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
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