The term “first mover advantage” is often thrown around in the junior exploration sector, but in the case of one Canadian resource company, it really does apply.
Sassy Resources (CSE:SASY, OTCQB:SSYRF) Corporation is amassing ground in Canada’s easternmost province of Newfoundland, the site of the country’s newest gold rush. Known more for its spectacular Atlantic coastline and friendly inhabitants, Newfoundland has historically never been top-of-the-mind for its gold resources, especially in the context of Canada’s juggernaut mining industry. Now, thanks to some bonanza discoveries like New Found Gold’s Queensway project, exploration companies and majors alike are zeroing in on the island’s potential to host multiple high-grade deposits.
READ: Sassy Resources announces dividend spinout of 8.83 million shares in subsidiary Gander Gold
Over 30 companies are chasing the next big discovery in what’s emerging as a potential major Canadian area play. The focus is on a large southwest to northeast-trending region, featuring numerous parallel structures, known as the Central Newfoundland Gold Belt (CNGB) extending across much of the island. The geology shares several similarities with the prosperous Goldfields region of Victoria, Australia.
Sassy started its move into Newfoundland about a year ago, its CEO Mark Scott told Proactive recently. In the months to follow, the company amassed a land package consisting of over 9,000 claims in the province, giving it one of the largest land positions on the island. It now controls 2,257 square kilometres of highly prospective terrain through its subsidiary Gander Gold Corp, which is being spun out into its own entity, with Sassy maintaining a significant 49.5% equity stake. Sassy plans to spin out 8.83 million shares in the new company to Sassy shareholders effective February 2022.
Scott called the province the site of a “very fast-developing gold rush.”
“Because of the size of the land package in Newfoundland, we thought Gander Gold warranted being a company of its own,” Scott told Proactive.
Big-name partnerships
The company has benefitted from a close relationship with one of Canada’s foremost prospectors. According to the company, nearly 90% of Sassy’s total land package comes from a strategic partnership with famous prospector Shawn Ryan, best known for his success in staking ground in Yukon. Ryan turned his attention to Newfoundland in 2015 and helped to secure the most prospective grassroots properties based on models that led him to success in Yukon more than a decade ago.
And there’s another mining legend who has aligned himself with Sassy – Eric Sprott, the famed investor who has a canny ability to spot great opportunities. When Gander starts trading, the share structure will be a bit more than 71 million shares, a near majority-owned by Sassy and 15% by Sprott.
Through the spinout, Sassy shareholders will own about 12% of Gander, in addition to being able to benefit from Sassy’s existing equity stake. The management team will be largely the same as Sassy, with Scott taking on a dual CEO role and Sassy’s CFO and vice president exploration also on board.
'Talk of the town'
It’s no surprise to hear that Scott is excited about the opportunities that Newfoundland presents for exploration – and for investors.
“It certainly is the talk of the town and for good reason,” the CEO said.
Sassy has strategically positioned itself in close proximity to some of the major developments on the island from its neighbours and peers, including the likes of New Found Gold, Marathon Gold, Matador Mining and others.
“They are proving that the reinterpretation of the geology in Newfoundland and the prospectivity for gold is really panning out how we’d hoped,” Scott concluded. “Sassy has certainly put itself in a good position with its early move onto the island.”
Contact Angela at angela@proactiveinvestors.com
Follow her on Twitter @AHarmantas