Magna Mining – How Do Private Nickel Companies Compete? (Transcript)

Interview with Jason Jessup, CEO of Magna Mining Corp. Magna Mining Corporation is a private nickel company incorporated in Ontario, Canada in 2016. Their primary purpose is on the acquisition, exploration and development of nickel-copper deposits in the Sudbury Basin of Ontario, Canada. Magna made its first acquisition, Ursa Major Minerals in 2017; Magna became owners of the “rather advanced” and “world-class” Shakespeare Mine, Ontario, an open-pit nickel project that was in commercial production as recently as 2010/11 via toll milling, with approximately 490,000t of nickel ore tolled. The mine also possesses all the major permits, and Magna Mining sees it as central to their play. The mine was acquired by a contrarian strategy when nickel was around $4/lb and nickel projects were about as appealing as diving into the mine itself head first. Jason is originally from Sudbury, and has vast experience as an operations manager at mines for large corporate and junior companies; this latest project is familiar territory. The president of Magna Mining is Vern Baker, an MBA holder from Stanford University with decades of mining experience, though shareholders might be concerned his priorities lie elsewhere as full-time CEO of Jaguar Mining. The remainder of Magna’s team is comprised of experienced, highly-knowledgeable individuals. The team looks exciting, but there will be question marks around whether Magna is the priority, given many of them have heavy involvement with other corporate entities. Magna has big aspirations of becoming a 50-year, +$100M company, but they have a long way to go before they can get off the ground. Magna Mining needs to raise money, locate acquisitions, make acquisitions and then go public. These are big steps that have to be implemented before they can proceed forward to even the earliest mining of nickel. For some Magna might be an intriguing long-term proposition, especially if they buy into the almost unanimously supported EV narrative, but for many investors, it might seem Magna has bitten off a little more than they can chew. Perhaps Magna might be ready to go by the time the EV revolution finally kicks off. Magna Mining implements a roll-up strategy via opportunistic growth, where key assets are identified based on promise and past performance and then acquired. Magna is in ongoing discussions regarding non-core assets in Sudbury, but is the stage of this project all a little early for investors to consider getting involved? Some might argue it’s a great opportunity for investors to get involved at an extremely early stage while stock is cheap and potential is yet to be extracted. The team at Magna has an excellent track record in nickel, and are certified experts in the field of mining metals. Nickel itself is a commodity with great potential, so perhaps Magna is a company to explore. The Shakespeare Mine’s Capex of $150M is particularly unique and the surrounding area of Sudbury is as good as it gets for facilitating mining.

What did you make of Jason Jessup? Does Magna have the potential you require as a potential shareholder, or is it more of a pipe dream? Comment below.

We Discuss:

1:20 – Company Overview

3:23 – Team Experience and Track Record

9:55 – Genesis of the Project: What is Their Main Focus?

12:23 – Challenges Going Forwards: Is their Goal Realistic, Bi-Products, Costs and Strategies to be Applied

16:23 – How does Magna Mining Stand Out?

18:38 – Assets: Can Shakespeare Become a Profitable Asset? What are They Planning for the Mill?

26:51 – What is the Future for Magna Mining, if the Market Changes or Stays Stagnant?

30:28 – Finding Funding and Remuneration

34:32 – Why Should You Invest in Magna Mining?

Company page: http://magnamining.com/
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Magna Mining

Matthew Gordon: Nickel’s a particularly hot topic at the moment for investors. We take the opportunity to speak to Jason Jessop. He’s the CEO of Magna Mining, their private nickel company operating in the Sudbury Basin in Canada. We talk to him about their strategy, how they’re going to raise funds and what their plans are for the future. If you want to look at any of those topics, click on the timestamps below, that’ll take you to that part of the video. If I could ask that you click the button in the corner of the screens to subscribe to our YouTube channel that’d would be helpful. And if you want to see more videos like this click the notification bell. Okay. Let’s see what Jason has to say…

Matthew Gordon: Hello, Jason. How are you?

Jason Jessop: Great, Matthew. How are you doing today?

Matthew Gordon: Not too bad. Thanks for joining us. Now this is an early stage project, but it’s a nickel project. I think people are excited about nickel at the moment so why don’t you give us a one-minute summary and we’ll get into it.

