Having researched lots of juniors over the past six months I think MDI fits the criteria for being a junior which could add significant value when the junior mining market picks up again. In fact I think they don't get much better and would pick MDI as my favourite ASX listed resources junior at present.
The best time to buy these opportunities is when the market is in the doldrums and I think now is a good time to invest in the mining sector generally and in quality junior explorers particularly. I obviously cannot guarantee anything but MDI fits all my required criteria, and I am picking it as a good long-term buy at the current price 0.007c, that’s 7/10th of 1c.
Just briefly, MDI have 250m shares on issue, approx. A$700,000 cash, a market capitalization of approx. $1.7m at 0.007c, gold exploration projects in Niger and Burkina Faso, and high caliber management who are big shareholders themselves. The Top 20 hold 66% of the company. Board and management about 26%.
MD, Rick Yeates, is probably one of the best, most well respected mining executives in Australia. He has a 16% approx. stake in the company. He is on the board of Western Areas Ltd ($800m mc). He and his fellow board are serious mining people who are in it to make a serious effort at building a successful mining company. They are not in it for just a few cents rise in the share price.
I think Rick will get things moving very strongly and very quickly. One basis for this conclusion comes from the company’s June 2015 quarterly which states as follows:
"Middle Island’s strategic focus is two-fold; to identify an appropriate partner to invest in resource definition drilling and feasibility studies at the Reo gold project in Burkina Faso, and to identify a new gold or copper-gold transaction that will generate significant shareholder and investor interest.
Whilst no meaningful transactions on the Reo Project have been forthcoming to date, 12 entities are currently reviewing the data and undertaking site visits.
Since October 2014, Middle Island has identified and investigated over 200 new project opportunities, primarily within Australia and West Africa. While the vast majority of these are inconsistent with the Company’s strategy, some 16 project and corporate opportunities have been shortlisted for review, of which two priority transactions are currently the subject of detailed due diligence reviews, site visits and negotiations. "
The main points are:
“The most advanced of these is currently the subject of full technical, legal and financial due diligence and documentation in the expectation of successfully concluding a transaction in the September quarter of 2015. Your Directors believe that, if successfully concluded as contemplated, the transaction should transform the Company’s fortunes.
…the Company is now finalising documentation with a view to successfully concluding a transaction on what the Directors consider is a project of potential global significance.”
Do your own research (www.MiddleIsland.com.au) and make your own mind up. This is in no way financial advice. I am simply sharing my personal views from my own research with like-minded people. You should seek professional financial advice before investing in the high risk/high reward, extremely speculative junior resources market.