“As a junior company, Revelo Resources has a competitive portfolio of 130,000 hectares of wholly owned properties in Chile. We have 16 projects: four gold/silver assets and 12 copper assets. This is a significant portfolio to offer to investors and to companies that are not present in Chile.”
What is the history of Revelo Resources, and why did the company choose to focus its operations in Chile?
In the late 2000’s Iron Creek Capital identified Chile as a jurisdiction with great potential, and the company decided to establish a presence there. In 2014, when the last mining boom finished and the industry was in a depression, Iron Creek decided to capitalize on opportunities in the market, and we started making acquisitions. We performed several stock based transactions to expand our portfolio, including a merger with another Chile based junior called Polar Star Mining. After Iron Creek Capital acquired Polar Start Mining, we changed the company name to Revelo Resources.
Can you elaborate on the business model utilized by Revelo Resources?
Revelo Resources has been known in the industry as a prospect generator. The idea is that we generate prospects, and then look for industry partners to make joint venture agreements. Our partners then go on to explore our properties and take the investment further. We are now looking to modify our strategy by continuing to look for option and joint venture agreements with mid-tier or large companies, but also by raising private finance to fund exploration, perhaps by spinning out certain projects that we will operate. For partnerships, we are focusing on companies that do not have a presence in Chile, but would like to have a presence in the country.
In what stage of development are most of Revelo’s projects, and what is your biggest challenge in moving these projects forward?
Revelo Resources has historic data on our assets and we have done surface work such as geological mapping and revision of the historical data. Some of the projects require more surface work, but most are at the drill stage. The challenge for us and many other juniors today has been financial. It is a struggle in the capital markets to get money for greenfield exploration and mining companies have not been doing many deals with juniors lately.
Describe the interest Revelo is receiving from investors?
Investor interest is very much dependent on what commodities the world is looking for. With the recent increase in precious metals prices, there has been an improvement in the sentiment for precious metals exploration. We have four precious metals projects in our portfolio, of which three are currently attracting interest. We are looking at a possible spinout of these precious metal projects. We also have several copper focused projects that we are promoting.
Can you provide an update on Revelo Resources’ Montezuma asset?
Montezuma was one of the projects we acquired during the merger with Polar Star Mining. It was a 30,000-hectare project, but recently we decided to split the property in two. One part of the property, which we continue to call Montezuma, has had most of the historic exploration done on it and has a number of very interesting targets. We have signed a letter of intent agreement with BMR Group, which is going to use the project to refinance and relist on the London Stock Exchange. BMR Group will have an option over the property, and Revelo Resources will have a retained interest through to the completion of a PEA. We will also have some shares in the BMR Group when they list. Revelo will be operating the exploration to ensure that the targets we have identified are properly drilled.
The other half of the property is called Arrieros, and it is separate from the BMR Group deal. Arrieros is largely a postmineral covered exploration asset, which means that the underlying geology is obscured by young gravel deposits and will require a somewhat different exploration approach mostly focused on geophysics and followed up by drilling. We are trying to promote this project as a package together with four other projects we have along the same mineral belt.
Is Revelo Resources looking to acquire more assets in the Chilean market?
As a junior company, Revelo Resources has a competitive portfolio of 130,000 hectares of wholly owned properties in Chile. We have 16 projects: four gold/silver assets and 12 copper assets. This is a significant portfolio to offer to investors and to companies that are not present in Chile. Revelo would be open to acquire more assets, but capital is currently a challenge. We need to advance the portfolio we have before we start making more acquisitions.
How does Revelo Resources view Chile as a mining jurisdiction?
Chile is a very stable jurisdiction. The legal system works, and levels of corruption are low. The geological potential of the country is huge, and despite claims that Chile is a mature market, we still believe there are significant opportunities. When compared to its neighbors in the Andean cordillera, Chile is a less complicated place to mine. There are a host of political, social, legal, environmental and security issues that are much more manageable in Chile. Some of the big mines have been mined for over 100 years, and yes, grades are much lower than they used to be, but Chuquicamata, for example, has gone underground and will likely be mined for another 50-100 years. World-class means long life of mine and scalability of production, and Chile has several truly world-class mines. These huge mining districts in Chile will all be mining for decades into the future. Jurisdictional risk is increasing all over the world today, and there are fewer and fewer places where you want to invest a lot of money. Chile still remains a leader in that regard.
What are Revelo Resources’ objectives moving forward?
Revelo Resources’ principle goal is to get money spent on our exploration projects so as to advance them and make discoveries. We aim to generate shareholder value through discovery. Revelo believes it has a high quality exploration portfolio and thus a good chance of making a discovery. The exploration process is the biggest step up in value creation in the whole chain of exploration, feasibility and development in mining. If we make a discovery, significant shareholder value will be created. This is our main focus.