What does a precious metal mining company do when extraction costs exceed current market prices? They invest in biotech of course.
If you think this sounds crazy, you would be right. But there are always exceptions and in some cases, the potential for some nice profits.
First, Levon Resources Ltd. holds a 100% stake in a 49,000 acre project in Mexico with a current market value in recoverable Gold and Silver worth $9 billion. The estimated cost to mine the 488 million ounces of silver and 1.3 million ounces of gold will cost over $11 billion. So while LVNVF waits for a market turnaround, which will inevitably happen sooner or later, they decided to invest in biotech.
But the investment was a shrewd one. They bought ownership in a private company, SciVac, Ltd., with a commercial stage hepatitis B vaccine called Sci-B-Vac which is currently on the market in Israel and 10 other countries.
Interestingly, according to this press release, anyone holding shares in Levon Resources, Ltd. on April 24, 2015 will be granted shares of Sci-Vac, Ltd. on a 1 to 1 basis. Basically, very soon, LVNVF shareholders will have a stake in a best-in-class vaccine with a potential market value in the billions while waiting for a precious metal price turnaround.
From the press release:
“I am excited to announce this transaction with SciVac, as I believe it will generate tremendous value for Levon shareholders,” stated Ron Tremblay, President and Chief Executive Officer of Levon. “In a difficult market for resource issuers, we have chosen to preserve capital while seeking to identify alternatives to create shareholder value. The acquisition of SciVac gives Levon ownership of Sci-B-Vac(tm), a commercial stage, potentially best in class hepatitis B vaccine which could address a significant market opportunity. Levon shareholders will also maintain an interest in Levon’s existing business and assets by receiving shares of a newly formed company which will hold Levon’s existing resource assets.”
For complete details you need to check out this Levon Resources press release. Currently Levon Resources Ltd. (LVNVF) stock is at $0.40 a share just below a 52-week high of $0.49. Volume has been mixed but has seen spikes of over 1 million share trading days in the last month.
Stay tuned TKO’ers!