Graeme, can you tell me about Kent Exploration and how it was formed?
Kent Exploration Inc. (TSX: V.KEX, Stock Forum) was established in early 2004 to take advantage of high precious metals price environment by operating in low political risk, mining friendly environments, close to supporting infrastructure. We entered into agreements to acquire highly prospective ground close to existing operating, highly prolific gold mines.
What distinguishes your from other gold and silver exploration companies?
Being adaptable. We are constantly watching the market to see which way the winds are shifting in order to ensure we can either take advantage of good market conditions, or defend against adverse markets.
Tell me about your flagship project and what stage is it at?
We are fortunate in that the properties we have selected often come with other advantages. We have two current flagship properties. Our permitted open pit, low cost barite mine in Washington state, and a historic high grade past producing gold property in New Zealand that lies beside another historic high grade past producer. Additionally, we hold an investment of 10 million shares in Archean Star Resources Inc.
The barite is very exciting, both for us and our shareholders. It is production ready and in late 2011 we processed approximately 30,000 ton stockpile that, at the current US$89/ton market price of barite has the potential to provide us with up to US$2.7 million in gross cash flow this year. This positive cash will significantly reduce the need for further financings to fund our operations, ultimately resulting in less share dilution.
What are the main challenges that you face in this current market?
The current adverse markets that everyone is facing is affecting us as well. Operating funds are difficult to come by, and investors are fearful of losing what little they have left after already taking horrendous losses. Our main challenge is staying focused on developing our cash flow to establish market confidence.
Tell us about Kent’s investment in Archean Star.
The Company took the strategic step in late 2012 of consolidating its share structure in order to weather the financial storm affecting the junior market. This gave us a very tight and attractive structure of only 10 million shares. With our projected cash flow, and the value of our investment in Archean Star Resources Inc, currently valued at over 1.5 times Kent’s total market cap, this should provide a great incentive to investors looking for value.
What are your main goals for 2013?
Our goals for 2013 are simple. First: get the cash flowing. Second: Never let a crisis go to waste. The current market turmoil is creating significant opportunities. Identify high grade properties for possible acquisition that we can also turn into cash flow, and lastly, as the northern winter arrives, get back on the ground on our flagship New Zealand high grade gold project. All of which should create significant additional shareholder value.
Disclosure: Kent Exploration Inc. is a Stockhouse client.