CANADA'S LARGEST RESOURCE MERCHANT BANK - GOING PUBLIC 2020 - PRIVATE AND CONFIDENTIAL
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PRIVATE AND CONFIDENTIAL
CANADA’S LARGEST RESOURCE
MERCHANT BANK
GOING PUBLIC 2020
2 PALISADES: TSX-V: TICKER
FORWARD-LOOKING INFORMATION
Certain information in this presentation constitutes forward-looking information, which is information regarding possible events, conditions or results of operations of
Palisades that is based upon assumptions about future economic conditions and courses of action and which is inherently uncertain. All information other than statements
of historical fact may be forward- looking information. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”,
“budget”, “plan”, “continue”, “estimate”, “expect”, “forecast”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar words
or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook. Forward-looking information contained in this presentation
includes our expectations regarding our ability to raise capital, our ability to execute upon our business plan, the validity of our business model, the future performance
of our investments and our ability to generate returns, and is based upon material factors and assumptions such as continued strength in commodity prices, increased
demand and declining supplies for commodities, and significant increases in the price of gold.
Forward-looking information involves known and unknown risks, uncertainties and other factors (many or most of which are beyond our control) that may cause actual
results or events to differ materially from those anticipated in such forward-looking information. Some of the risks and other factors which could cause results to differ
materially from those expressed in the forward- looking information contained in this presentation include, but are not limited to: market (particularly gold market) fluctuations
generally and their impact on our future investments, the sensitivity of gold prices to various factors beyond our control, foreign political and economic conditions which
are inherently unpredictable.
Although we have attempted to identify important factors that could cause actual events and results to differ materially from those described in the forward-looking
information in this presentation, there may be other factors that cause events or results to differ from those intended, anticipated or estimated. We believe the expectations
reflected in the forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and readers are cautioned not
to place undue reliance on forward-looking information contained in this presentation. The forward-looking information is provided as at the date hereof and we undertake
no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as otherwise required
by law. All of the forward-looking information contained in this presentation is expressly qualified by this cautionary statement.
3 PALISADES: TSX-V: TICKER
INTRODUCING PALISADES GOLDCORP.
PALISADES IS GOING PUBLIC IN 2020 ON THE TSX-V AND AIMS TO BECOME THE DEFACTO INVESTMENT
VEHICLE FOR GLOBAL INVESTORS SEEKING EXPOSURE TO THE JUNIOR RESOURCE MARKET
CONTRIBUTING
$40M OF ASSETS
TO PALISADES
GOLDCORP
AS LEAD
INVESTOR
• A resource focused investment company, • Beginning with an asset base of $65M
founded by Collin Kettell in 2013; has grown ($40M from Palisade Global; $25M from
from $1M to $60M since inception
Management & Key Backers)
• Palisade is a major financier in the junior
• Raising $35M in Q4 2019
resource space, focused on structuring and
participating in financings • Launching with $100M AUM
• Going public in 2020 on TSX-V
PRIVATE CO.
PUBLIC CO.
4 PALISADES: TSX-V: TICKER
PALISADES GOLDCORP OVERVIEW
Palisades is an industry-wide recognized brand with vast retail following; owned and operated
by experienced management with extensive deal flow and sector experience
A public proxy for investors to get access to micro cap resource stocks (no ETF or vehicle currently exists)
With the advent of passive investments, Palisades will benefit as junior resource companies are starved
for capital and deeply depressed
Significant insider ownership with parent company, Palisade Global, owning +30%
The right vehicle at the right time as gold enters a secular bull market
Providing American and retail investors a level playing field
5 PALISADES: TSX-V: TICKER
“GOLD WILL BE A TOP “THIS WILL BE
INVESTMENT DURING THE BIGGEST
UPCOMING ‘PARADIGM BULL MARKET
SHIFT’ FOR GLOBAL OF ALL TIME
MARKETS” IN GOLD”
Ray Dalio Frank Giustra
J U LY 2 0 1 9 AUGUST 2019
Billionaire Investor, Billionaire Investor
Founder of Bridgewater Investments Founder of Lionsgate Media
6 PALISADES: TSX-V: TICKER
NIRP-NEGATIVE INTEREST RATES, THE NEW NORM
Countries around the world are going to
compete to devalue their currencies.
