We are alerting subscribers of an old zinc-turned gold deal run by AugustaGroup, Titan Mining Corporation (TSX: TI)
Early this morning, Titan Mining announced that is has signed an option agreement on the Mineral Ridge property in Nevada from Scorpio Gold. Prior to the acquisition, TI was a pure-play zinc production company. However, in recognition of the current bull run in gold prices, it seems the AugustaGroup felt that adding a gold asset would be the best way to create shareholder value. Richard Warke, CEO of Titan Mining, commented on the transaction, “We believe a portfolio of projects that fits this strategy is the best way to grow and translate into building substantial value for our shareholders.”
The last few times the AugustaGroup put their weight behind a gold deal, it resulted in billions of dollars in shareholder value created. This is a very special situation. Richard Warke and the AugustaGroup of companies are one of the most powerful, successful, and influential groups in the business. They very rarely do new deals. But when they do, they are almost always home runs. Ventana Gold, Arizona Mining, Augusta Resource Corporation, Newcastle Gold. The list goes on and on.
We will be publishing a more in-depth note on Titan Mining Corporation and the newly acquired mineral ridge asset, later this week.
Disclosure: Author owns shares of Titan Mining Corporation and may choose to buy or sell at any time without notice. Author did not receive any compensation for publishing this article.
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