Find out where I think risk and reward is in $CLH.V and $BCU.V in my article out today: ceo.ca/@newton/profit…
