Mistango River Resources (MIS) – In The Shadow of Canada’s Highest-Grade Gold Mine

Mistango River Resources
  • CVE: MIS
  • Shares Outstanding: 113M
  • Share price C$0.20 (26.02.2020)
  • Market Cap: C$23M

Interview with Stephen Stewart, Director of Mistango River Resources (CVE: MIS)

Stewart is also the CEO of Orefinders, but today he’s here to talk about another company. Mistango River Resources is an early-stage Canadian-based junior mining and exploration company. Mistango River Resources was resurrected by Orefinders. But rather than becoming a part of Orefinders, Mistango River Resources was created because of a variety of corporate issues. Eric Sprott is invested which is usually a good sign. The company will be using as much of its C$4.5M in the bank as it reasonably can to begin drilling “almost certainly” by the end of Summer. Gold, lead, zinc and silver all form part of this story. Let’s dive in.

Orefinders and Sprott both own North of 20% interest each in Mistango River Resources. After a lengthy court battle, Stewart took control of the board, removed the incumbents, then recapitalised and repositioned the company in October 2019. He himself owns around 5M shares and has 1M options: satisfactory skin in the game.

What do each of the company’s 3 projects look like? Eby-Baldwin is strategically located 10km west of the town of Kirkland Lake. The project is immediately adjacent to the highest-grade gold mine in Canada, Macassa. It spans 4,300ha and has a historical resource of 4,600t at 21.9g/t gold. Mistango’s flagship project, Omega, has a gold resource of 580,000oz. Lastly, Sackville is a project that consists of high-grade VMS boulders.

Matthew Gordon talks to Stephen Stewart, 26th June 2020.

Why did Sprott buy in? The proximity of Mistango River Resources’ Eby-Baldwin land package to Macassa is clearly the primary motivating factor. Geological excitement is perfectly understandable, but Mistango River Resources needs to prove it can deliver a de-risked project economically. As Stewart candidly remarks, the company will “live or die on (its) drill results.” It’s a good job that they are “coming soon.” However, Stewart is keen to take things steadily to avoid making mistakes, which is good to hear. The company got its feet on the ground at Eby-Baldwin 2-weeks ago for the first time since beginning to own the property. Two teams are currently in the field sampling the structures.

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Investors may be concerned that Stewart’s sizeable role at Orefinders could pose a major distraction. In addition, Stewart’s receives a salary of C$10,000 per month from Orefinders and C$5,000 from Mistango. He would argue he more than deserves it having increased the share price 35X from the beginning of his involvement with Mistango. He also tells us that the majority of his attention is currently directed towards Mistango. Investors will likely reserve their judgements until the drill results are out.

What did you make of Stephen Stewart and Mistango River Resources? Comment below and we will respond.

Company Website: https://www.mistango.com/

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