Drolet Stock Note: Cornerstone Capital Resources – Biggest Copper-Gold Discovery on the Planet is Getting Some Action
Mario Drolet, President of MI3 Communications Financières Inc. (MI3), released his Stock Notes on Cornerstone Capital Resources Inc. (TSXV: CGP) for exclusive distribution on InvestorIntel. In this note, MI3 focuses on Cornerstone Capital Resources Inc.
- Cornerstone Capital Resources owns more than 20% of the largest copper-gold deposit in the world not controlled by a major.
- A standstill prevents BHP from acquiring any shares in Cornerstone without SolGold’s consent unless a third party makes a move to acquire control of Cornerstone prior to Oct. 19, which would allow BHP to bid. After that date, BHP will be free to make a move on Cascabel… which would potentially result in a takeout of Cornerstone at a much higher share price than it’s trading for today.
- Precedent transactions for projects of Cascabel’s scale have averaged $0.07/lb. copper-equivalent, which would imply a C$18 valuation for Cornerstone.
- CGP surge … on volume with no NEWS?????
- Support: S2; $4.65 S1; $4.95
- Resistance: R1; $5.03 R2; $5.30
About Cornerstone Capital Resources Inc.
Cornerstone Capital Resources Inc. is a mineral exploration company with a diversified portfolio of projects in Ecuador and Chile, including a Strategic Exploration Alliance with Ecuador’s state mining company Enami EP, and the Cascabel gold-enriched copper porphyry joint venture in northwest Ecuador. Cornerstone has a 21.4% direct and indirect interest in Cascabel comprised of (i) a direct 15% interest in the project financed through to completion of a feasibility study and repayable at Libor plus 2% out of 90% of its share of the earnings or dividends from an operation at Cascabel, plus (ii) an indirect interest comprised of 7.6% of the shares of joint venture partner and project operator SolGold Plc. Exploraciones Novomining S.A. (“ENSA”), an Ecuadoran company owned by SolGold and Cornerstone, holds 100% of the Cascabel concession. Subject to the satisfaction of certain conditions, including SolGold’s fully funding the project through to feasibility, SolGold Plc will own 85% of the equity of ENSA and Cornerstone will own the remaining 15% of ENSA.
PLEASE DO YOUR DUE DILIGENCE
Disclaimer: This MI3 Technical Note produced by MI³ Communications Financières is neither an offer to sell, nor the solicitation of an offer to buy any of the securities discussed therein. The information contained is prepared by MI3, emanating from sources deemed to be reliable. MI3 Communications Financières makes no representations or warranties with respect to the accuracy, correctness or completeness of such information. MI³ Communications Financières accepts no liability whatsoever for any loss arising from the use of the information contained therein. Please take note that for compliance purposes, all directors, consultants or employees of MI3 Communications Financières are prohibited from trading the securities of the company and MI3 Communications Financières is a shareholder and do not intend to sell any shares during the distribution of this report.
Mario has over 25 years in financial market and he is passionate about Finance. He worked on the floor of the Montreal Exchange on his ... <Read more about Mario Drolet>