Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Taiga Gold Corp. Will Be Bought Out
Contributed Opinion

Share on Stocktwits


Bob Moriarty Bob Moriarty of 321gold discusses why he believes the spin-off company will be bought out.

Gold and silver have had a good run lately but the DSI (Daily Sentiment Index) is suggesting a pause may be in the works. Gold hit a reading of 91 on Friday May 15th while silver showed 88. While I am convinced the actions of the Fed in unleashing a flood of dollars will result in hyperinflation in the metals and deflation in real terms for all of the bubbles, corrections are part of investing. There are so many wonderful stories out there right now that have not caught fire that I think correction or not, juniors are the only game in town.

And for new subscribers to the DSI Jake has a sale on right now for up to 50% off until June 1st. I find the DSI the most useful took in investing. Other than my articles, that is.

Eagle Plains is a project generator company. They hold a number of projects of various kinds in western Canada and do deals with other juniors for cash and shares. If one of their deals does well they do well and haven't had to pay their way.

Since investors are as incapable as I am of keeping track of a dozen or more projects usually investors will pay X for the biggest and most important project. They will pay ½ X for the 2nd most important and potential and maybe 1/10th X for the rest of the stable. It's frustrating to project generator companies to know that they are not getting full value for each of their properties.

So in 2006 Eagle Plains spun out a great copper project located near the Galore Creek project of Novagold into a company they named Copper Canyon. Because it had a lot of copper. There literally was a creek running bright blue from the copper.

Copper Canyon

It took another five years for someone to get interested. Novagold bought Copper Canyon in 2011.

There wasn't a giant premium paid to the shareholders of Copper Canyon but Eagle Plains owned a lot of shares and generated substantial value for something that investors weren't giving them anything for.

So in April of 2018 Tim Termuende made a similar deal spinning off various projects to a new company to be known as Taiga Gold Corp. (TGC:CSE; TGGDF:OTCBB). Taiga Gold shares the same management as that of Eagle Plains. And Eagle Plains retained 12 million shares of TGC as part of the deal.

Taiga's lead property is the Fisher gold project adjacent to the Seabee/Santoy Gold mines owned by SSRM (Formerly Silver Standard [and I liked the name Silver Standard a lot better]). SSRM did a deal on the Fisher gold property that calls for them to get a 60% interest for spending $4 million on exploration and paying Taiga $400,000 in cash with a $100,000 yearly advance royalty on production. So far SSRM has spent over $10 million and done 79 holes of over 35,000 meters. They can increase their ownership of Fisher by paying Taiga $1 million.

SSRM believes the Santoy Shear extends 20 km on the Fisher project. That's the ore host for the Seabee/Santoy deposits. Santoy is a low cost producer for SSRM having produced over 112,000 ounces of gold in 2019 at a grade of 9.56 g/t and a cost of $464 an ounce in US pesos.

On the 14th of May Taiga announced results for 23 of the 31 drill holes completed in the 2020 winter program at Fisher. Some 14 of the 23 holes reported meaningful gold results with visible gold in 5 of the holes. An additional 8 holes are in the process of being assayed.

This is one of those zero brainer type investments. SSRM didn't spend $10 million on drilling unless they had a real good idea of what they will find. At some point they will write a check to Taiga for $1 million and own 80% of the project. The only issue for investors would becoming up with a value for the remaining 20% of the project. Seebee has been mined out and Santoy has a 1.5 million ounce 43-101 resource.

It's a low cost producer, surely SSRM will have a back of the envelope calculation for how much gold they believe they can find on the Fisher project. SSRM will buy out Taiga at some point.

Since I happen to believe we are going to see far higher prices for gold than resource investors can imagine today, will the takeover be early or later? I'd rather see it later because with a $14 million market cap today Taiga is absurdly cheap.

Taiga is an advertiser. I have bought shares in the open market and been in the last private placement. Do your own due diligence

Taiga Gold Corp.
TGC-C $0.18 (May 15, 2020)
TGGDF - OTCBB 79.4 million shares
Taiga Gold Corp. website

Bob Moriarty
President: 321gold

Bob Moriarty founded, with his late wife, Barbara Moriarty, more than 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.


1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Taiga Gold. Taiga Gold 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: None. 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.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for 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. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
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 three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Want to read more about Gold investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe