SeeThruEquity Initiates Research Coverage on Discovery Ventures, Inc. with a Target Price of $0.78

New York, NY / ACCESSWIRE / November 3, 2014 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, announced it has recently initiated coverage on Discovery Ventures, Inc. DVN. DVN is a Canada-based exploration and development stage company focused on the WillaMAX project located in British Columbia and prospecting for gold, copper and silver.

Ajay Tandon, CEO of SeeThruEquity commented, "With a focus on near term production and expansion of opportunities at the WilliMAX project, we believe the company is poised to gain from significant catalysts. The June 2014 Preliminary Economic Assessment for WillaMAX was favorable. We will continue to monitor the company closely and are initiating coverage with a target price of $0.78 per share."

Additional investment highlights are as follows:

Flagship Willa asset lies within highly mineralized regions

Discovery's flagship Willa property hosts well-defined gold, copper and silver deposit and is located in one of the most highly mineralized regions for base and precious metals in southeastern British Columbia. The deposit is un-mined, fully developed and "open" with several other highly-prospective areas untested. The 43-101 mineral resource estimate published in 2012 identifies Measured and Indicated mineral resources of 758,000 tonnes grading 6.67 g gold/t, 0.85% copper and 12.54 g silver/t and inferred resources of 216,177 tonnes grading 6.55 g gold/t, 0.57% Cu and 7.32 g silver/t.

WillaMAX PEA indicates robust economics

In June 2014, DVN announced the results of a PEA for the WillaMAX project, which combines the favorable underground mining opportunity at the Willa copper-gold resource with milling facilities at the MAX Mine. Close proximity (~135 km apart), sizable tax pools ($50mn) and low capex ($13mn including acquisition of MAX Mill) provides a significant return on investment on the WillaMAX project. The PEA mine plan assumes a daily throughput of 500 tonnes translating into an initial four-year mine life. Based on the Base Case of $125/t value cut‐off, total revenue is estimated at $164mn while operating and capital costs are estimated at $83mn and $12.8mn, translating into $680/ Au Eq oz cash costs and all-in-costs of $780/ Au Eq oz. NPV for the base case is estimated at $54.9mn @10% discount rate with Internal Rate of Return (IRR) of 412%. Given the current depressed gold prices, we believe there is significant market interest for low-cost gold projects such as WillaMAX.

Closes $2.5mn private placement and inks US$12.1mn prepayment agreement

DVN continues to aggressively pursue capital raising efforts to advance the WillaMax project. In July 2014, the company raised $2.4mn in a private placement through issue of ~16.4mn shares at $0.15 per share. In June 2014, DVN inked a non-binding term sheet for a US$12.1mn gold prepayment agreement with a New York based financing firm. The Facility would bear a 9% interest per annum on funds advanced and would be repaid by the delivery of 14,400 oz of gold and 900 tons of copper over a period of 36 months. We believe the closing of the prepayment facility will be an important milestone for DVN as it provides the company with necessary funds to advance the WillaMAX Project through to near term production. Total proceeds from the private placement and the prepayment facility (if closed successfully) amount to $14.5mn and would be sufficient to fund the ~$13mn in production costs for the WillaMax project outlined in the PEA.

The report is available here: DVN Initiation Report. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack's. The report will also be available on these platforms.

Please review important disclosures on our website at http://www.seethruequity.com/.

About Discovery Ventures, Inc.

DVN is a Canada-based exploration and development stage company focused on the WillaMAX project located in British Columbia and prospective for gold, copper and silver. In May 2014, the company released WillaMAX Preliminary Economic Assessment (PEA) study, which showed low capex and robust economics.

For more information, visit http://www.discoveryventuresinc.com/.

About SeeThruEquity

SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. We do not conduct any investment banking or commission based business. We are approved to contribute our research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks, and distribute our research to our database of opt-in investors. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.

For more information visit http://www.seethruequity.com/.

Contact:
Ajay Tandon
SeeThruEquity
(646) 495-0939

SOURCE: SeeThruEquity