Cadif - Cadillac Ventures Inc.

Discussion in 'Penny Stocks' started by Jon Alba, Jan 28, 2020.

  1. Jon Alba

    Jon Alba Senior Investor

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    Cadillac Ventures Inc. Due Diligence Report

    Ticker Symbols: CDC (Canada) & CADIF(USA)
    Stock Prices: $0.03 CAD & $0.00334 USD
    Common Shares: 90,721,266
    Options: 4,685,000
    Insider Holdings: 7,129,829 or 8%
    Institutional Holdings: 39,705,385 or 44%

    Note: Information Circular and Proxy recently came out on Sedar. No rollback will occur.

    3 Assets owned:
    1) 100% Ownership of Thierry Copper Deposit (322 Million lbs of Copper M&I & 538 million inferred)
    2) 51% Ownership of Burnt Hill property: 8.99 million lbs of Tungsten & 163 million lbs of Molybdenum M&I. Noront Resources owns remaining 49% with a deal for CDC to buy their stake
    3) Kirkland Lake/Grenfell Gold Property (Sold to ARA.V but CDC retains a 2% NSR). ARA received a major investment from Sandstorm on January 14th 2020.
    In December 2019, a deal was struck between Cadillac and NFR to push the Thierry project forward. This deal could finance CDC’s purchase of NOT’s 49% of Burnt Hill. Sandstorm News: : https://finance.yahoo.com/news/cadillac-ventures-signs-earn-option-220500974.html

    Most recent presentation: http://www.cadillacventures.com/i/misc/CDC-June-2017.pdf
    Thierry 43-101 Report: http://www.cadillacventures.com/i/pdf/43-101-Positive-Preliminary-Economic-Assessment.pdf
    Burnt Hill 43-101 Report: http://www.cadillacventures.com/i/pdf/BurntHill_NI43-101-2014.pdf
    JV Partner website: https://www.northernfoxresources.com/
    JV Partner financing (Finished late 2018 for $4 million): https://static1.squarespace.com/sta...662675141/Northern+Fox+Greensheet+Q2+2018.pdf

    Sandstorm investment in ARA.V where CDC owns a 2% NSR on a gold property: https://finance.yahoo.com/news/avalon-investment-holdings-announces-closing-130000367.html
    Here is the 45 year historic Copper price chart. Theirry was in production in the 1980’s when copper prices were below $1 a lb, today we sit around $2.70. Even with inflation, the asset is minable today and can generate a profit. Link: https://www.macrotrends.net/1476/copper-prices-historical-chart-data

    All numbers below can be found on Sedar (Most recent quarterly filing in November)

    Financials

    ASSETS
    Cash: $75K Advance (December deal signed JV deal For $300k + Shares & $1.25 Mil Note)
    Short Term Investments: $30,046
    Accounts Receivables: $52,276
    Marketable Securities: $279,120
    Restricted Cash: $401,176
    Marketable Securities (non current): $600,000
    Property Plant & Equipment: $29,694
    Exploration & Evaluation Assets: $18,177,922
    Total Assets: $19,570,234

    LIABILITIES
    Accounts Payable: $1,327,327
    Bank Overdraft: $3,344
    Convertible Debenture: $519,329
    Decommissioning Provision: $452,335
    Total Liabilities: $2,302,335

    3 Month G&A Expenses: $98,127
    6 Month G&A Expenses: $189,618

    MD&A Highlights From Last Quarter

    Description of Business

    Cadillac is a development focused exploration Company and was incorporated on October 19, 1995. Cadillac has two main Canadian exploration projects located in regions that have been historically active. The Thierry property is located in north-western Ontario adjacent to the town of Pickle Lake which includes the past producing Thierry mine which was last operated by UMEX and shut down in 1982 due primarily to the decline in the price of copper. The Burnt Hill property is a 51% owned tungsten tin property located outside of Fredericton, New Brunswick.
    Exploration and Evaluation Assets

