Paradigm Picks Newsletter 2021/Oct/11
Hello everyone!
Wishing all of our Canadian Subscribers a happy Thanksgiving weekend! A lot has happened since our last edition!
We have been reaching out to the CEO’s of our various investments to stay up-to date on their respective progress and initiatives. As always, due to legal reasons, CEO’s may be “tight lipped” regarding various questions, however provide a general sentiment for their projects going forward.
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Updates
Emerita Resources EMO : Congrats to all who have held through the storm! After several weeks of downward pressure, sold as low as $1.26, Emerita has returned with a vengeance hitting a daily high of $2.15 and closed for the second time above $2.00 at $2.07 with over 2.3m shares traded on the Canadian side alone! The main reason for this parabolic move, was the recent news release in which:
The Administrative Court of Andalucia has advised that it will be making a ruling in the administrative case initiated by Emerita in 2015 regarding Aznalcollar. As a result, Aznalcollar may be awarded much sooner to Emerita Resources than previously anticipated, potentially bypassing criminal trial entirely. Regardless, all three levels of spanish courts have agreed that crimes have been committed in the issuance of the Aznalcollar property. Should the Administrative case be deemed unsatisfactory to the courts, the criminal trial will proceed.
Despite an initial selloff on exceptional drill results regarding Emerita’s IBW property, the market finally received the “nod” it was looking for; the Acquisition of Aznalcollar by Emerita Resources is all but guaranteed. Clarus securities updated their acquisition target to $6.25/share! At the time of writing, we are sitting on a 2024% gain!
We agree with “Doc Jones the Resource Investor” that once both properties are completely drilled out, Emerita resources could fetch a buyout price of $18.00-20.00+ CAD per share in ~2 years. Please find Doc Jones’ interview with CEO David Gower regarding recent updates and the vision for the company going forward.
Bright Minds Biosciences DRUG : Bright minds Biosciences Recently jumped at open to as high as $10.77 share before slowly settling back to $9.00 CAD. Our speculation is that news of the a NASDAQ listing is fast approaching and have positioned ourselves accordingly. Clinical trials are still planned for the end of 2021.
Cross River Ventures CRVC : The Precious/metals sector as a whole has been hit hard as of late. Cross River ventures is no exception to this downward pressure. Regardless, we believe the long term thesis is intact and have added to our position in the .12-.13 range.
These purchases were initiated by recent Grab sample results which we believe are a great indicator for what is to come. It is important to note that as of the last few trading days, CEO Alex Klenman has purchased the stock on 5 separate occasions as per SEDI. This further instills confidence in our purchase decision.
Gold Mountain Mining Corp. GMTN : Gold Mountain is one of several new additions to our investment portfolio. We have amassed a sizeable position at a $1.55 Average and have added recently into the $1.80 range as we continue to dig into this company’s story.
In speaking with management, No insiders draw a salary from any funds generated by the company. All management and insiders possess other revenue streams and are committed to reinvesting all acquired funds from the company back into exploration, mining and production. From this fact alone, we were sold!
As per notes below, the company has applied for a mining permit. Upon issuance, we suspect the share price to increase to the $2.50 range and develop from there.
Please see below for a brief summary of additional details pertaining to Gold Mountain Mining Corp.:
Approximately 810,000 Oz High Grade Resource has been discovered thus far in Siwash North of the Elk Gold Project in Merrit, B.C, Canada. This property Property had an approximate 375,000 Oz defined resource when when purchased By Gold Mountain in May of 2019. The Elk Gold Project is approximately 16,700 Hectares in size. Gold mountain Resources is currently Drilling out 4 zones on the property with the goal of increasing their resource to 1,000,000 Oz by end of November 2021.
As per July 12th 2021 news release, The company is currently awaiting approval for their mine permit from the Ministry of Mines. Once this permit is approved, it will mark the first Gold Mining permit issued in the Province of British Columbia in nearly a decade.
Regarding financials, the Company has over $10 million in their treasury and are well-heeled for all upcoming expenditures.
Gold Mountain Resource Corp has a very appealing share structure with only 70 million shares issued and outstanding. Circling back to management and insiders, they are not drawing from the company treasury; this ensures the company will not have to issue a financing anytime in the foreseeable future.
KULR Technology G roup inc. KULR : Another addition to our portfolio, KULR Technology Group is a U.S based company specializing in the battery space. KULR’s goal is to assist in the greater efficiency and safety of Battery powered electronics and transportation.
KULR’s battery techonology has garnered business from NASA and the United States Federal Government. In addition, KULR is currently in discussions with several larger companies currently under NDA’s.
We believe KULR is currently positioning itself to be at the core of the growing demand for:
Clean energy,
Portable Devices (phones, laptops, radios etc),
Battery Safety,
Battery Longevity, and;
Lower Emissions.
As of October 6th 2021, KULR issued a press release advising their “Safe battery transportation footprint [is in the process of being] expanded due to Heritage Battery Recycling’s Merger with Retrieve Technologies.”
As a result, we believe KULR is quite undervalued at $1.96 USD. Though the stock as seen a surge and subsequent pressure in recent weeks, we believe purchases in the $1.85-$1.95 are an excellent value buys for a longer term hold.
As always, seek professional financial advice and conduct your own due diligence prior to making any investment decisions,
Paradigm Market Research inc.
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