I wrote a book in January I called Basic Investing in Resource Stocks. So far it has the highest reviews I have ever seen on a book and I pretty much read a book a day. You can buy the Kindle version for $5.99. I priced it low so everyone can afford to buy it.
Someday I'm going to write the sequel to it. I'll probably call it Advanced Investing in Resource Stocks. It's going to be priced at $1000 for the Kindle version and a lot more for the print edition. It will be about five pages long.
I'll do two pages listing the crooks, con men and idiots in the business that mine investors and another two pages for the people you want to invest with. And a title page, of course. You have to have a title page.
If you went to the racetrack and wanted to make some money but didn't know anything about horses or the odds, there is actually an easy way to make money. If you are standing in a line with the rest of the punters and suddenly a tiny man wearing racing silks (or woman or transgender or whatever) pushes into the line in front of you and empties his wallets, signs over his last paycheck and hocks his gold Rolex and put it all on a bet for him to win his race, maybe you should bet with him. After all, he or she know a lot more about horseracing than you do. You don't actually need to know anything to make a winning bet. You just need to know who does know something about the race and follow their lead. That's why my next book is going to be both short and really expensive.
Aurania Resources Ltd. (ARU:TSX.V) just came out with an interesting press release announcing among other things, Keith Barron is loaning the company $4 million CAD for two years at 2% interest and the loan is unsecured by anything.
At first glance you might conclude Dr. Barron has lost his ever-loving mind. There isn't anyone in the mining business that would loan $4 million CAD to a junior at 2% and not demand either higher interest (like 55%) or a whack of shares. As much as I love Barbara, I wouldn't loan her money at 2%. Even love has limits.
But think for a moment. Keith is drilling the Lost Cities Project. He's finished six holes so far but hasn't gotten the assays back or announced any holes. Clearly he wants to do a lot more drilling than he has money allocated for.
Aurania is worth $105 million right now. Keith wouldn't have any problem doing a financing. But if it did, he would have to expand the number of shares. Maybe since he is the biggest shareholder already he realizes that they are on to something really really big. Since he's going to end up spending tens of millions of dollars defining a resource, he may was well wait for good results to come out and do a financing at a much higher price.
If Keith Barron pushes his way into the betting queue in front of you wearing racing silks and puts his whole paycheck on his horse to win, maybe he knows something you need to know. He won't be a tiny man, however, he's sort of a chunky monkey.
Insiders will always know far more than you will. You don't need to know anything more than how they are betting.
Aurania is an advertiser. I have bought shares in the open market and participated in two private placements. Do your own due diligence.
Aurania Resources
ARU-V $3.75 (Apr 18, 2019)
AUIAF-OTCQB 32.9 million shares
Aurania Resources website.
Bob and Barb Moriarty brought 321gold.com to the Internet almost 16 years ago. They later added 321energy.com 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.
[NLINSERT]Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Aurania Resources. My company has a financial relationship with the following companies mentioned in this article: Aurania Resources 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.
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