RE:Letter to shareholders... The Company has over several years entered into Confidentiality Agreements in the context of potential corporate merger or property transactions with the emphasis on the Rateria-West Valley projects. Site visits with interested parties continue with another one planned in July. The projects are large with a significant volume of data and it takes time for due diligence, especially since the COVID pandemic arose.
Walter Segsworth is now Executive Chair and will take on a greater role with shareholder communications. Another board member of the Company, Rodger Gray, a seasoned senior Corporate Finance and Investment Banking professional, is increasing his time on merger/acquisitions, and has been engaged with several interested parties. Large, serious partners for projects such as Happy Creek’s have been cautious with their exploration project acquisitions for the past several years but improving fundamentals particularly for copper appear to be encouraging them to be more active. The Company intends to increase its focus on this renewed interest, all the while pursuing the most cost-effective opportunities to continue adding project value and improving the caliber of what the Company has to offer.
In addition, the Company has added Kathy Love to the position of Corporate Secretary to enhance and streamline Corporate governance and administrative operations and free up Management’s time to focus on exploration activities, business development and shareholder communications.
Plans
1) At this time, the Fox tungsten property shows important potential for what is a “top-tier” development project compared with many other western tungsten projects. For the numerous large funds, banks and institutions that Management has spoken with over the past several years, it is clear there is significant funding interest available if the Company delivers a positive Preliminary Economic Assessment (PEA). Management’s goal is in line with these groups and to do that with the maximum positive effect for shareholders, the Company needs to increase the current resource base to accommodate a large-scale mine development. Rather than divesting today, this next step is intended to demonstrably increase the project’s value, lower its risk and strengthen the Company’s position to capture larger-funding interest on the best possible terms.
2) The work done on the Rateria-West Valley copper properties over the past few years has generated significant drill results at Zone 2 and other areas. New information collected in the phase 1 2020 work program suggests there is opportunity for new porphyry deposits to be discovered. On July 13, the Company announced that a 3000 m drill program has been approved for the summer field season. The selection of final drill targets and contractors is underway. Management’s view is the project has potential to deliver Shareholders a most outstanding return. The Company is continuing to seek partners while at the same time, advancing the targets with geological work, field-based target definition and drilling. Site visits and project reviews are on-going.