Interview with Matthew Lennox-King, President and CEO of Contact Gold Corp. (TSX-V:C).
Contact Gold Corp. is a TSX-listed gold exploration company focussed on making district scale gold discoveries in Nevada. Contact Gold Corp. has extensive land holdings, predominantly on the renowned Carlin Trend, in addition to the Independence and Northern Nevada Rift gold trends, all of which host a ubiquity of gold mines and deposits. Contact Gold claims these areas offer 'world-class' access to gold. Contact Gold’s holdings are 217km2 in size. Projects range from early- to-advanced-exploration, and resource definition stage. Contact Gold Corp. is "100% focussed on Nevada and high-grade oxide gold" all at surface.
Contact Gold Corp. started the year with a share price of CAD$0.37. The market performance throughout the year has been poor, falling almost constantly (despite slight rallies in June and August) to just CAD$0.17 today. In such a good year for gold, Explorers and Developers have failed to capture this upside or indeed the imagination of prospective investors or existing shareholders. Contact Gold Corp. has a market cap of CAD$14M.
Lennox-King attended the 121 conference in an attempt to "raise the awareness profile of the company;" after all, Contact Gold Corp. has only been around for 2 years and lacks exposure in Europe.
Contact Gold Corp. is at a very early stage in its development cycle. Contact Gold Corp. is looking to capitalise on a "looming lack of supply" in the gold market presumably from mid to large caps looking to building their Inferred category. Lennox-King states the company currently sits on CAD$1.2M, and has capital from institutional investors to push the project forward for the next year. Shareholders will be hoping for some kind of return soon as Contact Gold Corp. builds its knowledge of what it has.
Lennox-King states Contact Gold's USPs are the strength of its assets and the excellence of its team. The assets have a +2km of strike length with multi g/t gold at the surface. Their plan is a tried and tested formula. There is nothing revolutionary about Contact Gold Corp.; the extensively experienced management team stands out a little from the abundance of gold juniors in Canada and internationally, but there needs to be more before investors can get excited. Lennox-King pushes the favourability and stability of the mining constituency (Nevada) along with particularly prospective geology as a further reason to believe.
There is however an exciting fact about Contact Gold. In terms of remuneration, company directors receive zero cash remuneration and instead receive DSUs. This keeps more capital in the company. Management draws a salary, but Lennox-King claims to have effectively paid his own wage, as he put over CAD$1M of his own capital into the company in 2017. Lennox-King has a "way to go" before he gets close to getting his million dollars back. It's a similar story for the remainder of the management team.
Interview Highlights:
- UK Investors Interested in Contact Gold
- Company Overview
- Business Plan and What They're Aiming to Achieve: What Have They Been Doing for the Past Two Years?
- Cash Position: Burn Rate, How Much They Want to Raise, and How Will They Use it?
- What Makes Contact Gold Different From the Rest? What's Their Future Like?
- Team Remuneration
- Working with the Board Members: How do They Work Together?
Watch the full interview here.
Company page: http://www.contactgold.com
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