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Zijin Finances $3.2 Million in Guyana Goldstrike
Contributed Opinion

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Bob Moriarty Bob Moriarty of 321 Gold discusses this gold explorer's major financing.

Guyana Goldstrike Inc. (GYA:TSX.V; GYNAF:OTC; 1ZT:FSE) recently announced a major financing with Zijin of China for a total of $3.475 million for work on GYA's Marudi gold project in southern Guyana. The private placement was for 13.9 million units at $0.25 with a full warrant at $0.35 good for two years. On a fully diluted basis, the investment would represent 39.3% of Guyana Goldstrike once the warrants have been exercised.

Guyana Goldstrike is a young company that did a deal to acquire Romanex Guyana Ltd., holder of the Marudi Mountain mining license in Guyana. The project has had over $30 million USD spent on it since 1985 including 42,000 meters of diamond drilling in 141 holes so far. It comes with a 20-year mining permit with an established camp and infrastructure in place. Local alluvial miners are working parts of the property with the permission of the company and that generates about $250,000 a year in revenue.

About 5% of the project has been explored with only two zones drilled. The Mazoa Hill zone comes with a current 43-101 showing over 259,000 ounces of gold indicated at 1.80 g/t and 86,200 ounces gold inferred at a grade of 1.60 g/t. The gold is found as alluvial, weathered saprolite and in hard rock form. The company is targeting between 1 and 2 million ounces.

Now that the financing has been completed, the company plans on hitting the ground running. They are working on a program to generate drill targets for an upcoming diamond drill program and have scheduled an airborne geophysical survey of the entire property. A trenching and surface sampling program is in progress for newly discovered mineralized zones.

It's going to take either a tailwind from the price of gold or major progress on the ground to get the shares moving. At today's prices, the company has a market cap of about $8 million USD and just over $3 million in the bank. They are well-financed and as time progresses and more news comes out, liquidity should increase in the shares. For now you have to make an appointment to buy or sell shares even though the price is 20% lower than the cheapest financing completed. With an existing 43-101 in place, a floor should be under the price about where it is now, representing gold at $23 an ounce USD which is about right. If you subtract the cash on hand investors are paying $14 an ounce for gold in the ground and getting the upside for free.

Guyana Goldstrike is an advertiser. I have bought shares in the open market and that gives me a bias. Please do your own due diligence.

Guyana Goldstrike Inc
GYA-V GYNAF-OTCBB $0.21 (Mar 21, 2018)

52.4 million shares
Guyana Goldstrike website

Bob and Barb Moriarty brought to the Internet almost 16 years ago. They later added to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.

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1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Guyana Goldstrike. Guyana Goldstrike is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: Guyana Goldstrike. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Guyana Goldstrike Inc., a company mentioned in this article.

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