The FED is the last hold out on negative
interest rates. And they will end up
at zero in the not too distant future.
PEOPLE WILL
RUSH INTO GOLD
TO PROTECT Donald J. Trump @realDonaldTrump
THEIR SAVINGS The Federal Reserve should get our interest
rates down to ZERO, or less, and we should
then start to refinance our debt. INTEREST
COST COULD BE BROUGHT WAY DOWN,
while at the same time substantially
lengthening the term. We have the great
currency, power, and balance sheet.....
7 PALISADES: TSX-V: TICKER
IT IS GOING TO BLOW THROUGH $1,900
AND IT IS GOING A LOT HIGHER...
“You would be reckless not to own some gold in your
portfolio. It’s insurance. And if you don’t have some
insurance in your portfolio you’d be crazy.”
ON JUNIOR RESOURCE STOCKS:
”It’s like every cycle I have seen since 1978. We will see
a new high in gold and we are not that far off, and the
money flows will come in. You will see insanity in that
space, much as you have seen insanity in that space
before.
- Frank Giustra
September 2019
8 PALISADES: TSX-V: TICKER
100 YEARS OF COMMODITY VALUATION
COMMODITIES ARE GROSSLY UNDERVALUED, AND ARE CHEAPER NOW
THAN IN 2001, JUST PRIOR TO EMBARKING ON AN EPIC BULL MARKET
1.2
1
COMMODITY INDEX/DOW JONES
INDUSTRIAL AVERAGE
COMMODITIES EXPENSIVE
0.8
0.6
0.4
0.2
COMMODITIES UNDERVALUED
0
3
10
17
30
50
70
90
17
23
37
43
57
63
77
83
97
0
19
19
19
19
19
19
19
19
19
19
19
19
20
19
20
20
Source: Bloomberg, Barron’s, G&R Models
9 PALISADES: TSX-V: TICKER
MINERS BEING VALUED AT 100-YEAR LOWS,
SAYS BERNSTEIN RESEARCH
The mining industry currently trades at 1.4 standard
deviations under its long-term average value - the lowest
recorded data point over the past century.*”
“Even during the dotcom bubble the valuation disconnect
was not as severe as it is now. Over the four years
between 1997 and 2001, the relative valuation averaged
about 0.46x relative CAPE, during the period 2015 to
present the average has been 0.31x relative CAPE!”
- Paul Gait
Bernstein Senior Research Analyst
September 2019
*Based on analyzing the sector’s cyclically adjusted price to earnings ratio (CAPE)
10 PALISADES: TSX-V: TICKER
BEAR MARKETS IN GOLD STOCKS
THE 2011 – 2016 BEAR MARKET IN MINING STOCKS REGISTERED AS THE WORST BEAR MARKET
IN HISTORY IN TERMS OF BOTH DURATION (5 YEARS) AND PRICE DECLINE (85%).
WHAT COMES NEXT SHOULD PROVE TO BE AN EQUALLY STRONG MOVE, BUT TO THE UPSIDE.
100.0
90.0
80.0
BGMI 1939 - 1942
70.0 BGMI 1968 - 1969
BGMI 1974 - 1976
60.0
BGMI 1980 - 1982
50.0
BGMI 1983 - 1986
BGMI 1996 - 2000
40.0 BGMI 2008
BGMI 2011 - 2016
30.0
20.0
10.0
Apr-11 Sept-11 Feb-12 Jul-12 Dec-12 May-13 Oct-13 Mar-14 Aug-14 Jan-15 Jun-15 Nov-15 Apr-16
ROY-BYRNE, JORDAN. “THE COMING NEW BULL MARKET IN GOLD.” Bonus Figure 1. The Daily Gold, June 2019, thedailygold.com
800%BGMI 1996 - 2000
40.0 BGMI 2008
11 PALISADES: TSX-V: TICKER
BGMI 2011 - 2016
30.0
BULL MARKETS IN GOLD STOCKS
20.0
10.0
Apr-11 Sept-11 Feb-12 Jul-12 Dec-12 May-13 Oct-13 Mar-14 Aug-14 Jan-15 Jun-15 Nov-15 Apr-16
THE CURRENT BULL MARKET IN GOLD STOCKS BEGAN IN 2016. WHEN COMPARED TO BULL MARKETS
OF THE PAST, IT IS IN ITS EARLY STAGES IN TERMS OF BOTH PRICE AND TIME. IT IS IMPORTANT TO NOTE
THAT THE CURRENT BULL MARKET HAS NOT BENEFITED JUNIOR RESOURCE STOCKS, YET.
