GL Energy & Exploration Inc

Stock Exchanges: OTC Bulletin Board
Symbol: OTC:BB: GEEX
Symbol: GEEX
Share price: US$0.21 (as of 04 December, 2014)
Shares issued: 30.04 million (issued and outstanding)
Free Float: 10.04 million shares / 16.80% (estimate)
Trading volume: 112.000 shares (3m average)
Date of report: 31 December, 2014

Investment Highlights:

• A Growth Commodity: Evidence suggests that the price of gold bottomed over a year ago and that this market is in the early stages of a new multi-year bull market. The price of silver is at a 6-year low when adjusted for inflation. Technical analysis makes a strong case that gold has the potential to rise from its current price of around $300 per ounce to the $1,000 level over the next few years. GEEX stock offers investors an alternative to owning gold and silver bullion and even coins.
• High-potential interests: The Company has a 60% ownership stake in 2 Chilean mining properties which have been proven to have extensive deposits of gold and other precious metals. Projected revenues on the life of these two mines are estimated to be over $4.3 billion U.S.
• Strong Management: Mr Donald Byers, CEO, and Mr Arthur Lang, Secretary, Treasurer and Director champion the Company’s management team. With 28 years of experience in creating and running both public and privately traded business organizations, this dynamic team has amassed an impressive record of success and growth and extensive knowledge within the mining sector.
• A Strong Partner: The Company’s Joint Venture partnership with SEM Mining Corporation creates an excellent team for the exploitation of the Chilean properties.

Recent Developments:

• 30 September 2014: GL Energy and Exploration Inc. Announces Berlin Stock Exchange Listing. GL Energy and Exploration Inc. (GEEX) is pleased to announce the Company’s listing application has met all admission requirements and has been accepted for listing on the Berlin Stock Exchange.
  GL Energy and Exploration Inc. (GEEX) will trade under the ticker symbol GE6.BE and German Securities CUSIP number WKN 914350. The listing will be effective today, the 30th of September. GL Energy and Exploration Inc. will continue to trade on the NASDAQ OTC Bulletin Board.”By listing on the Berlin Exchange, we offer European investors the opportunity to trade the company’s shares. European investors are trading North American shares more and more often and in increasing volumes. GL Energy and Exploration Inc.’s new listing in Germany exposes the company to all European investors, institutional and retail. We take pride in having passed the exchange’s admission requirements, and appreciate the implied confidence in our company shown by those in the brokerage community,” said Don Byers, President and CEO of GL Energy and Exploration Inc.
• July 01 2014: Letter of Intent Signed – Financing for GL Energy and Exploration, Inc. GL Energy and Exploration (GEEX) is pleased to announce the signing of a Letter of Intent with a venture capital firm from the U.S. The loan amount is $3,000,000.00 in US currency for the purchase and construction of a Pilot Plant for the Duna Chaopa Norte and La Barca ore-body. The Pilot Plant would generate cash flow within six months of initial financing. The company (GEEX) is now in the due diligence phase of the Letter of Intent.The La Barca ore-body based on approximate value of .25 grams per ton gold and approximate value of .27 grams per ton gold on the Duna Chaopa Ore-body, should contain 733,243 ounces of gold and the Duna Chaopa Norte Ore-body should contain 360,435 ounces of gold.Revenue from the gold calculated at US$300 per ounce would be US$210,973,166 on 733,243 oz of gold on the La Barca Ore-body and US$108,130,723 based on 360,435 oz of gold on the Duna Chaopa Norte Ore-body for total US$328,103,889.The recovery is estimated to be 60% which will generate US$196,862,333 from the two ore-bodies. 
• 26 June 2014: Market Advisors initiates coverage on GL Energy and Exploration, Inc.: Short-term target price of U.S. $1.25. GL Energy and Explorations Inc. is pleased to announce that Market Advisors initiates coverage of GL Energy and Explorations Inc., Mr. Jeff Helleberg confirms positive outlook on GEEX based on his analysis of the Company’s projected growth and fundamentals.Mr. Jeff Helleberg is the lead analyst of Market Advisors, a company that has been in business since the 1970s. During the late 1980s and through the 1990s, Mr. Helleberg was the editor and chief of the nationally syndicated Marketarian Newsletter. Under Mr. Helleberg’s guidance, the Marketarian was rated numerous times by the Wall Street Journal, Hubert Financial Digest and the Timer Digest, among others, as one of the best market timers, top bond timers and having one of the best model portfolios.Mr. Helleberg stated, “We like GEEX at current levels, because it appears the stock is extremely undervalued due in part to its projected revenues as well as other technical factors. It is reasonable to expect that this stock could test previous levels over the intermediate-term near that were seen last fall around $3.00-$4.00 area. This will be contingent on the Company securing adequate financing for production.”CEO and President Don Byers stated, “We are very pleased that Market Advisors has issued a strong and positive opinion on our Company. We are excited that those in the investment community have begun to take notice and will be monitoring our growth. We share their excitement about the future prospects of the gold and tungsten mining industry.” GL Energy and Explorations Inc’s., primary objective is to enhance its share value by increasing its gold ore reserves, joint venturing with other gold mining companies, and to begin producing gold at an above average profit. GEEX is aggressively pursuing the acquisition or merger businesses. 
• 01 May 2014: GL Energy and Exploration, Inc. announces extension of acquisition agreement of gold mineralization claims. GL Energy and Exploration, Inc. announced today that its wholly owned subsidiary, GL Gold, Inc. has agreed to an extension of its asset purchase contract, dated as of February 25, 2014, to acquire a permitted gold mine as well as two unpermitted groups of mining claims which may have gold mineralization. At its election, the company may also acquire certain mining equipment. The mining claims and assets are located in Oregon.The purchase is subject to a number of conditions which must be completed on or before July 31, 2014, including the company raising the purchase amounts, and completing its due diligence. In addition, the company will need working capital going forward. No assurance can be given that the company will consummate the purchase.The Company plans to use the extension period to perform some on site testing of gravel terraces located at the project site as well as for some follow up due diligence based on findings from the original site inspection of March 2014. GL Energy and Exploration, Inc. is a development-stage company. The company is engaged in the fields of mineral exploration, energy and property development within North America. Currently, through its subsidiary, GL Tungsten, the company has one mineral rights project and is investigating financial alternatives for the purpose of exploring the current project, as well as adding additional projects.

