Meet the Analysts

Research Reports

Gregory Aurand

Robert LeBoyer

Joe Gomes

Michael Heim

Mark Reichman

Michael Kupinski

Virtual & In-person Roadshows / Conferences

Channelchek Premium. Access more at no cost. 

The site "channelcheck" is opened on the phone

Join the Channelchek Investor Community. Your name, email, zip, and investor type is all it takes to open the door to research reports, favorites tracking, and virtual and in-person roadshows / conferences. Even exclusive investment opps.

Take it to the next level. It doesn’t cost a penny.

Click “Log In” to agree to Channelchek.com <a href="#">Terms of Use</a> and acknowledge that Channelchek.com <a href="#">Privacy Policy</a> applies to you.

Welcome to the Channelchek Investor Community

Informed investors make more money. And it’s all about timing. Get it when it happens.

Inbox Intel from Channelchek.

A New Market

Technology

New Contracts; Rising Populations

Real Estate

Initiating Coverage With An Outperform Rating and $10 Price Target

Biotechnology

Expanding Into BBQ

Consumer

Preliminary GEO-CM04S1 Phase 2 Data Published.&nbsp;GeoVax announced the publication of data from its Phase 2 trial testing CM04S1 in patients who are immunocompromised after receiving hematopoietic cell transplants or CAR-T therapy. These treatments leave the patients with compromised immune systems that make it difficult for them to respond to vaccinations, making them vulnerable to COVID-19 infection. The study reported on the patientsâ€™ immune responses after receiving 2 to 4 doses of GEO-04S1 from 3 to 12 months after either hematopoietic cell (bone marrow) transplants or CAR-T therapy. 
 
Assessment of 13 patients during the open-label safety stage showed humoral and cellular immune responses with significant increases after 1 or 2 vaccinations. Following their first or second dose, patients showed a significant increase in spike (S) and nucleocapsid (N) specific binding antibody titers and neutralizing antibodies. There was strong activity against SARS-CoV-2 ancestral Wuhan virus and other variants of concern including Omicron XBB.1.5, a variant that is highly evasive to antibodies. Importantly, the vaccination resulted in significant increases in S-&nbsp;and N-specific T-cells, predominantly CD4+&nbsp;T lymphocytes. Elevated S- and N-specific immune responses continued to persist at six months post vaccination, showing durability of the response.
In addition, neutralizing antibody and T-cell responses in CM04S1-vaccinated patients significantly exceeded those measured in a cohort of healthy volunteers vaccinated with CM04S1 or naive health care workers vaccinated with Comirnaty, Pfizer's approved mRNA vaccine.&nbsp; We believe that since these patients have compromised immune responses and respond poorly to vaccination, the comparisons with healthy volunteers and cohorts that had received Pfizerâ€™s Comirnaty shows effective immune activity.
 
Although this was a small number of patients, the immune response showed robust humoral and cellular responses with 6 month duration. The study demonstrated that a heterogeneous group of hematological malignancy patients vaccinated with CM04S1 vaccine less than one year post treatment can mount robust humoral and cellular responses to S and N antigens, including neutralizing antibodies.&nbsp; This response showed potent cross-reactivity against the SARS-CoV-2 ancestral Wuhan virus and several variants of concern.
Preclinical Data For GEO-CM04S1 Shows Neutralization of Numerous Variants&nbsp;&nbsp;
 
Separately, data from preclinical development for GEO-CM04S1 was presented at the Keystone Symposia on Molecular and Cellular Biology entitled Vaccinology During and After COVID-19. The poster presentation included previously unpublished data from preclinical development in the SARS-CoV-2 program. These data demonstrated single dose protection against multiple variants.
CM04S1 was developed as a multi-antigen vaccine against several vaccine surface markers (the S, M, and E proteins) with the MVA vector, stimulating responses from both the humoral (antibody) and cellular (T-cell) arms of the immune system. This contrasts to the first-generation vaccines that simulated antibody immunity against the S protein on the viral surface. The studies in the poster used the lethal hACE2 transgenic mouse model, a recognized industry standard for COVID-19 testing.
 
