For those new to RML, like me that only took a position late July 2020, it is worth having a listen to the Millrock Resource Inc. Town Hall Webinar (19 June 2020) at the following link - start watching from 10:40 mark:
https://www.youtube.com/watch?v=H9qMoVVM3LUSome take-aways and observations to keep in mind:
* Millrock has patiently accumulated the large package of tenements that surrounds NST's Pogo mine and tenements over the past 5+ years. They have known about the potential in the area for a long time. They have a very experienced geo team with knowledge of the Pogo-Goodpaster region.
* As you will here in the video, Millrock is a small cap company, so had to seek a partner that could pay for drilling to expose the hidden value as trying to raise capital would have overly diluted their company. Partnering was seen as the best approach for this project. Maybe not in the future.
*
Key point: Millrock are the exploration operators during the initial exploration stage of each of the projects in their portfolio, including the 64North Project. Yes, they call the shots at this point in time with obvious consultation with RML as they are paying the bills. Greg (CEO) discusses this in the video. Hence, the reason for the strong geo team they have. A good thing is that they are based in Canada and are on site in the area and know the people and have local contacts. Other ASX listed Gold stocks I have that have projects in Canada are driving their projects from afar using local drilling companies due to the CV19 travel restrictions. I see the Millrock-RML relationship is a big PLUS.
* It is clear from Greg's (CEO) comments that the 64North Project is their flagship project within their portfolio at the moment.
Share Price ComparisonMillrock's share price profile since the deal was done with RML 17 October 2019 shows a steady rise from 0.12 CAD on 17 Oct 2020 to 0.25 CAD on 14 Aug 2020:
On the other hand, RML is still sitting around the same value / 10% less (8c v 7.2c) due to recent capital raise - not really reflecting any of the value that has been evolving since the deal was done on 17 Oct 2019.
Quite a difference between the two companies sharing the same key exciting project with recent drilling assay results announcement imminent. IMHO, a re-rating of RML should evolve as promising results are announced. At am not sure we are going to see a RML share price within the 7-8c range for too much longer.
Value from ExplorationAs announced by NST this week, they are planning to spend $20,000 on drilling at their Goodpaster Discovery during the coming year.
If RML-Millrock can clearly show from their current drilling program that the Gold continues on trend from NST's Goodpaster tenements in their West Pogo tenements, then we are likely to receive a lot of upside value from NST positive drilling results. Once we establish this, then perhaps RML is better putting its exploration $$$ into other regional targets that surround NST tenements. All of this will help to ensure that the RML-Millrock tenements remain a very attractive M&A target for NST into the future at a substantial increase in $$$$$$$$$$$$$$$$$.
Exciting times ahead. Not investment advice. DYOR.
(20min delay)