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One legacy of the former workings is a number of ore dumps, which could provide bulk sampling opportunity. But it’s the lack of drilling that really interests Roberge. “That’s the toughest part of the business but new discoveries are what create the most value in junior exploration.” With that in mind, Roberge expects to have a rig turning by May.
[Drilling is] the toughest part of the business but new discoveries are what create the most value in junior exploration.—Jay Roberge, president/CEO
of Equitas Resources
Terms of the acquisition call for $250,000 in annual expenditures for the first five years.
“That doesn’t put any onerous burden on the company in terms of capital requirements,” Roberge says. “Obviously if the property continues to perform well, we could accelerate that program accordingly.”
Other terms of the deal have Equitas paying $620,000, issuing five million shares and spending a total of $1.3 million over seven years. The vendors retain a 2% NSR, of which Equitas may buy half for $1 million.
Roberge notes exploration cost advantages resulting from the property’s proximity to HQ, infrastructure and, just 25 kilometres away, Port Alberni—“a good salt of the earth town” with accommodation, services and workforce. In and around the region, he’s also found considerable interest.
Visiting the area prior to announcing the acquisition, Roberge’s first stop was the Tseshaht First Nation. “They were very co-operative. They haven’t done a mining deal before, so we’ll be looking forward to helping them understand the business a bit more and to help them with some resources.”
An October 18 Alberni Valley Times article quoted a salmon enhancement society volunteer saying the local waterways “are most likely some of the most forgiving bodies of water in North America. They’re deep and they have high flow.”
Referring to the Nahmint project, he added, “I have concerns and I would hope that everything done nowadays is done to the highest environmental standards. But I’m all for development. I think it will be good for the community.”
Response also came from the Port Alberni Port Authority, which contacted Equitas to offer “help in any way they can,” Roberge says. “So we’re very excited about the opportunity to do some good, hard work which could benefit shareholders and the local community.”
The company’s share structure might underline that commitment. About 55% is held by insiders including management, prospect generator Zimtu Capital TSXV:ZC and Zijin’s 19.9%.
Referring to the latter as “a big brother with the financial capability to develop projects,” Roberge points out that Equitas will consider additional acquisitions as opportunities arise. “We see ourselves as a copper-gold porphyry hunter and it’s certainly the model of Zijin to be involved in those types of projects.”
Disclaimer: Zimtu Capital Corp is a client of OnPage Media Corp, the publisher of ResourceClips.com. The principals of OnPage Media may hold shares in Zimtu Capital.
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