Midland Exploration (Toronto: MD) is on a roll, the company if not the stock, adding properties, advancing projects, and concluding new partnerships, suggests Adrian Day, commodity sector expert and editor of Global Analyst.
This divergence between what the company and the stock have been doing will eventually be reconciled and presents a great buying opportunity.
Prime among its recent new partnerships is a deal with BHP Group (BHP). Following the purchase of 5% of the shares in the junior, the companies have now signed a multi-million strategic alliance to look for nickel, copper and cobalt in the Nunavik territory in northern Quebec.
BHP will pay for initial exploration costs in return for the right to option, on commercial terms, any properties that look attractive. Given the need for all three metals for growing electrification of both vehicles and energy sources, this is an exciting partnership with the world’s largest mining company.
Earlier in the year, Midland completed two joint ventures with Probe and Wallbridge, two aggressive juniors, and we suspect there are more in the works as Midland emphasizes its prospect-generation/joint-venture roots.
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In addition to new transactions, the company has been busy with the drill bit as well as earlier stage exploration work, completing several programs in the Abitibi region, on the Detour Lake belt and the Cadillac Break. This includes in joint ventures and on 100% owned properties.
In addition, Midland has continued to pick up new property, including land south of the Wallbridge joint property, where it has already identified some new targets. Midland has been building a significant property portfolio in the Detour Belt, with seven properties east of the prolific Detour Mine.
Midland is well funded, with about C$12 million in the treasury. With strong management, an active season ahead, and a deep pipeline, Midland offers multiple opportunities for discovery.
The company has been extremely active recently, activity not yet reflected in the stock price which has simply been treading water. Take this opportunity to buy one of the top exploration companies now, before the stock price catches up.