• Mon. Jan 24th, 2022
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Victory Resources Lands Major Acquisition With Lac Simard Property

Earlier this month, we highlighted Victory Resources Corporation (CSE:VR)(FWB:VR61)(OTC PINK:VRCFF) as a Canadian junior minor that has substantial growth prospects and is trading at a massive discount to its peers.

Since our initial article on Victory, the company has announced several key developments and this is a trend that we are favorable on. Victory Resources represents a unique play on the precious metals market and is a diversified investment corporation with mineral interests in North America.

From capital raises to accretive acquisitions, the last few weeks have been significant for the company and this a trend that we are bullish on. Victory’s management team has been laser focused on execution and we are surprised by the way the market has responded to the recent developments.

Announces a Major Acquisition

Earlier this week, Victory announced a major development and reported to have entered into an agreement to acquire the Lac Simard property from Archie Capital Inc. The property is located in Quebec and borders the southern edge of Agnico Eagle’s Goldex claim block. Based on the location of the property, we consider the acquisition to be strategic and will monitor how the management team is able to execute on the opportunity.

The land that surrounds the property have proven to be rich in precious metals and natural resources. Within 20 kilometers of the property, there are three gold mines that are operational and are considered to be orogenic gold deposits and occur along the Larder Lake – Cadillac Fault System.

The three gold mines that are located in the area are Agnico Eagle’s Goldex Mine, Canadian Malartic (owned by Agnico Eagle through a partnership with Yamana Gold), and Lamaque (owned by Eldorado Gold Corp.). We are favorable on the historical data that is associated with these properties and are bullish on the potential for Victory.

As of December 31, 2019, the Goldex Deposit had proven and probable mineral reserves of 1.1 million ounces of gold (21.0 million tons grading 1.61 grams/ton gold). The Canadian Malartic mine is Canada’s largest operating open pit gold mine and it produced 662,918 ounces of gold in 2019. Lamaque is an underground gold mine which declared commercial production in March 2019 and is expected to mine and process over 615,000 tons of ore at an average grade of 7.0 grams per ton.

The Lac Simard Property consists of 46 contiguous mining titles that are located on 2,560 hectares. The property is largely underlain by metasediments of the Neoarchean Pontiac Group and is road accessible and is crossed by an all-weather road. We are favorable on the location of the property and believe that the success that the other mines have had helps de-risk the opportunity for Victory.

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An Execution Story to be Aware of

During the last quarter, Victory has been highly focused on raising capital and is well positioned to execute on a variety of gold mining projects. We believe that the management team is focused on identifying properties that have been de-risked and have substantial upside potential. Through a series of bolt on acquisitions, Victory has enhanced its growth profile and we are favorable on the risk-reward scenario that is associated with the opportunity.

Going forward, we expect the management team to continue to enhance the growth prospects of the business through a series of organic and inorganic growth initiatives. In the near future, we expect to receive updates on the properties that are owned by the business and believe that the opportunity is flying under the radar.

A few weeks ago, Victory reported to have started the first phase of exploration on the Hammond Reef South Project and we considered this to be an important milestone for the business. Once the company receives the results on the comprehensive exploration program, it will focus of further defining drill targets and this is an opportunity that we are bullish on.

At current levels, we find the valuation to be compelling and believe that the market is discounting the potential value that can be extracted from the properties that it owns. We are of the opinion that Victory has an attractive risk-reward profile and has significant potential catalysts for growth. We believe that the market is missing out on something significant with Victory and this is an opportunity that we will be closely following.

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Pursuant to an agreement between StoneBridge Partners LLC and Victory Resources (VR) we have been hired for a period of 180 days beginning August 24th, 2020 and ending February 24th, 2019 to publicly disseminate information about (VR) including on the Website and other media including Facebook and Twitter. We are being paid $6,500 per month (VR) for or were paid “ZERO” shares of unrestricted or restricted common shares. We own zero shares of (VR), which we purchased in the open market. We plan to sell the “ZERO” shares of (VR) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (VR) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.

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