Norvista says Great Bear Royalties is 'Tier 1'
Norvista Capital said today it accumulated a position of 79,467 shares at an average cost of $3.99 per share in Great Bear Royalties (CVE:GBRR).
Great Bear Royalties was established in January. It holds a 2% NSR on Great Bear Resources' Dixie Project. Norvista is a resource-focused merchant bank and investment company.
Great Bear Royalties traded up 13% today to $4.80 a share.
Norvista CEO Samuel Pelaez argued that Great Bear Royalties could be worth C$14/share assuming a 10 million ounce gold resource at Dixie and US$1,800 per ounce gold.
"We think Great Bear Royalties is worth approximately C$14/share based on our research of the deposit, comparable transactions, and possible mine plans for the Dixie Project," said Pelaez. "The 2% NSR it holds on the Dixie Project, in our view is a Tier 1 Royalty, which is very scarce and we believe the market is underestimating the scale and potential upside of the anticipated maiden resource at Dixie. We expect that the coming news flow over the medium term should act as the catalyst to re-rate this stock."
In July Great Bear Resources said a maiden mineral resource estimate modeling of the first 450 metres of mineralization from surface of the LP Fault is underway and is expected to be published no later than Q1 2022.