Renaissance Gold: Their Last Deal Made Early Investors 98 X!

May 06

Renaissance Gold: Their Last Deal Made Early Investors 98 X!

It’s amazing what you can find when you dig hard enough!

The People…

Ronald Parratt and Richard Bedell Jr. jointly founded AuEx Ventures in 2003. Over the next 7 years, Parratt, Bedell Jr. and their exploration team were directly involved with the Long Canyon discovery in Nevada which was ultimately acquired by Fronteer Gold for $280 million.

REN -- 98x

Early backers of Parratt and Bedell were rewarded with a spectacular 98 x return on their original investment.


*This article was first published April 14th at BullMarketRun


Their second act?…

Renaissance Gold (REN, TSX-V) began in 2010 as a spin-off from AuEx Ventures, leaving the founders with a new trading vehicle, exploration properties, and an opportunity to do it all over again.

“The Renaissance Gold Advantage” translates into a team of highly rated geologists with past successes, a scientific data-driven approach to exploration, and an “unequaled” database they claim would take hundreds of millions of dollars to duplicate.

REN -- data

The “scientific approach” according to Renaissance Gold:

A computer model of the subterranean geology is developed based on surface data collection and database information. This is called the “concept” or “targeting” phase. From there Renaissance Gold implements a prospect generator business model aiming to sign joint venture deals. Partners fund a drill program to test the validity of the concept. If drilling doesn’t validate the concept it is replaced, refined, or abandoned.

Getting deals done…

When trying to decipher which prospect generators are the best, one of our top indicators is whether or not the geologists can entice partners to fund their concepts.

Over the past decade Parratt and Bedell’s companies have executed 61 earn-in agreements. In excess of $50 million was expended by partners.

Presently, via Renaissance Gold, the two have 6 projects in Nevada and 1 in Utah that are under option (4 of which are optioned to Coeur Mining and Kinross).

REN -- ptnrs

Judging by the stock performance of REN so far this year, you might not realize that 2017 has already been a great year for the company in terms of enticing partners to fund its concepts.

  • On February 9 it signed an LOI with Coeur Mining to fund grassroots exploration in Nevada. As per the terms, Coeur will pay Renaissance $250,000 per year for 2 years to generate grassroots targets. Additionally, Coeur is fully funding a 2,150 m RC drill hole program that was scheduled to start last month according to REN’s February 27 news release.
  • On February 20REN announced the signing of an LOI with Kinross for an option to earn a 70% interest in 3 projects – Spruce East, Diamond Point, and Buffalo Canyon. Concurrent with execution of the option agreement (*catalyst alert! – it must be signed within 60 days of the LOI), Kinross will buy an equity stake in REN of not less than 5% or more than 10% at 33 cents per share.

Presently, 6 of 15 projects now have earn-in agreements with industry partners.

Renaissance Gold has 21 confidentiality agreements (CA’s) in place and 9 projects available for option.

Two of those projects in particular really stand out.

1) Woods Hill South

REN -- whs

2) Maggie Creek

REN -- mc

The Maggie Creek property is located 14.5 km northwest of Carlin, NV, and adjacent to Newmont’s Gold Quarry mine in Eureka County, Nevada.

Strong group of core shareholders…

While I can’t confirm to what extent, all of the following are corporate shareholders according to the “Presidents Message” on the company’s website:

  1. Barrick
  2. Newmont
  3. Agnico Eagle
  4. Altius Minerals
  5. Kinross (*pending)

As you all know by now, I like to borrow brilliance whenever possible. Attracting JV partners and a huge success story with AuEx Ventures would have been enough for me, but the 5 corporate shareholders above really put icing on the cake (perhaps even a cherry on top!).

After sifting through all the prospect generators for the umteenth time, at the moment Renaissance Gold really stands out (especially after signing LOIs with Coeur and Kinross in the month of February!) and ranks high on my list of stocks to buy.

In addition to the information above, from a technical perspective I feel this looks like a great entry point for REN, so I wanted to get the opportunity out to you right away.

REN closed at 39 cents Thursday.  It jumped 5-fold during 2016 to a high of 66 cents, retraced to the mid-20’s in December when the Venture correction bottomed near 700, and has slowly but steadily gained ground since then.

Daily volume is rather light, typically below 100,000, so this is not a situation where you’d be looking to build a large position.  However, in your portfolio of junior Gold stocks, REN would be a quality low-risk addition under 40 cents that you can tuck away for several months and not worry about.  At current levels, we see a high probability of a return of at least 50% in 2017.

REN -- 1yr

Renaissance Gold had $1.3 million in working capital as of December 31.

The company has a tight share structure with approximately 36.8 million outstanding.

Management and Insiders own about 10.3% on a fully diluted basis.

6” = the number of economic deposits CEO Ron Parratt has been involved with (at this point Ron’s odds of discovering lucky #7 must be as good as anyone else in the world).


 *Disclosure: author has a long position in Renaissance Gold




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