    Thierry Property

    Cadillac reported that the assay results of samples from the twenty six holes drilled (see press releases dated January 18, 2012, January 25, 2012 and February 2, 2012) enabled Cadillac to further update the initial K1-1 resource estimate. P&E Mining Consultants completed this mineral resource estimate which was based on a combination of historic drilling by previous project operators and the more recent drilling by Cadillac who reported that the updated inferred mineral resource at K1-1 had been estimated within an economically optimized Whittle pit shell consisting of 53,614,000 tonnes containing 0.38% Copper and 0.10% Nickel using an NSR cut off rate of $ 11/tonne (see press release dated February 14, 2012). The increase in this updated inferred resource over earlier reported inferred resource estimate was due to a number of factors including the results from the twenty-six holes drilled by Cadillac, an increase in the trailing average metal prices, lower projected operating costs at K1-1 which have been derived from a conceptual combination of operations at the K1-1 open pit deposit and the Thierry underground deposit and the inclusion of additional UMEX data not considered earlier. Cadillac subsequently completed a NI 43-101 compliant Technical Report and Resource Estimate which was filed on SEDAR (www.sedar.com) in March 2012. Mr. Brian H. Newton P.Geo, of Billiken Management Services Inc. is the qualified person pursuant to the requirement set out in National Instrument 43-101 has reviewed and approved the technical information above on behalf of the Company. The potential quantity and grade set out in the information above is conceptual in nature. In addition, there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource.
    Please see 43-101 report link above for all information regarding this property.

    Most recent update regarding Thierry:

    On December 9, 2019, the Company announced it signed an Earn-In Option Agreement with NFR. The agreement related to Cadillac's 100% interest in the Thierry Mine Project. The terms of the agreements are as follows: (i) Within 90 days (by March 9, 2020) NFR will pay a previously agreed upon $300,000 to Cadillac ($75,000 of which has been advanced) following financing of NFR (NFR Financing) to have the right to earn a 51% interest in the property; (ii) NFR will issue 10,000,000 NFR shares to Cadillac, subject to regulatory approvals, within 60 days following the NFR Financing; and (iii) NFR will issue to Cadillac a $1,250,000 not secured by a first charge against NFR's interest in the property. The note will then be retired proportionately to work expenditures on the property as follows: • 30% ($375,000) will be retired on the completion, within 12 months of the NFR Financing closing date, of the $1,250,000 work program appended to the agreement; • 40% ($500,000) will be retired on the delivery of a Feasibility Study by NFR to Cadillac within 24 months of the NFR Financing closing date; and • 30% ($375,000) will be retired on the earlier of acceptance of an Environmental Study or 36 months from the NFR Financing closing date. Should the above terms in any of (i), (ii) or (iii) above independently not be met, then the option shall be null and void. On completion of the 51% earn-in, NFR will have the option to earn a further 10% interest by spending a further $2,000,000 over 2 years. After a 61% interest is earned by NFR, a formal joint venture agreement will be drawn up between the Cadillac and NFR.

    Burnt Hill

    During the prior year Cadillac announced that it has amended and restated the option agreement with Noront regarding the acquisition of Noront’s remaining 49% interest in the Burnt Hill Tungsten project. Once all milestones and/or date sensitive payments are made, Noront will receive an aggregate of $1.8 million through a combination of cash and shares for their 49% interest over the course of 3.5 years (see press release dated September 27, 2017). Under the terms of the agreement Cadillac then made an initial payment of $ 50,000 in cash and issued 1,000,000 common shares of Cadillac valued at $ 50,000 to Noront. In April 2018 Cadillac made the second of the three payments provided for under the amended and restated option agreement paying $ 75,000 in cash and issuing 1,500,000 common shares of the Company to Noront valued at $ 45,000. The remaining payment for the 49% interest became payable on the earlier of completion of a pre-feasibility study on the project and March 26, 2019. The payment is currently in discussion with Noront regrading the remaining payment. No significant work of a material nature has, as yet, been subsequently carried out on the property. Cadillac is presently pursuing solutions which will permit the recommencement of activities at Burnt Hill.

    Kirkland Lake/Grenfell Gold Property

    The Kirkland Lake/Grenfell Gold Property was acquired by Cadillac as part of its acquisition of Richview Resources Inc. in 2010. The property is located west of the town of Kirkland Lake, Ontario, within four kilometres of the producing Macassa Mine. Richview had previously carried out limited work on the property which it did not pursue. During 2014 Cadillac entered into an earn-in option agreement with Anconia Resources Corp. whereby Cadillac granted an option to Anconia to acquire up to a 100% interest in the Kirkland Lake/Grenfell Gold Property. Under the terms of the agreement Anconia acquired a 60% interest in the property during fiscal year 2016 having completed agreed milestones. In April 2017 Anconia exercised its option to acquire 100% ownership interest in the property. Anconia issued 5,000,000 million common shares to Cadillac valued at $ 150,000 to acquire the remaining 40% of the property. Cadillac will retain a 2% net smelter return royalty on the property, of which Anconia is entitled to purchase 1% at any time up to 2 years after the commencement of commercial production, for $1,000,000.
     