The animal challenge models induced immune responses against the original Wuhan strain as well as new variants ranging from Alpha to Omicron (targeting B.1, B.1.351 and BA.1.1.529), M and envelope (E). The animals showed protection prior to detection of neutralizing antibodies, indicating that the T-cell immunity was likely to be active. Also noteworthy was the elimination of lung inflammation and immunopathology in the vaccinate animals. These data indicate that the vaccine was able to protect against severe disease and death induced by SARS-CoV-2 infection and provided the protection regardless of the variant. 
The Phase 2 Booster Trial Has Fully Enrolled.&nbsp;Earlier in September, GeoVax announced that the Phase 2 booster trial in healthy volunteers who have previously received either the Pfizer or Moderna vaccines has reached its target enrollment. This study dose-escalation study is designed to determine the safety profile and immunogenicity of CM04S1 as a booster in previously vaccinated patients.
 
Conclusion.&nbsp;These data presentations show that the GeoVax strategy of using multiple antigens with its MVA vector has been able to elicit a significant immune response in the Phase 2 safety lead-in stage. The preclinical data presented further support our expectations that the vaccine can provide variant-agnostic protection. We are reiterating our Outperform rating and $6 price target.

Preliminary GEO-CM04S1 Phase 2 Data Published.&nbsp;GeoVax announced the publication of data from its Phase 2 trial testing CM04S1 in patients who are immunocompromised after receiving hematopoietic cell transplants or CAR-T therapy. These treatments leave the patients with compromised immune systems that make it difficult for them to respond to vaccinations, making them vulnerable to COVID-19 infection. The study reported on the patientsâ€™ immune responses after receiving 2 to 4 doses of GEO-04S1 from 3 to 12 months after either hematopoietic cell (bone marrow) transplants or CAR-T therapy. 

Assessment of 13 patients during the open-label safety stage showed humoral and cellular immune responses with significant increases after 1 or 2 vaccinations. Following their first or second dose, patients showed a significant increase in spike (S) and nucleocapsid (N) specific binding antibody titers and neutralizing antibodies. There was strong activity against SARS-CoV-2 ancestral Wuhan virus and other variants of concern including Omicron XBB.1.5, a variant that is highly evasive to antibodies. Importantly, the vaccination resulted in significant increases in S-&nbsp;and N-specific T-cells, predominantly CD4+&nbsp;T lymphocytes. Elevated S- and N-specific immune responses continued to persist at six months post vaccination, showing durability of the response.
In addition, neutralizing antibody and T-cell responses in CM04S1-vaccinated patients significantly exceeded those measured in a cohort of healthy volunteers vaccinated with CM04S1 or naive health care workers vaccinated with Comirnaty, Pfizer&#8217;s approved mRNA vaccine.&nbsp; We believe that since these patients have compromised immune responses and respond poorly to vaccination, the comparisons with healthy volunteers and cohorts that had received Pfizerâ€™s Comirnaty shows effective immune activity.
   
Although this was a small number of patients, the immune response showed robust humoral and cellular responses with 6 month duration. The study demonstrated that a heterogeneous group of hematological malignancy patients vaccinated with CM04S1 vaccine less than one year post treatment can mount robust humoral and cellular responses to S and N antigens, including neutralizing antibodies.&nbsp; This response showed potent cross-reactivity against the SARS-CoV-2 ancestral Wuhan virus and several variants of concern.
Preclinical Data For GEO-CM04S1 Shows Neutralization of Numerous Variants&nbsp;&nbsp;
   
Separately, data from preclinical development for GEO-CM04S1 was presented at the Keystone Symposia on Molecular and Cellular Biology entitled Vaccinology During and After COVID-19. The poster presentation included previously unpublished data from preclinical development in the SARS-CoV-2 program. These data demonstrated single dose protection against multiple variants.
CM04S1 was developed as a multi-antigen vaccine against several vaccine surface markers (the S, M, and E proteins) with the MVA vector, stimulating responses from both the humoral (antibody) and cellular (T-cell) arms of the immune system. This contrasts to the first-generation vaccines that simulated antibody immunity against the S protein on the viral surface. The studies in the poster used the lethal hACE2 transgenic mouse model, a recognized industry standard for COVID-19 testing.
   
