In the crowded world of junior mining exploration, companies that can successfully differentiate themselves with quality projects and an innovative approach have a crucial advantage in attracting the attention of investors looking for ways to identify the next value opportunity.
Canadian-based Fancamp (TSX-V:FNC) has an inventory of resource projects in three provinces at various stages of development; its targets include iron ore, copper, zinc, platinum group metals, chrome, gold and uranium.
“The quality of these assets reflects geological expertise gained over many years of exploration activities,” says president and CEO Peter H. Smith, PhD, P.Eng. “They have enabled us to successfully develop a singular approach in the financing of exploration. We now have significant shareholdings in other publicly-traded companies that can provide the cash we need for exploration and corporate development. This means we don’t need to rely on the capital market to raise funds and further dilute our shareholders.”
Fancamp’s holdings include 43 million shares in Lamêlée Iron Ore, 4.5 million shares in Argex Titanium, 15 million shares in Champion Iron Mines and 10 million shares in KWG Resources.
Smith says the company has already monetized its Lamêlée asset by completing a reverse takeover of Gimus Resources (renamed Lamêlée), exchanging this asset for shares in the publicly traded company. It also monetized its Ring of Fire property through a joint venture agreement with Bold Ventures, which subsequently brought in KWG.
“This is all in line with our corporate objective, which is to enhance shareholder value by identifying early-stage projects with excellent mineral potential, advance them to the next decision stage with minimal exploration work, sell, option or joint venture them to solid partners for cash and shares of the partnering companies, and inherit a significant royalty on future production,” he adds.
Situated on Quebec’s North Shore, east of Sept Iles, the privately held Magpie Mine is a jewel in the Fancamp crown. It is one of the world’s largest undeveloped titaniferous magnetite deposits, but what makes Magpie special, says Smith, is its significant chromium and vanadium content, which is a rare and sought-after quality, particularly among steel makers in China. Fancamp owns 46.7 per cent of Magpie.
Smith says the Pangang Group Steel Vanadium and Titanium Co. Ltd. of Sichuan Province, China, is currently conducting metallurgical testing of the massive Magpie mineralization with the intent of further participation in the project if results, expected in or around September this year, are favourable.
In the meantime, he adds, Fancamp is continuing its exploration activities, exploiting opportunities as they arise and continuing to build value for shareholders.
For more information, visit www.fancampexplorationltd.ca.
In a newsletter in February, Jay Taylor, editor of J Taylor’s Gold, Energy & Tech Stocks, described Fancamp as a project generator company, “which means management gets other companies to spend cash on high risk/high reward exploration work.”
At the time the newsletter was written, Fancamp’s holdings were worth approximately $17.5-million, compared to the company’s recent market cap of approximately $14-million.
Noting the potential for significant developments in 2014, a recent Market Equities Research Group report said the Magpie deposit, in which Fancamp holds a 46.7 per cent interest, offers a combination of large tonnage, massive and homogeneous mineralized rock, positive topographic relief, high grades of iron and titanium and the potential to extract chromium and vanadium.