Mako Mining – Key Synergies And Scalable Diversified Growth Through The Acquisition Of Goldsource Mines
Akiba Leisman, President and CEO of Mako Mining (TSX.V:MKO – OTCQX:MAKOF), joins us to review the key synergies and scalable diversified growth potential with the announced agreement to acquire Goldsource Mines (TSXV:GXS)(OTCQX:GXSFF) and their 100% owned Eagle Mountain Gold Project in Guyana, South America. This project and team will complement the existing Mako operational team, currently exploring for and producing gold at the San Albino Project in Nicaragua.
We have Akiba outline how the combined company will bring together two experienced management teams, that have worked together as colleagues going back nearly two decades, which is expected to make integration of the two companies more seamless in a true “hand-in-glove” partnership. In addition to the geographical and asset diversification, the district-scale exploration potential in Guyana will enhance Mako’s current growth trajectory and exploration upside already found in Nicaragua.
Akiba mentioned the scalability of Goldsource’s Eagle Mountain is very much a direct analogue to that of Mako’s San Albino mine, and that there are a number of similarities between the two projects, thus highlighting the proven experience that the Mako Mining operations team can bring to the table. The new pro-forma Mako will have the cash flow and project pipeline to establish a platform for growth, operated by teams proven in the construction and operation of scalable mines with low capital intensity profiles.
If you have any further questions for Akiba regarding Mako Mining, then please email us at Fleck@kereport.com or Shad@kereport.com.
- In full disclosure, Shad is a shareholder of Mako Mining at the time of this recording.
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Click here for a summary of the recent news out of Mako Mining.
Mining is a tough business, when you see a company struggling like Argonaut has been with trying to bring a new mine online or any company having production problems with an existing mine it is always a good practice to sell your holdings and get out of the way until and if the problems are solved. DT
Like everything in investing, it really depends on where people got positioned.
This 34% move higher today in Argonaut puts me into the green on the stock, so I’ll take it. I had just pointed out in one of my recent Substack articles that the selling in Argonaut recently on that operations update had become way overdone to the downside, so I was buying into that fishing line sell-off.
>> Here is what I just wrote on March 3rd in that article talking about buying the weakness in Argonaut.
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“OK. Time for the next company in this series. After already having a really tough 2 years prior, and becoming the poster child for cost overruns and missed timelines, this company has been severely punished for it’s sins. However, when more news broke about challenges with selective mining, 5-10% lower grades expected for throughput, lower anticipated ounces in guidance, and the reality that they’ll need more money… the share price was further chopped in half. I’m talking of course about Argonaut Gold (TSX: AR) (OTC: ARNGF). (Yes, that’s right, I said Argonaut Gold).”
“Please… before you throw pies and rotten tomatoes at me though, at least suspend passing judgement on this provocative and likely polarizing selection, until you read Part 6 in this series where we’ll unpack together the good, the bad, and the ugly about Argonaut Gold. I’m happy to freely share my thinking and rationale behind the decision to accumulate more shares this last week into the recent weakness and market carnage. I also acknowledge that while this is definitely risky, it may not be as risky as it is being currently perceived (especially after the recent waterfall decline).”
“Yes, their key new mine, Magino, has been a complete mess getting developed and constructed for the last 2+ years, with more problems surfacing again 2 weeks back. We’ll get into the big picture view of where things are going, and address some specifics in that recent news announcement that has led to the stock being essentially chopped in half in market cap valuation, once again, over the last 2 weeks.”
“That aside, Argonaut Gold is going to be a legitimate growth-oriented gold producer at the end of this saga. It is run by a much more solid management team and board now than in the past, and Magino is absolutely still going to be transformative to the company, in a similar way that Greenstone is going to be transformative for Equinox. These things take time to play out though, and we’ll discuss warts and all in the next Part 6 of this series, so stay tuned for that down the road.”
https://excelsiorprosperity.substack.com/p/opportunities-with-growth-oriented-f28
I had been speculating with a few newsletter writers and investors on our precalls that Alamos could very well make an offer to takeover Argonaut down the road, and was going to include that in my Part 6 update on Thursday or Friday this week, but now it’s a moot point at Alamos has already made their move public. I thought that may still be 6 months to a year off, but it looks like it is happening now.
Regardless, it’s nice to see some more M&A deals this week from both Mako/Goldsource and Alamos/Argonaut.
DT – I just did a big deep-dive today in my latest Substack article, reviewing the March Madness price trading and news as it relates to Argonaut Gold, and the takeover deal announced today from Alamos Gold.
I had mentioned in my article on March 3rd I had started to seriously accumulate Argonaut Gold in the week before, on Feb 28th, and why I thought it had been smashed down to insanely overvalued levels, and that despite their challenges at Maggino, that the corrective move had gone too far.
Then on March 6th, when the put out their Q4 and 2023 annual operations report, (AR) had a big spike higher when many investors finally realized that the market reaction to the downside, the week before, was way overdone. The stock had been trending higher the last few weeks, prior to the announcement today of them getting scooped up on the cheap by Alamos Gold.
I also get into the merger that was just called off with Karora Resources, (but that they announced today a new 3rd-party company for a potential business combination).
Additionally, I discuss the Mako Mining takeover of Goldsource Mines also announced this week.
>>> Lot’s of M&A with the growth-oriented gold producers this week!
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Special Alert: Opportunities With Growth-Oriented Gold Producers – Part 6
Excelsior Prosperity – 03/27/2024
https://excelsiorprosperity.substack.com/p/special-alert-opportunities-with
Alamos Gold Announces Friendly Takeover of Argonaut Gold, at a 34% premium. This is not good news for Argonaut Gold’s shareholders. DT
https://money.tmx.com/quote/AR/news/6780478143832413/Alamos_Gold_Announces_Friendly_Acquisition_of_Argonaut_Gold