Brascan Gold Inc. (CSE: BRAS) is a mineral exploration company primarily focused on GOLD. This pick is a good choice for investors wanting to diversify their portfolio in the gold for the following reasons:
- Brascan has entered into an option agreement to acquire a 100% interest in the Black Cat Property located 40 km south of the town of Baie Verte, Newfoundland
- Brascan has signed a property option agreement to earn 100% in the Middle Arm Fault property located in Baie Verte, Newfoundland. Brascan will conduct a phase 1 exploration program. Capital funding will come from the $ 2.4M private placement at $ .30 per share recently announced by Brascan.
- Another Reason is that they have entered into an option agreement to acquire a 100% interest in the Alegre Gold Property in Para State, Brazil
- They are also evaluating several gold projects in the Americas with 1,000,000 ounces plus potential.
Together with its subsidiary Baie Verte Resources Inc, Brascan has entered a letter of intent (the “Letter of Intent”) with Quinlan Prospector’s Group (“Quinlan”) respecting an option over seven (7) prospective gold properties (the “Properties”) in the Province of Newfoundland. This development is a big deal. Brascan is aggressively adding to its property portfolio at a hectic time both in the gold market and the highly mining-friendly Newfoundland Labrador mining jurisdiction, one of the ten best mining areas globally to do business. As well as a healthy dose of ongoing M&A activity.
There will almost certainly be a lot of news from Brascan. It has the funds to grow into new properties as well as develop the ones it already possesses. Economic indicators look favorable and just as we rarely see game changers until they appear (2008 decline for example), the smart or at least relatively informed money should likely have some gold exposure.
Quality juniors can deliver great returns and are protected to an extent by the quality of their properties. Brascan’s properties are a great proxy, even with the impending growth notwithstanding.
The key for Brascan is to start expanding gold areas as soon as they close. Brascan management excels at keeping investors informed and interested, posting news on LinkedIn and other channels daily.