“I don’t buy that,” he told the VRIC in Vancouver on May 17.
According to the seasoned investor and co-founder of the Exploration Insights newsletter, retail investors should look at whether the junior companies they are interested in have enough cash in the bank.
“It’s going to be really difficult to finance anything unless it’s really high quality and proven out,” he said. “So, if you’re looking at a junior exploration company, find someone who’s got the money and is ready to go, unless you want to get in on financing.”
An excellent example of such an outfit, in his view, is Liberty Gold (TSX: LGD), with gold deposits in Idaho and Utah. “Those are good oxide deposits. The company has about $34 million bucks in the bank and three or four rigs drilling right now,” he said.
Speculative resource investor Rick Rule reminded the audience that money has always been made in the discrepancy between price and…
