In our quest to uncover the next potential buyout or acquisition target we came across Mine-Boss Richard Clark and Orca Gold which is currently working in Sudan.
So, what do you do after achieving one of the largest buyouts in Canadian history? Try to do it again of course.
Mr. Clark and his team are credited with not only one of the largest, but most successful buyouts in Canadian history. The words Red Back Mining illicit visions of perfect timing and success in the mining industry.
Clark’s Red Back Mining: a story of timing
Kinross Gold paid a whopping $7.1 billion US for Red Back Mining and its Tasiast mine in Mauritania in late 2010 when positive sentiment towards gold was nearing its peak.
Today, a little more than 4 years later, Kinross’ market cap was trading at only $2.6 billion US. Its share price was down to $2.28 per share on the NYSE, just pennies above its 52-week low of $2, as gold fell below $1,200 Monday morning.
Clark proved many things with Red Back Mining, but none more important than when to get out.
He is credited with successfully guiding Red Back through all facets of growth including discovery, feasibility, financing and production coupled with various successful corporate acquisitions.
This level of success has to be respected, tracked and followed closely.
Orca Gold develops asset in Sudan
Rick Clark is back on the hunt, this time in Sudan of all places, as the current Chairman of Orca Gold (ORG:TSXV). He was reviewed in our latest EBook on some of North America’s top business minds.
We explore and document 50 of the most successful buyouts in recent history and how key management led their respective juniors through a maze of potential setbacks to multimillion and in some cases, such as Richard Clark, billion dollar buyouts.
When we published our latest EBook on February 10, 2015 Orca had a market cap of $45.11 million.
Today its market cap has fallen to roughly $38.1 million, about 5 cents above its 52-week low.
The company had approximate cash of $CAD $26 million, according to its latest corporate presentation from February 2015.
Orca Gold – 1 Year Chart
Orca Gold is focused on exploration opportunities in Africa.
The company’s current focus is on one property, known as Block 14, which constitutes a large land holding (7,046 square kilometres) in northern Sudan near the border with Egypt that forms part of the Arabian-Nubian Shield.
On February 4th Orca Gold announced an updated Mineral Resource Estimate for its Block 14 mineral license in Sudan. Below is a short excerpt from that press release.
“The Mineral Resource estimate, using a cut-off grade of 1.0 g/t, now comprises an Indicated Resource of 27.64Mt grading 1.83g/t for 1.63 million ounces of gold (a 24% increase over January 2014) and an Inferred Resource of 10.28Mt grading 1.8g/t for an additional 0.59 million ounces (a 48% increase over January 2014). This includes resources from both Galat Sufar South (“GSS”) and Wadi Doum, a second target 55km east of GSS previously known as EG 3.2 (figure 1).”
Click here to read more.
Orca Gold assembles Red Back Mining team
On December 19th, Orca Gold announced the appointment of Hugh Stuart as President & CEO.
Prior to joining Orca, Mr. Stuart was Vice President Exploration for Red Back Mining Inc., and oversaw the growth of Red Back’s gold resources to over 18 million ounces.
Orca highlighted Stuart’s history of success in Africa, by explaining that,
“Prior to his involvement with Red Back, Mr. Stuart was Exploration Manager at the Geita Gold project in Tanzania, taking the project from initial exploration to production.”
Click here to read the entire press release.
Rick Clark, Orca’s Chairman of the Board, commented that,
“We are delighted that Hugh has agreed to become the President and CEO of Orca. I would like to thank Simon for his contributions to date to Orca and wish him the best as he moves back to Australia. Hugh, Simon and I have worked together for over ten years now and I look forward to continuing our association and our focus on developing new gold assets.”
Click here to read more.
Orca Gold has a healthy treasury and is advancing its flagship gold asset. The location of its key gold asset being in Sudan has surely deterred many retail investors and fund managers, but with the company’s management team being among the best on the TSX Venture, it likely won’t be long until Orca Gold is in the headlines.
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