Millionaires Refuse to Sell Shares, Remain Confident in Valor Gold

Submitted by Sarah Harris as part of our contributors program.

Valor Gold (OTC: VGLD) is owned almost exclusively by high net worth individuals who are self-evidently confident that the company will offer triple-digit returns. None filed with the SEC indicating that they sold any shares during this summer’s 150% rally from $0.60 to $1.50. Two neighboring companies also own shares of Valor Gold and would normally be considered competitors, yet they also refuse to sell shares. In this article, I will look at some possible reasons for the unwavering resolve of Valor Gold’s investors.

Valor Gold is a pure exploration-stage company. It is very simple to understand: the company’s mission is to drill for gold and hopefully strike it rich. There are no existing mining operations. Staff levels are limited to drillers, geologists and a skeleton executive team. Everything is focused exclusively on finding a large gold deposit. Investors in Valor Gold are looking for a 10x return if the company is able to discover a significant gold deposit, but otherwise there is little reason to invest.

Given this simple reality, it is tremendously curious that all shareholders of Valor Gold have refused to sell any shares even after a double-digit rally. (Returns of over 50% would have certainly outpaced the broad market averages this year.) They seem committed to a triple-digit rally. Valor Gold boasts millionaire and billionaire owners like:

* Dr. Phillip Frost
* Pershing Gold (institutional owner with 25 million shares)
* Paramount Gold & Silver (institutional owner with 6 million shares)
* David Rector
* Arthur Leger

Why Valor Gold Has Multi-Bagger Potential

Valor Gold owns three projects: Reese River, North Battle Mountain, and Red Rock. These projects are strategically located near the Caetano Caldera gold trend (30 million ounces of gold), Rabbit Creek gold trend (40 million ounces of gold) and Battle Mountain Cortez Eureka gold trend (50 million ounces of gold).

In addition to an attractive geography, Valor Gold is also very close to operating, profitable gold mines. Valor Gold is 7.5 miles east of the McCoy-Cove open pit gold mine (with 6 million ounces of gold) and 15 miles northwest of the Phoenix mine (with 10 million ounces of gold). It also is just 18 miles from Barrick Gold’s (ABX) Phoenix Mine (with 8 million ounces of gold) and 20 miles from Barrick’s Cortez Hills Mine (with 15 million ounces of gold). Because of its proximity to so many massive gold mines, Valor Gold’s land package in Nevada is widely regarded as “elephant country.” This north-central region of Nevada known throughout the world for elephant-sized gold deposits.

As noted by another analyst, “According to the U.S. Geological Survey, Nevada contains about 11% of the world’s gold production and 74% of the United States’ gold production. Specifically, north-central Nevada (where Valor Gold is located) has the highest concentration of gold in the nation. North-central Nevada is specifically rich in Carlin-type deposits that spread underneath large land areas.”

Conclusion

It seems as though the millionaires and billionaires who own Valor Gold are confident in its potential. With exploration-stage companies, it is always best to simply evaluate the land and its proximity to major gold deposits, and then decide if the investment is appropriate for a long-term portion of your portfolio. Investors looking for a junior gold exploration company with institutional-grade backing might want to consider the risks and opportunities with Valor Gold.