The animal challenge models induced immune responses against the original Wuhan strain as well as new variants ranging from Alpha to Omicron (targeting B.1, B.1.351 and BA.1.1.529), M and envelope (E). The animals showed protection prior to detection of neutralizing antibodies, indicating that the T-cell immunity was likely to be active. Also noteworthy was the elimination of lung inflammation and immunopathology in the vaccinate animals. These data indicate that the vaccine was able to protect against severe disease and death induced by SARS-CoV-2 infection and provided the protection regardless of the variant. 
The Phase 2 Booster Trial Has Fully Enrolled.&nbsp;Earlier in September, GeoVax announced that the Phase 2 booster trial in healthy volunteers who have previously received either the Pfizer or Moderna vaccines has reached its target enrollment. This study dose-escalation study is designed to determine the safety profile and immunogenicity of CM04S1 as a booster in previously vaccinated patients.
   
Conclusion.&nbsp;These data presentations show that the GeoVax strategy of using multiple antigens with its MVA vector has been able to elicit a significant immune response in the Phase 2 safety lead-in stage. The preclinical data presented further support our expectations that the vaccine can provide variant-agnostic protection. We are reiterating our Outperform rating and $6 price target.

Positive Data From CM04S1 Phase 2 and Preclinical Trials

Healthcare

Lowering Near-Term Estimates; Outlook Remains Favorable

Natural Resources

Stock Price Momentum Continues, Moving to Market Perform

A Favorable Course For Revenue and Cash Flow Growth

Education

Dropping Coverage

Advancing Toward the Creation of Pinnacle Silver &amp; Gold Corp.
 
In May, Newrange Gold executed a&nbsp;binding Scheme Implementation Deed (SID)&nbsp;with Mithril Resources Limited (ASX: MTH) to acquire 100% of Mithril in a reverse takeover (RTO). The transaction is being advanced via a Scheme of Arrangement in Australia. Pending approval by the TSX Venture Exchange, the resulting company will be named Pinnacle Silver &amp; Gold Corp. and will be listed on the TSX Venture exchange under the symbol "PINN." The transaction is subject to various conditions, including approval by Newrange and Mithril shareholders and by various governmental and regulatory bodies. The transaction is expected to close following Newrange and Mithril shareholder meetings on October 5th and October 13th, respectively. Mithril would then be delisted from the ASX exchange.
 
In our view, the proposed transaction will result in a compelling precious metals focused exploration and development company with a highly experienced management team, an existing high-grade resource base, and significant growth potential. The Copalquin project in Mexico offers significant potential for resource expansion and additional discoveries, while the North Birch and past-producing Argosy Gold Mine properties in the Red Lake District of Ontario, Canada provide geographic diversity and additional discovery and resource development potential.
 
Pinnacle Silver &amp; Gold will benefit from a strong board and management with a successful track record of discovery and mine development in Mexicoâ€™s Sierra Madre silver-gold belt. Mr. Robert Archer, President, CEO and Director of Newrange will be the Executive Chair of Pinnacle Gold &amp; Silver. Mr. John Skeet, Managing Director and CEO of Mithril will be President and CEO of Pinnacle Gold &amp; Silver. Pinnacleâ€™s six-member board of directors will include four independent directors.
Mithril Resources Limited is a publicly traded precious metals exploration company incorporated and domiciled in Australia and listed on the Australian Securities Exchange (ASX) under the ticker symbol MTH. Mithrilâ€™s focus since May 2020 has been the exploration and development of the Copalquin gold-silver district in Durango State, Mexico. Mithril holds a 50% interest in the project with an option to acquire the remaining 50% interest for US$10 million in cash and/or shares at any time up to August 7, 2026 subject to a 2.5% net smelter returns royalty (NSR) that can be bought down to 1%. Mithril has reached an agreement with the vendor to extend the payment date by two years, or until August 7, 2028, and is in the process of finalizing documentation for the extension.
A District-Scale Project is the Flagship Asset â€” Copalquin
The Copalquin mining district is in Durango State, Mexico and covers an entire mining district of 70 square kilometers containing several dozen historic gold and silver mines and workings, ten of which were past producing. The district is within the Sierra Madre Gold-Silver Trend which extends north-south along the western side of Mexico and hosts many world-class gold and silver deposits.&nbsp; Widespread alteration, along with extensive surface vein exposures and dozens of historic mine workings highlight the Copalquin mining district as a major epithermal center for gold and silver.---------- page break ----------
Figure 1: Location of the Copalquin Project within Mexico
<img src="https://www.noblelinx.com/x/research/images/reports/NRGOF-091423b.JPG" style="width: 650px;height: 534px;float: none" /> 
Source: Newrange Gold Corp. and Mithril Resources Limited
National Instrument 43-101 Compliant Resource&nbsp;
In connection with the proposed transaction, a NI 43-101 compliant technical report on the Copalquin Property was prepared by AMC Consultants Pty Ltd (AMC) of Melbourne, Australia. Three drilling campaigns were carried out by Mithril during the period of 2020 to 2022. The overall number of holes drilled was 148 for a total of 32,713 meters. Based on the NI 43-101 compliant technical report and a historic JORC-compliant mineral resource estimate, the El Refugio target area is estimated to contain indicated resources of 121,000 ounces of gold and 2,538,000 ounces of silver and inferred resources of 252,000 ounces of gold and 8,414,000 ounces of silver. Based on a gold price to silver ratio of 70:1, the mineral resource is estimated to contain 529,000 ounces of gold equivalents or 37,030,000 ounces of silver equivalents.---------- page break ----------
Figure 2: Copalquin Mineral Resource Estimate
 <img src="https://www.noblelinx.com/x/research/images/reports/NRGOFFig2Sep23.JPG" style="width: 650px;height: 277px;float: none" />
 
