The mining exploration business is very risky, with about 3 out of a 1000 good looking prospects becoming mines.
That’s why some smart small exploration companies follow the “prospect generator” business model of generating ideas and finding more established partners to pay for the drilling. This shares the upside, but more importantly, gives the prospect generator multiple shots at discovery without unnecessary equity dilution.
An example is Vancouver-based, Mexico-focused micro-cap
Evrim Resources (TSXV:EVM), which has 5 partner funded drill-programs planned for 2015.
The company is interesting for a few reasons. To start with, it boasts some impressive backers include John Tognetti (Haywood Chairman) Rick Rule (Sprott USA Chairman), Paul van Eeden (fund manager) and Adrian Day (fund manager).
The company has a roughly $6.2 million market capitalization and about $3.1 million in cash with its shares trading at $0.185. A month ago, Evrim’s CEO told me that cash runway could last until early 2017.
All previous financings done by Evrim have been at much higher prices, with rounds at $0.50, $0.32, and again at $0.32. The company has never issued warrants, which is unusual in junior mining finance and a positive for Evrim as it protects the share structure.
Additionally, the thing about Evrim that really caught my eye is the appointment of Alain Charest as Senior Geologist back in early February. Mr. Charest has made several discoveries in Mexico and is one of the most experienced and active explorationists in the country.
It was for these reasons we asked CEO.ca cameraman Carter Smith to visit the Evrim booth at the PDAC, the world’s largest mining convention, on March 1, 2015 in Toronto. Both CEO Paddy Nicol and Senior Geologist Alain Charest were present to quickly discuss the company’s 2015 plans.
Here is a transcript of the above video:
Paddy Nicol, President and CEO: For 2015, for Evrim, we have 4 drill programs planned on 2 of our projects with one of our exploration partners, Silvercrest. We’ve also got a 5th drill programmed planned with Arcellor Mital down in Sonora. The first four for gold exploration, and the 5th drill program is for iron-ore exploration.
The first set of results came out earlier last week, and it was a discovery on one of our projects. First time ever, we’re looking forward to seeing additional results come from that project over the next little while.
What we’re looking for, is a discovery on our Ermitaño project, and we’re basically looking to build resources now, and step out from what they’ve found already. The first stage program was a success and it’s basically building on what they’ve discovered to date.
Alain Charest, Senior Geologist: I’ve 21 years of experience in Mexico, and a few discoveries behind my belt. Joining the team of Evrim, I think there’s very good opportunity right now to pick up some very high quality projects in Mexico. It’s time to go shopping, be selective, there’s some good stuff out there. I think with the team of Evrim in Vancouver and our team in Mexico, there’s a good opportunity to bring some new projects to the company that’s basically going to give some more value to the shareholders and Evrim itself.
Forward Looking Information
This interview includes certain statements that may be deemed “forward looking statements”. All statements in this interview, other than statements of historical facts, that address events or developments that Evrim Resources Corp. (the “Company”) expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur.
Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward looking statements. Factors that could cause the actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required by securities laws, the Company undertakes no obligation to update these forward looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.