Position Taken In Idaho Champion Gold Mines

Position Taken In Idaho Champion Gold Mines

I was able to pick up a position in Idaho Champion Gold Mines (CSE – ITKO) at $0.12 yesterday.

After meeting with CEO Jonathan Buick on Day 1 of the Vancouver Resource Investment Conference, I came away impressed – you can read my recap of the meeting here.

At $0.12, Idaho Champion has a tiny $4 million market cap with great initial drill results from its 2018 program at the Baner gold project in Idaho (12.65 m of 5.76 g/t Au, 11 m of 2.27 g/t Au, and 6.3 m of 8.66 g/t Au – all less than 120 m from surface).  Idaho Champion has a highly prospective cobalt project in Idaho too.

The company is low on cash and that’s a risk I’ve contemplated in taking my position – any financing at these levels would blow out the share structure.  But I’m confident Jonathan will do his best to find a creative way to finance the company.  In a worst-case scenario, it’s my opinion the cobalt project could fetch enough cash, even in these markets, to fund the next round of drilling.  Idaho Champion did its last financing at $0.24, so I’m confident they don’t want to dilute at these levels.  The Baner gold project is highly prospective and an uptick in the price of gold or an announcement of a creative financing could really move the share price up materially.

Philip O'Neill
Philip O'Neill
poneill@mp1capital.com