  2. Jon Alba

    Jon Alba Senior Investor

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    Cadillac signs Thierry earn-in option agreement

    2019-12-09 15:13 MT - News Release


    Mr. Norman Brewster reports

    CADILLAC VENTURES SIGNS EARN-IN OPTION AGREEMENT

    Cadillac Ventures Inc. has signed an earn-in option agreement with Northern Fox Resources Inc. The agreement relates to Cadillac's 100-per-cent interest in the Thierry mine property, located in the Pickle Lake area of Ontario.

    The terms of the agreement are as follows:



    1. Within 90 days (by March 9, 2020), Northern Fox will pay a previously agreed upon $300,000 to Cadillac ($75,000 of which has been advanced), following the financing of Northern Fox, to have the right to earn a 51-per-cent interest in the property;
    2. Northern Fox will issue 10 million Northern Fox shares to Cadillac, subject to regulatory approvals, within 60 days following the Northern Fox financing;
    3. Northern Fox will issue to Cadillac a $1.25-million note secured by a first charge against Northern Fox's interest in the property.


    The note will then be retired proportionately to work expenditures on the property as follows:



    • 30 per cent ($375,000) to be retired on the completion, within 12 months of the Northern Fox financing closing date of the $1.25-million work program appended to the agreement;
    • 40 per cent ($500,000) to be retired on the delivery of a feasibility study by Northern Fox to Cadillac within 24 months of the Northern Fox financing closing date;
    • 30 per cent ($375,000) to be retired on the earlier of acceptance of an environmental study or 36 months from the Northern Fox financing closing date.


    Should the above terms independently not be met, then the option shall be null and void.

    On completion of the 51-per-cent earn-in, Northern Fox will have the option to earn a further 10-per-cent interest by spending a further $2-million over two years. After a 61-per-cent interest is earned by Northern Fox, a formal joint venture agreement will be drawn up between the Cadillac and Northern Fox.

    © 2020 Canjex Publishing Ltd. All rights reserved.
     
  3. Jon Alba

    Jon Alba Senior Investor

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    Here is Northern Fox's financing done in late 2018, it specifically mentions raising money just for the Theirry project. So this deal has been in the works for at least 2 years, if not longer:

    https://static1.squarespace.com/sta...662675141/Northern+Fox+Greensheet+Q2+2018.pdf

    CONFIDENTIAL OFFERING MEMORANDUM March 26, 2018 INVESTMENT RATIONALE Initial Private Offering of Northern Fox Resources Inc. (“Fox”) C$4 million at C$0.15 per unit. By fully exploiting the resource at the Thierry copper deposit, we create significant returns for our investors. Copper has a strong underlying, future market. The world is facing a copper deficit. Copper is an important part of the growing global economy from infrastructure, renewable energy, and electric vehicles. In Asia, Brazil, and India, the fundamentals and demand for copper will continue to grow, and become stronger over the next five to 10 years. World-class deposit with resource scale. Thierry is a world-class copper deposit, with very lowcost of production and long-life assets. Both the underground and open-pit deposits are open on strike and depth, providing significant upside deposit potential. Attractive IPO valuation. Long-term investment-grade opportunity at an attractive investment level with significant upside compared to peers. Opportunities to invest in projects with this asset combination of size, economics, infrastructure, and location are rare. Low capital intensity and low-risk. As a past producer, with over C$140 million invested to date, the initial capex to recommission is low for Stage 1 production at C$104 million; a low-risk premium given Thierry’s location within Canada’s stable political and mining jurisdictions, coupled with production economics, whereby 100% of operating costs are Canadian dollars, hedged against US dollar copper price volatility. Management successfully founded and commercialized a producing copper mine. The management team has a proven history of creating shareholder value in the copper mining industry, having successfully commercialized the Aguas Teñidas copper mine, currently producing 4.6 million tonnes of copper a year.

