Oban Mining and its takeover of Niogold

This article is from www.Canadianmineanalysis.com                                               

Our focus going back to our prior research site the “ Canaminvestor.com”  in analyzing any mining company has been “assets that are in the ground” with the potential for further discoveries. Make no mistake about it, successful exploration always remains difficult and challenging. We have rather rigorous requirements but we have had some superb successes with our recommendations in the past.   

We do not attempt to time the market perfectly although we rely heavily on technical analysis for timely investing . Moreover, we do not suggest that investors “wait until later and they will be able to ‘load up’ with prime mining stock picks at even cheaper prices.” We find undervalued mining stocks at all times in the market. Our strategy has always been to find and invest in severely undervalued well managed companies. If our analysis is correct, declines in prices offer many opportunities to invest when shares are “on sale.” Yet few investors  take advantage of the price declines. Human nature will never change. However, it is during periods of severe declines when we find the mining companies officers and directors are aggressively buying their own companies’ shares.  

                                                            Oban Mining Corporation, “OBM”

About two years ago, Niogold was selling at the .19 cents to .20 cents level. It was undervalued by our analysis. We wrote a research report and within three months “Osisko Gold Royalties” acquired a large percentage interest of Niogold at .35 cents per share. That then led to the “takeover” of Niogold by Oban MiningCorporation. The result is that the original Niogold shareholders are now shareholders of Oban Mining a company in our view that offers exceptional potential.  In our opinion, it is a superb situation as Oban Mining has outstanding management and a very impressive board of directors. Most importantly, the people at Oban have a history of mining success.

We will be following Oban Mining on a research basis as things progress. But let’s just list some of the fundamentals facts that we find particularly appealing that merit attention.

1-Oban’s current cash and marketable securities position is currently over $70,000,000 with no debt whatsoever.

2-The company’s has two major projects which are Windfall and Marban in Quebec, with  two other projects in Ontario.  

3-Oban’s gold resources currently  at 5.5 million ounces, we expect that it will be expanded.

4-Oban’s drilling program was 72,000 meters in 2015 targeting over 100,000 meters of drilling in 2016.

5-What few noticed recently was the enormous amount of officers and directors purchasing  Oban shares. We noted it quite well and it merely confirms our positive view on the company.

6-On June 7, 2016, Oban Mining will host a meeting that will include receiving approval to change the name of the company from Oban Mining to “Osisko Mining Inc.” The new symbol will be “OSK.”

                                                            Thank you, K.C. Grainger and Bob Pellerin