800%
700%
600%
PERCENTAGE GAIN
Oct 1942 - Feb 1946
Jul 1960 - Mar 1968
500%
Dec 1971 - Aug 1974
Aug 1976 - Oct 1980
400%
Nov 2000 - Mar 2008
Oct 2008 - Apr 2011
300%
Jan 2016 - Mar 2019
200%
100%
1 41 81 121 161 201 241 281 321 361 401
Duration (Number of Weeks)
Source: Nowandfutures, TheDailyGold.com, Barrons, Incrementum AG0.7
12 PALISADES: TSX-V: TICKER
0.6
0.5
0.4
GOLD STOCKS VS. S&P 500 0.3
0.2
0.1
0.05
GOLD STOCKS ARE CURRENTLY VALUED AT 80 YEAR LOWS AGAINST THE S&P 500 INDEX.
30 35 40 45 50 55 60 65 70 75 80 85 90 95 00 05 10 15 20
@BGMI:@$SPX 0.15 (10 May)
10
9
8
7
6
5
4
3
2
1
0.15
00
05
10
20
15
40
50
60
70
80
45
55
65
75
85
90
95
20
20
20
20
19
19
19
19
19
19
20
19
19
19
19
19
19
Source: ROY-BYRNE, JORDAN. “THE COMING NEW BULL MARKET IN GOLD.” Figure 3.7. The Daily Gold, June 2019, thedailygold.com/.0.30
13 PALISADES: TSX-V: TICKER 0.25
0.20
GOLD STOCKS VS. GOLD 0.15
0.10
30 WHEN
EVEN 35 40 45 50 TO55
COMPARED 60GOLD
GOLD, 65 STOCKS
70 75
ARE 80 85 AT
TRADING 90 VALUATIONS
95 00 05 10
NOT SEEN 15 20 PAST 80 YEARS.
IN THE
@BGMI:@GOLDHIS 0.32 (10 May) 6.5
5.0
5.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.32
00
20
05
10
40
50
60
70
80
15
45
55
65
75
85
90
95
20
20
19
19
19
19
19
20
20
19
19
19
19
19
19
20
19
Source: ROY-BYRNE, JORDAN. “THE COMING NEW BULL MARKET IN GOLD.” Figure 3.8. The Daily Gold, June 2019, thedailygold.com/.14 PALISADES: TSX-V: TICKER
CLIENT PRECIOUS METALS ETF ALLOCATION NEAR RECORD LOWS
EVEN WITH THE ADVENT OF PASSIVE FUNDS AND CREATION OF THE GLD AND GDX, EXPOSURE TO THE GOLD SECTOR
IS AT MULTI-YEAR LOWS. HOWEVER, THAT IS BEGINNING TO CHANGE… SEE NEXT SLIDE
10%
9%
GWIM ALLOCATION, % ETF AUM 8%
7%
6%
5%
4%
3%
2%
1%
0%
‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17
Precious metals
Source: ROY-BYRNE, JORDAN. “THE COMING NEW BULL MARKET IN GOLD.” Figure 3.5. The Daily Gold, June 2019, thedailygold.com/.15 PALISADES: TSX-V: TICKER
GOLD ETF FUND FLOWS
Gold ETFs Gold Mining ETFs
In response to the gold price rally, money first Money has only started to pour into gold equity
poured into physical gold ETFs with strong ETFs in September. In fact, when gold increased in
inflows between June – August both June and August, funds saw outflows based
on profit-taking. This explains why gold equity
prices have not yet followed the gold price.
