Sector NewswireTM

Sector: Mining - Metals and Minerals   :

 

News Release - April 17, 2014 6:40 AM ET 

 

 

Fancamp Exploration Ltd. Issued Upside Market Valuation in Research Report

Q2 2014 Report

$0.75/share target

 

NEW YORK, NY, April 17, 2014 /Sector Newswire/ - Fancamp Exploration Ltd. (TSX-V: FNC) (US listing: FNCJF) (Frankfurt: 3F9) is identified in a newly issued research report by Market Equities Research Group with several potential catalysts that exist in 2014 with potential to result in $50-$100 million market cap for FNC.V, translating to $0.75 per share -- FNC.V currently has 139.2 million shares outstanding and is trading near 10 cents. This comprehensive report places a 12 month price target on shares of FNC.V at C$0.75 based on key valuation drivers which surround several key drivers that involve advancements to large properties that Fancamp possesses royalty assets on.

  

The full research report may be found at http://sectornewswire.com/report0301-2014FNC.pdf online.

  

Fancamp is focused on enhancing shareholder value by acquiring early-stage projects that have potential for rapid advancement, conducting highly efficient exploration programs on them, and then selling / optioning / joint venturing them to solid partners for cash / shares along with taking back a significant royalty on future production.
 

The company has completed this process for several of its’ valuable mining properties and now has over $1 million in net cash, $5+ million in marketable securities, and $10+ million in long term securities. Along with this solid working capital position, Fancamp has significant royalties on several advanced properties. Fancamp has royalties on two very large iron ore projects, 1) a 1.5% NSR on Champion Iron Mines’ (CHM.T) Consolidated Fire Lake North (CFLN) iron project, which has had a highly positive Preliminary Feasibility Study completed in 2013, and 2) a 1.5% NSR on Lamelee Iron Ore’s (LIR.V) Lac Lamelee South iron project, which had a resource estimate completed in 2013. Fancamp also anticipates significant option payments (over $16m) and a 2% Gross Metal Royalty (GMR) rising to 4% depending on metal prices on KWG’s (KWG.V) Koper Lake chromite project in the heart of Ontario’s Ring of Fire (assuming the option is fully exercised). These projects are all being moved forward with a view to demonstrating feasibility. Fancamp also owns a 46.7% interest in The Magpie Mines, owner of the Magpie deposit in Quebec, one of the largest undeveloped titaniferous magnetite deposits in the world, with critical processing studies continuing to move forward.

Key Value Drivers:

 

1) Net Working Capital, Marketable Securities: Fancamp now has working capital and marketable shares (including shares held / released long term) totaling over $18 million (as of April 14, 2014).

 

2) Potential Future Options Payments: KWG has made an initial $500,000 option payment to Fancamp by issuing 10m shares. To earn its initial 60% interest, an additional $1.45m in payments must be made over 3 years.

 

3) Royalties: There is tremendous upside advancing each of the royalty properties. Each of Champion, Lamelee, and KWG are aggressively advancing their properties toward feasibility – and each of these royalties would be significant wins for Fancamp over the longer term. Argex’s La Blache property currently provides the Company with a $100,000 per year advance royalty payment, although the timing for bringing the property into production is currently indeterminable.

 

4) Other Properties: Fancamp’s risk averse and efficient exploration efforts have allowed it to maximize the leverage inherent in discovery, and not incidentally create significant value for shareholders. This process continues, currently with focus on specific targets on a number of 100% owned gold and base metal properties. No fieldwork is planned on its 46.7% owned Magpie Deposit, but current testing of the massive mineralization by a major Chinese company could significantly advance this project.

 

Several potential valuation catalysts exist in 2014 with potential to result in $50-$100 million market cap for FNC.V, translating to $0.75 per share, these include 1) Completion of positive Feasibility Study for CFLN; 2) Positive processing studies for Magpie, 3) Successful drill results at Koper Lake.
 

The full research report may be found at http://sectornewswire.com/report0301-2014FNC.pdf online.

   

 

This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URL(s).

 

 

SOURCE: Sector Newswire editorial

editorial@SectorNewswire.com

 

Additional Disclaimer and Disclosure I Contact I Terms and Conditions I Copyright I Privacy Policy