LAS VEGAS: USCorp, a public corporation with interests in land that can be mined for minerals, has tapped Martin E. Janis & Company for a national financial PR program aimed to overcome the stigmas associated with junior companies in the mining industry in order to attract investors.
Most of the firm's work will revolve around media relations, targeting newsletters, trade media, and business publications read by investors, particularly those interested in putting their money in mining. They will also be introducing the companies to retail brokers, financial analysts, and others in the investment community.
USCorp, which isn't listed on the NASDAQ, says that its properties in Arizona and California contain mineral reserves.
“Today, gold is at $900 an ounce and technology has advanced in ways to make it economical to get gold and silver out of the ground,” says Beverly Jedynak, president of Martin E. Janis. “This is a company with these proven reserves [and] a share price that they think doesn't reflect the value of the company.”
Stories like the Bre-X scandal have made it difficult for junior mining companies to get investors. Bre-X was a junior Canadian company whose stock soared in the 1990s based on fraudulent claims of valuable Indonesian gold reserves. By 1997, shares of the company had become worthless, costing investors billions.
“When you're dealing with these kinds of junior companies, you have to be careful about how this messaging goes up,” says Jedynak. “There's always this aura of ‘the next best thing.' You don't overpromise.”