Hawthorne: Major Catalysts Coming

What Is Chen Buying? (07/20/2009)
"I bought HGC.v today at open of 34c CAD. Why HGC.v?
  1. Major catalysts coming. It may have EVG type of move in the next a few weeks. I learned from the company that, 1. 43-101 of one of the potential world-class assets, FraserGold, is due any time now. It could come out this week, according to the company.

  2. Recent drilling results from another potential world-class asset, Taurus property, is coming this week or next week, according to the company.

  3. More drilling results from the third property, Table mountain, coming in August, according to the company. Seldom will you have all three major assets reporting in the next few weeks, I believe this creates a unique opportunity to invest ahead of the three important results coming very soon.

  4. The management. HGC is managed by two founders of Bema Gold and Eldorado Gold. Excellent track record.

  5. Production. HGC is planning to go into production in Q4 by re-starting the mine and mill at Table Mountain. About 20K oz at cost of $400-$450. Then they are planning to use the cashflow to fund future drilling operation, just like they did in Bema Gold. The company had a little over 5 million at the end of May. They have 1-2 million tax credit due very soon. They told me that they will be about three million short before the cashflow kicks in. However, they are planning to raise money through issuing debt, no stock offering is in the plan.
. . .with HGC, the risks seem to be limited because they are becoming a producer. With the prudent management, I feel the risks are further limited. In the mean time, the gold juniors are moving with drilling results these days. All of its three major properties are coming out with results soon, as early as this week. I feel it is a rare situation that warrants aggressive accumulation."

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