The New Gold Rush Could Send This Stock Soaring
Why Hercules Resources (CSE:HERC) Could Soar 500%
In today’s market conditions, gold is king and higher record-breaking prices6 are setting the stage for big winners.7 Massive returns are made in young gold exploration companies when they are small, before the large funds can get their hands on them. This strategy has proven its worth over the years, with returns exceeding +502% on invested capital.9
That’s precisely why Hercules Resources (CSE:HERC) could present the highest-potential opportunity we’ve seen in years as the potential resurgence of the gold market takes flight.10
Before we get into the details of exactly why Hercules Resources (CSE:HERC) is perhaps the best opportunity we’ve come to find in the gold mining sector, it’s important to understand the context of the broader gold market and how it provides a solid basis for investment in 2024.
Many analysts today expect gold to soar past $3,000 per ounce in the months ahead.15 If history repeats itself, investors who are buying major positions in the right gold miners could reap massive profits by 2025.16
Based on target prices set by some of the world’s top investment firms, this upcoming gold trend could be one for the history books.17
Ecuador: The Modern Day ‘El Dorado’
Before it started production in Ecuador, in November of 2019, Lundin Gold’s shares could be purchased for just $4.42. Three months later, the stock had soared far beyond $10 per share. Investors who logged into their accounts on the morning of February 23th, 2020 were greeted with an opening trading price of $13.35 per share.22 Today, the price is even higher. It’s become a prime case study of what can happen when you invest in the right gold miner ahead of production in Ecuador.
Looking at the chart below of Lundin, it’s hard not to draw parallels to the current trading and corporate development stage of Hercules Resources (CSE:HERC), a junior company operating in the same area with similar corporate milestones ahead. Ecuador is starting to be considered by some, to be the “lost city of gold”.23
Chart: Prior to production, shares of Lundin Gold could be purchased by investors for $4.42. Within three months, the stock soared above $10 per share, reaping large immediate profits for investors who purchased before the run.
For centuries, countless expeditions and great explorers have been hunting for the fabled El Dorado, the “lost city of gold”. Yet, it wasn’t the great explorers of history that ended up finding the treasure.
Rather, it appears to be today’s more advanced, and scientifically equipped, exploration companies that have cracked the case. Lundin Gold is only the latest confirmation of the vast richest contained within Ecuador’s vibrant soil, but it’s becoming more and more clear that the most exciting discovery may still be on the horizon.
A Land of New Fortunes
Recently, news broke across the mining industry when the Ecuadorian government, a country quickly becoming known as the modern-day “El-Dorado”, announced the biggest investment in the country’s history,18 committing $3.2 billion to develop a major mine just north of the equator.19
The investment will result in no less than $35 billion in export value while generating an additional $8 billion in royalties and taxes during its operating life.20
Safe to say, when it comes to gold, Ecuador is open for business.
Many fortunes have been made in Ecuador by investors who bet big on the country.
There’s no better example than Lundin Gold when, only a few years ago, they moved into gold production in Ecuador.21 Those investors who were savvy enough to buy shares before the run, made portfolio-defining returns and were sweetly rewarded for their investment in what is quickly becoming a modern-day El Dorado.
The Biggest Discovery May Yet Be Found
Despite the progress so far and new mines coming online, Ecuador is still considered relatively untapped in terms of exploration. With only 10% of the country explored,24 Ecuador has incredible potential due to its location at the northern end of the Andes Mountain range.
Ecuador is estimated to have sizeable reserves in numerous minerals, but it is gaining a reputation for its world-class copper and gold deposits. Both Lundin Gold (TSX Listed, $4.5B market cap) and SolGold (TSX Listed, $500M market cap), for example, are operating in the very same area as Hercules Resources (CSE:HERC). The difference, is that Hercules Resources (CSE:HERC) is valued at just a fraction of these larger miners, presenting a much large upside to early investors in the event of a major discovery (more on this below).25
For readers who wish to gain a more complete understanding of the situation in Ecuador, we recommend reading this Ecuador Mining Country Update Report from one of the most qualified experts in the area, AX Legal.26
Finding The Next Big Potential Winner
One of the best ways to benefit from the growing situation in Ecuador, is to look to some of the junior players positioning themselves in the region. But, rather than invest in a company that has already gone up, such as Lundin or Solgold, there’s much greater opportunity for out-sized returns by investing in an emerging player that has yet to have its big run — a company like Hercules Resources (CSE:HERC).
Hercules Resources (CSE:HERC)’s stock price is only a fraction of the larger players in the area. This naturally presents a greater upside in the event of further surging gold prices and any surprise drill results from their exploration activities.
If the company were to reach anywhere near the market capitalization of Lundin, given the limited share count, the price would quickly be in the tens of dollars per share. And while there’s no guarantee of that happening, it’s illustrative of the point that buying a junior with a tight share structure can quickly translate to windfall returns if an investment is placed in the right company before a major discovery is confirmed.
We use the word “confirmed” because the situation with Hercules Resources (CSE:HERC) is frankly, rather unique. It has to do with the geography and its surrounding neighbors—neighbors who are currently successfully mining existing gold veins. And it’s these gold veins that extend right into the very same properties that Hercules Resources (CSE: HERC) has moved to secure interests in .37 Now, it’s possible that these existing gold veins, currently being successfully mined by its neighbors, may not contain any gold at all on the other side of the property line. Legally, you have to say that and it’s illegal to say anything else until it’s fully confirmed by a 43-101 Technical Report. But that seems rather unlikely.
And in the world of investing, like poker, it’s all about the probability of your hand. Investors who wait for the “sure thing”, will be buying at the highs. It’s the investors who take the risk, buying before the confirmation, that position themselves to see the upside. From everything we see, it appears rather probable that Hercules Resources (CSE:HERC) is sitting on a royal flush here. For the details, and to decide for yourself what the evidence points toward, you’ll have to keep reading this article.
We recommend printing this article for your own reference while you conduct your due diligence to verify for yourself what all these signs point toward. If we’re right about this situation, this article may become one of the most important things you read all year.
The Right Spot: Surrounded By Winners
Hercules Resources (CSE:HERC) finds itself in an enviable position within Ecuador’s gold mining landscape, neighbored by significant industry players and lucrative operations. Notably, it shares geographic proximity with the $79B mining giant Fortescue, underscoring the high-value potential of the area.27
One only needs to glimpse at the historical success of Fortescue to understand how meaningful their investment in the area is, shares of their company have soared 247,000% over the years, demonstrating that this is a company that knows where to invest. Hercules Resources (CSE:HERC) is positioning with hundreds of acres in that very same area.28
Even more impressive, and perhaps the biggest sign of what might be to come here, is the nearby San Sebastian concession. It clearly demonstrates the area’s lucrative nature, with reported sales reaching over $19M annually from the same vein that runs right through Hercules Resources (CSE: HERC)’s soon-to-be property.29 It’s a rare opportunity when you can buy a company that could soon be exploiting a vein that is already proven to have production sales in the millions and, although that is no guarantee, it’s certainly a sign you don’t want to ignore.
Perhaps more impressive is that Muyuyacu — literally bordering Hercules Resources (CSE:HERC)’s soon to be property — produces over 68 tons per day from this very same vein.30 Recent studies have started to demonstrate the importance of exploration around existing discoveries, revealing why gold is often found in concentrated deposits, further increasing the probability that Hercules Resources (CSE:HERC) is extremely likely to be sitting on a big discovery.31
These examples highlight not only the proven mineral wealth of the region but also the immense untapped potential that Hercules Resources (CSE:HERC) is poised to explore and could potentially develop in the coming months and years.32
The Right Gold Company At The Right Time
Recent press releases from the company indicate that Hercules Resources (CSE:HERC) is moving to begin work on a NI 43-101 compliant report upon closing of the P3 acquisition, including a specific focus on the property’s placer and hard rock mineralization.33 This is a first step that could lead to further momentum as work programs are detailed and put into action by the company to advance the project.
Hercules Resources (CSE:HERC) is advancing with clear-cut strategies that are set to position the company as a leader in gold mining within Ecuador, a country burgeoning with untapped mineral wealth. By focusing on both surface-level (alluvial) and deeper (vein) gold deposits, Hercules is leveraging the full spectrum of its soon-to-be concessions’ potential.
In a recent presentation published by Hercules Resources (CSE:HERC), several key initiatives were unveiled, including:
- A Focus on Alluvial Gold Production: The term “alluvial” refers to gold found at the Earth’s surface, usually transported by water and deposited in sediment. Hercules Resources is planning to initiate the exploration of alluvial gold first to possibly generate cash flow for payments and investment in the hard rock vein production,38 a process that could allow for quicker cash flow generation due to the relatively lower cost and faster production timeline compared to traditional hard-rock mining. This strategic move is designed to potentially kickstart revenue while the company gears up for more extensive mining operations.
- Infrastructure Development for Access and Efficiency: Recognizing the importance of robust infrastructure, Hercules Resources is undertaking the construction of roads and bridges. This initiative is crucial for ensuring that the mining sites are accessible and that the gold, once extracted, can be efficiently transported. The company’s proactive acquisition of steel for these constructions signals its readiness and commitment to expedite this phase. 39
- The Deep Gold: Scaling Vein Production: With a goal to start production from the two veins as soon as possible, entering through the M2 vein and continuing until the Palizada 8 vein is hit (initially only the veins with results over 5 grams per ton and a minimum average of 8 grams per ton will be exploited),40 Hercules Resources outlines its ambition for significant growth. Vein gold, which is extracted from rock deep within the earth, represents a lucrative opportunity for the company, promising higher yields as operations scale.
The company’s strategic initiatives underscore its multifaceted approach to gold mining, balancing immediate exploration activities with long-term, large-scale expansion goals. In an era where gold continues to be a sought-after asset, the company’s methodical and phased strategy — beginning with alluvial gold exploration to possibly generate early cash flows,41 followed by the development of infrastructure for vein mining — positions Hercules Resources (CSE: HERC) for success in the competitive landscape of gold mining.
With a strategic foothold in one of Ecuador’s most productive mining districts, Hercules Resources (CSE:HERC)’s swift actions towards operationalizing its assets reflects a clear trajectory towards becoming a pivotal player in the gold mining sector.
When investing in gold miners, timing is everything. That’s why Hercules Resources (CSE:HERC) represents a rare opportunity for investors to own a company in the right area at the early stages, before any major developments that could cause the valuation to skyrocket.
Everyone knows it’s the early bird that gets the worm and right now, our readers have the opportunity to delve into Hercules Resources (CSE:HERC) before the rest of the market learns about this growing story. Sometimes the most important thing in investing is not necessarily being right all the time, but rather, investing early when you are.
A Long History Of Major Wins & Buyouts
Of ultimate importance in any industry and of particular importance in the mining space, is the experience and credentials of the team leading the exploration efforts. In the case of Hercules Resources (CSE:HERC), there’s no shortage of experienced executives with a long history of leading multiple developing companies in the resource sector, followed by acquisitions, buyouts and top-tier investor returns.34
If there’s any team that knows first-hand the conditions necessary to drive a successful company, it’s this team right here:
Mr. Jamie Lewin is one of the most experienced senior executives in Canadian history, having served on the board of directors across 19 companies, in addition to his leadership as the Chief Financial Officer for an additional 16 publicly listed companies. In late 2004, he worked with Silent Witness, a company which was acquired by Honeywell International (Nasdaq Listed, $128B market cap).
Mr. Gordon Lam has over 25 years of public markets experience as an investment advisor, director, officer, independent consultant, and investor. Under his leadership, his fund has made several high-yield investments that returned many times over the initial stake, including a single investment that returned over 3,900%. As a CEO of a company operating in two of Canada’s most active gold camps, he raised millions to secure exclusive to claims totaling 2,567 hectares just 10km west of New Found Gold’s Keats Zone discovery, one of the most active areas of gold exploration in the world, and to assemble one of the largest land packages in the BC Golden Triangle, at over 33,000 hectares.
Mr. Leif Smither, as Head of Corporate Development at Starfield Resources, helped raise over $70M to advance what has become a world-class asset at Ferguson Lake (now owned by Canadian North Resources). The stock went from a low of $0.19 per share during his tenure, to a high of $1.82 in January 2007, representing a gain of +857.9%.
Mr. Tyler Friesen was instrumental in the $183M acquisition of PMI Gold by Asanko Gold, now Galiano Gold (TSX Listed, $525M market cap), in 2014. During his tenure, the stock went from a low of $0.45 per share in 2011 to a high of $1.46 in 2012, representing 324% of the starting valuation.
Mr. John Bolanos co-authored the seminal work in which over 200 mineral prospects and deposits in Ecuador are described, further specializing for years in exploration and exploitation of alluvial placer deposits within the country. Mr. Bolanos has intimate knowledge of and has explored many of the great mineral deposits of Ecuador including: Junin (copper-molybdenum porphyry), Chaucha (copper-molybdenum porphyry), Telimbela (copper-molybdenum+/-gold porphyry), Molleturo (mesothermal polymetallic veins rich in silver), San Bartolomé (low silver sulfidation epithermal), Asaray (high gold sulfidation epithermal), Palmira (low silver sulfidation epithermal), Pico Azul (copper-gold porphyry), Curiplaya (gold-copper porphyry) and others. Mr. Bolanos later served as Vice President of Exploration and Qualified Person for Colombia Crest Gold, now ATEX Resources ($286M market cap) where he was responsible for all of the company’s technical, exploration, and strategic objectives.
Mr. Brian Thurston founded several public companies and was instrumental in the initial exploration, land acquisition and development of Aurelian Resources grass roots exploration in Ecuador. In 2008, Kinross Gold (NYSE Listed, $8B market cap) acquired Aurelian Resources in a blockbuster $1.2B deal. Later, Mr. Thurston was President and CEO of Lion Energy Corp. until 2011, when it was acquired by Lundin’s Africa Oil Corp (TSX Listed, $1B market cap).
With such an extensive history of major acquisitions, buyouts and whirlwind momentum runs under their belt, this team promises a bright future for Hercules Resources (CSE:HERC) and its stakeholders.
When assessing the quality of any potential investment, it’s important to consider if management’s incentives are aligned with shareholders. Is it any surprise then, given the high-potential situation here, that the management team of Hercules Resources (CSE: HERC) collectively holds millions of shares of the company? This information was confirmed after checking insider holding reports filed with regulators,35 confirming a key sign of alignment of incentives with shareholders. It clearly demonstrates the dedication that these powerhouse executives have to the long-term success of the company.
Chart: Since its IPO several months ago, Hercules Resources (CSE:HERC) has continued to trade up over +98%, providing strong and consistent returns for investors who continue to believe in the long-term potential of the company.
The Big Potential Winner in Ecuador
If history is any indication, it’s the smaller mining companies that position themselves for significant upcoming milestones that deliver out-sized returns for investors. That’s why we believe Hercules Resources (CSE: HERC) is the one company you must start to closely follow right away.
Based on everything uncovered during the course of our reporting, Hercules Resources (CSE:HERC) stands on the cusp of unlocking significant value for its stakeholders and presents itself as an urgent and pressing matter for any serious investor to research as quickly as possible.
The situation in Ecuador is hard to ignore, and with more and more activity on the ground with each growing week, it seems only a matter of time until the next major development comes bursting out of that region. Serious investors would do well to add Hercules Resources (CSE:HERC) to the top of their watch-list for the remainder of 2024. You don’t want to regret missing this one, so prioritize your due diligence and don’t delay your research on this investment.
10 Key Reasons To Prioritize HERC in 2024
In the dynamic and ever-evolving gold mining sector, identifying companies with strong growth potential, strategic positioning, and robust operational foundations is crucial for investors seeking to maximize their returns. Hercules Resources (CSE:HERC), with its strategic initiatives and market positioning, stands out as a compelling investment opportunity for 2024.
Below, we delineate the key factors that underscore Hercules Resources (CSE:HERC)’s potential to outperform within the gold sector, offering investors a clear framework for evaluating its prospects.
Hercules Resources (CSE:HERC) is poised to benefit from Ecuador’s significant commitment to the mining sector, signaling a golden era of exploration and development with the government’s backing.
Situated in one of Ecuador’s most prolific mining districts, Hercules Resources (CSE:HERC)’s 204-hectare pending acquisition offers direct access to an area surrounded by rich mineral discoveries, positioning the company for potential high-value extraction opportunities.
The company’s ability to secure substantial institutional funding reflects confidence in its strategic direction and operational capabilities, promising robust growth and project advancement.
With gold prices on an upward trajectory and market analysts forecasting continued strength, Hercules Resources (CSE:HERC) is wellplaced to leverage these trends for substantial potential future growth.
Hercules Resources (CSE:HERC)’s impressive performance since its IPO, with stock prices soaring, highlights its growth potential and the tangible results of its strategic endeavors.
Given that a significant portion of Ecuador remains underexplored, Hercules Resources (CSE:HERC)’s positioning in a relatively untapped region amplifies its potential for groundbreaking discoveries and value creation.
The expertise and proven track record of Hercules Resources (CSE:HERC)’s management team provide a strong foundation for strategic decision-making, operational excellence, and stakeholder value maximization.
Hercules Resources (CSE:HERC)’s strategic location near successful mining operations underscores the area’s rich mineral potential and offers collaborative and benchmarking opportunities.
Hercules Resources (CSE:HERC)’s concrete plans for infrastructure development, exploration ramp-up, and operational expansion demonstrate a clear path to increased valuation and shareholder value.
The combination of a favorable market environment, strategic asset positioning, and a focused growth strategy positions Hercules Resources (CSE:HERC) as a unique investment opportunity within the gold mining sector, offering potential for significant returns.
With such a strong combination of factors, Hercules Resources (CSE:HERC) presents a compelling case for consideration by investors looking to capitalize on the opportunities within the gold sector in 2024. Its strategic assets, capable leadership team, and a clear vision for growth, make Hercules Resources (CSE:HERC) poised to deliver significant value to its shareholders in the coming gold mining frenzy.
Further Research and Reading:
For professional investors seeking to validate these insights and conduct a deeper evaluation of Hercules Resources (CSE:HERC) within the context of the 2024 gold sector landscape, a comprehensive list of sources and recommended readings is provided below. These references offer a wealth of data, analyses, and expert opinions essential for a well-rounded investment decision-making process.
- Government and Industry Reports: Access official documentation from Ecuador’s mining authority and industry analyses for a detailed understanding of the country’s mining sector, investment climate, and regulatory framework.
- Company Filings and Press Releases: Review HERC’s official filings with the Canadian Securities Exchange (CSE) and other regulatory bodies, alongside press releases for up-to-date information on operational advancements, strategic developments, and financial performance.
- Market Analysis and Gold Price Forecasts: Delve into market research reports and gold price forecasts from reputable financial institutions and analysts to gauge market sentiment and future price trajectories.
- Independent Analyst Reports: Seek out independent analyst reports on HERC and the broader gold mining sector. These reports often provide critical insights, comparative analyses, and forward-looking statements.
- Academic Journals and Papers on Gold Mining: Explore academic research and papers that discuss the gold mining industry’s trends, challenges, and opportunities, with a particular focus on emerging markets like Ecuador.
- Expert Interviews and Panel Discussions: Listen to interviews and panel discussions featuring industry experts, company executives, and seasoned investors for nuanced perspectives on the gold mining sector’s dynamics and investment opportunities.
Additional Resource List:
- Reuters: Ecuador-SolGold Deal
- The Canadian Securities Exchange (CSE): HERC Listings and Filings
- Mining.com: Hedge Fund Gold Investment Returns
- Kitco News: Gold $3000 Forecast
- AX Legal: Ecuador Mining 2023 Country Update
This curated selection of resources is designed to provide investors with a comprehensive foundation for their research on Hercules Resources (CSE:HERC) and the broader investment landscape in the gold mining sector for 2024.
1https://www.reuters.com/markets/commodities/ecuador-solgold-seal-deal-launch-nearly-5-bln-mining-project-2023-07-20/
2https://webfiles.thecse.com/20231004_HERC_enters_LOI_and_welcomes_director_-_FINAL.pdf
3https://herculesresourcescorp.com/projects/
4https://webfiles.thecse.com/V_FINAL_HERC_LOI_VMP-26Feb24docx.docx
5https://webfiles.thecse.com/HERC_NR_5M_02132024_FINAL.pdf
6https://www.theguardian.com/business/2024/mar/05/price-of-gold-hits-record-high-amid-geopolitical-tensions-and-investor-jitters
7https://moneyweek.com/investments/commodities/gold/gold-price
8https://seekingalpha.com/article/4641785-gdxj-junior-miners-could-outperform-in-the-next-rally-higher-for-gold
9https://www.mining.com/web/hedge-fund-reaps-huge-returns-doesnt-want-money/
10https://thecse.com/listings/hercules-resources-corp/
11https://onlygold.com/gold-prices/historical-gold-prices/
12https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart
13https://goldprice.org/spot-gold.html
14https://www.reuters.com/markets/commodities/gold-headed-best-year-since-2020-fed-rate-cut-prospects-2023-12-29/
15https://www.kitco.com/news/article/2024-01-02/gold-3000-2024-mike-mcglone-sees-global-recession-propelling-gold
16https://www.cnbc.com/2024/02/20/gold-at-3000-and-oil-at-100-by-2025-citi-analysts-dont-rule-it-out.html
17https://primexbt.com/for-traders/gold-price-prediction-forecast/
18https://www.miningweekly.com/article/ecuador-commits-32bn-to-solgolds-project-2024-03-07
19https://miningdataonline.com/property/4596/Cascabel-(Alpala)-Project.aspx
20https://www.mining-journal.com/precious-metals/news/1456408/ecuador-solgold-sign-agreement-usd5-billion-cascabel-project
21https://www.newswire.ca/news-releases/lundin-gold-declares-commercial-production-and-reports-year-end-2019-results-893116870.html
22https://finance.yahoo.com/quote/LUG.TO/history?period1=1552867200&period2=1710806400&interval=1d&filter=history&frequency=1d&includeAdjustedClose=true
23https://www.juniorminingnetwork.com/junior-miner-news/press-releases/2080-tsx-venture/aru/122149-aurania-and-metron-find-lost-city-of-gold-in-ecuador.html
24https://ax.legal/2023/03/21/ecuador-mining-2023-country-update/
25https://thecse.com/listings/hercules-resources-corp/
26https://ax.legal/2023/03/21/ecuador-mining-2023-country-update/
27https://finance.yahoo.com/quote/FMG.AX/
28https://webfiles.thecse.com/20231004_HERC_enters_LOI_and_welcomes_director_-_FINAL.pdf
29Based on the current exchange rate quoted for USD/CAD exchange, $14,532,822.87 USD converts to $19,921,771.39 Canadian Dollars at 1 USD = 1.37081 CAD rates. The USD figure comes from the company’s pitch deck, sourced below.
30https://herculesresourcescorp.com/assets/pdf/2024-05-06-HERC.pdf
31https://phys.org/news/2021-07-gold-arsenic.html
32https://herculesresourcescorp.com/assets/pdf/2024-05-06-HERC.pdf
33https://sedar-filings-backup.thecse.com/00055371/2402131617573819.pdf
34https://herculesresourcescorp.com/about/board-management/
35https://sedar-filings-backup.thecse.com/00055371/2402010908277320.pdf
36https://www.stockwatch.com/News/Item/Z-C!HERC-3525003/C/HERC?&fmt=orig
37https://herculesresourcescorp.com/assets/pdf/2024-05-06-HERC.pdf
38https://herculesresourcescorp.com/assets/pdf/2024-05-06-HERC.pdf
39https://herculesresourcescorp.com/assets/pdf/2024-05-06-HERC.pdf
40https://herculesresourcescorp.com/assets/pdf/2024-05-06-HERC.pdf
41https://herculesresourcescorp.com/assets/pdf/2024-05-06-HERC.pdf
This website is not a broker, dealer, investment or financial advisor and does not purport to be one. All information contained herein is for informational purposes only and should not be construed as an offer to buy or sell any security of any kind. Information is provided on an equal basis to all readers intended for a general audience, with no adjustment bias or personalization to any individuals personal financial situation whatsoever.
Forward Looking Statements
Information provided herein contains forward looking statements. Any statements that express or involve discussions with respect to opinions, predictions, expectations, beliefs, plans, projections, goals, assumptions, future events, future performance, estimations or prophecies are not statements of historical facts and may be forward looking statements, and thus may be unable to be relied upon. The forward looking statements contained herein are based on personal opinion of estimates and projections resulting in personal expectations at the time the statements are made that may involve a number of risks and uncertainties which could cause actual results or events to materially differ from those presently anticipated or opined herein. Forward looking statements may be identified through the use of words such as, but not exclusively, “expects”, “will”, “anticipates”, “estimates”, “believes”, or statements indicating, but not limited to, certain actions such that “may”, “could”, “should”, or “might” occur.
HERC Specific Forward-Looking Statements Disclaimer
This presentation contains certain information, forecasts, projections, and/or disclosures about Hercules Resources Corp. (the “Company”) and its prospects that may constitute “forward-looking information” and “forward-looking statements” under applicable securities laws (collectively, “forward-looking statements”). All such statements, forecasts, projections and/or disclosures included in this presentation, other than those of historical fact, that address activities, events, or developments that the Company anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking statements.
Forward-looking statements are based upon the Company’s current internal expectations, internal estimates, internal projections and internal assumptions about future events and trends that management believes may affect the Company’s financial condition, operations, business strategy and financial needs, as the case may be. The forward-looking statements are subject to significant known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as “expect”, “likely”, “may”, “will”, “should”, “intend”, “anticipate”, “potential”, “proposed”, “estimate”, “believe”, “plan”, “forecast” and other words of similar import, understanding and meaning, including negative and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen, or by discussions of strategy. Actual results and developments may differ materially from those contemplated by these forward-looking statements. Forward-looking statements in this presentation include, but are not limited to, statements with respect to raising funds from investors; the use of the net proceeds of any investment; the Company’s business objectives and the anticipated timing of execution; the expected performance of the Company’s business and operations; the Company’s ability to expand and develop its operations; expectations regarding the Company’s revenues, expenses and profits; the competitive conditions of the mining industry, the Company’s anticipated obligations to comply with safety and regulatory matters related to the mining industry; the Company’s anticipated obligations to comply with employee health and safety matters; the effect of any new or altered government regulations with respect to the mining industry; the grant or renewal of licenses or governmental approvals required to conduct activities related to the Company’s business; the Company’s ability to maintain permits and approvals required to operate effectively; the intentions of management of the Company; the Company’s intention to meet and seek advice from its advisory boards, if any; the Company’s expectations that third parties will fulfill their obligations; the Company’s ability to retain and attract key personnel and members of management; the Company’s ability to raise additional funds; future liquidity and financial capacity; the Company’s ability to manage cash flows; the Company’s plan with respect to any payments of dividends, if any; the Company’s possible exposure to liability relating to the mining industry; and contractual obligations and commitments.
