With global resources that exceed 11.4 million ounces of measured and indicated gold and 13.8 million ounces of inferred gold, GoldMining Inc. (GOLD.TO; GLDLF.OTC) was already one of the best ways to maximize gains in this historic gold bull market.

Now, thanks to the creation of a royalty company based on its Americas-focused project portfolio, GoldMining is taking its leverage potential on the yellow metal to the next level.

Dear Fellow Investor,

“I love it when a plan comes together.”

That famous line from the 1980’s TV show “The A Team” is an apt response to the gold story that serial mining entrepreneur Amir Adnani has put together at GoldMining Inc. (GOLD.TO; GLDLF.OTC).

Back in 2011, just after the last market peak, Adnani began scouring the Americas for development-stage gold projects at discount prices.

The gold market being in full bear mode at that point, he found them in spades, and over the course of the ensuing nine years, amassed a portfolio of 11 projects.

It was all done in the belief that gold’s fortunes would turn….and boy, have they.

After its recent, Covid-related bottom in mid-March, gold charged ahead, posting a 40% gain in a matter of months before the inevitable market pause kicked in.

Over that same period, GOLD (GoldMining’s fortuitous trading symbol) has posted a peak gain of 258%. Such is the leverage that a story built for a bull market can provide.

And the even better news?

Adnani has just put together a gold royalty company, wholly owned by GoldMining, that promises to turbo-charge that leverage.

But I’m getting ahead of myself. First, let’s review the value GoldMining has already assembled, courtesy of one of the sector’s biggest in situ land banks.

Massive Gold Bank Provides Leverage

The chart below tells the GoldMining story well. It shows how the company cobbled together a large portfolio of advanced-staged projects in the midst of a bear market.

Beginning with its first acquisition of the Cachoeira project in Brazil in 2012, GoldMining went on to acquire another 10 projects.

In the process it has grown its global in situ resources to 11.4 million ounces of measured and indicated gold and 13.8 million ounces of inferred gold (14.3 million ounces of measured and indicated and 16.6 million ounces of inferred on a gold-equivalent basis).

GOLD.TO has put together this portfolio, owned by companies with combined peak market caps of C$850 million, for a mere C$81 million.

And with the gold reserves of the world’s majors plunging over this same period, GoldMining’s collection of resource-stage projects puts it in the proverbial cat bird’s seat.

As I’ve already noted, just the optionality factor alone of the company’s massive in situ bank of gold has allowed it to race ahead in the current market.

Now, there’s the prospect that a long period of higher gold prices will convince majors, who will be increasingly flush with cash, to go on a buying spree.

Which leads me to GOLD’s latest move to amp up its leverage in this new environment: namely, the creation of a wholly owned subsidiary named Gold Royalty Corp.

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New Royalty Company Supercharges Leverage

Adnani created Gold Royalty Corp in July to capitalize on the generalist investors’ demonstrable appetite for royalty companies, which offer exposure to the upside of mining, without the headaches (or the costs) of operating a gold mine.

These plays have done exceptionally well in the current market, and in GoldMining’s large portfolio of development-stage projects, Adnani saw a chance to create one out of whole cloth.

Which is exactly what he has done, vending Net Smelter Return (NSR) royalties for its 11 projects into Gold Royalty Corp.

Then, to prove he means business, he has quickly assembled an “A List” team to lead the subsidiary. Key recent additions include:

• David Garofalo: GoldMining hired this 30-year mining veteran as CEO, Chairman and Director of Gold Royalty Corp. Garofalo is fresh off a stint as CEO of Goldcorp, where he consummated that company’s 2019 merger with Newmont.

• Warren Gilman: Joining the board as a director in mid-August, Gilman has a three-decade career in metals and mining sector deal-making. He is Founder, Chairman and CEO of Queen’s Road Capital Investment, past Chairman and CEO of CEF Holdings and, prior to that, a 26-year veteran of CIBC.

• John Griffith: Brought on the last week of August as Gold Royalty Corp.’s Chief Development Officer, Griffith was most recently head of Bank of America’s Metals and Mining Investment Banking division. In just the past decade, he has advised on more than $60 billion of mining transactions.

• Ian Telfer: Announced the first week of September, Telfer joins Gold Royalty Corp. as Chairman of its advisory board. Companies built and led by Telfer include Wheaton River (which became Goldcorp), Wheaton Precious Metals and Uranium One, which have reached a combined market cap of over $50 billion at their peaks.

As you can tell, these are the heaviest of hitters.

That they were drawn to this newly formed royalty company speaks volumes about the potential they see in this gold market, and in GRC in particular.

Don’t Let GOLD Get Away From You

To say the market has taken notice would be an understatement — GOLD spiked more than C$1.50 as news of these additions to the GRC team came out.

I had the good fortune to interview CEO David Garofalo recently to learn why he signed on, what he sees ahead for gold and how he plans to unlock value at GRC.

If you want a clear understanding of the potential here, watching this video will be 20 minutes well spent.

To summarize, GRC’s options include:

• Buying back more third-party NSRs on GoldMining’s existing portfolio

• Enhancing the value of the portfolio by finding majors to develop some of GoldMining’s projects, thereby bringing nearer-term cash flow into play

• Unlocking the value of this subsidiary by spinning out GRC into a separately traded public company

That last prospect is what makes GoldMining Inc. (GOLD.TO; GLDLF.OTC) such an enticing investment for the gold bull market still to come.

It’s an investment that offers leverage upon leverage, with an optionality bet on GoldMining’s huge in situ gold bank buying you a piece of a potential spin out of GRC.

If you want to maximize your gains on this unique gold vehicle, I suggest you consider buying GOLD (GoldMining Inc. (GOLD.TO; GLDLF.OTC) at or near current levels.

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