Dec 8, 2021
We were joined by sponsor Fury Gold Mines’ Chair Ivan Bebek and CEO Tim Clark to get the latest on the just announced sale of its Homestake Project to Dolly Varden Silver (TSX.V: DV). It’s a $50 million deal for which Fury gets CAD $5 million in cash and the balance in DV shares, along with two board seats. In the words of Clark, “…the combination of these two adjacent assets is very strong. Combining our Homestake Project with the DV Project creates an attractive opportunity to immediately establish shareholder value through the potential synergies that result from their regional proximity.” It’s been no secret that Chair Bebek had been looking to sell-off Homestake. He observed that these two projects were always meant to be together and that there’s huge upside potential for Fury, once DV begins executing on its plan.
In the meantime, Fury receives a substantial cash infusion, which when combined with a $2 million payment from Quebec, puts off their need to raise fresh capital. They can continue to focus upon their core projects, Committee Bay and Eau Claire. And for good reason too. Several days ago, Fury announced that they had drilled 13.93 g/t of Gold over a hefty 10 meters. These were the best drill results in five years. Clark sees this achievement as opening up substantial expansion opportunities and it confirms the thesis that Committee Bay represents a major gold exploration opportunity.
Most importantly for shareholders, the last week has seen company’s future value increased both by the drill bit and the Homestake sale, which gives Fury a dual opportunity for share price appreciation. (We own shares)
Company Website: FuryGoldmines.com -- Trades as FURY on NYSE American and TSX.