Precipitate Gold (TSX:PRG) - Strategic Partnerships and Cash Cushion Provide Multiple Shots on Goal

Company Interviews

English - March 09, 2024 12:19 - 17 minutes - 24.3 MB - ★★★★★ - 6 ratings
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Interview with Jeffrey R. Wilson, President & CEO of Precipitate Gold Corp.

Our previous interview: https://www.cruxinvestor.com/posts/precipitate-gold-prg-jv-with-barrick-advances-newfoundland-assays-soon-2919

Recording date: 3rd March 2024

Precipitate Gold Corp (TSX:PRG) is a compelling speculative gold exploration company offering investors multiple shots on goal in the mining-friendly Dominican Republic. The company's flagship Pueblo Grande project is located adjacent to Barrick Gold's world-class Pueblo Viejo mine. Precipitate Gold holds an agreement with Barrick with a right to earn a 70% interest by spending US$10 million on exploration and delivering a pre-feasibility study by 2026. To date, Barrick has spent US$5 million and is seeing encouraging signs of the targeted high sulphidation epithermal gold systems.

PRG monetized non-core Pueblo Grande claims to Barrick in 2020 for US$5 million, providing a cash cushion to weather the current challenging market. This non-dilutive capital also allows PRG to fund explorations on new projects.

PRG is actively seeking a new gold or copper acquisition, leveraging an extensive network to source off-market opportunities. The company is nimble enough to explore a new project itself, while maintaining discipline around deal terms to minimize dilution. Although a new deal has proven elusive, PRG's cash and Pueblo Grande upside provide a foundation to patiently await the right opportunity.

The Dominican Republic remains one of the most prospective jurisdictions for gold exploration. The government recognizes mining's importance to the economy and is supporting the industry's growth. Pueblo Viejo alone accounts for 20% of national exports, with Barrick seeing significant resource upside.

Overall, PRG offers a unique combination of a strategic joint venture with a major producer, a cash war chest to fund exploration, and exposure to a mining-friendly jurisdiction seeing increasing activity. Near-term catalysts include exploration results from Barrick, the potential acquisition of a new project, and the resolution of permitting challenges in the Dominican Republic that could reignite interest in the region.

Precipitate Gold provides a compelling speculative investment opportunity with multiple avenues to a re-rating. The company's strong financial position, strategic partnerships, and asset base in a sought-after jurisdiction make it an intriguing pick for risk-tolerant investors.

View Precipitate Gold's company profile: https://www.cruxinvestor.com/companies/precipitate-gold-corp