 Source: NI 43-101 Technical Report, AMC Consultants Pty Ltd.
Ample Room for Growth
Like other districts within the region, drill results have confirmed the depth potential for gold and silver mineralization in the Copalquin mining district. Drill core, along with petrographic work, support considerable depth extension of the El Refugio hydrothermal system and other target areas in the district. Copalquin offers numerous targets within the northern, central, and southern sections of the 70 square kilometer concession area.---------- page break ----------
Figure 3: Ample Room for Growth
<img src="https://www.noblelinx.com/x/research/images/reports/NRGOFFig3Sep23.JPG" style="width: 650px;height: 459px;float: none" /> 
Source: NI 43-101 Technical Report, AMC Consultants Pty Ltd.
 
Plans include completing a LiDAR survey of Copalquin along with conducting a mapping and sampling program to refine target areas. A diamond drill program is planned to upgrade the resource and test new targets. Within the middle section, management seeks to expand the El Refugio resource along strike to the west and east. Drill targets are being refined along the middle trend of mineralization. In the southern section, target development continues around the historic multi-level San Manuel Mine and at Las Brujas-El Peru where high grades are hosted in the workings.
Canadian Assets Provide Blue-Sky Discovery Potential
The company's projects in the Red Lake District of northwestern Ontario will provide geographic diversification with the potential for new discoveries and the depth extension of the past producing Argosy Gold Mine. Management expects to conduct follow up drilling in 2024. The Argosy Gold Mine is a high-grade past producing mine that was closed in 1952 but was only mined to a depth of 270 meters. Deeper drilling by a previous operator indicated the mineralization continues at depth. At the North Birch Project, drilling identified a mineralized structure with a potential eight-kilometer strike length in a favorable geological setting.&nbsp;&nbsp;
Terms of the Transaction
Shareholders will be asked to vote on a second consolidation of 2:1 to take effect immediately prior to the closing of the RTO. In&nbsp;consideration for the acquisition of all the issued and outstanding Mithril shares, Newrange Gold will issue pro rata to the Mithril shareholders 60,907,985 common shares at a deemed price of C$0.18 per share post consolidation for aggregate deemed consideration of C$10,963,437. Newrange will also issue pro rata to the Mithril option holders 3,164,000 warrants, subject to rounding, exercisable at C$0.77 which expire on April 26, 2024, and 3,874,286 warrants, subject to rounding, which expire on December 9, 2025.
 
Newrange will close a financing immediately after the consolidation and concurrent with the closing of the RTO to raise gross proceeds of at least C$3,600,000 with the issuance of at least 20,000,000 units at a price of C$0.18. Each unit consists of one common share and one-half warrant with each whole warrant entitling the holder to acquire one common share at a price of C$0.27 for a period of two years.
Pro forma for the transaction, it is anticipated the new company will have 99,784,895 issued and outstanding shares and 121,257,589 on a fully diluted basis.
 