$4,000 $1,600 $1,000 $1,600
$3,560
$3,000 $2,778 $750 $612
$1,500 $1,500
$2,025 $1,958
$2,000 $500
Fund Flowes (US$mm)
Fund Flowes (US$mm)
Gold Price (US$/oz)
Gold Price (US$/oz)
$1,400 $1,400
$1,000 $250
$100 $278
- $1,300 - $1,300
($60)
($1,000) ($656) ($250) ($174)
$1,200 $1,200
($1,367)
($419) ($441)
($2,000) ($1,798) ($500) ($440) ($459)
$1,100 ($600) $1,100
($3,000) ($750)
($779)
($4,000) $1,000 ($1,000) $1,000
Jan Feb Mar Apr May Jun Jul Aug Sep Jan Feb Mar Apr May Jun Jul Aug Sep
Source: TD Research16 PALISADES: TSX-V: TICKER
CANADIAN MINING SECTOR CONTINUES TO BLEED
CANADIAN GOLD MINING FUNDS ARE STILL SEEING OUTFLOWS, AS FUNDS HAVE BEEN RESTRUCTURED INTO
CYCLICAL FUNDS OR OTHER THEMATIC FUNDS, ALTHOUGH JULY SHOWED A FIRST POSITIVE SIGN WITH LESS OUTFLOW.
THE US MARKET IS PICKING UP WITH INFLOWS STARTING TO INCREASE OVER THE PAST 2 MONTHS.
Canadian Gold Mining Funds US Gold Mining Funds
($75)
$59
($50)
$34
Fund Flowes (US$mm)
Fund Flowes (C$mm)
$23
$19
$5 $25
-
- -
($5) ($25)
($10) ($38)
($10) ($50)
($12)
($15)
($63)
($75)
($20) ($19) ($19) ($18)
($21)
($22)
($25)
Jan Feb Mar Apr May Jun Jul Jan Feb Mar Apr May Jun Jul
IT IS EXPECTED THAT THE SECTOR WILL BE THE FOCUS OF SIGNIFICANT INTEREST AS COMPANIES START
PUBLISHING Q3 NUMBERS. QUANTS AND GENERALISTS WHICH SCREEN FOR CASHFLOW YIELD WILL SEE
THE SECTOR AS VERY ATTRACTIVE AT CURRENT GOLD PRICES.17 PALISADES: TSX-V: TICKER
A SECTOR DEPRESSED
TODAY AND IN 2011, APPLE REGISTERED AS THE WORLD’S MOST VALUABLE COMPANY. IN 2011, THE ENTIRETY
OF THE GOLD MINING SECTOR OUTWEIGHED THE MARKET CAP OF APPLE BY 3X. TODAY, APPLE DWARFS THE SECTOR.
1.2T $1.12T
$1.03T
1T Rest of Universe
Goldcorp
800B Zhaojin
Rest
of Universe Barrick
600B
$454B Zijin
Newcrest
400B Zhaojin
$356B
Newmont
CNK
Barrick
200B
Zijin
Present 201118 PALISADES: TSX-V: TICKER
A CONFIRMED BREAKOUT FROM HISTORIC LOWS
SEPT 18
COMMODITIES ARE BEGINNING TO BREAK OUT AS
SEPT 12
NEGATIVE YIELDS CONTINUE TO SPREAD
AUG 20
JUL 31
1.50
MAR 22
1.40
DEC 19
PERCENTAGE GAINS
1.30
1.20
1.10
1.00
0.90
0.80
Sept-18 Dec-18 Mar-19 Jun-19 Sept-19
Gold Silver Platinum Nickel
DEC 19 MAR 22 JUL 31 AUG 20 SEPT 12 SEPT 18
Fed promised German 10-year Fed lowered rates, $16 trillion worth ECB cuts interest Fed cut rates
to stop raising bond yield turns despite steady of global negative rates further into and signals
rates negative growth yielding debt negative restarts of QE19 PALISADES: TSX-V: TICKER
GOLD HAS STARTED TO MOVE,
JUNIOR GOLD STOCKS HAVE NOT
TSX VENTURE
HUI INDEX - MAJOR JUNIOR RESOURCE
The TSX Venture Exchange GOLD MINING COMPANIES COMPANIES
acts as a proxy for junior VS. VS.
▲15% ▲42% NO CHANGE
resource stocks, with 80%
of the world’s exploration
companies listed in Canada. 1,40
Despite gold’s recent rise 1,30
and a significant move in
the major mining companies, 1,20
junior resource stocks
remain at multi-year lows. 1,10
A light switch is about to
come on and the gains 1,00
will be spectacular.
