There’s a term used in junior mining that most people outside of the sector have never heard of: closeology.
The premise is simple. Find a producer or late stage developer who has spent tens or hundreds of millions proving out a resource and advancing a minerals project. Then, take a look at their claims, grab the land all around that asset, and make a junior explorer out of it.
The thinking basically goes that geology doesn’t just end at a property boundary, and if there’s gold or silver or whatever over there, well then there’s probably some over here too. And if there is, well, you’ve got an easily identifiable acquiror if you can prove you got something worth the effort.
Like we said, it’s a simple strategy. But it’s been proven to work time and again. Most recently, this week, with Wesdome Gold Mines (TSX: WDO) announcing it will be acquiring Angus Gold (TSXV: GUS), who built a company on that exact strategy.
Lets dive in.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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