Figure 4: Current and Pro-Forma Share Structure
<img src="https://www.noblelinx.com/x/research/images/reports/NRGOFFig4Sep23.jpg" style="width: 650px;height: 177px;float: none" /> 
 
Source: Noble Capital Markets Inc., company documents, and Newrange Gold Corp.
Figure 5 represents a comparable peer group to Pinnacle Silver &amp; Gold Corp. The companies in the peer group are largely small and micro-cap exploration companies that operate in Latin America. We note that all are included in a peer comparison for resource grade in Newrange Gold's recent presentation.
Figure 5: Comparable Peer Group
<img src="https://www.noblelinx.com/x/research/images/reports/NRGOFFig.5Sep23.jpg" style="width: 650px;height: 239px;float: none" /> 
Source: Noble Capital Markets Inc., company filings, and Newrange Gold Corp.&nbsp;
Because we assign a high probability to the transaction closing, our price target is on a post transaction basis, including a two-for-one share consolidation prior to the transaction closing. Additionally, due to the planned share consolidation and planned equity issuance to raise C$3.6 million, we thought it would be less confusing for investors to provide a post-transaction valuation which is for the combined entity and does not imply a value for either on a stand-alone basis. For our valuation, we have employed an Enterprise Value/Resources method. Based on the information in Figure 5, the group trades at an average enterprise value to resource of C$0.63 per silver equivalent ounce with a median of C$0.69 per silver equivalent ounce. Assuming the company's valuation trades up to an enterprise value to resource of C$0.63 per silver equivalent ounce, the implied enterprise value is C$23.3 million based on 37.03 million silver equivalent ounces. Adjusting for projected cash of C$3.6 million and debt of C$50.4 thousand, the implied equity value is C$0.27 or US$0.20 per share based on 99.8 million shares outstanding. Because the combined entity will enhance size, scale and market presence, we believe its valuation is more likely to move toward our price target than either company on a stand-alone basis.
 
Summary of Fiscal Year 2023 Financial Results
As an exploration company, Newrange Gold does not generate revenue and incurs expenditures to advance its projects. During the year ended April 30, 2023, Newrange Gold generated a net loss of C$1,057,380 or C$(0.04) per share. During the prior year, the company generated a net loss of C$5,778,090 or C$(0.04) per share on a pre-share consolidation basis and C$(0.23) after adjusting for a 1 for 6 share consolidation which occurred in April 2023. Exploration expenditures declined to C$354,286 compared to C$2,980,462 during the prior year due to lower exploration costs during the year subsequent to dropping the Pamlico project in Nevada. The write-off of mineral property declined to C$6,176 compared to C$2,130,998 during the prior year due to the write-off of the Pamlico gold project in fiscal year 2022. While our valuation and price target is on a post-transaction basis, our income statement and cash flow estimates will be updated following transaction close. Financial results for the first quarter of fiscal 2024, or the quarter ended July 31, 2023, will likely be released in late September.
Capital Structure and Liquidity
As of April 30, 2023, Newrange Gold reported cash in the amount of C$323,771 and a loan payable of C$40,000. In early May, Newrange received gross proceeds of C$441,460 with the issuance of 4,905,112 units. Each unit consisted of one common share and one share purchase warrant with each warrant being convertible into an additional share at an exercise price of $0.12 for a period of 36 months from the date of issuance. The net proceeds were to fund expenses related to the reverse take-over (RTO) and working capital needs.

Advancing Toward the Creation of Pinnacle Silver &amp; Gold Corp.
   
In May, Newrange Gold executed a&nbsp;binding Scheme Implementation Deed (SID)&nbsp;with Mithril Resources Limited (ASX: MTH) to acquire 100% of Mithril in a reverse takeover (RTO). The transaction is being advanced via a Scheme of Arrangement in Australia. Pending approval by the TSX Venture Exchange, the resulting company will be named Pinnacle Silver &amp; Gold Corp. and will be listed on the TSX Venture exchange under the symbol &#8220;PINN.&#8221; The transaction is subject to various conditions, including approval by Newrange and Mithril shareholders and by various governmental and regulatory bodies. The transaction is expected to close following Newrange and Mithril shareholder meetings on October 5th and October 13th, respectively. Mithril would then be delisted from the ASX exchange.
   
In our view, the proposed transaction will result in a compelling precious metals focused exploration and development company with a highly experienced management team, an existing high-grade resource base, and significant growth potential. The Copalquin project in Mexico offers significant potential for resource expansion and additional discoveries, while the North Birch and past-producing Argosy Gold Mine properties in the Red Lake District of Ontario, Canada provide geographic diversity and additional discovery and resource development potential.
   