0,90
Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19
Gold Gold BUGS Index TSX Venture20 PALISADES: TSX-V: TICKER
PASSIVE FUNDS, THE DRIVING FORCE IN THE MARKET
DUE TO THE SCARCITY OF CAPITAL IN THE JUNIOR RESOURCE MARKET, AN UNPRECEDENTED BUYING
OPPORTUNITY HAS ARISEN FOR INVESTORS. TRADITIONAL BANKER AND BROKER FINANCING IS DEAD.
PASSIVE FUNDS, UNABLE TO INVEST IN JUNIOR RESOURCES DUE TO THEIR SIZE, NOW DOMINATE THE MARKET.
240
216
98 100
84
47
22
13
2016 2017 2018 2019
# of Brokered Deals # of Bought Deals
Source: Oreninc; as of April 25, 201921 PALISADES: TSX-V: TICKER
GOLD MINING STOCKS (HUI) S&P 500 RATIO
Last Bull Market in Gold Equities - Next Bull Has Started
0.5
0.4
Gold Mining Stocks
Up 1,323%
0.3
0.2
Gold Mining Stocks
Up 174%
0.1
0
1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
HUI = NYSE Arca Gold BUGS Index. Source: Incrementum AG, Bloomberg. From Jan 31, 1996 - July 29, 201922 PALISADES: TSX-V: TICKER
A LOOK AT THE LAST CYCLE
FROM 2001 TO 2007, GOLD AND GOLD STOCKS WENT ON AN EPIC RUN. PINETREE CAPITAL WAS
AN INVESTMENT ISSUER AT THE TIME LISTED ON THE TSX-V. IT’S SHARES APPRECIATED
AN ASTONISHING 10,918% BY INVESTING IN MICRO CAP PRIVATE PLACEMENTS.
GOLD TSX VENTURE PINETREE CAPITAL
VS. VS.
▲148% ▲229% ▲10,918%
1.000.0
LOGARITHMIC RETURN
100.0
10.0
1.0
0.1
2001 2002 2003 2004 2005 2006
Gold TSX Venture Pinetree Capital23 PALISADES: TSX-V: TICKER
2016: MAXIMUM LEVERAGE TO GOLD
FOLLOWING A 5 YEAR BEAR MARKET, GOLD AND GOLD STOCKS MADE A STRONG MOVE IN 2016. THE
MOVE LASTED JUST 8 MONTHS, BUT CREATED POWERFUL GAINS FOR THOSE POSITIONED PROPERLY.
PALISADE
GOLD TSX VENTURE PORTFOLIO
VS. VS.
▲6% ▲45% ▲312%
4.50
4.00
PERCENTAGE GAIN
3.50
3.00
2.50
2.00
1.50
1.00
0.50
6
6
16
6
16
6
16
6
16
6
6
6
01
01
01
01
01
01
01
01
20
20
20
20
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-2
-2
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b
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Au
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Gold TSX Venture Palisade Portfolio24 PALISADES: TSX-V: TICKER
EXECUTIVE TEAM
COLLIN KETTELL CHRISTINA MCCARTHY, B.Sc. Geo PHILIP O’NEILL, B.ASc MICHAEL KANEVSKY
FOUNDER & EXECUTIVE CHAIRMAN CHIEF EXECUTIVE OFFICER CHIEF OPERATING OFFICER & DIRECTOR CHIEF FINANCIAL OFFICER
• Founder of Palisade Global Investments, a • Geologist and Mining Specialist • President & Founder of MP1 Capital, a Calgary- • Chartered Professional Accountant, began his
resource focused private investment company, based company investing in the natural resources professional career in the audit and assurance
with $60M AUM • Director of Corporate Development and Investor sector practice at Deloitte
Relations, McEwen Mining Inc
• Comes from a family with deep ties to the • CEO and Director of Mexican Gold • Chief Financial Officer of Mexican Gold Corp.
