White Rock Minerals just announced that the company will be acquiring AuStar Gold which is an Australian company. The very exciting thing about this is:
“The Scheme moves White Rock into the league of gold producers and secures a large (~670km2 ) under-explored land package with historic high-grade gold production in the highly prospective Victorian goldfields.”
AuStar Gold owns the Morning Star mine which is a small high grade mine in Australia. The company also has a 670 km2 large land package around said mine which is located in Victoria, Australia. I actually own a small piece of AuStar Gold because it was really cheap and if they could get the Morning Star Mine running well then they could use that money to explore their large land package. On the other hand White Rock Minerals is extremely cheap and has two district scale exploration projects (Red Mountain and Last Chance) as well as a small but advanced asset in the form of Mt. Carrington…
If this acquisition is finalized it means that White Rock Minerals will have a) A producing Mine, b) Plenty of cash to optimize said mine, c) An advanced gold/silver asset that is almost shovel ready in Mt. Carrington, and d) THREE district scale exploration projects in Last Chance (Alaska), Red Mountain (Alaska) and AuStar Gold’s project in Victoria, Australia…
In other words we might soon be looking at a cash flowing company with one of the best exploration portfolios out there. There are no guarantees that the Morning Star Mine will throw off enough cash flow to fund all exploration but if it does this could be a dream come true and White Rock Minerals could become one of the most exciting juniors out there on top of being one of the cheapest. In other words I think White Rock Minerals might become even better (if the deal is finalized).
Erik Wetterling aka The Hedgeless Horseman
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