Most junior mining investors will take a cursory glance at the last three news releases from Endurance Gold (TSX-V:EDG, OTC:ENDGF) and then have a big yawn:
October 21st, 2022 - Endurance Gold Announces Non-Brokered Private Placement
October 24th, 2022 - Endurance Completes Exploration Agreement with The Bridge River Indian Band
October 25th, 2022 - Endurance Increases The Size of The Reliance Gold Project, B.C.
While most junior mining enthusiasts only care about drill results, core pics, and XRF readings. The reality is that there are subtle clues contained in even the most mundane company news releases.
To set the context, Endurance is waiting for assay results for approximately 20 diamond drill holes at Reliance. Meanwhile, assay turnaround times in BC have slowed to roughly 9-10 weeks at last check. Endurance last released a drill results update three weeks ago, so it's fair to assume the company could be waiting another few weeks before the next batch of assays from the lab.
This creates an opportune time to take care of some housekeeping items and to set the stage for the next phase of exploration/drilling at Reliance (likely to occur in Spring 2023). In a market environment in which the majority of junior mining companies are not able to finance at all, and those that can are forced to do so at onerous terms, Endurance's C$1.5 million financing at ABOVE MARKET prices is about as rare as spotting a unicorn in a forest.
Management teams that deeply care about their company's share structure also tend to participate in their company's financings and ensure the best terms possible for shareholders. Management teams that care a lot less will raise at below market prices with full warrants. Endurance management is clearly in the former camp, holding more than 50% of EDG's issued and outstanding shares.
The First Nation exploration agreement is an essential step in advancing Reliance to a much larger project and an eventual feasibility study. Endurance has already been employing up to 25% of its manpower from one of the other affected communities so this agreement further helps the company to increase the man-power and contracting resources available to EDG's exploration efforts. Adding Xwisten as a shareholder also aligns EDG's interest with advancing the project for the benefit of all.
This morning's news expanding the Reliance Project further to the east at an extremely low cost is welcome news. Endurance now holds a large property package that can capture multiple parallel shear trends.
A junior mining company doesn't set the table for a large dinner and pay for most of the dinner themselves unless they feel they have something truly special on their hands.
Disclosure: The author of this article owns EDG.V shares at the time of publishing and may choose to buy or sell at any time without notice. Author has been compensated for marketing services by Endurance Gold Corp.
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