North Peak Resources Ltd. (NPR:TSXV; BTLLF:OTCMKTS) caught the interest of Couloir Capital's Ron Wortel, who initiated coverage on the Canadian mining company with a Buy rating and a CA$2.50 per share fair value target, the senior research analyst reported in a June 12 note.
"North Peak Resources is an emerging junior gold explorer in Nevada, backed by a proven and experienced management team," Wortel wrote. "Their credibility has helped attract strategic investors and support project advancement in this tier 1 jurisdiction."
221% Potential Gain
Couloir Capital's CA$2.50 target is based on North Peak's exploration upside, strong asset fundamentals and value accretive development into 2026, noted Wortel. The explorer is valued in line with peers holding similar early-stage assets in Nevada.
At the time of Wortel's report, North Peak was trading at about CA$0.78 per share, reflecting a return to target of 221%.
Agreement on Flagship Project
North Peak has been earning ownership of Prospect Mountain since entering into an option agreement with the project owner in 2023 and now has an 80% interest in it, reported Wortel, who listed the requirements and noted the company's progress with each.
The deal terms include the company issuing 5 million (5M) shares for 80%, which it has done, and another 3M shares for the remaining 20%. It must do three years of work, spending CA$1 million (CA$1M) per year; to date, it has spent CA$4M and has completed 2.25 years of the three. The company must make annual cash payments of CA$385,000 for three years and has paid the first two. It must issue 340,000 warrants at market prices, which it did in August 2023 at CA$1.34. It must give a board seat to one of the project's former owners, and it did. Upon completion of the deal, North Peak must give the previous project owners a 1% nonsmelter return royalty.
"The company intends to complete the option to gain full ownership as soon as possible," Wortel wrote.
About its Two Assets
Prospect Mountain is located near the town of Eureka in Nevada, on the southern end of the well-known Battle Mountain Trend, host to numerous significant Carlin-style gold deposits and mining operations. The project is adjacent to three other explorer-developers on the southeastern end of the trend. I-80 Gold Corp.'s (IAU:TSX; IAUX:NYSE) Ruby Hill is adjacent to Prospect Mountain's north end. Golden Lake Exploration Inc. (GLM:TSX.V) holds the Jewel Ridge property to the east and west of Prospect Mountain. McEwen Mining Inc. (MUX:TSX; MUX:NYSE) holds claims to the south and part of the northeast of Prospect Mountain.
This project spans 1,905 acres and encompasses 103 U.S. Bureau of Land Management mining claims and 222 acres of patent mining claims. Over 150 years of historical exploration and mining have occurred at the site but recent, modern work done there has been limited. North Peak is compiling the results of the historical efforts, including surface geochemistry, rock sampling and drilling of 97 holes over 34,295 feet, 91 of which were reverse circulation holes placed in the Wabash area.
In 2023 and 2024, the work North Peak did included data compilation along with LIDAR, geophysical and geochemical surveys. Testing of a deep magnetotellurics geophysical anomaly returned zinc and silver values but low gold and lead, suggesting the preferred zone of the target is further north.
Structural mapping and sampling were done, too. Sampling from the Lundgren stope area, for instance, returned the best assay: 0.74 grams per ton (0.74 g/t) gold, 252 g/t silver, 0.28% copper, 0.09% lead and 2.23% zinc.
North Peak drilled 7,000 meters (7,000m) in the Wabash and Williams prospects in the property's northern part, which confirmed historically reported results. Also, they showed a low-grade halo around the known high-grade lodes with a reported 126.5m of 1.06 g/t gold. A new Western lode was discovered, the best intercept of which was about 23m of 12 g/t gold.
The three main exploration areas identified so far at Prospect Mountain are near-surface, potentially open-pittable oxide material, underground accessible oxide material around historical underground workings, and the sulphide material just below historical underground workings.
"Key project advantages include strong infrastructure, road access, on-site services and a rare 1,000 ton per day underground mining permit, all of which enhance asset value and future development potential," wrote Wortel.
