December 28th, 2010:|
Garibaldi Resources Corp (TSX Venture: GGI)
Current Price: $0.295
WARNING: Before reading this stock suggestion report please be aware that the following stock is EXTREMELY risky, volatile and thinly traded. NIA's President already owns a small position in GGI and it is fully disclosed at the bottom of this report.
NIA's new gold/silver stock suggestion is Garibaldi Resources Corp, currently trading on the TSX Venture exchange at $0.295.
GGI is a Canadian junior mining company focused on the exploration for gold, silver and base metal deposits along the central and northern parts of the highly prolific Sierra Madre mining belt located in northwestern Mexico.
GGI controls seven district scale properties covering more than 2,000 square kilometres of prospective stratigraphy surrounding and along strike from some of the most robust gold and silver mining projects ever discovered in Mexico including El Sauzal, Mulatos and Ocampo.
As part of the GGI's "Rapid Assessment Protocol", GGI is committed to utilizing the world's most sophisticated remote sensing technologies to effectively target major alteration systems commonly associated with significant gold, silver and base metal discoveries.
As of GGI's latest public disclosure, the company owns 4,662,300 shares of Paramount Gold (PZG). PZG has been one of the best performing exploration plays on the AMEX during the recent weeks and closed Tuesday at $3.85 per share. GGI's shares in PZG are now worth $17.95 million.
GGI has 50.56 million shares outstanding and a market cap at $0.295 of $14.92 million. This means GGI is being valued at LESS than the value of their shares of PZG! In order words, GGI's seven district scale properties covering more than 2,000 square kilometres are being valued by the market at LESS THAN ZERO!
GGI received their PZG shares by selling to them their Temoris Concessions. GGI originally received 6 million PZG shares and $400,000 in cash. Based on PZG's current share price, the size of the deal GGI signed to sell their Temoris Concessions was $23.5 million.
GGI's Temoris Concessions were very valuable because they were located adjacent to NIA's previous stock suggestion Coeur d'Alene Mines Corporation (CDE)'s Palmarejo property. However, some of GGI's current properties still under ownership are also in very impressive locations. GGI has properties in close proximity to previous NIA stock suggestion Goldcorp (GG)'s El Sauzal Mine, Gammon Gold (GRS)'s Ocampo Mine (GRS is the company that is in the process of acquiring previous NIA stock suggestion Capital Gold (CGC) for more than double our suggestion price) , and Alamos Gold (TSX: AGI)'s Mulatos Project.
Important Disclosure: NIA's President owns 183,000 shares of GGI that he purchased at $0.28. He has agreed to a 90-day holding period. He will NOT sell any of his 183,000 GGI shares within 90 days of NIA's profile of GGI. However, he MAY sell some or all of his 183,000 shares at any time 90 days after NIA's GGI report is published. Also please be aware that NIA's President and others associated with NIA may have previously disseminated information on GGI to other newsletters and media outlets.