Jason Jessop: So, Magna Mining is a private company we incorporated in Ontario in 2016. And really, the purpose of our company was to consolidate nickel copper projects in the Sudbury base. So, we’re very focused on one particular region. This is a region that we have a lot of experience in. I personally live in Sudbury. I’ve worked here for different companies over the past 20 years. So, this is really where we’re comfortable. In 2017, we made our first acquisition of Ursa Major Minerals. Ursa Major owns the Shakespeare mines. Shakespeare is a nickel, copper, cobalt, platinum, palladium, gold open pit project that has tons of resource. It is you know, it’s rather advanced in that it wasn’t commercial production in 2010-11 through toll milling, approximately 490,000 tons of ore was toll milled through a mill here in Sudbury. It does have permits, all the major permits to build a 4500-ton open pit mine with a concentrator and tailings storage facilities. So, this really attracted us to the project. And, you know, we were I would say very strategic. And when we purchased it because nickel was in that $4 range, people were not really looking at nickel projects, but we understand the fundamentals behind nickel. And when people are not talking about nickel is a time to make acquisitions. So, we’ve been able to advance the project over the last couple of years, de-risk it further. And we’re pretty excited to move into up to the feasibility study and in a position to make a construction decision in 2020.

[03:09] Matthew Gordon: Perfect. Okay. Thanks. That’s something. Appreciate it. I’m interested in this story because it’s early stage. You’re private, we talked about that, but with all things Canadian it eventually gets listed. So, I would love it if you could share with us the process that you’re going to go through to kind of get it to that point. So, for our subscribers and followers and investors I’d love to maybe start with who’s on the team. So, tell us about you and then tell us about the team.

Jason Jessop: Sure. So, as I mentioned, you know, I’m from Sudbury. I’ve worked for a number of different companies here. You know, I really started my career in Sudbury. I was management at one of the mines here in Sudbury. Spent about five years working there. You know, great company, great experience. But after five years, I recognized that I probably don’t fit within a large bureaucratic company like that. So, I went to work for another up and coming junior that was in the basin. Those who don’t know FNX mining in 2002, they were a junior company, share price about 25 cents acquired five pass producing mines through good exploration and creativity and entrepreneurial spirit. They were able to bring three of those mines back into production, made some significant discoveries at them. And you know, before the financial crisis of 2008, had a share price of approximately $40. So huge success. And I was really fortunate to be part of that team and see that growth.

[04:52] Matthew Gordon: What did you do there?

Jason Jessop: So, I was an operations manager at two of the mines here in Sudbury, brought one of them into commercial production. I helped raise another one from 300,000 ton per year production to over 800,000 ton per year. So, you know, I was heavily involved in the operations side of the business. And after 2011, we had merged with another company, gone a little bit bigger. And I thought there were some opportunities, maybe work for another junior. So, I’ve spent a couple years in the corporate development field doing work in royalty space as well as junior mining structuring deals and finding acquisitions and evaluating projects. And in 2016, saw an opportunity here in Sudbury to do something again similar to the experience I had and that’s when we formed Magna.

Matthew Gordon: And who else is on the team?

Jason Jessop: So, our chairman is Vern Baker. Vern Baker is a professional engineer, he has an MBA from Stanford. Vern was the V.P. of operations at F&X Mining. We worked there together. Vern was a great leader and actually a really great mentor of mine. And we kept in touch after we both left. And, you know, we all see this opportunity in Sudbury to take some of these non-core assets and be very successful, mining them differently than some of the majors.

Matthew Gordon: But he’s says here he’s full time CEO at Jaguar Mining.

Jason Jessop: So, yeah, so he’s our chairman. He’s also a CEO of Jaguar Mining in Brazil. So, he joined that team in August and he’s helping them unlock the value in their operations in Brazil.

Matthew Gordon: So, what’s his actual day to day with you on this particular project?

Jason Jessop: You know, we communicate weekly. He’s involved is as much as needed. So, he is available. You don’t get to see him probably in person as often as I’d like to. But, you know, he’s a great leader and a great collaborator to bring teams together.

Matthew Gordon: Right. And what does that mean for you and in terms of what you’re trying to do now? So, he’s giving you advice or still mentoring you or…?

Jason Jessop: Yeah. Well, he you know, he’s the chairman of the board. So, you know, on board decisions and large decisions, he obviously gets involved. You know, he’s still very involved in the strategy of how we move forward. And we have a few other opportunities that we’re looking at. So, he gets involved in that. One of the things that we’ve done here, and I think this is really what speaks to the experience, and I can get into some of the rest of the team but, you know, our experience working in FNX and in Sudbury is really based around people, and I think that’s what differentiates us from maybe other groups that have tried to do something similar in Sudbury in the past. We are a very successful group because of the culture. So, you know, Vern, I would say from a cultural perspective, you know, he sets that tone for the group and we provide a lot of ownership to the people that work in our team. So, we’re a small team. You know, we wear many hats. But right down to, you know, the guys that go out to site and do one monitoring and, you know, the care and maintenance work. We give a lot of ownership to our people. And that’s the successful culture that we saw at FNX Minings, we recreate that. Now, as far as the rest of the team, our CFO and co-founder of Magna is Derek Wayrauch. Derek is a CA by background. He’s been an executive or board member of a number of publicly listed companies over his career. Currently, he is the interim CEO of Palladium One, which is a junior palladium company explorer, and has a property in Finland. So, all the nickel property here in Ontario. Derek, you know, at this point we do not need a full time CFO. So, he acts as our CFO and as a board member. You know, Derek and I speak almost daily and are quite involved, especially on the financial side of the business. And Peter Litefoot is our V.P. exploration. Peter is a veteran of the Sudbury base and spent a lot of his career as a chief geologist for international nickel targeting. And he really wrote the textbook on Sudbury deposits and the origin of Sudbury Igneous Contact. So, Peter, he really leads our exploration in and around Shakespeares, as well as evaluations of other non-core assets that we’re looking at.

[09:42] Matthew Gordon: I notice you’ve got a bunch of other strategic advisors and let’s not get into that. We can maybe post this presentation up at some point for people to look at. You’re kind of like I’m bringing the band back together here. Some people you’ve worked with before, people who’ve experienced success together and you think… What do you think actually? We just want to do a project. We just want to work together. I mean, that was the genesis of this? What was the idea?

Jason Jessop:  Yeah. So, you know, we have big aspirations here in Sudbury. We don’t want to be just a little single asset junior who hopefully we can get to a point where we’re a $50MIL or $100MIL company.

We have seen the success. It can happen. And like I mentioned in the past with our group. So, we really have big aspirations. There’s a few things that we see. So, by having Shakespeare and building the mill, it gives a real strategic presence in the basin. And there’s a number of deposits that either don’t fit well with the majors or have metallurgy that maybe isn’t conducive to the large mills they have here in Sudbury, for example, Valley’s Milford process, probably 35,000 ton a day. So, it’s a huge plant. You can’t customize for a small or small percentage of ore coming in. So, having this opens up a lot of opportunities to negotiate and find other feeds that can be higher grade than our open pit ore.

Matthew Gordon: Come back a bit for me here. You’re getting into the project. Come back a bit. Tell me like a helicopter view. We are trying to be what? A major nickel producer in the Sudbury region or globally? What’s the idea?

Jason Jessop: So, absolutely. We are looking to become, I would say, a mid-tier producer in the Sudbury region. We’re very Sudbury focused. We’re leveraging the experience of our team. And, you know, and I would say our advisory team is very important to us. Again, a lot of former F&X people who have a lot of first-hand knowledge and insight. So, that is what we are focused on. You know, I would say that we are not experts in mining exploration, in mine building. We’ve not built a mine in the Congo. We have not operated a heap leach gold operation in Chile. What we have done very successfully and what we are experts on is exploration mining in Sudbury and building mines in Sudbury. That is really where our expertise is. So, this is where our focus will be.

[12:21] Matthew Gordon: So, what’s the challenge going forward then? You know what you want to be, you’ve articulated that clearly and it makes sense. And that’s the experience, you know what you know. What are the challenges? You’re talking about building this thing into a mid-tier. You’re going to need to raise money. You’re going to have to find acquisitions. You’re going to need to make those acquisitions. And go public, I suspect at some point. How do you manage all of that? Is it realistic, first of all?

Jason Jessop:  We believe it’s realistic. We believe that we have a great strategy. We have a team that’s done it before raising money, I think, you know, is always a challenge in the junior space and being a private company, especially, you know, in the past couple of years as nickel prices were quite depressed. Yeah, it was absolutely challenging. Again, we were able to keep our GNA cost quite low and be really focused, continue to de-risk. Going forward we have we believe in this better nickel environment. There is a lot more opportunity to raise capital. Having a project and a company that’s focused in a great jurisdiction, there’s a tremendous amount of metal endowment in this region. And, you know, with the combination of not just nickel, but also some really considerable by-products of copper and cobalt and platinum and palladium and gold. We have seen a lot of interest in and we think that getting the capital once we have our feasibility study done for project financing, is quite reasonable. We’re not looking at raising $500MIL to build out Shakespeare. Our CapEx is not completely finalized, but we’ll be in about $150MIL Canadian range. So, it’s manageable. We have a good by-product credits, so there’s opportunity to use a precious metal stream as a portion of that project financing without taking away from the overall economics to much of the project. So, there is some strategies we’re working on right now as far as moving that forward. As for other projects in the basin, because of our success in the past with many of our team members, finding the capital to make these acquisitions, we believe is very possible. It’s very doable. And the challenge always is, is dealing with major so as being a smaller private company, we get asked the same kind of questions a lot of people do. Where are you going to get the capital? Do you have the support? Are we wasting our time negotiating with you now? We’ve been here for a while now. Like I said, I’ve been working such for 20 years. We’ve built long standing relationships. We know, a lot of the people and the players. And now that Shakespeare has moved forward over the last year, we have developed more credibility, I would say, with some of the other companies that are in the basin where they see a strategic benefit in working with us. So, obviously a deal is never done till it’s done. But I would say in the next year, we should be able to secure some additional projects in the basin that will have synergies with our Shakespeare mine.

Matthew Gordon: This is where it starts getting interesting for me. Okay. You’ve got a long track record in the basin. That’s correct. You know, people. Right. But like you say, they’re only going to go with you if you’ve got access to capital. Right. Or this is strategic benefit. You’re saying some people are interested. There are interested in your knowledge, presumably. But it still comes back to the issue of availability of cash. Right. Availability of good projects because no one gives the good projects away for free. Right. So, you’ve got to either step up and pay a premium or pay a price for it or you’ve got to deliver them something which they don’t have. And, you know, what is it about you guys versus the bunch of other people I’ve spoken who have experience in this basin? Why are they going to go for you? Personal relationships?

Jason Jessop: Yeah, I think there’s a little bit. So, one of the things, we’re not looking to buy a World-Class deposit in the Sudbury Basin. Those aren’t for sale.

Matthew Gordon: Well, tell us about that. What is it? Do you find small assets? Roll them up and together? Is that the idea?

Jason Jessop: That’s what we’re looking at. So, we’re looking at projects that are, you know, ideally past producers that can be brought back into production relatively quickly, but just do not make sense for the cost structure and the way that larger companies operate. And, we have an in-depth understanding of that. Again, going back to our experience, taking mines that were, very very low priority and would’ve never restarted under a major company. We were able to take those, approach things differently, keep cost structure low, you know, use mining methods that probably haven’t been used in the Sudbury basin and in 30 years, very selectively mined some of these deposits and create a lot of cash flow. Now, it isn’t on the scale that really moves the needle for a major company, but for a junior company, it can create a tremendous amount of cash flow. And so, these are the opportunities we’re looking at. And we have experience in doing it before. I wouldn’t say it’s easy. It definitely it comes down to having the right team, the right culture, the right approach, and having a CEO that asks the right questions from the people, so they can stay focused on what’s important. So, I think we have a lot of credibility with people, they know what we’ve done here before, and that gives more confidence that if they do a deal with us, at the end of the day, there’s going to be some benefit to them. Most of the deals that we’d be looking at doing in one way or another have some tie to the owner’s long term, whether it’s an off take or royalty or something. So, they don’t want to sell something that the end of the day really there’s no long-term benefit. What’s the point? So, we have developed some confidence, I would say, in some of the discussions and people, you know, in the basin.

