First Mining Finance Corp. (OTCQB: FFMGF) is a new “mineral bank” business concept created by Keith Neumeyer. The company’s business model is to acquire mineral assets that are currently trading at exceptionally low valuations before holding or banking these assets until the capital markets for commodities and mining improves. At that point, First Mining would add value for its shareholders by entering into agreements with other parties, which would move the projects forward through development or exploration while First Mining holds a residual interest in the project in question. The residual interest may be in the form of royalties, metal streams, minority interests or equity positions in the counterparty that is moving the project forward. Through recent acquisitions, First Mining now holds a portfolio of 21 mineral assets in Canada, the United States, and Mexico. The company will continue to aggressively acquire additional projects in geopolitically safe areas of the Americas.
Ultimately, the goal of First Mining is to have numerous projects generating cash flow followed by the remittance of proceeds to its shareholders in the form of dividends. The company is supported by First Majestic Silver, which is one of the world’s largest silver producers. The management team of First Mining has decades of experience in evaluating, exploring and developing mineral assets.
The management team at First Mining is led by Keith Neumeyer, who has an unparalleled track record which includes creating two world-class mining companies: First Quantum Minerals Ltd., which has now grown into one of the world’s largest copper producers, and First Majestic Silver Corp., which is one of the largest silver producers in the world. Neumeyer is of the view that the valuations of mineral assets are at or near all-time lows. This situation represents a unique opportunity for First Mining to acquire quality mineral assets at very low prices. The management and board of directors of First Majestic Silver support First Mining.
First Mining and Brionor Resources, Inc. recently announced, in a press release (http://dtn.fm/1G6xh), that the companies have entered into a purchase agreement pursuant to which First Mining has agreed to acquire the gold development property known as the “Pitt Gold Property” from Brionor for an aggregate purchase price of CDN$1.25 million, of which CDN$1 million will be satisfied through the issuance of 2,535,293 common shares of First Mining to Brionor, based on the 20-day VWAP, and the remaining CDN$250,000 will be paid in cash. The common shares issued to Brionor will be subject to a four-month hold period.
The Pitt Gold Property is located in the Abitibi Region of Quebec and is adjacent to Clifton Star Resources Inc.’s Duparquet Gold Project and Duquesne Gold Project. On June 11, 2011, Brionor announced a NI 43-101 compliant resource estimate for the Pitt Gold Property which, at a cut-off grade of 3.00 g/t gold, is estimated to have Indicated Resources of 600,000 tonnes grading 7.83 g/t gold (151,000 Au ounces) and Inferred Resources of 476,000 tonnes grading 6.91 g/t gold (106,000 Au ounces).
As announced on February 12, 2016 (http://dtn.fm/0bSHp), First Mining has entered into a definitive arrangement agreement to acquire all of the issued and outstanding common shares of Clifton. Subject to receipt of regulatory and shareholder approval, the Clifton Acquisition is expected to close on or about April 8, 2016.
For more information, visit the company’s website at www.firstminingfinance.com
