The way i see it MNC is a very high risk/high reward play, all or nothing. I've taken a position via MNCOA (0.011 strike june 2020). Don't let the current MC of $3mill fool you, fully diluted (after all shares and options issued for the proposed acquisition) closer to $8mill current MC. Further funding will be required within the next 8 months to fulfill obligations for the Quinchia assets, $3mill by june 2019. I'm taking a punt though that this requirement will be fulfilled by capital gained from divestment of Chilean assets, option conversion or a mix of both.
The recently announced Solomon Islands nickel project is a bit light on for detail as yet, so not much to add on that. The company obviously sees a short term opportunity there to profit from the EV sector. Near term project awaiting mining permit (approval is a condition of sale).
The Quinchia asset is the main game and the reason i invested here. Located on Colombias Middle Cauca Belt, smack bang in the middle and on trend, of some very large deposits (Gran Colombia Gold's 8.1Moz Marmato, Anglo Gold Ashant's 21Moz Quebradona and 28.3 Moz La Colosa). MNC have completed the DFS to mine 45koz p.a. at the 0.9Moz Miraflores project. While at first glance this seems pretty unspectacular, it's the Tesorito (recently confirmed high grade mineralisation) and Chuscal (currently under JV negotiations with Anglo Gold Ashanti) targets that have the potential to add significant upside to the Miraflores project as they are in close proximity.
Aside from the above and apart from the mountainous area outside Medellin being Pablo Escobar's old stomping ground, it's also host to one of the most under explored and high grade gold deposits in the world. Colombia comes in at number 4 in the world for gold concentration per km2 and due to past sovereign risk has been largely unexplored/undeveloped. Colombia is emerging as one of the strongest and fastest emerging SA economies and has strong ties to the US, gone are the days of the cartels and terrorist groups reigning terror across the country. Colombia is open for business and have a proactive government intent on growing the economy and are currently pouring $billions into infrastructure to attract foreign investment. MNC have got into a very attractive area on the groundfloor. Newmont are very active in Antioquia to the north, the big players are moving in.
Couple all this with who our neighbours are and the recent addition of Nick Winer (Ex Anglo, who we coincidentally are currently negotiating the Chuscal jv with) as director of exploration (Colombian based) to rapidly advance the Quinchia gold projects...."four years as VP Exploration with Anglo Gold Ashanti Colombia where he led the exploration team that discovered the Nuevo Chaquiro copper-gold porphyry deposit in the mid Cauca belt, Colombia in addition to previous experience in the Quinchia district."
"Nick Winer
Chief Operating Officer
B.Sc. Hons, Macquarie Univ. Australia
Nick has had a successful career and made discoveries with BHP Exploration, Horizonte Minerals and AngloGold Ashanti. In 2013 he led the AngloGold Colombian team that discovered and then delivered the resource model and Scoping Study for the “blind”, Nuevo Chaquiro Cu/Au deposit. This world class deposit starts 250m below the surface and contains 8Blbs of copper and 5.6Mozs Au with significant Ag & Mo credits (*). The discovery of the high grade zone in 2014 was the result of developing and deploying an integrated exploration dataset together with the knowledge and experience of the team.
Nick’s technical expertise in exploration and experience in Colombia, combined with a drive to make discoveries, make him a valuable asset to the management team where he will lead the Company’s exploration activities, in particular the advancement of the portfolio of gold assets in the Quinchia district.
* P. Noriega, Oct, 2017: Indicated Resource of 111Mt @ 1.08% Cu & 0.62g/t Au and Inferred Resource of 500Mt @ 0.53% Cu & 0.23g/t Au. The Nuevo Chaquiro deposit is located 50km north of Quinchia."
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