[18:35] Matthew Gordon: So, first things first, you’ve got to get Shakespeare moving. You’ve got to get financed and you got to be able to… I think you’ve talked about doing various studies and sort of understanding what it is that you’ve got and try to understand the economics. That’s fair enough. And if you do that, you might be able to persuade someone to give you the money to be able to develop this thing. So, from what I read, it’s the standard sort of low grade, about .3, that sort of level? But you do have the copper credits, which is a good thing. So, the low grade means you need scale to get the economy’s going there. Do you need to do these other acquisitions to kind of give you that scale? Or do you think Shakespeare has got the potential to actually become a meaningful project in its own right?

Jason Jessop: Yeah. Good questions. So, Shakespeare is a, I would say you describe it in a lower grade category, but it’s not overly low grade the because of the by-product. So right now, it’s sort of sitting in that, .65% nickel equivalent range. And that’s why it really requires about a 4500 ton per day plant, running it at 2000 tons per day. You just don’t really get the payback you require. So, I think we have a good-sized plant that sort of permits our, currently, 4500 tons per day. You know, one of the things that has held back Shakespeare in the past is it only has, you know, in the 2006 feasibility study, about 11.5MIL tons of reserves, which at 4500 tons a day gets it about a seven-year mine life. And so, people look at that as a seven-year mine life’s way too short. You know, it doesn’t kind of meet our hurdles, but there is tremendous exploration potential. So, to get back a little bit to why there’s a seven-year mine life, in 2002, Ursa Major optioned the property from Falcon Bridge and they made a discovery in 2003, about 150 meters to the east of the West Deposit, which was the known historic deposits, about 2.5MIL tons. And, you know, had a great intersection, followed that up and basically drilled out over the next two and a half years, about 14MIL tons of resource. Now, this was at a time in 2005 where nickel was starting to take off and they saw an opportunity here. Let’s get this permit. Let’s do a feasibility study and get it into production and take advantage of these rising nickel prices. So, they continued in 2006, completed a feasibility study, 2007 received permits for construction. So, they did a great job. But after 2005, there really wasn’t a focus on exploration anymore. They had enough to get going once for cash flowing. We’ll continue to drill out, extend the mine life. And that was the strategy. 2008 came along. You know, everything stopped. And it wasn’t until 2010 that they were able to actually start up through toll milling some production. But when we acquired the property, you know, it was really an orphaned asset. The owner had become very non-core. There was no institutional knowledge left. So, it took us a lot of work to pull together all the data, the historic work that was done, re-interpreted, take this store, geophysics, reinterpret that. What we found was there’s a tremendous amount of exploration potential and we’re quite excited about it. In 2018 we did some drilling in an area between the east and West deposits. So currently the project has two separate pits. As per the 2006 feasibility study. What we were able to do, we drilled this EM plate between the two deposits in an area it was previously believed to be unmineralized and every hole hit exactly where we expected in resource grade mineralization. Now, we had a budget that didn’t allow us to continue to keep drilling. So, we’re hoping to continue that drilling and bring more of that material in between the two pits into resource. By b doing that, we should be able to deepen the West Pit and expand the resources considerably. There’s also a zone that has very little understanding. Two holed intersected it in the 50s. One of the early drill campaigns. It has 103-meter intersection just to the south in what would be the foot wall of the west deposit. And there’s no follow up drilling. So, it’s a very large resource grade type intersection zone. Currently, it’s about 750,000 tons in resource, but there’s no drilling around it. Up dip, it’s open. Incidentally, we found some mineralization on surface, I guess long and short as we really think through exploration, there’s a lot of potential at Shakespeare. It’s really been underexplored. And we think there is tremendous scale. Right now, taken the resource 21MIL tons, we believe we can add another 5MIL tons of resource with additional drilling around the West deposit.

[23:56] Matthew Gordon: All right. OK. Those are the kind of exploration statements I would hope you would say and expect you to say. But if we come back to what you’ve got today, I do want to talk about this mill component because again, I want to understand your thinking. I’m fascinated by the way the management think, because you make or break companies with good decisions or bad decisions. So, around this mill, right now, today, 4500. You say you have a permit for that?

Jason Jessop: So, we have the permits, the closure plan and major permits for the mill and tailings storage facility and mine.

Matthew Gordon: Beautiful. So, how long does it like the mill of that size take to build?

Jason Jessop: So, once you start breaking ground, assuming that there isn’t delays to long lead item components. It’s about an 18 month build. But let’s say 18 to 24 months.

