US$2.7 billion fund increases stake in Pershimco Resources


Insider buying, led by the Sentient Group, has been consistent in Pershimco Resources (PRO:TSXV) in recent months. Sentient is one of the junior miners largest shareholders and the investment fund has increased its stake significantly of late.

Then, on August 8th, Sentient acquired control over 2.8 million shares of Pershimco Resources at $0.35, which is developing a gold-copper porphyry project in Panama. On August 20th, according to insidertracking.com, Sentient purchased another 2 million shares at $0.35 per share.

Both transactions were carried out in the public market and have brought Sentient’s ownership to nearly 20% of the total outstanding Class A common shares of Pershimco.

Prior to August’s insider buys, Sentient purchased 1,577,500 shares at $0.350 on July 18th.

Pinnacle first highlighted Pershimco in late-July after Agnico Eagle, one of its key shareholders, exercised some warrants in the company at higher levels than the company was trading. This sparked our interest and led to an article, titled, Agnico Eagle shows junior miner some love. A short excerpt is featured below:

Despite trading between a low of $0.34 and a high of $0.375 on July 10th, Pershimco announced that Agnico Eagle and Sentient had completed the early exercise of warrants.

This is impressive because the warrants were exercised at $0.40 per share and put $9.5 million into Pershimco’s treasury.

Click here to read the entire article.

Stockwatch reported Sentient’s insider buys from August 8th, 2014.

Stockwatch highlighted that:

Sentient IV has control or direction over 42,054,182 Class A common shares of Pershimco (including the purchased shares), representing approximately 18.90 per cent of the outstanding Class A common shares of Pershimco.

Sentient IV acquired the purchased shares for investment purposes only and not with a view to materially affecting control of Pershimco.

Click here to read the entire press release.

On Sentient Group’s website it states that its initial investment in Pershimco took place in 2011.

The Sentient Group manages over US$2.7 billion in the development of quality metal, mineral and energy assets across the globe through its Cayman-based, 10 year closed-end private equity Sentient Global Resources Funds.

Pershimco’s main asset is the Panamanian Cerro Quema gold-copper porphyry project. The company has released a net present value of $165 million using a gold price of US$1,275, just $5 less than what gold closed at today. The precious metal was off $15 an ounce to close at $1,279.50 despite rising unrest around the world.

The company’s recently released pre-feasibility study on its extraction-permitted gold oxide project has a pre-tax internal rate of return of 46.8%. This has company shareholders, Sentient and Agnico Eagle, clearly optimistic about the company’s future in Panama.

Pershimco Resources Inc. (PRO:TSXV) closed down 5.7% Thursday on 50,000 shares traded to $0.33 per share. Despite the price of gold and copper stagnating to some degree, Sentient, one of Pershimco’s largest shareholders continues to accumulate shares in junior mining company.