Bill Cara

Cara Community GSM 50: Ascot Resources

Ascot Resources (TSX: AOT) (Pink: AOTVF) reviewed 10-01-2020

Market Cap:       $247 M (USD)

Share Price:        $0.90 (USD)

Shares outstanding: 250,629,977 (Jun 2020)

Cash and cash on hand:  $31.1 M (CAD) as of 30 June 2020. $28.5 M in form of GICs and term deposits.

Credit facility: No details.

Long-term Debt: Holds a $13.8 M (CAD) convertible note; total liabilities $46.15 M (CAD)

Current operations: No.

Administrative  Expenses: $1 M (CAD) as of June 2020.

Insiders: 11% ownership.

Website: ascotgold.com

Investor Presentations: https://ascotgold.com/investors/presentations/

President and CEO: Derek White

Operates in British Columbia, 25 km from Stewart BC and Hyder, Alaska.

Projects and Assets: Premier Gold Project (PGP) contains Premier, Silver Coin, and Big Missouri.

Premier Mine was historically operated (by Cominco) from 1918-1952 and produced 2M oz gold and 45M oz silver in that period. Ascot owns 100% with 1% and 5% smelting commitments with (2) sellers.

Average inferred grades: 7.25 g/ton Au and 28.7 g/ ton Ag.

Feasibility study was put forward at $1400 (USD) gold.

Red Mountain project to the East, was previously drilled by Lac Minerals and Royal Oak, may have some useful data to work with.

Exploration, drilling started in June 2020; asset has room to grow, did see some high grade (40 g/ton)deposits (these are likely small intervals).

Financing and dilution: CEO sees project as currently low-capital brownfield property, seeking a debt package and perhaps a silver stream option on the property.

Bottom line:

  • A bit out from actual production, possibly 2023-2024.
  • No position and unlikely to hold one; however, am impressed the Raymond James has a Strong Buy on it