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Western Pacific Resources IPO's Successfully
By James West
MidasLetter.com
Thursday, February 4, 2010
Everyone knows, in the mining world, that a company is only as good as its people. The latest addition to the TSX Venture Exchange comes from Goldgroup, best thought of as a well-oiled discovery machine.
Western Pacific (TSX.V:WRP) is Goldgroup finance and marketing guru Warwick Smith’s first outing as president, but it’s a natural progression for the young, aggressive and meticulous Mr. Smith, who’s understated approach and compelling explanation turn even the most jaded investors into believers. He has been ivolved withthe Goldgroup for 5 years, and has successfully worked for Fortuna Silver (TSX.V: FVI), Northland Resources, and Focus Ventures, among others (see charts below).
Charts for Fortuna Silver, Northland Resources, and Focus Ventures respectively.
A Culture of Success
The secret to the success of this group is carefully placed financings resulting in tight share structures, top tier management teams with a track record of discovery, and focused, consistent attention to marketing to ensure a steady stream of new shareholders.
A great example of this strategy is Focus Ventures, a company I recommended back in November. Focus Ventures was initially financed at $0.15 a year ago. The company kept the structure tight added Nueva California and built around an exceptional management team. The company now trades at a $1.30, has CA$6 million in the bank, and is just starting another drill program to follow up on the success of the first few holes.
Western Pacific is following the same strategy.
Collectively, Goldgroup has raised in excess of $300 million for projects in the mining sector. That kind of financing firepower is crucial to whether economic downturns that temporarily drive away investors. Unlike many groups that are forced to abandon valuable projects in such times, Goldgroup companies thrived and grew during the most recent downturn, among the worst in history.
Goldgroup is led by Simon Ridgway, an internationally known mining financier who has over 15 years' experience managing publicly-traded mineral exploration companies in North, Central and South America.
Western Pacific is now well capitalized having raised CA$2.1 million through the issuance of units at $0.35. With the management team in place fresh from successes (Their last company Nevada Pacific was sold to US Gold), the immediate future for Western Pacific investors could be rather exciting.
Property Portfolio
South Lida Property
The South Lida Property is a gold exploration property being explored for sediment hosted,
Carlin-type and structurally controlled epithermal-type gold deposits. The Project is located
within the Lida Mining District in the south-central part of Esmeralda County, Nevada and is
comprised of 71 unpatented lode mining claims owned 100% by Sirius. The South Lida Property
is 31 miles southwest of the town of Goldfield, Nevada.
The Lida District was originally organized in August 1871. The central part of the district is
labelled on Figure 9 and over the next 10 years mining focused on horn silver and galena.
During this time the depth of the workings did not exceed 300 feet (Ball, 1907). The district saw
additional activity during the boom times at nearby Goldfield beginning in 1904.
Field examination indicates extensive trenching and up to six drill holes may have been drilled in
the past 30 years. No data is available indicating who completed the work or what the results
were.
During 2008 Sirius conducted exploration and the primary emphasis of the program was
geologic evaluation, surface rock chip sampling, and a grid soil sampling program. Sirius
initially defined lithologic units similar to those described in the area by previous workers
(Dover, 1962 and McKee, 1968). The sampling established the central part of the claim block as
a gold-bearing area.
Meridian Ridge Property
The Meridian Ridge Property, consisting of 58 claims, is located 30 miles southeast of Eureka,
Nevada along the southern extension of the Battle Mountain/Eureka Trend in the northern end of
Railroad Valley, White Pine County, Nevada. The Meridian Ridge area lies approximately one
mile southwest of the previously mined Nighthawk Ridge deposit.
Bombardier Project
The Bombardier Project, consisting of 20 claims, is located 150 miles southeast of Reno, Nevada
near the southeastern corner of the Santa Fe Mining District.
Mineral Gulch Property
The Mineral Gulch Property is located in southeastern Cassia County in southern Idaho. The
project encompasses the historic Black Pine Mining District and surrounding exploration ground.
The Management Team
Warwick Smith, President, Chief Executive Officer and Director
Mr. Smith has worked as a corporate development specialist for various public companies since
1999. In 2000, Mr. Smith obtained a diploma in sales and marketing from the British Columbia
Institute of Technology. Mr. Smith founded Riverside Resources Inc. in February 2007 and was
listed on the TSX-V in August 2007.
Eric Saderholm, Director
Mr. Saderholm has over 25 years of experience in the minerals industry. Mr. Saderholm was Vice President, Project Development at US Gold Corp. from August 2006 until early 2008. Prior to that position, he was at Newmont Mining Corp. for 12 years where his final position was Carlin Trend Exploration Manager, Regional Geologist. At Newmont Mining Corp., he also held the positions of Chief Geologist at the Phoenix Mine, Lone Tree Complex and Mule Canyon Mine, all located in Nevada as well as Project Manager, Grupo Carachugo, Peru. In January of 2008, he co-founded Sirius Exploration, LLC and has been developing exploration
projects throughout Nevada. Mr. Saderholm holds a Bachelor of Science degree from Utah State
University.
Curt Everson, Director
Mr. Everson is a Professional Geologist with over thirty years of experience in the mineral
exploration industry, and has a Master’s degree in geology from the University of Minnesota.
Recently Mr. Everson was Vice President of Exploration for US Gold from 2007 to early 2008.
Previously Mr. Everson was President of Nevada Pacific Gold (U.S.) from 1997 to 2007 when it
was acquired by US Gold Corporation. In January of 2008 he co-founded Sirius and has been
developing exploration projects throughout Nevada.
Ralph Rushton, Director
Mr. Rushton holds a B.Sc. in geology from Portsmouth University in the UK, a Master’s degree
in economic geology from the University of Alberta, and a Certificate in Business
Communications from Simon Fraser University. Much of his 19 years’ experience in mining
and exploration was gained working as a geologist for the Anglo American group in Southern
Africa, the Middle East and Eastern Europe. Mr. Rushton in corporate communications and
development for over 6 years for several public mineral exploration and mining companies, such
as Northland Resources, Fortuna Silver Mines, Radius Gold and Focus Ventures.
Peter Thiersch, Director
Mr. Thiersch is an exploration geologist with 22 years experience in mineral exploration,
specializing mainly in epithermal and porphyry related gold. He graduated from the University
of British Columbia in 1986 with a Bachelor of Science, and completed a Master of Science at
McGill University in 1993. During his career he has worked in British Columbia, Yukon and the
Northwest Territories, as well as Central and South America.
Kevin Bales, Chief Financial Officer and Secretary
Mr. Bales has 15 years of financial reporting experience in mining and information technology
industries. He currently serves as Chief Financial Officer for several public junior exploration
companies with operations in Canada, the United States, Central America and South America.
Mr. Bales holds a Bachelor of Management degree with a major in accounting from the
University of Lethbridge.
Summary
This is a brand new company with an experienced management team with a stellar track record. Considering the very early stage of the company, and its promising portfolio of mineral projects, this is a suitable investment for risk tolerant investors seeking leverage to precious metals prices by participating in risk exploration.
Company Website: www.WesternPacificResources.com.
DISCOLOSURE: James West owns 50,000 shares of this company.
SOURCE: http://www.midasletter.com/news/10020401-Western-Pacific-IPOs-Successfuly.php
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