resource space, most notably founding AuEx • Previously sold Institutional Equity at Haywood (TSX-V:MEX) and several private mining
Ventures, which ultimately sold to Newmont for Securities, a fully licenced IIROC dealer • Previous Founder, Director, and CEO of Sunward companies
$2.3B in 2011 Resources (TSX-V:SWD) where he raised $81M
• Mining Specialist and Research Analyst at Euro and led its acquisition by NovaCopper (now • Prior to joining the Company, Mr. Kanevsky held
• Co-founder & CEO of Victory Metals (TSX-V:VMX), Pacifica Canada (now Echelon Wealth Partners) Trilogy Metals), at a +140% premium to market controllership and financial reporting roles with
North America’s leading vanadium development several Vancouver based mining companies with
• Managed exploration projects in Scandinavia with
company • 2012 Induction into Casey Research NexTen –
junior exploration company operations in Argentina, Peru and Chile
industry players identified as the “Next Generation
of Resource Industry Titans”25 PALISADES: TSX-V: TICKER
DIRECTORS
GREGOR GREGERSEN ELIZABETH HARRISON, LLB MARINA A. KATUSA, MBA & B.Sc.
DIRECTOR DIRECTOR DIRECTOR
• Founder & CEO of Silver Bullion Pte Ltd. and its • Partner at Farris Law LLP, the largest independent law • Earned a Bachelor of Science (BSc) degree in
subsidiary, the Safe House SG Pte Ltd. firm in B.C.; provides legal advice on corporate finance, Geology/Earth & Ocean Science from the University
• As CEO of Silver Bullion, Gregor leads the team to securities, M&A, and general corporate advice. of British Columbia.
ensure that all legal, jurisdictional, counterparty, • Member of Queen’s Counsel (1986); Recipient of The • Was elected to the FSGV Board of Directors in
insurance, authentication and physical security Best Lawyers in Canada (2020); Lexpert Leading Lawyers September 2016.
issues are addressed so as to provide bullion in Canada (2019); Lexpert Leading 500 Lawyers in
owners the worldwide safest place to store silver • Holds a Master’s in Business Administration,
Canada (2017); Lexpert Leading Cross-Border Lawyers
and gold; Silver Bullion Pte Ltd is now Singapore’s Bachelor of Science, and a Bachelor of Education
(2017); Martindale-Hubbell (AV Preeminent 5.0 out of 5).
preeminent dealer and storage facility. from the University of British Columbia.
• Served on Board of Directors of the International Finance
• Prior to founding Silver Bullion Gregor was a Senior • Currently a member of the Board of Directors of
Centre, St. Paul’s Hospital Foundation, The Vancouver
Data Architect for Commerzbank AG and a Senior Silvercorp Metals Inc., a publicly traded mining
Opera, and Crofton House School; recently Chair of the
Business Intelligence Consultant for major MNCs. company.
Board of Directors of BC Ferries; currently on the Board of
Directors of the Forum for Women Entrepreneurs.26 PALISADES: TSX-V: TICKER
ADVISORS
R. STUART “TOOKIE” ANGUS, LLB PAUL MATYSEK, M.Sc. JIM O’ROURKE CRAIG ROBERTS, P.Eng
ADVISOR ADVISOR ADVISOR ADVISOR
• Chair of San Marco Resources Inc, K92 Mining • Founder & Executive Chairman of Victory • Has built six operating copper mines globally • Mining engineer with over 30 years of
Inc, and Kenadyr Mining (Holdings) Corp. Metals Inc. operations, consulting and investment banking
• President of Orclann Investments Inc., a private experience.
• Has 40 years of experience in structuring and • Serial entrepreneur, geochemist and geologist investment company, chairman of Compliance
financing significant international exploration, with over 40 years of experience in the mining Energy Corporation, and director of many public • Includes work on feasibility studies for
development and mining ventures. industry. and private companies in mining and property numerous mining projects worldwide,
development. investmen banking/due diligence roles in over
• Former Chairman of the Board of BC Sugar • Since 2004 as CEO or Chairman, Mr. Matysek 200 institutional equity financings.
Refinery Limited and Nevsun Resources Ltd, and has primarily focused on the exploration, • He has served as a director of the Mining
has held several Director positions, including development and sale of five publicly listed Association of Canada (1987–1990) and • Significant experience advising management
with First Quantum Minerals, Canico Resources companies, in aggregate worth over $2 billion. the Vancouver Board of Trade (1990), and and boards on merger and acquisition
Corp., Bema Gold Corp., Ventana Gold Corp., and chairman (1992) and director (1987–Present) transactions.