North Peak's second asset is the Kenogami Lake project, about 15 kilometers southwest of Kirkland Lake in Ontario. On the property, gold mineralization potentially is associated with two material structures. They are the Cadillac-Larder Lake Deformation zone, mapped to extend onto the eastern extent of Kenogami Lake, and the Kirkland Lake Main Break, noted on mapping to project onto the property in Kenogami Lake's eastern bay. The company does not plan to do any work at this project this year.
Financings and Funds
North Peak is funded for its 2025 and, likely, 2026 work programs and has enough cash to meet its corporate funding requirements.
The company does not have any debt. In April, it raised more than CA$5.4M in a financing. In the past few quarters, it raised more than CA$6.5M.
Leadership Brings Perfect Mix
The experience of the North Peak management team encompasses mining finance, capital markets, operations, legal and governance. Executive Chairman Harry Dobson is a former investment banker and partner at Yorkton Securities. He was the founding chairman of Kirkland Lake Gold Inc. (KL:TSX; KL:NYSE) and a founding shareholder of Rupert Resources Ltd. (RUP:TSX; RUPRF:OTCQX). With expertise in capital markets and the resource sector, he has a proven track record of founding and chairing successful mining companies.
Chief Executive Officer and Director Rupert Williams is a savvy mining financier. Chief Financial Officer Andrew Dunlop has more than a decade of mining-focused financial leadership.
Ownership and Share Structure
Wortel noted that management, strategic investors and other major shareholders hold 60% of North Peak.
The company has 40.39M shares outstanding, 340,000 warrants (at CA$1.34 per share), 4.37M warrants (at CA$0.90 per share) and 2.52M options. The explorer has a CA$31.5M market cap.
"Its capital structure is enviable for the junior sector," wrote Wortel. "Control of the stock is also tight."
What to Watch For
Upcoming catalysts include starting and carrying out a CA$2M drill program at Prospect Mountain, focusing on near-surface oxide mineralization, likely to start in Q3/25.
"We expect North Peak to advance this project with focused exploration programs to identify both near-surface oxide targets, low and high-grade, and look to test the depth potential of this large mineralizing system in Eureka," wrote Wortel. "Positive results will add value to the stock."
Initial results will follow later in Q3/25 and into Q4/25.
"Early success could lead to follow-up drilling in Q1/26, funded through existing capital and potential warrant exercises," noted the analyst.
Also, North Peak may complete the requirements for the remaining 20% of Prospect Mountain sometime in H2/25, taking its ownership to 100%.
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Disclosures for Couloir Capital, North Peak Resources Ltd., June 12, 2025
DISCLAIMER
This report has been prepared by an analyst on contract with or employed by Couloir Capital Ltd. The analyst certifies that the views expressed in this report, which include the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report, accurately reflect his or her personal views about the subject securities and the issuer. No part of his / her compensa- tion was, is, or will be directly or indirectly related to the specific recommendations.
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Buy
The analyst believes that the security will outperform other companies in their sector on a risk-adjusted basis or for the reasons stated in the research report the analyst believes that the security is deserving of a (continued) BUY rating.
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COULOIR CAPITALSiUsBaSCreRIsBeEaTrOchRE-SdErAivReCnHinvestment dealer focused on emerging companies in the natural resources sector
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factors facing each company. In doing so we generate actionable ideas in underfollowed companies where a small number of market participants can rapiSdlUy BclSosCeRtIhBeEgaTpObeRtwESeeEnApRrCicHe and fair value. Our research reports are
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We employ a fundamental-based analysis with the goal of discovering a company’s fair value in the context of Macro factors facing each company. In doing so we generate actionable ideas in underfollowed companies where a small number of market participants can rapidly close the gap between price and fair value. Our research reports are disseminated through Bloomberg, S&P Capital IQ, Thomson Reuters, FactSet, and large email lists.