Corporate Overview:

GL Energy and Exploration, Inc. is a development stage mining exploration company. The Company was incorporated in the state of Delaware on October 7, 1998, under the name LRS Incorporated. On October 15, 1998, the name of the corporation was changed to LRS Capital, Inc. In October of 2001, the name of the Corporation was changed to its present name. Located in Vancouver BC, Canada, the company is engaged in the exploration of mining prospects with tungsten mineralization located in the United States. Tungsten is considered to be an important industrial metal. Some of its more common uses include its utilization with other metals to provide strength and wear resistance for various kinds of tools used in construction, mining and metalworking. This metal is superior to lead and uranium and thus has many uses.

The Company currently owns a 60% ownership stake in 2 Chilean mining properties covering an area of over 12 square miles, properties which are jointly referred to as the “La Barca-Choapa Project”. These proerties have already proven to have extensive deposits of gold, titanium, rutile, zircon, magnetite, ilmenite, nickel and others.

The Company’s revenues on both of their Chilean mining properties over the life of the mines is expected to be over $4.3 billion. The Company expects to be in production within 6 months of securing the financing which is expected to be complete early January 2015.

Products and Services:

Mineral Mines
GL Energy and Exploration, in association with its joint venture partner SEM Mining Corporation S.A, has several heavy mineral sands deposits, both located in Chile. The deposits are large and high-grade. Additional features of these deposits: they have easy access to railroad or paved highway and are located along the ocean. Studies have shown the deposits to be clean, i.e. they do not contain any clay, soil or other contaminants. There are additionally no residences, soil, forest or grass cover on the ore bodies, which significantly reduces the cost of exploiting the properties.

The Duna Choapa Norte ore body, which has an estimated 17 years of deposits, and the La Barca ore body, with an estimated 38 years of product, are contiguous and located about 250km north of Santiago, Chile, and about 200km north of the port of Valpariso in the IV region of Chile. The Duna Choapa Norte ore body is 1 kilometer west from the Pan American highway, while the La Barca is 3km west of the highway.