Plutonic Power Corp. • Most recently, he was Executive Chairman of the British Columbia Mining Association.
of Lithium X Energy Corp. which was sold to
Nextview New Energy Lion Hong Kong Limited
(“Nextview”) for $265 million in cash.27 PALISADES: TSX-V: TICKER
CORNERSTONE INVESTORS
Doug Casey
World-renowned resource
speculator and New York Times
Best Selling Author
Keith Neumeyer Marin Katusa
Serially successful mining One of Canada’s largest resource
entrepreneur. Founder of First focused fund manager; New York
Quantum Minerals (TSX: FM) Times Best Selling Author and
and First Majestic Silver Corp. Publisher of Katusa Research28 PALISADES: TSX-V: TICKER
THE FIRST VEHICLE OF ITS KIND
PALISADES GOLDCORP WAS DESIGNED BY SHAREHOLDER FOR SHAREHOLDERS,
WITH MANAGEMENT AND DIRECTORS OWNING +40%
Only public company in Canada with no
options, no RSU, DSU, or PSU shares
Investment
Audit Committee Corporate
Full 3 year escrow on all management Committee Governance
COLLIN
and directors KETTELL
GREGOR ELIZABETH
GREGERSEN Chairperson
HARRISON
Lowest quartile compensation for Chairperson CHRISTINA Chairperson
MCCARTHY
management and directors MARINA MARINA
KATUSA MARINA KATUSA
KATUSA
PHILIP
Plan to have zero G&A costs net of O’NEILL PHILIP
GREGOR
GREGERSEN
O’NEILL
dividends from deeply discounted ELIZABETH
HARRISON ELIZABETH
resource stocks HARRISON
GREGOR
GREGERSEN29 PALISADES: TSX-V: TICKER
MAXIMIZING PORTFOLIO GROWTH
KEY INVESTMENTS MANDATE INVESTMENT
PRIVATE PLACEMENTS CRITERIA
The key to maximizing returns in a bull market is the leverage afforded by warrants, which can • Successful management teams
only be acquired by investing in private placement financings. Private placements are only with significant ownership
offered to accredited investors, and typically contain a share and a warrant. • Well-defined assets and/or a
disruptive business model
Junior resource warrants are arguably the most mispriced financial asset class in the world, • Mispriced securities in relation
providing incredible leverage to the underlying commodity. Palisades will focus on structuring to an underlying company’s
and participating in financings with full warrant coverage and long dated warrants. prospects
• Near term catalysts to drive a
Example: ABC GOLD is trading at $0.31. ABC announces a unit financing at $0.25, with a rerating in the market
full five year warrant at $0.35. Participants can sell their shares in four months, but hold the • Favorable capital structure and
warrants for a full five years. If the stock moves to $2, investors can make an 8x return on their ample liquidity
shares, and an additional 6.5X return on their warrants.30 PALISADES: TSX-V: TICKER
WHY TO INVEST WITH PALISADES
EXPERIENCED TEAM
Managed by executive team with extensive investment management and venture capital experience over multiple
decades.
QUICK DECISION MAKING
Junior resource companies are starved for cash and willing to offer investors favorable terms when investors are
able to move quickly. Investment decisions are made by an investment committee chaired by Collin Kettell.
ACTIVE INVOLVEMENT
Palisades maintains active involvment with several of its investee companies to assist them with executing their
business plans.
PUBLICLY LISTED
Shareholders realize transparency, oversight and liquidity through our listing on the Toronto Venture Exchange.