    Issuer Northern Fox Resources Inc. (the “Company” or “Fox”). Issue Size C$4,000,000. Offering 26,666,667 Common Shares (C$0.15 per share). Issue Price C$0.15 per unit. Flow Through Option The Company has granted the Underwriters an option exercisable in whole or in part, at any one time for a period of 60 days after Closing, to purchase up to an additional 13,333,334 Common Shares (50% of the Offering) at the Offering Price). Basic Shares Outstanding Upon Closing 105,666,667 Common Shares. Dividend Policy Fox does not currently anticipate paying any dividends on the Common Shares. The Company currently intends to use its future earnings and other cash resources for the operation and development of its business, but may declare and pay dividends in the future as operational circumstances permit. Use of Proceeds The Company intends to use the net proceeds from the Offering for general working capital purposes to complete the Bank Feasibility Study, and pursue the Company’s growth strategy. Principal Shareholder At Closing, Founders, Management, and Peblik LLC will, in the aggregate, directly or indirectly, own or control 79,000,000 Common Shares, representing 73% of the issued and outstanding Common Shares of 107,666,667. At Closing of the Flow Through Option, Founders, Management and Peblik Limited will, in the aggregate, directly or indirectly, own or control 79,000,000 Common Shares, representing 35% of the issued and outstanding Common Shares of 222,666,667. Lock-Up Each of the senior officers and directors of the Company and all other shareholders that held a direct or indirect interest in the Company before Closing (the “Lockedup Shareholders”) will be, subject to certain exceptions, subject to lock-up arrangements for 180 days from Closing. The Locked-up Shareholders hold, in the aggregate 79,000,000 Common Shares, representing 75% of the outstanding Common Shares after giving effect to the Offering. Additionally, the Company will be, subject to certain exceptions, subject to lock-up arrangements for 180 days from Closing. Hold Period Subscription receipts have a four month hold but the underlying common shares will be free trading upon conversion of the Subscription Receipts. Eligibility for Investment Eligible for RRSPs, RESPs, RRIFs, TFSAs, DPSPs and RDSPs. Form of Offering Initial private offering in all provinces of Canada pursuant to a long-form prospectus. Private placement in the United States to “qualified institutional buyers” pursuant to Rule 144A under the U.S. Securities Act of 1933. Syndicate Selling Concession 10.0% Closing Expected Q2/Q3 2018 S
     
  4. Jon Alba

    Jon Alba Senior Investor

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    43-101 Indicated Resource Has the Following Metals: (Copper, Gold, Silver, Platinum, Palladium, Nickel)

    Polymetallic Resource
    > 1,000,000,000 lb Copper
    > 75,000,000 lb Nickel
    > 60,000 Oz Gold
    > 50,000 Oz Platinum
    > 125,000 Oz Palladium
    > 4,000,000 Oz Silver

    Open on strike and at depth – significant expansion potential
     
  5. Jon Alba

    Jon Alba Senior Investor

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    Some insider buying this week. Keeping in mind that the CEO has nearly doubled his holdings over the last few years:

    Filed 2020-01-30 13:57

    Tx date 2020-01-30
    $CDC
    Cadillac Ventures Inc. Brewster, Norman
    5 - Senior Officer of Issuer
    Direct Ownership
    Common Shares
    10 - Acquisition or disposition in the public market
    $525.00
    +15,000 vol
    $0.035 each 6,612,720

    Filed 2020-01-29 12:33

    Tx date 2020-01-29
    $CDC
    Cadillac Ventures Inc. Brewster, Norman
    5 - Senior Officer of Issuer
    Direct Ownership
    Common Shares
    10 - Acquisition or disposition in the public market
    $525.00
    +15,000 vol
    $0.035 each 6,597,720
     
  6. Jon Alba

    Jon Alba Senior Investor

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    more insider buying:
    Recent filings
    Filed 2020-02-03 16:30

    Tx date 2020-02-03 $CDC
    Cadillac Ventures Inc. Brewster, Norman
    5 - Senior Officer of Issuer
    Direct Ownership
    Common Shares
    10 - Acquisition or disposition in the public market $600.00
    +15,000 vol
    $0.04 each 6,627,720
    Older filings
    Filed 2020-01-30 13:57

    Tx date 2020-01-30 $CDC
    Cadillac Ventures Inc. Brewster, Norman
    5 - Senior Officer of Issuer
    Direct Ownership
    Common Shares
    10 - Acquisition or disposition in the public market $525.00
    +15,000 vol
    $0.035 each 6,612,720
    Filed 2020-01-29 12:33

    Tx date 2020-01-29 $CDC
    Cadillac Ventures Inc. Brewster, Norman
    5 - Senior Officer of Issuer
    Direct Ownership
    Common Shares
    10 - Acquisition or disposition in the public market $525.00
    +15,000 vol
    $0.035 each 6,597,720
     
  7. longtermbull

    longtermbull Administrator Staff Member

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    Do you have a share price graph for this one? I have read some of your other posts with interest - you certainly do you research!
     
  8. Jon Alba

    Jon Alba Senior Investor

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    Thanks. Although a lot of these small caps are the most liquid, they do have legit operations and trade more frequently on the equivalent Canadian ticker symbols. So lots of research and I don't mind sharing.

    Here's the 10 year graph: https://www.stockwatch.com/Chart/Advanced?time=10&symbol=CADIF&region=U
     
  9. Jon Alba

    Jon Alba Senior Investor

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    CEO keeps buying stock, deal with NFR to close in 3 weeks, should have a nice pop.
     

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