Ever since Augusta Gold (TSX: G) announced its deal to acquire Reward a few weeks ago, G's competitors in Nevada with multi-billion-dollar market caps have been going CRAZY trying to figure out who in their company to blame for not knowing about the opportunity to acquire Reward at such a distressed artificially low price!
There is a good reason why most gold stocks tend to underperform gold prices. Most people who start gold companies are no better than the people who start Bitcoin mining companies... they have no ideas of how to create real value for shareholders and they want to "get lucky" by riding a wave of rising gold or Bitcoin prices. Even if they manage to perfectly time a run in the price of gold or Bitcoin, they end up being value extractors and will use their rising share price as a currency that they print/dilute for the betterment of themselves to the detriment of their shareholders.
Augusta Gold (TSX: G)'s Executive Chairman Richard Warke wants to own as many G shares as possible, because after building tremendous value he will most likely sell the company to either the adjacent multi-billion-dollar gold miner that is rapidly consolidating the entire region AngloGold Ashanti (AU) or G's second largest shareholder Barrick Gold (GOLD). Throughout the 1990s, Barrick was the owner/operator of G's Bullfrog Gold Project and Barrick successfully produced approximately 200,000 oz of gold per year from Bullfrog!
After Richard Warke took control of G last year and changed its name while successfully acquiring ownership of Bullfrog from Barrick and consolidating it with the adjacent properties that G's predecessor company already owned/controlled... G raised $17 million in a private placement at $2.25 per share, which included Richard Warke himself investing another $6.7 million into the company. Most newly listed gold companies issue practically free founders shares to management at $0.001 per share immediately prior to selling a private placement to accredited investors at a 1,000X higher share price. When the typical gold company finally lists on the market for the general public to invest, the initial listing price is almost always 2-3X higher than the private placement price or 2,000-3,000X higher than where the founders "bought" their practically free shares. With G, even the 18.33 million founder's shares that were issued to Richard Warke were fully paid for by him at a cost of $22 million. Richard Warke paid full market value for his founder's shares, which almost never happens in the shady, greedy, corrupt city of Vancouver (not nearly as bad as Boca Raton, which is why we have a rule to never invest into any company based in Boca Raton). Richard Warke has already invested approximately $30 million of his own personal capital into G, and we expect him to invest MUCH more into G in the upcoming weeks. Richard Warke's interests are aligned with us, which is why NIA's President will be continuing to accumulate G and won't sell a single G share when it breaks $3.
Not only does G have Richard Warke as its Executive Chairman and largest shareholder who is a self-made billionaire with a 100% perfect track record of success, but G's CEO Donald Taylor previously discovered the world's largest zinc deposit the Taylor Deposit back when he led Arizona Mining, which became NIA's #1 most successful mining stock of all-time gaining by 1,575.68% from NIA's suggestion price during a time period of declining zinc/silver prices. Click here to see a 2018 video of Donald Taylor talking with Daniela Cambone after he discovered the Taylor Deposit (a few months later Arizona Mining got acquired for $2.1 billion in cash).
Many billionaires like Mark Cuban and Eric Sprott became billionaires because they got lucky. Only a small group of billionaires like Elon Musk and Richard Warke have proven their ability to repeat their success over and over and over again with every company they start always becoming a HUGE winner! If you don't invest into G now you will most likely invest into G later, but at a MUCH higher price! After G's acquisition of the Reward Gold Project closes, G will very quickly become a $5+ per share stock. Reward is set to enter development later this year and launch commercial production in 3Q 2023!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA's President has purchased 169,200 shares of G in the open market and intends to buy more shares. This message is meant for informational and educational purposes only and does not provide investment advice.