Pasofino Gold Ltd. (VEIN:TSX.V; EFRGF:OTCQB; N07:FSE) is one of 12 companies on Red Cloud Securities' 2026 Endangered Species List, priority takeover targets in the current equity market, the analysts wrote in a Dec. 2 thematic note.
"We believe once the updated feasibility study is published by mid-2026, the gold industry will take notice of the high-quality nature of this opportunity," wrote Ron Stewart, the Red Cloud analyst covering the company.
284% Return Implied
Red Cloud has a CA$2.80 per share (CA$2.80/share) target price on the Canadian explorer, trading at the time of Stewart's report at about CA$0.73/share, the analyst noted. From that price, the return to target is 284%.
Pasofino Gold remains a Buy.
The company has 151 million shares outstanding. Its market cap is CA$110.3 million (CA$110.3M). Its 52-week range is CA$$0.38–0.74/share.
Why an Attractive Target
Stewart presented the reasons why Pasofino made Red Cloud's Endangered Species List.
Pasofino is advancing a tier 1 gold project, Dugbe, and these are highly sought due to their scarcity, Stewart wrote. Dugbe was recognized as the Top African Gold Project at the 2025 Mining Indaba Dealmakers Den in Cape Town, South Africa.
The project is now at the full feasibility stage. Since Pasofino secured an option to acquire a 51% interest in Dugbe in 2019, the company brought in new management and recently gained 100% ownership of the asset (subject to the Liberian government's option to acquire 10%). Also, Pasofino has outlined an accelerated development schedule to fast-track Dugbe to a construction decision by year-end 2025 and first gold production by mid-2029.
Dugbe was shown to be capable of a meaningful production profile over a long life of mine, a characteristic that established producers look for. A 2022 feasibility study of Dugbe outlined a conventional open-pit mine and whole ore carbon-in-leach processing facility with a 5,000,000 ton per annum throughput rate, producing about 2,270,000 ounces of gold over 14 years at a first-quartile all-in sustaining cost.
Project economics were a US$524M net present value discounted at 5%, a 23.6% internal rate of return, and a 3.3-year payback period, using a US$1,700 per ounce gold price.
Dugbe is in Liberia. As a mining jurisdiction, it is considered stable by companies in West Africa.
"Pasofino finds itself well positioned with a rare breed, tier 1 gold asset and checks many boxes as it continues to strengthen its profile as a takeout candidate," Stewart wrote.
What to Watch For
Pasofino's catalysts involving Dugbe through 2026, Stewart reported, include results from the 16,000m infill and stepout drilling program, expected in H1/26; an updated mineral resource estimate and definitive feasibility study, slated for completion in Q2/26; and receipt of a Class A Mining license and a final investment decision, both expected by year-end 2026.
Acquirers' Priorities Today
Red Cloud analysts pointed out the differences between their 2026 Endangered Species List and past iterations, highlighting what acquirers are now seeking and showing their priorities have changed.
1) In the new list, there is a greater proportion of companies with strategically scarce metals, like copper and uranium, than before, but gold names still dominate.
2) Company size is bigger overall, indicating that buyers will transact at higher valuations when an asset meets their specific need(s).
3) Takeout projects tend to be larger, more district-scale, and more technically advanced than historically.
4) Jurisdictions are less diverse, with a heavy concentration in Western-aligned regions.
"Overall, our new list is less about cheap ounces and more about critical, scarce, and development-ready assets," the Red Cloud analysts wrote.
Expected Trends in M&A
Red Cloud analysts relayed 10 trends they see continuing or emerging in the mergers and acquisitions (M&A) arena next year.
1) Gold remains the top mineral among consolidation.
2) Midtier producers lead the acquirer pack because they have the financial flexibility to outbid seniors for assets due to their stronger balance sheets and higher equity valuations.
3) Deals primarily involve companies listed on the Toronto Stock Exchange, TSX Venture Exchange, Australian Stock Exchange, New York Stock Exchange, and London Stock Exchange, reflecting investor confidence in Western governance and transaction certainty.
4) Most transactions are mid-sized, in the US$10–400M range, because producers are more intent on filling a gap than pursuing a mega merger.
5) Acquirers are moving earlier in the development curve. The paucity of high-quality projects is pushing buyers toward advanced exploration and early pre-feasibility study assets.
6) Scarcity-driven interest in copper, silver, and uranium should rise. "Expect selective but high-conviction bidding for derisked assets in copper, silver, and uranium," the analysts wrote.
7) Select lithium and battery metals will rebound. Only high-grade or strategically positioned assets are likely to attract buyers while the sector stabilizes following two difficult years.
8) Crossborder M&A remains strong, especially in the upper value range. Despite geopolitical tension, U.S., United Kingdom, and Chinese buyers continue to participate in larger transactions.
9) Environmental, social and governance (ESG) and community agreements are important for acquirers. Increasingly, they reward companies with clean permitting paths, agreements with First Nations, and ESG frameworks mirroring the standards of major producers.
10) A multiyear project pipeline acquisition cycle is in motion. As producers turn to acquisitions to offset declining reserves, they are initiating multiyear competition for the remaining high-quality development pipeline.
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Important Disclosures:
- Pasofino Gold is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Pasofino Gold.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
- 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.
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Disclosures for Red Cloud Securities, Pasofino Gold Ltd., November 12, 2025
David A. Talbot | MD, Head of Equity Research Ron Stewart | MD, Mining Analyst Taylor Combaluzier, P.Geo. | VP, Mining Analyst Alina Islam | Mining Analyst Daniel Kozielewicz | Associate, Research Shikhar Sarpal | Associate, Research Surya Sankarasubramanian, CFA | Associate, Research Red Cloud Securities Inc. 120 Adelaide W, Suite 1400 Toronto ON, M5H 1T1 [email protected] https://redcloudresearch.com/ Disclosure Requirement Red Cloud Securities Inc. is registered as an Investment Dealer and is a member of the Canadian Investment Regulatory Organization (CIRO). Red Cloud Securities registration as an Investment Dealer is specific to the provinces of Alberta, British Columbia, Manitoba, Ontario, Quebec, and Saskatchewan. We are registered and authorized to conduct business solely within these jurisdictions. We do not operate in or hold registration in any other regions, territories, or countries outside of these provinces. 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