Manitou Gold Directors All Think Share Price Will Triple in Two Years

From the June 25, 2015 news release: “The Company also announces that it has granted options to acquire a total of 4,000,000 common shares of the Company to consultants, officers and directors of the Company at the exercise price of $0.10 per share for a period of two years.”

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The current ask price for Manitou Gold is 3.5 cents: mtuprice150626

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New CEO Bought 2.71% of Shares Since May 1, 2015

I explained three months ago why I liked Manitou Gold.

But Manitou Gold has since enjoyed some developments.

Manitou Gold as of May 14, 2015 has 56,022,411 shares outstanding (see page 4):

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Manitou Gold on May 1, 2015 got a new CEO:

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The Canadian government System for Electronic Disclosure by Insiders, SEDI, shows that Richard Murphy bought 1,520,000 shares (2.71% of the 56,022,411 shares fully diluted) since he became CEO:

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You can see for yourself that CEO Murphy has more than doubled his shares in the past week.

I Like Manitou Gold More Now

I explained three months ago why I liked Manitou Gold.

But Manitou Gold has since enjoyed some developments.

Manitou Gold as of May 14, 2015 has 56,022,411 shares outstanding (see page 4):

manitoupresentation2015may

Manitou Gold on May 1, 2015 got a new CEOnewceo

The Canadian government System for Electronic Disclosure by Insiders, SEDI, shows that Richard Murphy bought 738,000 shares (1.31% of the 56,022,411 shares outstanding) in the three weeks since he became CEO:

murphysharebuys

Rob McEwen Also Invested in Manitou Gold

Another way to bet on Rob McEwen is Manitou Gold (symbol MTU for Canadians, MNTUF for Americans).

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You can get shares in Manitou Gold now for only $.02.

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Manitou Gold shares are worth more than $.02 each because the Canadian government System for Electronic Disclosure by Insiders, SEDI, shows that McEwen paid $.15 per share in Manitou Gold.

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And McEwen is not the only big name to buy into Manitou Gold.

Eric Sprott is a billionaire investor in Canada.
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Eric Sprott’s Sprott Asset Management paid $.55 per share in Manitou Gold (see pages 9 and 28).
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In addition to McEwen and Sprott, Goldcorp (the world’s largest gold mining company) also bought into Manitou Gold and paid $0.55 per share.
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So how could anyone resist Manitou Gold shares now selling for only $.02?

McEwen Mining is Still My Favorite Investment

If you were wise enough to take my Sep. 15, 2014 advice to buy McEwen Mining, you would have seen the price per share zoom from US$2.36 all the way down to US$1.10 today (click the image to enlarge)!

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Don’t you love me now?  Joking aside, what could have caused the share price to decline by 53% in five months?

Did the price of gold collapse?  No, the price of gold declined by only 0.34%:
goldprice150215

Did the price of oil, a major cost of mining, skyrocket?  No, the price of oil crashed by 43.32%:
oilprice140215
Did a radioactive meteor crash into a McEwen Mining mine?  No, McEwen Mining achieved record production in 2014: production2014

Did McEwen crash the MUX price by selling shares?  No, Rob McEwen on Dec. 12, 2014 bought 200,000 chares at US$1.28 each.  Then on Dec. 19, 2014; he bought 1,000,000 shares at US$0.91 each.

So there can be only one reason the price of MUX went down so much: rich sellers got stupid.  If you are poor and smart, you will buy more MUX now as the stupid people sell.

My Favorite Investment Now: McEwen Mining (MUX)

If someone alive today had multiplied your wealth 33-fold in thirteen years, would you trust him to manage your money further?  Would you believe that such a person is not only alive and well today, but wants to manage your money for free?

His name is Rob McEwen, and he produced a 33-fold increase in share price in thirteen years for Goldcorp shareholders (click the image to enlarge it):

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McEwen owns 25% of McEwen Mining and pays himself a salary of ZERO:

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McEwen on February 18, 2011 spent US$20 million of his own money to buy U.S. Gold (since renamed “McEwen Mining”) shares at US$6.50 each.  You can buy shares in McEwen Mining today for only US$2.36 each.

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As of June 30, 2014; McEwen Mining owes no debt:

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Are there downsides to MUX?  Of course.  The downside that puts off the most would be an absence of profit.  MUX has never earned much profit ever.  But gold miners never earn a profit before production begins.  This was true of Goldcorp before it struck gold big, and it is true now of MUX as it continues to use the gold mined from two of its mines to finance development of all its future mines.