Bill Sheriff’s Wolfpack Gold trades well below cash

Wolfpack Chairman Bill Sheriff

By James Fraser / @MiningStocks

Looking through some of the press releases this week on the TSX Venture exchange for mining stocks Wolfpack Gold immediately caught my eye and stood out.

The headline on Stockwatch was: Wolfpack cuts salaries, to drop properties

I was not 100% familiar with Wolfpack Gold but with the tough times in the junior mining sector I was curious to read more.

This is what I found:

Wolfpack Gold Corp., in its efforts to protect its healthy cash position, has implemented cost-saving measures in response to the mineral exploration sector’s liquidity challenges. Additionally, the company has implemented a conservative yet methodical work plan to advance its core Nevada-based projects. The company’s plan is expected to eliminate equity financings during current market conditions, while providing flexibility to accelerate operations on short notice upon more favourable market conditions.

Cost-saving measures

In recognition of the persisting market conditions, the board of directors has adopted a three-year strategic plan with three goals:

1. Preserve the company’s healthy cash position of more than $6-million (not including cash equivalents);
2. Conservatively yet systematically advance its leading gold projects;
3. Maintain title to its gold and uranium core assets.

The company has implemented a hiring freeze, reduced staff by 35 per cent and reduced salaries by 20 per cent. Field office closures and reduced outsourcing have been implemented along with vendor discussions on further reductions. The company has conducted a technical review of non-core assets, and will be dropping approximately 40 per cent of its unpatented claim holdings to reduce holding costs and to focus on advanced projects.

The company is confident in the viability of its assets and will continue to monitor market conditions to consider additional spending reductions if required.

Kudos to William Sheriff and the management team at Wolfpack Gold for doing the right thing for shareholders.

The stock is trading at 7 cents with just under 50 million shares outstanding giving it a market cap of 3.5 million well below the $6 million in the till.

Some great deals out there in the junior mining sector if you are selective and know what to look for.

Click here to read the entire press release.

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DISCLOSURE: I hold no position in Wofpack Gold, but do have a significant holding in one of his other companies (Golden Predator). He is one of the few CEOs that I trust implicitly.

Cheers, Luker