Fiore Exploration (F.V)

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Company description

Fiore Gold was created by mining financier Frank Giustra and Lithium X founder Brian Paes-Braga, originally called Fiore Exploration. The first asset that they acquired was the Pampas El Peñon exploration project in Chile, but the real company maker was the merger/RTO with GRP Minerals, creating a ramping up producer out of nowhere, based on the Pan Mine in Nevada.

Management is strong, as the CEO is Tim Warman, who is a director of Continental Gold, a former president of Dalradian resources, and a former VP Corporate Development of Aurelian Resources. Paul Matysek, another Lithium X key figure besides the founders, is an advisor, as is founder Frank Giustra who is never far away from this company, named after his own mother. This is a little detail that indicates to me that Giustra definitely wants to make something special out of Fiore Gold.

The newly acquired GRP assets are the producing Pan Mine in Nevada, and 2 development projects, GoldRock (also in Nevada and close to Pan) and Gold Eagle (Washington). All assets were bought out of the Midway Gold bankruptcy by GRP, and the Pan Mine was completely turned around after this, and currently ramping up to 40,000oz production figures for 2018 and 50,000 oz in 2019. Gold Rock will be fast-tracked to production as well, and the expectations on production are 50,000-75,000oz annually. As both assets are believed to have considerable exploration upside, and the company is aggressively looking for other producing or very near-producing assets, the goalposts have been set at a 150,000oz per annum producer, aiming at a C$1B market cap (now just C$80M dd 10/3/2017).

Fiore Gold appears to be a very busy junior producer from now on, being busy with greenfield exploration, brownfield exploration, development and production. With C$25M cash on hand and a much higher share price level compared to the pre-deal situation (which helps prevent too much dilution at acquisitions), management has room to manoeuvre and I am convinced Giustra will not tolerate anything less than a resounding success.

Share price Fiore Exploration: