The Buyout King: Mining Legend Bets Big on This Small Stock

Investors looking to capitalize should research Hercules Resources HERC and consider buying shares below $0.50 while they still can.

IMPORTANT NOTICES:

*This article is for speculative investors who are familiar with this type of investing.
If you are not a speculative investor, please take time to read these important contextual notices as they contain explicit explanations of information that is expected to already be implicitly understood by our targeted and intended audience. Implicit assumptions about speculative investors include, but are not limited to, the following implied knowledge: (i) HIGH RISK: Speculative investing involves an extremely high degree of risk by design. Speculative investing most often involves purchasing common equity in highly speculative companies (stock of issuers) that, if ultimately successful, will return extremely high rates of return to speculative investors who purchased shares early on. However, these high rates of return when a stock is successful are almost always offset (to varying degrees) by a much larger number of total failures that result in a near or actual total loss of capital invested. It is the object and purpose of speculative investing to have the few winners return so great of returns that they pay for all your investment losses with extra profit leftover, however, this is not always the case and sometimes speculative investing can result in the returns obtained from winners not exceeding the losses generated by losers. Timing also plays a large role. Investors who purchase earlier are often in a position to make higher overall profits and investors who sell near the highs, or who can cut their losers quickly and reduce the losses on losers, are often better able to manage a higher ratio of dollars won vs. dollars lost. As with anything, speculative investing involves a considerable number of factors that are often unpredictable. IT IS POSSIBLE TO LOSE YOUR ENTIRE INVESTMENT WHEN ENGAGING IN SPECULATIVE INVESTING, EVEN WHEN PURCHASING A PORTFOLIO OF WELL-DIVERSIFIED SPECULATIVE TRADES. (ii) SPONSORED ARTICLES: Speculative investors are aware and indeed look forward to (as they benefit from) the fact that issuers, include the issuers profiled in this article, regularly engage public awareness campaigns where they compensate publishers of information to distribute positive information about their company, highlighting the extreme bull case available if their company succeeds. These campaigns are intended and often do attract a large amount of investors to pay attention to the company, highlighting the speculative value of the shares, which can result in tremendous momentum runs being sparked in the company’s shares and can often result in wild swings in the stock price, generating large returns for early investors but can also have the effect of generating large losses for purchasing who buy near the highs as a reality of how stock trading trends generally work. No one has a crystal ball and no one can predict whether a certain stock will go up, down, sideways with absolute certainty, even during an awareness campaign as the ultimate arbiter of value is the actual market itself and sometimes the market decides a company’s value is worth less after the campaign than before. Our audience understands that we are paid by the issuer, a full disclosure of this contract is available in the “Public Awareness Campaign” section below. (iii) FOCUS ON SPECULATIVE INFORMATION: Speculative investors understand that these articles focus more on the ongoing momentum and performance than a traditional “value investing” approach would as this is a 200 year old proven strategy in the stock market (CFA Insititute: https://rpc.cfainstitute.org/en/research/financial-analysts-journal/2016/how-durable-is-momentum-investing). Often times, these companies are early stage and do not have much to speak of in terms of a value investing analysis and so price performance, momentum and speculative investing terminology is the most appropriate way for speculative investors to read about the company. This results in the article highlighting the potential bull case performance, because the high risks of total loss are already known to this audience of speculative investors, so it is not novel to feature or talk about. The new and novel information is the specific upside and bull case regarding the specific issuer and that is why that information is featured prominently and other information is omitted, or at least not featured as prominently. It has to do with the audience and their expectations and desires and needs. If that information were to be featured prominently, we would not have a large readership as the articles would be boring to the audience who is already aware of the risk and negative information (everyone assumes total loss is possible, so the specifics of the negatives aren’t important, just assume the worst). This is why the specifics of the positives are important and prominently featured. (iv) TRACK RECORD INFORMATION: Speculative investors further understand that highlighted past performance is talking about the lowest starting price and the highest trading price achieved since the publication of our article and it is not expected nor practical for us to continue following the company after the catalysts have potentially occurred and the contract period is up. Further, speculative investors are aware that trade record information does not purport to be a complete record of every article we have published and no speculative investor expects this to be the case. It is industry standard in the world of speculative investing that we might only have 1 winner in a basket of losers and that is what our audience is looking to read about and understand it is reading about the highlights of the past and that the others are potentially total losses. (v) TARGETING OF TRAFFIC: Speculative investors understand that we pay to place this article using a variety of methods including sponsored posts, native ads, search ads, display ads, etc in a manner designed to target solely speculative investors who have expressed interest in other content, terms or patterns that would indicate they engage in or wish to engage in speculative investing. We do not purposefully target an audience that is looking for risk-free returns or safe government bonds or other guaranteed investment instruments and in fact, such targeting would cost us money and decrease our effectiveness for our clients as we would be showing the article to an audience that does not want to read this content. In the event that you believe you have been incorrectly targeted, please contact us on our contact form on our website and provide as much detail as possible as to why you believe you may have been incorrectly categorized as a speculative investor. This information will help us avoid such mistaken targeting in the future. (vi) FOCUS ON BEST CASE SCENARIOS: Speculative investors prefer to read articles that get straight to the point in the title BECAUSE THIS IS A TIME-SAVING HEURISTIC DEPLOYED BY SUCCESSFUL SPECULATIVE INVESTORS, highlighting the best case scenario upfront including, preferably, the percentage by which an issuer could rise. Speculative investors are well versed and experienced enough to understand that this does not guarantee that these results will be achieved or are even the most likely or even probable scenario. All that is expected is that we hold a bona fide belief in the possibility that such a scenario could be achieved, even if unlikely, since that is the point of speculative investing (to find situations that could return hundreds of percentage gains and bring them to the speculative investors attention for their own judgment and consideration for their speculative portfolio). Speculative investors also prefer that we do not waste precious time and space within an article talking about risks as these are well known and, practically, the same (total risk of loss, regardless of the specifics that may cause it).

To reiterate, this article was written for speculative investors who are looking to read a niche article that highlights high tremendous upside that could result in speculative investments and who understand that this does not mean it is the most likely outcome and implicitly understand that total risk of loss is the most likely outcome and further expect and understand that we are paid to do this (fully disclosed below). Like venture capital, this is a feature and not a bug of the article and it is what this audience wishes to read about. This audience of readers that this article is intended for does not wish to read about the risks and losses upfront, because that is not what they are looking for. Again, similar to venture capital investors that must look and analyze the potential large upside that may result in the event that an investment is successful and a lot of time and attention is put forward on this, our audience is looking for the same. Not much time and attention is focused on the risks, because these are commonly known in the industry and to these investors and to our audience. Total risk of loss is probable and understood. But that is not the purpose of the article. The purpose is to discuss what could happen in the event of success so that investors know which companies present enough upside to be worthy of buying in a diversified portfolio of other highly speculative risky companies and taken together, may present an overall balanced return that the winners will pay for the losers and some. If you are not in this audience, please note that this article is not meant for you to read. We encourage you to read the disclaimers and disclosures below and decide for yourself if you wish to continue reading our articles.

Factual, Contextual, and Legal Basis for Our Statements:
(The below is not an exhaustive list or analysis)

1. For the last few stocks we wrote about that saw impressive gains, please refer to the announcements where we were engaged by TMAS at $2.34 per share (split adjusted) and it ran to over $20.43 per share at the high (split-adjusted) and where we were engaged by ELEM at $6.70 per share (split adjusted) and it ran to $16.50 at the high (split-adjusted). Those results exceed +772% gains and +145% gains respectively. FURTHER, IT IS OF MATERIAL IMPORTANCE TO OUR AUDIENCE THAT WE DISCUSS OUR PAST PERFORMANCE AS, EVEN THOUGH IT MAY NOT BE INDICATIVE OF FUTURE PERFORMANCE, IT IS OF INTEREST TO THE AVERAGE READER IN OUR AUDIENCE. IT IS A HEURISTIC COMMONLY DEPLOYED BY SPECULATIVE INVESTORS WHO HAVE LIMITED TIME AND ATTENTION TO DECIDE WHAT ARTICLES TO GIVE ATTENTION TO AND DECIDE WHAT TO FURTHER INVESTIGATE. DISCUSSIONS OF THE POTENTIAL RETURNS AND PAST RESULTS OF ARTICLES WE HAVE WRITTEN ARE HIGHLY MATERIAL TO OUR AUDIENCE AND THAT IS WHY WE DISCUSS IT PROMINENTLY. FAILURE TO DO SO WOULD BE DOING AN DISSERVICE TO OUR AUDIENCE AND DISRESPECTING THEIR TIME AND INTELLIGENCE.

2. For the reason we think HERC could return 400% or more, it’s because the market cap is only $10M and other speculative stocks like ELEM we have featured in the past have traded at valuations far exceeding that at several points in time during their early stages as a result of this early excitement of the speculative development days. For example, ELEM was at a similar development stage but at a much higher valuation when we started writing about it. Based on this experience and considering patterns in the past, it’s likely that HERC could trade up to $50M market cap very easily on drill result speculation alone and could trade much higher if the actual results are positive. It’s our opinion that it is starting out undervalued in comparison to ELEM. This would easily net a $1.50 per share trading price. For the purposes of our audience, this satisfies a reasonable basis for the statement. Investors who are not speculators may not agree, but that is not our target market and that is not the valuation method we are deploying. This is speculative investing and this is how these calculations are done. Please consider the context when reading this article. The valuations are only meaningful when taken together as a low probability of a major win, which when multiplied, provides a risk-adjusted valuation of the opportunity. As with lottery tickets, a ticket could be the winner, or it could be a total loss. Total losses occur more often, but winners far exceed the cost of the ticket. The difference in investing, is we strive to cover companies that, when taken as a part of a diversified portfolio of speculative companies, nets a positive return across the universe unlike a lottery that only returns negatively (by design) across the universe of all possible tickets. We may not succeed at doing so, but this is our intention and the reason readers follow our articles too and engage in speculative investing. It’s intended to be as entertaining as gambling, but with a net-positive sum game creating economic value in the economy in the meantime and the additional benefit of being educational articles for informed investors to use as a starting point for their own due diligence. Please read the full risk disclosures for complete context. FURTHER, AND AS A RESULT OF THE CONTEXT ABOVE, IT IS OF MATERIAL IMPORTANCE TO OUR AUDIENCE THAT WE DISCUSS THE EXTREME BULL CASE POSSIBLE OF THE COMPANIES WE PROFILE, IT IS OF MAJOR MATERIAL INTEREST TO THE AVERAGE READER IN OUR AUDIENCE. IT IS A HEURISTIC COMMONLY DEPLOYED BY SPECULATIVE INVESTORS WHO HAVE LIMITED TIME AND ATTENTION TO DECIDE WHAT ARTICLES TO GIVE ATTENTION TO AND DECIDE WHAT TO FURTHER INVESTIGATE. DISCUSSIONS OF THE POTENTIAL RETURNS OF ARTICLES WE HAVE WRITTEN ARE HIGHLY MATERIAL TO OUR AUDIENCE AND THAT IS WHY WE DISCUSS IT PROMINENTLY. FAILURE TO DO SO WOULD BE DOING AN DISSERVICE TO OUR AUDIENCE AND DISRESPECTING THEIR TIME AND INTELLIGENCE.

3. For the gold market information and projections, lots of this information was obtained from Goldman Sachs. Goldman Sachs top gold analyst is Nicholas Snowdon, head of metals in Commodities Research and his team wrote that gold is forecast to climb about 6% in the next 12 months. You can read this here: https://www.goldmansachs.com/intelligence/pages/gold-prices-are-forecast-to-rise-six-percent.html

4. Information about Hercules and its projects were obtained from its website and press releases, available here: https://herculesresourcescorp.com/ including the company’s disclosed plans to advance the project in their presentation dated May 14, 2024

5. FURTHER, THE REASON WE FOCUS SO HEAVILY AND PROMINENTLY ON PRICE PERFORMANCE IS THAT THERE IS OVER 200 YEARS OF EVIDENCE THAT MOMENTUM INVESTING IS PERHAPS ONE OF THE MOST ROBUST AND RELIABLE STRATEGIES TO GENERATE EXCESS RETURNS (CFA Insititute: https://rpc.cfainstitute.org/en/research/financial-analysts-journal/2016/how-durable-is-momentum-investing) AND FURTHER, SMALL CAP STOCKS TEND TO EXHIBIT A STRONGER MOMENTUM EFFECT AND MOMENTUM GENERALLY PROVIDES HIGHER RISK-ADJUSTED RETURNS (Morningstar: https://www.morningstar.com/articles/591675/does-momentum-investing-work). WERE WE TO IGNORE AND/OR CENSOR THIS INFORMATION UNDER THE PRETENSE OF AVOIDING THE APPEARANCE OF BEING (INCORRECTLY ATTRIBUTED AS) “OVERLY PROMOTIONAL”, WE WOULD AGAIN BE DOING A DISSERVICE TO OUR AUDIENCE AND BE ACTING AGAINST THE PUBLIC INTEREST BY WITHHOLDING IMPORTANT CONTEXT HIGHLY RELEVANT TO THE STAGE AND SPECULATIVE NATURE OF THE ISSUERS WE ARE WRITING ABOUT. FURTHER, ACADEMIC RESEARCH CLEARLY DEMONSTRATES THAT THE MARKET BENEFITS FROM, AND IS OPTIMIZED BY, THE PARTICIPATION OF BOTH INVESTORS AND SPECULATORS (CFA Institute: https://blogs.cfainstitute.org/investor/2013/02/27/what-is-the-difference-between-investing-and-speculation-2/). One quote we understand clearly is “The speculator is looking for hidden weak spots in the market,” and as such, acts as “the advance agent of the investor, seeking always to bring market prices into line with investment values” and in that sense, what speculators are doing is advancing some percentage of investor attention of the ultimate winner, to the population of potential winners, such that capital can flow to water the many potential seeds that may grow to sprout the oak. Without this, there may be no oak tree and in that sense, provides a very real, tangible, necessary and ultimately core value to the market, economy and public as a whole.

Important Disclaimers, Relationship Disclosures, Compensation and Biases:

Risk Disclosures: Investing in mineral exploration companies like Hercules Resources Corp. (HERC) involves substantial risks. There is no guarantee HERC will make any discoveries or that its projects will enter production. Exploration efforts may be unsuccessful due to factors like lack of mineralization, challenging mining conditions, permitting issues, or financing difficulties. It is possible for investors to lose their entire investment in HERC. Mineral exploration is inherently risky and speculative. Investors must be able to bear the risk of total loss.

Forward-Looking Statement Disclaimer: Statements in this article regarding HERC’s potential for major discoveries, future stock price appreciation, and project advancement are forward-looking statements within the meaning of securities laws. Actual results may differ materially. Factors that could cause results to differ include metal price volatility, exploration failures, permitting issues, financing risks, and general economic conditions.

Compensation Disclosure: This article was produced as part of a public awareness campaign hire by the issuer, Hercules Resources Corp. Full details of this are available under the heading “Public Awareness Campaign” including compensation amounts which have been paid in cash.

Full Article Disclaimers and Disclosures:

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 Campaign⁽³⁶⁾

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 provide 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.

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.

Trading involves significant risk of loss and is not suitable for all investors. You should carefully consider your investment objectives, level of experience and risk appetite before making a decision to trade with us. Most importantly, do not invest money you cannot afford to lose.

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