One question surrounding True Gold Mining’s Karma Project is whether Mark O’Dea’s history of success can win out over recent delays, including damage to the company’s property and a weak gold market.
On March 2nd, True Gold Mining projected it was 10 months to first gold pour once construction activities fully resume.
Investors await update from True Gold Mining on Karma Gold Project
Investors in the advanced gold development company, of which its key Karma Gold Project is based in Burkina Faso, have been patiently waiting for True Gold Mining to provide an update on the project timeline as soon as it is able.
On January 14th, True Gold announced that a demonstration gone wrong had forced the company to “temporarily suspend” operations at its Karma Gold Project.
The company initially reported some damage to its property, which it later estimated on March 2nd to be a approximately US$6.1 million.
While the potential impacts or future delays to the project schedule were unknown in January, on March 2nd, O’Dea commented that, “We are now rapidly progressing towards resuming full construction at Karma.”
source: http://www.truegoldmining.com/news/true-gold-provides-update-karma-project
Despite recent setbacks at the Karma Gold Project, True Gold has a lot going for it.
Mark O’Dea was a buyer of True Gold’s open market, according to www.insidertracking.com in February after its shares sold off in January. Below is an excerpt from an article titled True Gold updates Karma after CEO buys in February.
“O’Dea leads insider buying in True Gold
In the month of February, O’Dea purchased approximately 390,000 shares between prices as low as $0.175 and as high as $0.268, according to insidertracking.com.
True Gold was up 5% to $0.195 per share Monday morning on less than one hundred thousand shares traded.”
Click here to read the entire article.
True Gold Mining – 1 Year Chart
As the month of March comes to an end, True Gold’s share price was little changed. Its stock was flat Wednesday, trading at $0.19 on over 300,000 shares at 11:14 AM EST.
A few reasons for True Gold’s market cap remaining above $75 million, despite being down over 50% from its 52-week high, is the confidence in its management team and streaming deal the company signed in 2014.
On August 11, 2014 True Gold entered into a US$100-million stream agreement from Franco-Nevada and Sandstorm Gold. FN currently owns 75% with Sandstorm at 25%. True Gold has reported that, “Based on the current Feasibility Study, the Agreement is anticipated to fully fund the construction of the Karma Project in Burkina Faso, West Africa.”
source: http://www.truegoldmining.com/our-projects/karma-project
Mark O’Dea’s success revealed in Canada’s Top 50 Small-Cap Buyouts
Mark O’Dea, True Gold Mining’s Executive Chairman has had success raising significant capital many times before.
The former CEO of Fronteer Gold managed to raise equity capital for Fronteer of roughly $330 million, prior to it being acquired by Newmont.
Newmont Mining (NEM:NYSE) acquired Fronteer Gold (FRG:TSX) (FRG:AMEX) in 2011 in a deal worth approximately $2.3 billion.
Check out the buyout details here:
http://www.theglobeandmail.com/report-on-business/industry-news/energy-a…
We discuss the details of this buyout in our latest EBook in which O’Dea is featured along with 50 of North America’s most influential leaders who took start-ups to stunning multimillion dollar buyouts in Canada’s small-cap sector.
The creation of wealth outlined in this new exclusive report is stunning. Click the below image and link to download your free copy.
How long until first gold pour at Karma Gold Project?
In respect to the Karma Gold Project, True Gold believes that, as of its March 2nd press release, the company is 10 months to first gold pour once construction activities fully resume.
The company reported that, “As of December 2014, Karma had US$61.7 million of US$131.5 million spent and committed. True Gold will provide a definitive update on the project timeline as soon as it is able.”
source: http://www.truegoldmining.com/news/true-gold-provides-update-karma-project
The Company also reported on March 2nd that it had approximately US$40 million in cash on hand and recorded realized capex savings of approximately US$5 million as of December 2014. True Gold reported having drawn US$57.7 million on March 2nd of the US$100 million Franco Nevada and Sandstorm financing package with an option to draw up to an additional US$20 million.
Again, True Gold has reported that, “Based on the current Feasibility Study, the Agreement is anticipated to fully fund the construction of the Karma Project in Burkina Faso, West Africa.”
source: http://www.truegoldmining.com/our-projects/karma-project
Once in production, True Gold Mining believes its Karma Gold Project will be one of the lowest cost gold mines in West Africa with significant exploration growth potential.
Having a proven leader in Mark O’Dea at the helm should help True Gold’s cause as it works to overcome setbacks and resume construction at its advancing Karma Gold Project.
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