Matthew Gordon: And what does that mean for you in terms of your ability to kind of hit this cycle? I mean, you’ve got to have a view on how long this cycle is going to run, how quickly you can get into production and does this mill, the cost of this mill, prohibit you in a down cycle from actually operating? What are all the economic factors you’re trying to manage? The rest you’re trying to mitigate, because you’ve got to have a view of the future. You’ve got to have a view of what you can do today and what happens if there’s a down cycle, right? And, you must have then had contingencies and plans and said maybe, maybe we just can renegotiate the terms with… I think is a couple of other mills locally, aren’t there? Get better terms with those guys? So, how did you get up measuring those things up against each other, if you did do that?

Jason Jessop: Yeah, that’s a good question. We get asked that a lot. You know, once the mill is built and we’re in production, it might actually have a pretty low C1 cost. You know, again, we’re not finalized the feasibility study, but from all the internal work we’ve done we’re gonna be somewhere on a by-product basis, you know, sense of a dollar, a pound, nickel… So very good C1 cost. As far as a toll milling idea, we definitely have looked at that and a lot of people said, you know, why don’t you just continue to keep toll milling and create some cash flow? It is an option. It is an option. Now, I don’t see it as being the best option for us. Again, you talk about these larger mills in the basin and you know, they are really set up to process a massive amount of certain ores. And because our ore is, it’s done great recoveries, but it’s not the same as a standard Sudbury contact, 2% nickel ore. So, I don’t think we’re gonna get as good of terms as necessary as we would want. And, is it worth investing? I think that if nickel went to $10, there’d be an opportunity during our construction stage to be shipping ore, as we’re stripping, start some early production through some toll milling for maybe a year or two until the mills up and running. That’s definitely a possibility. And I think we could make some pretty good cash flow from that. Long term, I just don’t see it as being the best option for the company, because really at some point, you do not have final control over your destiny. If they say, you know what, we’ve decided we don’t want your ore anymore. What do you do? So, you know, there may be some opportunity to create some cash flow in the short term, depending on metal prices. But I think that, the real focus is to get this built and be a low-cost producer. As far as how we can tie in other projects, you know, Shakespeare on its own has a reasonably good payback. If we can extend the mine life, you know, the NPV goes up significantly. But if we could add in another deposit, let’s say another non-core Sudbury deposit that has higher grades, higher margins and add that in at 1000 tons a day, displace some of our open pit ore. Well, the economics of that, they’re fantastic.

[28:07] Matthew Gordon: Well, yeah. Look, I don’t envy a junior mining board at all because there’s so many ifs and buts. You know, if it gets to 10 bucks and if we can find an asset, if we can’t, it’s kind of like me playing with a spreadsheet of, you know what ifs. I could make I make a lot more money if my shares went up in price every day. I’m trying to piece together the kind of the roadmap that you go through. So, what I’m hearing is you’ve got to get Shakespeare nailed down, get that where you want it to be in terms of what you know about it, to be able to go and have intelligent conversations, sensible conversations with either money, people with money. And you’re not public yet so you’ve got some options, right? Strategic partners who may be just money and offer you different types of money or an operating company which has cash, which again, once you kind of have to somehow under their wing. I mean, you’ve got to look at a multitude of different options and you must have these sorts of conversations each week. I suspect to look at how you move forward, right?

Jason Jessop: Yeah. And it’s actually interesting. You know, we have a lot of irons in the fire, especially in the base metals space. You know, there’s just a limited number of players. So, you want to get to know all of them. So, we’ve had a lot of discussions with a lot of different players. You know, at this point, we may want to partner with a producer already, look for a strategic investment. We have been talking with a lot of private equity groups who are quite interested. They like the team. They like the space. They like the opportunity and the de-risk nature of the project based on the permits. So, there is a lot of opportunity out there. There’re three majors operating in the basin. You know, we have regular discussions with all of them. And, you know, we’re quite optimistic about the opportunities we have here. So, we do need to be, you know, flexible, see opportunities, weigh them against other opportunities and risks. And, yeah, we’re doing that on a regular basis, since it’s part of the exciting and fun part of it is this way.

Matthew Gordon: Well, it’s exciting till you run out of cash and then it stops becoming exciting. And I appreciate you’re private and we don’t have to be worried too much because you’re not public yet, but you will be. So, how have you financed this thing so far? I mean, you know, you’ve been in it two years.