Pinnacle Silver &amp; Gold will benefit from a strong board and management with a successful track record of discovery and mine development in Mexicoâ€™s Sierra Madre silver-gold belt. Mr. Robert Archer, President, CEO and Director of Newrange will be the Executive Chair of Pinnacle Gold &amp; Silver. Mr. John Skeet, Managing Director and CEO of Mithril will be President and CEO of Pinnacle Gold &amp; Silver. Pinnacleâ€™s six-member board of directors will include four independent directors.
Mithril Resources Limited is a publicly traded precious metals exploration company incorporated and domiciled in Australia and listed on the Australian Securities Exchange (ASX) under the ticker symbol MTH. Mithrilâ€™s focus since May 2020 has been the exploration and development of the Copalquin gold-silver district in Durango State, Mexico. Mithril holds a 50% interest in the project with an option to acquire the remaining 50% interest for US$10 million in cash and/or shares at any time up to August 7, 2026 subject to a 2.5% net smelter returns royalty (NSR) that can be bought down to 1%. Mithril has reached an agreement with the vendor to extend the payment date by two years, or until August 7, 2028, and is in the process of finalizing documentation for the extension.
A District-Scale Project is the Flagship Asset â€” Copalquin
The Copalquin mining district is in Durango State, Mexico and covers an entire mining district of 70 square kilometers containing several dozen historic gold and silver mines and workings, ten of which were past producing. The district is within the Sierra Madre Gold-Silver Trend which extends north-south along the western side of Mexico and hosts many world-class gold and silver deposits.&nbsp; Widespread alteration, along with extensive surface vein exposures and dozens of historic mine workings highlight the Copalquin mining district as a major epithermal center for gold and silver.&#8212;&#8212;&#8212;- page break &#8212;&#8212;&#8212;-
Figure 1: Location of the Copalquin Project within Mexico

Source: Newrange Gold Corp. and Mithril Resources Limited
National Instrument 43-101 Compliant Resource&nbsp;
In connection with the proposed transaction, a NI 43-101 compliant technical report on the Copalquin Property was prepared by AMC Consultants Pty Ltd (AMC) of Melbourne, Australia. Three drilling campaigns were carried out by Mithril during the period of 2020 to 2022. The overall number of holes drilled was 148 for a total of 32,713 meters. Based on the NI 43-101 compliant technical report and a historic JORC-compliant mineral resource estimate, the El Refugio target area is estimated to contain indicated resources of 121,000 ounces of gold and 2,538,000 ounces of silver and inferred resources of 252,000 ounces of gold and 8,414,000 ounces of silver. Based on a gold price to silver ratio of 70:1, the mineral resource is estimated to contain 529,000 ounces of gold equivalents or 37,030,000 ounces of silver equivalents.&#8212;&#8212;&#8212;- page break &#8212;&#8212;&#8212;-
Figure 2: Copalquin Mineral Resource Estimate
 
   
 Source: NI 43-101 Technical Report, AMC Consultants Pty Ltd.
Ample Room for Growth
Like other districts within the region, drill results have confirmed the depth potential for gold and silver mineralization in the Copalquin mining district. Drill core, along with petrographic work, support considerable depth extension of the El Refugio hydrothermal system and other target areas in the district. Copalquin offers numerous targets within the northern, central, and southern sections of the 70 square kilometer concession area.&#8212;&#8212;&#8212;- page break &#8212;&#8212;&#8212;-
Figure 3: Ample Room for Growth

Source: NI 43-101 Technical Report, AMC Consultants Pty Ltd.
   
Plans include completing a LiDAR survey of Copalquin along with conducting a mapping and sampling program to refine target areas. A diamond drill program is planned to upgrade the resource and test new targets. Within the middle section, management seeks to expand the El Refugio resource along strike to the west and east. Drill targets are being refined along the middle trend of mineralization. In the southern section, target development continues around the historic multi-level San Manuel Mine and at Las Brujas-El Peru where high grades are hosted in the workings.
Canadian Assets Provide Blue-Sky Discovery Potential
The company&#8217;s projects in the Red Lake District of northwestern Ontario will provide geographic diversification with the potential for new discoveries and the depth extension of the past producing Argosy Gold Mine. Management expects to conduct follow up drilling in 2024. The Argosy Gold Mine is a high-grade past producing mine that was closed in 1952 but was only mined to a depth of 270 meters. Deeper drilling by a previous operator indicated the mineralization continues at depth. At the North Birch Project, drilling identified a mineralized structure with a potential eight-kilometer strike length in a favorable geological setting.&nbsp;&nbsp;
Terms of the Transaction
Shareholders will be asked to vote on a second consolidation of 2:1 to take effect immediately prior to the closing of the RTO. In&nbsp;consideration for the acquisition of all the issued and outstanding Mithril shares, Newrange Gold will issue pro rata to the Mithril shareholders 60,907,985 common shares at a deemed price of C$0.18 per share post consolidation for aggregate deemed consideration of C$10,963,437. Newrange will also issue pro rata to the Mithril option holders 3,164,000 warrants, subject to rounding, exercisable at C$0.77 which expire on April 26, 2024, and 3,874,286 warrants, subject to rounding, which expire on December 9, 2025.
   
