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| Promoter: | Supe rHot Penny Stocks | Paying Party: | Research Driven Investor |
| Stocks covered: | Compensation: | Avg $ Volume for Period: |
| FGLD | $15000 | 18971 |
| Max Profit: 0.00 % | Gain at close: -14.83 % | |
| *We think that this promoter is a part of a group of promoters. | ||
Hello, Traders.
FGLD (Focus Gold Corp.) - a Company that strategically acquires and develops gold mining projects around the world, seeking diversification across its portfolio - released news this morning....
Focus Gold Corporation Highlights Further Consolidation of Porphyry Gold Projects in the Sierra Madre Occidental Region of Mexico and Comments on the Rising Valuations in the Area
RENO, NV -- (MARKET WIRE) -- 10/04/11 -- Focus Gold Corporation's (OTCQB: FGLD) (OTCBB: FGLD) Management would like to highlight a recent transaction of a Porphyry gold project in Mexico as they feel it relates to the company's Huicicila Porphyry Gold project located in the state of Nayarit, Mexico.
Due to the recent high demand for Porphyry projects there has been a flurry of M&A in the sector. The most recent transaction being Agnico-Eagle's ($13.5 Billion enterprise value) friendly takeover of Grayd Resources for roughly $275,000,000 (or about $275/Oz resource) which is one of the richest valuations paid for a Porphyry project in Mexico to date -- especially for a non-proven reserve.
Agnico-Eagle Mines Limited acquired Grayd Resource Corporation for $2.80 per share by way of a take-over bid. The offer price of $2.80 per Grayd share represents a premium of 65.7% to the average price of Grayd shares on the TSX Venture Exchange for the 20-day period ended September 16, 2011.
Grayd owns a 100% interest in the La India Porphyry gold project located in the Mulatos Gold Belt of Sonora, Mexico. Grayd also recently discovered the Tarachi gold porphyry prospect located approximately 10 kilometers north of the La India project. Both projects are located in a large package of exploration concessions that total approximately 54,000 hectares. Grayd's properties lie at the opposite end of the same chain of mountains, the Sierra Madre Occidental, as our Nayarit project.
Grant R. White, CEO of Focus Gold Corp., commented, "It is no secret Porphyry gold deposits are in strong demand by the majors. Grayd developed a 1 million ounce resource in about 4 years, and in the process, took the stock from $0.25 to the take-out price of $2.80, a 1,000% return for Shareholders. In our opinion, our Nayarit project has multi million ounce potential if developed and explored properly."
Mr. White went on to say, "The facts are these types of projects are in large demand and for Grayd's project to be acquired for over $275/Oz only based on a resource and not a reserve speaks volumes for the valuation potential of our Nayarit project. Ubika's June 6th research report on Focus also highlighted the significant value of Porphyry systems and can be found on our website at www.focusgoldcorp.com.
About Focus Gold Corporation Focus Gold acquires and develops gold mining projects around the world. Focus Gold's current projects include the multiple Nayarit claims with a copper-gold porphyry system in Mexico through the company's wholly owned subsidiary Focus Gold Mexico Corp., two properties in the Timmins Mining District in Canada through an option agreement with Victoria Gold, and the pending acquisition of Metallum Resources PLC, holder of exploration licenses in Northern Ireland, Republic of Ireland and Scotland through the company's wholly owned subsidiary, Focus Celtic Gold Corporation. For further information please visit www.focusgoldcorp.com
FGLD’s Market Opportunity
A potential porphyry gold-copper system on these properties would be much more valuable to FGLD compared to previous geological models of a smaller more localized vein system.
Porphyries of this potential size and scale, once developed, have historically been acquired for, or have publicly traded in the markets for values ranging from hundreds of millions to upwards of $1 billion+.
Recently the market value of gold has fallen from its recent historical highs, however traders are betting that gold will once again test its new historical trading levels once again!
With the rise in global fear Gold is becoming the number 1 investment for traders. With this growth in the market, FGLD is presented with a new historic opportunity.
"Our detailed geologic work in Mexico has further proven the presence of a gold-copper porphyry system. We have identified several drill target areas and hope to commence drilling shortly after the end of the rainy season in the 4th quarter."
-- Grant White, CEO of FGLD
Why Are Many Traders Paying Attention to Gold?
In the past year alone, the value of gold has increased by over 35%, with an increase in value of more than 210% in the past 5 years.
But, here are some additional reasons...
#1. It provides a bit of safety - In volatile economic times, people may want to protect their investments by moving them into safer assets. Gold doesn’t rely on an borrower’s promise to pay, as in the case of a bond. This offers protection from default risk.
#2. To diversify - Diversification protects your portfolio from fluctuations in the value of a single asset, or a group of assets that usually move in a similar direction. Most portfolio’s are only invested in traditional assets such as stocks, bonds, and money market instruments. Therefore, portfolios that include gold are generally less volatile than those that do not.
#3. To protect against inflation – The purchasing power of many currencies has decreased over time due to the rising prices of goods and services. However, over the long term, gold has kept its purchasing power. It’s value has remained constant in terms of the real goods and services it can buy.
#4. To hedge against the dollar - Gold is often used as a hedge against the U.S. dollar. If the value of the dollar decreases relative to the other main currencies, then the price of gold will rise.
#5. To manage risk – Gold is a lot less volatile than most commodities and many equity indices such as the S&P 500. Including assets with lower volatility in your portfolio will reduce its overall risk.
What People are Saying About Gold...
Over the past few years, gold has taken a leap in market valuation. Currently, the price of gold per ounce is approaching record-breaking highs, with many analysts continually reminding us that this is only the beginning.
“Demand for gold will rise as central banks become net buyers for the first time in 20 years.”
--Christopher Wyke, Schroder Investment Management Ltd.
The reason for this rally in gold is possibly due to the fear that many people have of the financial system and the instability during war, such as the revolutions that recently occurred in the middle east.
“Investors will continue to buy gold, not only as a hedge against another possible financial calamity, but also to safeguard against political problems that have been building up over the past several years.”
--Jeffrey Christian, CPM Group, New York
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With a news update this morning on FGLD, watch FGLD trade during today's market session.
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