The folks at Money Map Press are following in the footsteps of a few other advisories by trying to not just pitch publicly traded stocks, but to pitch the idea that they can get you access to a specific private investment deal that you can’t find elsewhere.
That’s probably true in some cases — there are private placements all the time, particularly in the junior resource sector where it makes sense for companies to raise money in fairly small amounts, and they aren’t open to all comers so there are often groups of friends or fellow travelers who get the allocations. In those cases, the newsletters themselves won’t be getting the private placement shares for you directly but would really just be pointing you to the company or the company’s agent to request a piece of the deal. It’s a little murky, since little of it happens in the public eye despite the fact that these are public companies, but I know that Frank Curzio had a similar project where he tried to get some of his high-end subscribers into particular private placements that were spearheaded or shared by the Katusa/Casey/Sprott folks and other “connected” resource investors.
But this is the first time I’ve seen the access to a private placement advertised so widely, and that’s probably a big dangerous… so let’s see what stock it is they’re talking about, and see what else might jump out from the ad.
The pitch is from Mike Ward at Money Map, and he’s advertising the Money Map Project, which is one of those high end (or “back end”, as the publishers would call it) services that they sell to their “best” subscribers. Usually such services are priced in the $2,000-5,000 neighborhood, and this one’s right in the middle at $4,000. I haven’t seen mention of this Money Map Project before that I can remember, so perhaps this is their first deal.
Here’s some of the lead-in:
“First Time Ever! An Exclusive Private Offering in What Could Be the Next…
“Multi-Billion Dollar Gold Venture
“You could have a rare chance to partner with an investment legend who’s already built two billion-dollar mining companies from the ground up.
“Independent analysis suggests every stake you own could turn into $595,000”
That list of “investment legends” who’ve already built billion-dollar companies is pretty short, so I expect many of us already know what the stock is… but let’s check a few more details to be sure:
“Today, for the first time ever, I’m thrilled to tell you about an exclusive private investment offering that’s open ONLY to Money Map Project Members…
“It’s a deal that gives you direct ownership in a company that, for the past two years…
“Has been aggressively acquiring dozens of huge, high-quality gold assets across Canada, Mexico, and the United States…
“At historically LOW prices….
“The gentleman you could “partner” with already built two multi-billion dollar mining companies from the ground up – making total gains as high as 17,900% for investors who got in at the beginning of both….
“The private offering I’m recommending to you today is unlike anything you’ve seen before.
“It comes with perks and sweeteners typically given to venture capitalists, investment firms, and billion-dollar investors like Warren Buffett…
“Including an immediate ‘private investor discount’ that’s worth thousands of dollars.”
OK, so we can at least get you the easy answer: This is indeed First Mining Finance they’re talking about, and the “investment legend” who founded the company is Keith Neumeyer, who has indeed created two billion-dollar companies (First Quantum and First Majestic Silver). First Mining Finance is a “mineral bank” created out of some of the low-priority projects owned by First Majestic, and they have spent the last year or two using their shares (and Keith’s reputation and connections) to buy up small gold miners to accumulate “ounces in the ground” that, the argument goes, will become more valuable in a bull market.
The strategy, eventually, will be to partner or sell these projects to miners in exchange for royalties or some similar upside participation, effectively creating a “bank” that buys undeveloped assets when they’re cheap and “monetizes” them when there’s more demand (ie, when the big miners are looking for acquisitions to replace their reserves, or when there’s more greed in the gold mining market and folks are throwing money at development projects).
I like the strategy, I own the stock and suggested it to the Irregulars almost exactly a year ago (along with a much-less successful “bank” that’s doing non-mining royalties). And they’ve been busy — back then they had just announced their first acquisition, of Coastal Gold, and they had about 100,000 shares outstanding and roughly a million ounces of potential “in the ground” resources (including measured, indic