Newrange will close a financing immediately after the consolidation and concurrent with the closing of the RTO to raise gross proceeds of at least C$3,600,000 with the issuance of at least 20,000,000 units at a price of C$0.18. Each unit consists of one common share and one-half warrant with each whole warrant entitling the holder to acquire one common share at a price of C$0.27 for a period of two years.
Pro forma for the transaction, it is anticipated the new company will have 99,784,895 issued and outstanding shares and 121,257,589 on a fully diluted basis.
   
Figure 4: Current and Pro-Forma Share Structure


Source: Noble Capital Markets Inc., company documents, and Newrange Gold Corp.
Figure 5 represents a comparable peer group to Pinnacle Silver &amp; Gold Corp. The companies in the peer group are largely small and micro-cap exploration companies that operate in Latin America. We note that all are included in a peer comparison for resource grade in Newrange Gold&#8217;s recent presentation.
Figure 5: Comparable Peer Group

Source: Noble Capital Markets Inc., company filings, and Newrange Gold Corp.&nbsp;
Because we assign a high probability to the transaction closing, our price target is on a post transaction basis, including a two-for-one share consolidation prior to the transaction closing. Additionally, due to the planned share consolidation and planned equity issuance to raise C$3.6 million, we thought it would be less confusing for investors to provide a post-transaction valuation which is for the combined entity and does not imply a value for either on a stand-alone basis. For our valuation, we have employed an Enterprise Value/Resources method. Based on the information in Figure 5, the group trades at an average enterprise value to resource of C$0.63 per silver equivalent ounce with a median of C$0.69 per silver equivalent ounce. Assuming the company&#8217;s valuation trades up to an enterprise value to resource of C$0.63 per silver equivalent ounce, the implied enterprise value is C$23.3 million based on 37.03 million silver equivalent ounces. Adjusting for projected cash of C$3.6 million and debt of C$50.4 thousand, the implied equity value is C$0.27 or US$0.20 per share based on 99.8 million shares outstanding. Because the combined entity will enhance size, scale and market presence, we believe its valuation is more likely to move toward our price target than either company on a stand-alone basis.
   
Summary of Fiscal Year 2023 Financial Results
As an exploration company, Newrange Gold does not generate revenue and incurs expenditures to advance its projects. During the year ended April 30, 2023, Newrange Gold generated a net loss of C$1,057,380 or C$(0.04) per share. During the prior year, the company generated a net loss of C$5,778,090 or C$(0.04) per share on a pre-share consolidation basis and C$(0.23) after adjusting for a 1 for 6 share consolidation which occurred in April 2023. Exploration expenditures declined to C$354,286 compared to C$2,980,462 during the prior year due to lower exploration costs during the year subsequent to dropping the Pamlico project in Nevada. The write-off of mineral property declined to C$6,176 compared to C$2,130,998 during the prior year due to the write-off of the Pamlico gold project in fiscal year 2022. While our valuation and price target is on a post-transaction basis, our income statement and cash flow estimates will be updated following transaction close. Financial results for the first quarter of fiscal 2024, or the quarter ended July 31, 2023, will likely be released in late September.
Capital Structure and Liquidity
As of April 30, 2023, Newrange Gold reported cash in the amount of C$323,771 and a loan payable of C$40,000. In early May, Newrange received gross proceeds of C$441,460 with the issuance of 4,905,112 units. Each unit consisted of one common share and one share purchase warrant with each warrant being convertible into an additional share at an exercise price of $0.12 for a period of 36 months from the date of issuance. The net proceeds were to fund expenses related to the reverse take-over (RTO) and working capital needs.