Executive, Entrepreneur Sees Gold in Ontario Project
SAF Group Managing Partner Brian Paes-Braga has been building companies for the past 10 years. Find out what drew him to Goldshore Resources Inc. (TSXV: GSHR; OTCQB: GSHRF ; FWB: 8X00) and its Moss Gold Project in Ontario.
SAF Group Managing Partner Brian Paes-Braga has been involved as founder, chief executive officer, and strategic advisor in more than CA$1 billion in growth equity financings and more than CA$5 billion in market value creation across the mining and metals, energy, entertainment, consumer goods, and technology sectors.
He was the founder and chief executive officer of Lithium X Energy Corp., which was acquired for CA$265 million in 2018.
In November 2023, Paes-Braga and other principals at SAF Group led a CA$3.75 million financing in Goldshore Resources Inc. (TSXV: GSHR; OTCQB: GSHRF ; FWB: 8X00), seeing value in the gold deposit the company owns in Ontario, Canada. Following the appointment of Michael Henrichsen as CEO and Director earlier this year, the group subsequently participated in a private transaction involving the purchase of 19 million shares, about 7% of the issued and outstanding shares at the time, and most recently was part of exercising 37.5 million share purchase warrants, adding CA$4.9 million to the company's treasury to support the advancement of the Moss Gold Project.
"I've been building companies now for the past 10 years in my life," Paes-Braga said. "I feel that the only way we build companies at the pace and to the quality we do is through partnering with quality people. I believe Michael is a high integrity, high-quality geologist and executive."
"SAF Group and Brian Paes-Braga are delivering as strategic advisers, shareholders, and board members as we accelerate the advancement of the Moss gold deposit in this new gold environment," Henrichsen said. "We believe the scale, grade, and location of Moss gold, combined with our growing execution and financing team, make it a good candidate for continued advancement."
Substantial Growth Potential
Goldshore just announced the completion of its 2,500-meter summer drilling program at its Moss Gold Project with assays pending. The company is targeting the prospective Moss Block area with both near deposit and blue sky targets, which spans an area of 8 kilometers by 6 kilometers and contains 91% of the project's total Mineral Resource Estimate (MRE).
The Moss project continues to be a focal point for Goldshore Resources, driven by the company's belief in its mineral resource potential.
"If we are fortunate to move forward and follow the baseline studies and get permits, I believe this could be one of Canada's great gold mines," Paes-Braga said.According to the company's news release dated March 21, 2024, the updated NI 43-101-compliant 2024 MRE with an effective date of January 31, 2024 has expanded to 1.54 million ounces (Moz) of Indicated gold resources at 1.23 grams per tonne gold (g/t Au) and 5.2 Moz of Inferred gold resources at 1.11 g/t Au. This resource expansion only covers 3.6 kilometers of the more-than-35-kilometer mineralized trend, indicating substantial growth potential.
The project's location in Ontario, Canada, offers strategic advantages, including accessibility from the Trans-Canada Highway, hydroelectric power on-site, and support from local communities.
"Our summer drilling efforts were focused on assessing the potential of two high-priority targets, the Boundary Zone and the SW Extension, with the goal of demonstrating the growth potential for high margin ounces from surface to 200 meters depth," Henrichsen said.
This approach aligns with Goldshore's objective to enhance shareholder value through targeted exploration and resource development instead of dilution.
"If we are fortunate to move forward and follow the baseline studies and get permits, I believe this could be one of Canada's great gold mines," Paes-Braga told Streetwise Reports. "And that's what we're here for."
The Catalyst: 'I Can't Find Any Money For It'
Paes-Braga said he found out about Goldshore last fall while having dinner with a gentleman who had raised over CA$65 million of capital for the company and was "in a concerned state."
"'It's got such a great asset, you know," the gentleman told him. "And he's like, 'I can't find any money for it.' And I just said, 'Well, that's ridiculous.'"
Paes-Braga said they hired a consultant to see if there was something he was missing, but the consultant did not find any "fatal flaws."
The Catalyst: Gold Already in a Bull Market?
Gold recently surged past US$2,500 an ounce and some experts expect it to go even higher. In a Soar Financially YouTube video, Bloomberg Senior Commodity Strategist Mike McGlone predicted that it would only be "a matter of time" before gold hits US$3,000.
Having a major effect is the increasing role of central banks buying the metal. The World Gold Council's 2024 Central Banks Gold Reserves Survey showed four in five respondents expected reserve managers to increase their gold holdings in the next year, the website reported, according to a report by Stockhead on June 18.
"Gold, now recognized as a Tier-1 asset, is being bought by central banks and sophisticated investors at objectively rising (historical) levels because it is a measurably superior store of value than any fiat currency or sovereign I.O.U.," Matthew Piepenburg wrote in his June 19 article, "The Decline of the U.S. Dollar: Navigating the Shift Towards Gold and Commodities."
The growing demand for gold is also fueled by global economic shifts. As Piepenburg observed, "Dozens of BRICS+ countries are conducting trade outside the U.S. dollar, using local currencies for local goods, and then settling any net surpluses in physical gold which is priced more fairly in for settlements signifies a pivotal shift in global trade practices, further enhancing gold's status as a Shanghai compared to London or New York," he wrote.
Stewart Thomson pointed out in an article titled "De-dollarization & Deglobalization: Got Gold?" the buying opportunities in the current gold market, noting, "The US$1,228-$1,033 price area was a gargantuan buy zone . . . and US$2,150-$1,985 is even bigger!"
Streetwise Ownership Overview*
Goldshore Resources Inc. (TSXV: GSHR;OTCQB: GSHRF ;FWB: 8X00)
*Share Structureas of 8/19/2024Source: Goldshore Resources Inc.He also emphasized the critical support levels in the gold market, stating, "The US$2,150-$1,985 area is arguably the most important support zone in the entire history of the U.S. gold market," highlighting the market's resilience and strong foundation.
Ownership and Share Structure
The company provided a breakdown of its ownership, where 6.4% of Goldshore is held by management and directors.
Institutions own approximately 15% of the company. The largest shareholder in this category is Sprott Asset Management LP, with 4.59% or 13.72 million shares.
Strategic shareholders own 35%. Brian Paes-Braga is the largest shareholder in this category, with 11.48% or 34.31 million shares.
The rest is with retail investors.
The company reports that there are around 298.9 million shares outstanding, while the company has a market cap of CA$85.19 million as of close August 16, 2024.
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Important Disclosures:
Goldshore Resources Inc. is a billboard sponsor of Streetwise Reports.As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Goldshore Resources Inc. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.