ALIGNED INTERESTS
Palisades’ management team and board are significant shareholders in the company, creating an alignment of
interests with investors.31 PALISADES: TSX-V: TICKER
FINALLY, A VEHICLE FOR AMERICAN INVESTORS
AMERICAN INVESTORS DO NOT OPERATE
ON A LEVEL PLAYING FIELD WITH INTERNATIONAL
AND CANADIAN INVESTORS
Mandated Unable to open a Not able to
a minimum 6 month Canadian brokerage cashlessly exercise
hold period instead account to their warrants,
of 4 months participate in or sell providing
private placements considerable risk
These same issues all exist for non-accredited, retail investors
BECAUSE PALISADES IS A CANADIAN COMPANY WITH LESS THAN 50% AMERICAN OWNERSHIP, IT WILL ALLOW
AMERICAN COUNTERPARTS TO INVEST ALONGSIDE THEIR INTERNATIONAL COUNTERPARTS32 PALISADES: TSX-V: TICKER
A KNOWN BRAND
• Palisade Radio is the largest online radio show dedicated to the junior
THE LARGEST ONLINE RADIO
resource market SHOW ON JUNIOR MINING
• Palisade Global is an industry recognized brand with a considerable
following vis-a-vis Palisade Radio
11,500+
YouTube Subscribers
• Palisades Goldcorp shareholders will benefit from existing brand
awareness and retail following to the Palisade brand
• Palisades will have exclusive use of Palisade Radio, the single largest
online radio show on junior mining 9,000+
Email Subscribers
INTERVIEWING
THE LARGEST
NAMES IN THE
RESOURCE
SPACE EACH
50,000
AND EVERY Weekly Views
WEEK33 PALISADES: TSX-V: TICKER
PALISADE GLOBAL HAS INCREASED
20-FOLD SINCE 201634 PALISADES: TSX-V: TICKER
STRUCTURE
28% 35%
OUTSIDE PALISADE
INVESTORS GLOBAL
20% 12%
L3 SMALL CAP DIRECTORS
GOLD FUND & INSIDERS
5%
ADVISORS & CORNERSTONE
INVESTORS35 PALISADES: TSX-V: TICKER
CAPITAL STRUCTURE
Shares Dollar POSITIONS
Founder Shares (Unallocated) 2,500,000 $1
1. Victory Metals (TSX-V: VMX)
$0.75 financing 4,925,000 $3,700,000
2,462,500 Warrants 2. Tongold (OTC: TNGL)
$0.85 financing 1,176,400 $1,000,000 3. New Found Gold (Private)
588,200 Warrants 4. Triumph Gold (TSX-V: TIG)
Share Exchanges 41,182,042 $41,182,042
5. Mexican Gold (TSX-V: MEX)
AMALGAMATIONS
Numbered Company 2,500,000 $2,500,000 6. K92 Mining (TSX-V: KNT)
Radio Fuels 3,759,367 $3,750,000 7. GoldSpot Discoveries (TSX-V: SPOT)
Casino Gold 16,400,000 $16,500,000
Total 72,442,809 $68,632,043
NAV = $68,632,043/72,442,809 Shares = $0.9536 PALISADES: TSX-V: TICKER
PALISADES LOCATIONS
VANCOUVER CALGARY
Registered Office Satellite Office
TORONTO
Head OfficeCOLLIN KETTELL 787-299-6165 COLLIN@PALISADES.CA CHRISTINA MCCARTHY 416-712-6151 CHRISTINA@PALISADES.CA
APPENDIX
39 PALISADES: TSX-V: TICKER
MAJOR GOLD BULLS
800%
Current Bull Market
700%
(2015 - Present)
2001-2011
600%
1976-1980
500% 1970-1974
Percent Change
400%
300%
200%
100%
0%
- 100%
2015 2016 2017 2018 2019 2020 2021 2022
Source: Yahoo Finance40 PALISADES: TSX-V: TICKER
GOLD PRICES ARE FAR FROM REACHING BUBBLE TERRITORY
$10,000
$9,000
Gold 1970-1980
$8,000
Nikkei 1970-1990
$7,000 Nasdaq 1980-2000
$6,000 Oil 1998-2008
$5,000 Gold 2001-
$4,000
$3,000
$2,000
$1,000
$0
1
3
5
7
9
1
3
5
7
9
1
-0
-0
-0
-0
-0
-1
-1
-1
-1
-1
-2
ar
ar
ar
ar
ar
ar
ar
ar
ar
ar
ar
M
M
M
M
M
M
M
M
M
M
M
Source: ROY-BYRNE, JORDAN. “THE COMING NEW BULL MARKET IN GOLD.” Figure 2.1. The Daily Gold, June 2019, thedailygold.com/.41 PALISADES: TSX-V: TICKER
GOLD PRICES IN DIFFERENT CURRENCIES
GOLD IS AT AN ALL TIME HIGH IN EVERY MAJOR CURRENCY EXCEPT THE USD
1.80
1.70
1.60
($/oz)
1.50
(€/oz)
1.40
(¥/oz)
1.30
1.20 (£/oz)
1.10
(AU$/oz)
1.00
(C$/oz)
0.90
0.80
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