Brett Allen, responsible for investor relations answered some questions about the future of Sendero Mining (formerly known as QRS Capital Corp. (QRS.V).
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Introduction
Sendero Mining Corp. is a mineral exploration and development company actively exploring copper, gold and silver properties within Latin America, particularly in Chile, Mexico, Colombia, and Peru.
Sendero is currently developing it´s flagship Aurum Copper Property in Chile, located approximately 12km from Teck Resources Ltd.’s 1,104 Mt @ 0.41% El Relincho copper-molybdenum deposit. The Aurum Property is a 7,960 ha property hosting a high grade copper-oxide deposit at surface.
Interview
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- What was the main reason to merge QRS and Halo Resources?
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- Halo Resources was in a position where they had two properties that were under joint venture and currently had no exploration work taking place. Halo was also in a strong cash position with ~$2.5M in the treasury. QRS Capital was in the opposite position; they had an exciting exploration asset with the ability to fast track the current resource into small scale production. The merger took advantage of both companies’ strengths and has put shareholders is a strong position. The new company, Sendero Mining, is now in a position to advance the Aurum Property and work towards beginning small scale production.
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- What’s the current cash position of Sendero Mining?
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- Sendero currently has ~$500,000 in the treasury and is in talks with several groups to finance both the exploration and the CAPEX needed to advance into small scale production.
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The Project
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- What will be the next step on the Aurum copper project?
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The Aurum Property is in a very different position to most exploration assets as not only does it have the potential to increase the current resource through exploration, but it also has the ability to begin small scale production in the near future.
The immediate plan for Sendero is to secure funding for both the planned exploration at Aurum, and the CAPEX to advance the current resource into small scale production.
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- What’s the exploration budget for the remaining part of this year?
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- The Phase 1 exploration program, which runs well into next year and includes drilling one or two targets, IP and MAG surveys, is budgeted for $850,000.
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- You closed a deal to be allowed to quickly move towards production at the Aurum Project. Can you tell us something about this agreement and what your plans are?
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- Given the current market environments, we think it is very important to find ways to de-risk exploration, specifically the need to continuously finance expenditures associate with it. Sendero’s unique ability to begin small scale production in the near-term will provide cash flow and the necessary ongoing capital required to advance the exploration of the Aurum Property. Sendero is planning to secure the capital needed to build a plant and begin production in the next 18 months.
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Closing Question
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- Why should people invest in Sendero Mining?
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- The ability to finance ongoing exploration through cash flow from small scale mining removes the need to rely on investors and the capital markets and therefore we believe significantly de-risks an investment into the company. Secondly, the ability to self-finance the ongoing exploration will avoid the dilution many exploration companies are facing when raising capital.
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Disclosure: Sendero Mining Corp. is a sponsoring company. Please see our disclaimer for current positions.
