New Trade Alert: First Mining Finance Corp. ( FFMGF )
Our last trade alert initially provided us with 16% gains however afterwards triggered our stop loss. Despite the enormous upside, and closing the trading session near highs, we will not be recording any gains on our gain tracker.
FFMGF presents us with what we believe to not only be a short-term trade opportunity, but one of long-term investment potential. We do not often say this about many companies.
FFMGF is positioned in the gold and silver market and happens to potentially be a candidate that is capable of providing investors with significant returns over the course of the next bullish precious metals cycle (which may have already begun). I am of the opinion that we are in the beginning stages of a precious metals bull market.
The company's objective since becoming a public company in 2015 has been acquisitions of smaller miners, those that are sitting on large deposits that have an opportunity to become producers in the future.
FFMGF is supported by industry veterans such as Keith Neumeyer, who is the founder and chairman of the company.
In addition, Keith Neumeyer is the founder and CEO of "one of the world's largest silver producers" and plans on making First Mining Finance his 3rd company that he founded to reach a $1Bln market capitalization. Whether he achieves this goal, is entirely speculation, but his track record certainly speaks for itself.
The company has already "acquired a total of 10.5 million ounces of gold equivalent resources and has built a portfolio of 27 mineral assets in Canada, United States, and Mexico."
The goal of the company is to continue with acquisitions to further build its "mineral bank" of resources.
It is believed that gold and silver have begun what may prove to become a multiyear bull market. If accurate, valuations of small and mid tier mining companies such as FFMGF would provide a very leveraged speculative bet for investors.
As mentioned earlier, FFMGF may be an optimal trade and investment opportunity in both the short and long-term.
In the short-term, the company has established what appears and may prove to be a level of significant support that would increase the chances that the company may see higher valuations.
Regardless of near-term fluctuations in the price of precious metals, it is our opinion that miners such as FFMGF may not experience any sizeable correction, and in fact have a chart pattern that appears to suggest a breakout of significant magnitudes before any meaningful healthy correction occurs.
Recent News Development
First Mining Completes Transaction With Tamaka Gold Corporation
FFMGF recently announce the successful completion of the previously announced amalgamation with Tamaka Gold Corporation, a privately held mineral exploration company which owns the Goldlund project located in northwestern Ontario.
As a result of the Transaction, Tamaka has become a wholly-owned subsidiary of First Mining and the shareholders of Tamaka received an aggregate of approximately 92.5 million common shares of First Mining. In addition, under the terms of the Transaction, certain shareholders who held in the aggregate approximately 39.6% of the outstanding Tamaka shares, have deposited the First Mining shares received by them under the Transaction into escrow. Twenty percent of such escrowed shares will be released from escrow one year following the closing date of the Transaction and an additional 20% will be released every six months thereafter, with the final tranche released on the date which is three years after closing.
Another Big Development From Early June: First Mining Completes Acquisition of Cameron Gold Project
On June 9 FFMGF announced the successful completion of the previously announced acquisition of Cameron Gold Operations Ltd., a wholly-owned subsidiary of Chalice Gold Mines Limited (CHN.AX)(CXN.TO) which owns the Cameron Gold project located in Ontario, Canada.
Keith Neumeyer, Chairman of First Mining, stated: "We are very pleased to have completed the acquisition of the Cameron gold project. This is our third significant acquisition in north-western Ontario and we believe that the Cameron project complements our growing portfolio of advanced assets with sizeable in-situ gold resources in geopolitically safe regions. With the acquisition of the Cameron project, we've added another 31,673 hectares to our portfolio within the world famous Kenora Mining Camp containing a known NI 43-101 compliant Measured and Indicated Resource of 7,824,000 tonnes grading 2.26 g/t gold (569,000 Au ounces) and an Inferred Resource of 14,464,000 tonnes grading 1.92 g/t gold (894,000 Au ounces) with significant geological upside."
Gold Has Strong Tailwind, Could Trend Even Higher
The surge in gold prices is benefiting miners as revealed by this recent Zacks report:
Gold has regained its luster, as exemplified by a 21% rise since the beginning of the year with prices flirting close to the $1,300 mark. Needless to say, the yellow metal has been the best performing asset in the first quarter, trouncing major equity indices, investment grade and high yield bonds and commodity indices.
What Set Gold Rolling?
A weakening greenback, slowdown in China, volatile equity markets and introduction of negative interest rates by several of the world’s central banks (including Japan) have spurred safe-haven demand for gold. The spike in gold prices has led to a surge in the share prices of many gold miners.
For more information please visit the company's website: https://www.firstminingfinance.com/