Jason Jessop: Yeah. So, we started off with a very small sort of friends, family, type route. Raised some money. And, we brought in some strategic sort of investor from Vancouver, David Elliot from Heywood. So, David came in and he’s been a very supportive shareholder. David Elliot and his group own about 20% of the company. And they’ve been they’ve been great. You know, we are looking for that sort of next strategic partner to put in another piece of money. Right now, we need about $2MIL to finish the feasibility study update and do some of this high priority exploration drilling adjacent to the deposit. As well as finalize some of the minor permits and engineering to get done. So, you know that that money… there’s interest out there being a private company. It gives you some opportunity to get money from maybe some places where, from private equity groups that are looking to take a bigger stake in a company, but, you know, being private also has its drawbacks where some investors just can’t invest because they don’t have that opportunity for liquidity. So, we talk to lots of people. We keep our GNA costs extremely low. So, we really want to make sure that, we’re doing what’s right for our shareholders, keeping the money that we’re raising, going into advancing Shakespeare, advancing our strategies. And so, we’ve been able to do a lot, I’d say, for a little. And it’s one of the reasons we’ve been hesitant. Up until now to go public, because just the extra costs associated with that. But, definitely I would say once we have our feasibility study done and it looks positive with hopefully some exploration success, it would be a time we’ll definitely look at…

[32:41] Matthew Gordon: So, how much is the management sitting on at the moment? They have shares in this, I guess? Have you bought shares?

Jason Jessop: So, you know, management has lots of that. The two founders, I myself and Derek, we have about 47% of the company currently. Neither of us have taken any salary or compensation. I don’t even have options in the company. I am really working hard for the other shareholders that are putting their cash into the company. And I believe so strongly in that I’m willing to do that. It’s a big picture.

Matthew Gordon: That was my next question. Were you paying yourself? You’re not. That’s good. So, the money that’s been put in today is going to board in costs from outside costs at the moment, right? Okay. And then the next 2MIL. Would that continue to be the case?

Jason Jessop: Yeah. You know, at some point I wouldn’t mind paying myself a modest salary if the board agrees.

Matthew Gordon: What does more modest look like? A company of your size, what’s modest today?

Jason Jessop: Yeah. You know, probably more than 5000 a month, and less than 1500.

Matthew Gordon: So, we’ve just seeing some fantastic salaries on here. And I do ask the CEOs, you know, what they’re earning because the public company it’s easy. I can take a look. But they don’t like talking about it. Look, I think it’s been a great introduction to you, which is the important thing here for people, so when you do go public, they can sort of see what you’re like and what you’re thinking has been like and what your plans are or were from the start of this and track back and see if he delivered on those. So, I do appreciate that. Do you kind of give us the three reasons why people should be continuing to follow your story?

Jason Jessop: Sure. So, I’d say first and foremost is really like I mentioned earlier, I think that our team is unique. I think that we have a group that’s been successful before. We’re not trying to do something that we’re not experts in, that we don’t have experience in. We’re really trying to leverage the knowledge and the experience of the team in a region that we have deep roots in. So, I think that that’s sort of the biggest thing. Next, Shakespeare is a unique nickel development project. I don’t know of any other nickel development projects that are out there in a good jurisdiction that could be producing concentrates in two and a half, maybe three years and have a CapEx of 150MIL. So, it’s really unique de-risk. Great. You know, we have a great region we’re working in here, being in Sudbury, we have every service provider. You know, workers go home every night, so you don’t have the camps, which allows us to keep operating costs lower than a lot of projects. So, I think that’s great. And then the third thing is really our broader strategy, the consolidation strategy, to grow in the Sudbury basin. I think that is something that all of our investors currently have really seen as sort of a key reason that they want to get in early and take advantage of that, because the potential is great. If you believe in nickel, I think that we are one of the best stories out there.

[36:12] Matthew Gordon: Well, yeah, it’s definitely the story of the moment. And I think, Cobalt and Lithium have been through a lot in recent years. And, you know, gold hopes that it is the new story, but people are interested in nickel. It’ll be interesting to see how you guys get on. Why don’t you stay in touch? Maybe we should touch base in the next three, four months when you sort of know what’s going on. All right. Appreciate your time today. Jason, thanks for telling the story.

Jason Jessop: Well, thanks a lot, Matthew.

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