April 19, 2024

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When Richard Warke’s Augusta Group of Firms took a management place in Vancouver-based Solaris Sources Inc. (TSXV: SLS) in 2019, he had a hunch the choice would repay.

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In any case, the corporate’s flagship Warintza Undertaking in south-east Ecuador, a David Lowell discovery from 2000, doesn’t come round that always.

Quick ahead to July this yr, when Solaris started buying and selling its shares on the TSXV.

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One month later, the corporate introduced outcomes from its first-ever deep drill gap accomplished on the Warintza Undertaking, sending the share worth up 99% since its public itemizing. One other month later, Solaris once more made vital progress on the undertaking, releasing further drill outcomes intersecting lengthy intervals of high-grade porphyry mineralization from floor and additional extending the footprint.

Solaris’ development to nearly $400 million market cap in two months of being public isn’t the one instance of success for Richard Warke and his Augusta Group. Based by Warke in 2005, Augusta Group has had an unmatched observe report of worth creation, one which totals over $4.5B in exit transactions alone, over the past decade.

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First, it was Ventana Gold Corp., which offered for C$1.6B in 2011, representing a 12,960% return for early shareholders. Then, solely three years later, Augusta Useful resource Corp. was offered for C$667M in 2014, representing a 3,300% return.

In 2018, most spectacular of all, Arizona Mining Inc. offered for C$2.1B, representing a 6,100% return. Only a few, if any, corporations have returned extra money to buyers in junior mining over the previous decade. Augusta Group additionally co-founded Equinox Gold Corp. (EQX-T), at present valued at over $C4.0B, representing a 1,700% return to buyers.

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A part of the equation of buying undervalued corporations, then growing their worth, is understanding when to promote the corporate in the perfect curiosity of each the corporate total and its shareholders. Augusta Group’s specialization is surfacing worth by means of award-winning exploration efforts and quickly advancing tasks with constant entry to low-cost capital by means of exploration, feasibility, and allowing to level of sale or into manufacturing.

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Whereas promoting Arizona Mining was unexpected, it was according to one other considered one of Warke’s habits: putting a precedence on successful returns for buyers. By making the choice to promote in a troublesome surroundings, he was capable of assure a revenue for all stakeholders concerned.

Titan Mining Corp.

Along with Solaris and his different Augusta corporations, Warke has been centered on rising Titan Mining Corp. (TSX-TI), which produces zinc focus at its wholly-owned Empire State Mine in New York.

Titan Mining just lately signed an possibility settlement to amass the Mineral Ridge gold property in Esmeralda County, Nevada, which is drill-ready, absolutely permitted and hosts a present identified gold useful resource of 350koz.

“Much like Empire State Mine, Mineral Ridge is one other U.S. asset with promise. What we see in Nevada is a property with widespread, excessive grade mineralization that has by no means been adequately funded and has by no means seen a complete exploration program past small scale mining,” Warke defined.

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Titan Mining’s technique is to construct long-term worth, beginning with leveraging its skilled administration and board to draw high expertise all through the group and to develop high-quality property in North America.

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“We imagine that rising our portfolio of tasks is one of the simplest ways to construct substantial worth for our shareholders,” added Warke.

The Mineral Ridge deal is one other value-creating transaction in an extended line of tasks led by Warke.

Bullfrog Gold Corp.

Final month, Warke introduced he can be investing C$22M in Bullfrog Gold Corp. (BFG:CSE), which entered right into a binding settlement with Barrick Gold Corp. to amass rights to 1,500 acres adjoining the Bullfrog Gold Deposit in Nevada.

As a part of the settlement and to strengthen its board and management staff, Augusta Group will assume administration of Bullfrog Gold Corp., asserting the appointment of Maryse Belanger as CEO.

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Belanger was president, COO, and director of Atlantic Gold, the place she helped take the Touquoy Mine by means of to full manufacturing earlier than promoting it to St. Barbara Restricted for C$800M.

On the partnership with Barrick Gold, Warke feedback: “It’s a really thrilling time for us and we’re trying ahead to partnering with Barrick on this historic mining camp. Bullfrog administration has recognized a considerable useful resource, and together with our capital and experience that our CEO, Maryse Belanger, brings to the corporate, we see quite a lot of alternatives forward for Bullfrog and its shareholders.”

Barrick President and CEO, Mark Bristow, has added, “That is probably one other value-creating transaction which, as soon as accomplished will consolidate property to create an thrilling new mining undertaking, led by a talented staff and with sturdy monetary backing.”

If there may be one factor that may be stated about Warke, it’s that he has confirmed, time and time once more, that he’s distinctive at creating worth. One could say that he has ‘tipped the scales of the mining trade’ and can proceed to take action as he finds and develops new mineral deposits sooner or later.

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