The ore bodies are clean mineral sands deposits containing rutile, zircon, magnetite, ilmenite, olivine and ganierite along with Rare-Earth oxides (REO) in a matrix of quartz.

The La Barca ore-body based on approximate value of .25 grams per ton gold and approximate value of .27 grams per ton gold on the Duna Chaopa Ore-body, should contain 733,243 ounces of gold and the Duna Chaopa Norte Ore-body should contain 360,435 ounces of gold.

Revenue from the gold calculated at US$300 per ounce would be US$210,973,166 on 733,243 oz of gold on the La Barca Ore-body and US$108,130,723 based on 360,435 oz of gold on the Duna Chaopa Norte Ore-body for total US$328,103,889.

The recovery is estimated to be 60% which will generate US$196,862,333 from the two ore-bodies.

Strategic Growth Plan:

With the intention of developing its promising properties in Chile, the Company has already conducted extensive drilling and has recently been approved for $3 million in funding. $2 million of these funds have been earmarked for the establishment of a pilot plant operation which is expected to be in production within 6 months and generating $13 million p.a. in pre-tax profit. The main purpose of this pilot plant is to determine the final parameters of the production plant. While the production plant is being constructed, shipped and installed, the pilot plant will be used to train the personnel for the production plant and may function as a production plant until the finished plant, at an estimated cost of $8 million, comes on stream.

It is expected that the pilot plant can alone produce sufficient capital to fund the construction of the production plant, the next stage of the Company’s expansion, which is expected to generate revenues in excess of $93 million U.S.

Management:

• Donald Byers, C.E.O: Donald Byers has more than 15 years business experience as a business and financial consultant to companies in both the private and public sphere. His particular field of competence lies in structuring private companies to go public. Prior to his consultancy, Mr Byers was the senior partner in a brokerage company listed as a member of the Toronto Stock Exchange.

• Arthur Lang, Secretary, Treasurer & Director: An independent director of the Company, Mr. Lang has more than 20 years successful business experience in the real estate sector.

• Larry Mashburn, Chief Metallurgist, SEM Mining Corporation: Mr Mashburn, a graduate of metallurgical and mining engineering, designed, installed and still operates the first gravity recovery plant to use Reichert Cones for the recovery of fine free gold. Mr. Mashburn is one of the leading experts on modern gravity and electro-magnetic techniques, the techniques which are being used in this project .

Capital Structure:

The Company currently has around 30 million shares issued and outstanding with a free float of 10 million. The Company’s stock is currently trading for $0.21. Recently, the stock has been trading as high as $0.50. The short-term price target is $1.25, with an intermediate term target price of $3.00 to $4.00.

The 52-week range sees the GEEX stock fluctuating between $0.15 and $0.95 on a 3-month average trading volume of 112,964.

Summary:

The potential for appreciation from current levels in the value of GEEX shares is now a real possibility. The Company’s management team has already transitioned the Company from development stage to growth stage and with a Joint Venture partnership already in place and pilot plant funding achieved and subject to final confirmation (as of January 2015), the Company is well-positioned to capitalise on the development of its strategic holding in Chile. The success of the Company’s undertaking is contingent on securing an additional source of funding to enable the construction of the full-scale production plant, or on the pilot plant generating sufficient revenue over the short term to fund the development of the production plant. The securing of additional funding will be a clear indication of the Company’s confidence and the concurrence of potential investors. Development over the next six to twelve months should be watched intently by investors eager to capitalise on one of the prime undervalued stocks in this sector.

Conclusion:

America’s debt is rising with no apparent ceiling in sight. Foreign nations have limited options when it comes to investing their US dollars without inviting intolerable consequences for their own countries. One of these options is to invest in gold, which is known as “history’s currency”. Since the market capitalization of all gold stocks is very small (estimated at US $60 billion), an investment of just a fraction of these dollars would promptly cause the precious metal to increase in value tremendously. This scenario is becoming increasingly probable.

Gold is not just for jewellry, but also has many uses in electronics, computer components and space exploration. Today, more and more investors around the world are turning to precious metals as an alternative investment. Consequently gold and stocks in gold-related companies are becoming increasingly attractive. Should the price of gold, as anticipated by many analysts, rise above $500 per ounce within the forseeable future, companies such as G L Energy and Exploration, with their finger on the production pulse, could become a very canny investment.