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A Critical Q&A with Todd Hilditch, CEO of Terraco Gold

 

After a relatively long period without significant news, Terraco Gold seems to have shifted a gear now, and after meeting in Vancouver around the latest VRIC show I felt it was an opportune time to interview CEO Todd Hilditch on a number of subjects. First Paul Zink, a royalty veteran was contracted, and shortly afterwards on February 1 an additional royalty was acquired from the Schmidt Family Mining Partnership LLC on the Spring Valley Gold Project in Nevada. This is a 0.5% Net Smelter Returns royalty (NSR royalty) on lands within a one-half mile perimeter of the Schmidt Claim Block. Red Kite Mine Finance also had a right to, and purchased, an identical royalty on the same lands, for the same price, USD$567,895. Furthermore, according to the news release:

Terraco Gold's New Hire Paul Zink Could Be Transformational

Terraco Gold (TEN.V) made headlines with their Spring Valley royalties transaction in May 2016. Spring Valley is a multi –million ounce gold project in Nevada owned by Waterton Global, advanced by Barrick to a PFS level by spending over US$70M before Waterton bought it for appr US$83M. Unfortunately for Terraco, but typical of private equity firms, the Spring Valley news flow slowed down after this (though industry sources believe they are improving the Spring Valley project behind the scenes as they did in the below example). This scenario is not new to Waterton, and by way of example they have made a very decent return by buying assets on the cheap (in bankruptcy at times) and quietly improving them before selling to a major mining company.

Terraco Gold: A New Royalty Player With An Excellent Cornerstone Asset And Substantial Growth Potential

  • Terraco Gold recently closed a $19M deal with Waterton, involving the Spring Valley royalties
  • As Waterton plans to advance the excellent Spring Valley project quickly and controls $2B in assets, Terraco can probably expect significant royalty payments in 3-4 years time
  • The company also aims at completing a PEA on the prospective Almaden/Nutmeg project in Q4 2016, which will be a big near term catalyst and significantly increase and indicate asset value
  • Terraco strives to become an established royalty player, and is looking to expand its portfolio rapidly
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