Despite the worse junior resource bear market now apparently behind us, it has never-the-less been badly damaged physically and mentally. While we can see a nice rally unfold, such a rally shall not lift all boats. Many of those boats have already been sunk or will need to abandon ship before too long.
Having said that, I suspect we’re going to see a “marked’ improvement in the number of juniors who have advanced stage projects whose value is not remotely being priced by their company’s current share price and shall become takeover targets.
I noted yesterday that I believe Sunridge Gold is one of them. Today, I also want to point out that Geologix Explorations fits that bill as well. I believe a well-known newsletter writer noted not too long ago that their current market capitalization was only 3% of their NAV (Net Asset Value).
GIX press release today went out of its way to show exactly how robust their key project is. I also took comfort how they noted yet again that we could see non-diluted ways of moving the project forward. Personally (and without anything other than my gut), I think they may not get the chance to prove themselves as producers as this project in my highly bias position (I own 4.4 million shares, hope to buy more and am a compensated consultant to the company) is too attractive to stay independent.
Time shall tell.