Public Awareness Campaign36
This website is owned by CorpComm Services Limited (“CorpComm Canada”). Hercules Resources Corp. (CSE:HERC) (“Hercules Resources”, “Hercules”, the “Company”) has engaged Canada-wide publishing and distribution of communications consisting of publicly available corporate information on the Company (the “Campaign”, the “Contract”) to raise public awareness throughout 2024 across the country, with the Campaign to be managed by CorpComm Services Limited (“CorpComm Canada”). Several key developments on the horizon and the expected increase of operational tempo upcoming has encouraged Hercules Resources to carefully consider the benefits and conclude the necessity of this public awareness campaign for the continued success of the business benefit of all present and future shareholders. Under the terms of the Contract, Hercules Resources will provide updates on publicly available corporate information to CorpComm Canada. CorpComm Canada will then prepare preliminary drafts of communications, which will be submitted for review and sign-off approval by the Company. Thereafter, CorpComm Canada will distribute communications which have been approved by the Company exclusively through newspaper(s), magazine(s), and business or financial publication(s) of general and regular circulation for the sole purpose of raising public awareness of Hercules Resources (the “Publications”). The Contract provides for exclusivity period and first rights of refusal on additional services for the duration of the Campaign. Any additional providers must be approved by CorpComm Canada. Under the terms of the Contract, Hercules Resources shall provide to CorpComm Canada an initial compensation of $50,000 CAD toward the preparation of preliminary drafts of communications to be submitted to the Company for review and approval and, if approved, the distribution of such communications exclusively through the Publications. Additionally, the Contract necessitates that all disclaimers, compensation disclosures, forewarnings, cautionary notes, or other similar notices as required by laws and regulations applicable to communications by the Company shall be included in such communications with appropriate prominence. The Contract shall automatically renew for subsequent monthly periods, each of which shall have a maximum budget limit of $400,000 CAD per month unless further agreed by the parties. Further, in an effort to maintain standards of reasonable expenditure across clients of CorpComm Canada, the Contract requires Hercules Resources to ensure that the total amortized cost in any monthly period shall not exceed 20% of the Company’s working capital at the beginning of that period as calculated via a proportional budget analysis. Distribution outlets intended to include, but are not limited to, awareness placements in Google, Facebook, Yahoo Finance, BNN, Fox Business, CNBC, CNN, CBC, MarketWatch, WSJ, among others. The placement of awareness campaign material is intended to raise the public profile of Hercules Resources as a company in compliance with all applicable law.
Limitation of Information
The information we provide represents only a small amount of information regarding the Company and is not sufficient to formulate an investment decision and as such, that information should only be a starting point from which you conduct an in-depth investigation of the company from available public sources, such as sedar.com, otcmarkets.com, sec.gov, google.com and other available public sources as well as consulting with your financial professional, investment adviser, and/or registered representative with a registered securities broker-dealer. As of the date of publication of all materials, including this page, CorpComm Canada is not aware of any intention by the Company (and based on its currently disclosed public filings and access to capital, does not anticipate the company) to conduct any fundraising activities that may preclude the legal distribution of awareness materials. The website is not liable for any investment decisions by its visitors, readers or subscribers. Investors are cautioned that they may lose all or a portion of their investment and should independently conduct their own research and arrive at their own decisions or consult with a qualified and registered broker, investment adviser or financial adviser.
As of the date of this publication, Hercules holds no interest in any mineral concessions in Ecuador. Hercules has entered into letter agreements for the acquisition of a 51% interest in the Los Tres (P3) project and a 20% interest in the VMP project. There can be no certainty these acquisitions will be closed on the terms announced by Hercules or at all. Additionally, the interests to be acquired are not direct interests in the concessions forming the projects and are indirect interests in future agreements to transfer entered into between the concession holders and the parties with whom Hercules is contracting. Hercules has no direct contractual relationship with the concession holders. Additionally, the types of concessions to be acquired are artisanal or small scale concessions and do not currently allow for exploitation activities. Artisanal permits are further not capable of transfer until changed to a small scale permit. There can be no assurances that concessions can be successfully amended to allow for medium or large scale activity. There are material risks that direct ownership in the concessions will never be acquired by Hercules which would have material adverse impact on its financial condition, assets and operations.
Qualified Person
Mr. John E. Bolanos, who is a Qualified Person under NI 43-101, has reviewed and approved the technical content of this presentation. Mr. Bolaños is a M.Sc. Mining Geologist from Camborne and forthwith, School of Mines (U.K.) and a Professional Geologist Eng. from The Central University of Ecuador (honours degree). He is a Registered Member of the Society for Mining, Metallurgy & Exploration (SME) of the United States.
Investors are cautioned that results from nearby or adjacent properties are provided for informational purposes only, have not been verified by Hercules’ qualified person and are not indicative of mineralization on the projects in which Hercules is seeking to acquire interests. There are no mineral resources or mineral reserves on these projects which are early stage exploration projects. There can be no assurances that these projects will be developed commercially or at all.
DISCLAIMERS APPLICABLE TO THIRD PARTY PROPERTIES
This content and related maps contain information about adjacent properties and properties with similar characteristics on which the Company has no right to explore or mine. Readers are cautioned that mineral deposits on adjacent properties or properties that share similar characteristics are not indicative of mineral deposits on the Company’s properties.