WRP – Texas Billionaire Backs Tiny Western Pacific In A Big Way

Want to take advantage of the resource sector downturn? Find a billionaire backer and a management team from a top tier producer...

The Deer Trail mine mill in Utah (company) may soon re-enter production thanks to a financing package with Quintana Minerals Corporation.

The Deer Trail mine in Utah (company) may soon re-enter production thanks to a financing package from Quintana Minerals Corporation.

Warwick Smith's Western Pacific Resources (TSXV:WRP), a Vancouver-based junior miner with a $3.3 million market cap, has raised $10 million via a convertible debenture, and an additional $8.5 million via a base metals streaming agreement with Quintana Minerals Corp., a Houston-Texas based firm backed by Corbin J. "Corby" Robertson Jr., a billionaire oil and coal investor, who is also chairman and CEO of Natural Resource Partners, a $2.2 billion NYSE listed company.

According to CEO Warwick Smith, the $10 million convertible will be used to build a mine plan with a one year inferred resource at the company's Deer Trail gold-silver-lead-zinc mine in Utah. After the mine plan is established, Quintana will make an upfront $8.5 million payment for the streaming transaction which will be used to put Deer Trail back into production.

Roulston

Western Pacific simultaneously announced that Oliver Rodz from Quintana will be joining the company's board, as will newsletter writer Lawrence Roulston. An economic geologist by trade, Mr. Roulston worked with the Lundin Group in the 1990's before starting Resource Opportunities, one of the leading publications on junior mining investments. Quintana will nominate another director to Western Pacific's board in the near future.

Smith tells me via email that the goal of the partnership with Quintana is not just to get Deer Trail back into production, but to take advantage of the downturn in resource markets to acquire other assets and become a multi-asset production company.

Oliver Rodz, Managing Director of Quintana Minerals Corporation, echoed Smith's view in today's announcement. "We are pleased to be partnering with Western Pacific. We see great opportunity at the Deer Trail Mine and with the expertise of the management team in place. We look forward to supporting Western Pacific in bringing the Deer Trail Mine profitably back into production in the near term and in making its compelling growth strategy beyond Deer Trail a reality."

Michael Callahan and Arthur Brown, two former senior executives with Hecla Mining, joined Western Pacific in February, 2013, bringing their production expertise to the company.

While today's news is a big step for the junior miner, payments from Quintana to Western Pacific will be staggered based on certain milestones (see news release). The company needs to execute in order to realize its goals.

Want to take advantage of the resource sector downturn? Find a billionaire backer and a management team from a top tier producer... Then, execute like a champ, manage risk and cross your fingers.

Here are the news releases in conjunction with today's announcement:

Western Pacific announces $10 million convertible note financing and $8.5 million base metals streaming agreement | WSJ

Western Pacific welcomes proposed new Board members, upon closing of the Quintana transaction | WSJ

Roulston: The Deer Trial Mine In Utah Is An Exceptional Opportunity for Western Pacific Resources | CEO.CA

[Disclosure note: WRP is a client. Please see our Disclaimer. This is not investment or professional advice. Always do your own due diligence. Thank you.]

Tommy Humphreys

Tommy Humphreys, 30, is an entrepreneur, investor and writer from Vancouver, Canada. He founded CEO.CA, a popular junior mining and Canadian finance blog, in 2012. He has been the president of Pacific Website Company Inc., a private marketing and web development company, since 2007. Tommy has authored articles for Globe and Mail, Financial Post and others. He speaks at select conferences. Reach him by email: tommy@ceo.ca. Follow him on Twitter: @TommyHump More →

Twitter: @tommyhump

tommyhump@gmail.com

Tommy Humphreys

Twitter: @tommyhump

tommyhump@gmail.com

Disclaimer:

Readers are advised that the material contained herein is solely for information purposes. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice. Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities. The information contained herein is based on sources which the publisher believes to be reliable, but is not guaranteed to be accurate, and does not purport to be a complete statement or summary of the available data. Any opinions expressed are subject to change without notice. The owner, editor, writer and publisher and their associates are not responsible for errors or omissions. They may from time to time have a position in the securities of the companies mentioned herein, and may change their positions without notice. (Any significant positions will be disclosed explicitly. This article is not intended to meet your specific individual investment needs and it is not tailored to your personal financial situation. Nothing contained herein constitutes, is intended, or deemed to be — either implied or otherwise — investment advice. Thomas Humphreys, Pacific Website Company Inc., and other entities in which he has an interest, employees, officers, family, and associates may from time to time have positions in the securities or commodities covered in these publications or web site. We reserve the right to buy and sell such securities or commodities without notice to readers. While the information herein is believed to be accurate and reliable it is not guaranteed or implied to be so. The information herein may not be complete or correct; it is provided in good faith but without any legal responsibility or obligation to provide future updates. Neither Thomas Humphreys, nor anyone else, accepts any responsibility, or assumes any liability, whatsoever, for any direct, indirect or consequential loss arising from the use of the information in these publications or web site.

Forward-Looking Statements: This article may include certain "forward-looking information" within the meaning of Canadian securities legislation. Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "forecast", "expect", "potential", "project", "target", "schedule", budget" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the potential of the Company's properties are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on a number of material factors and assumptions. Important factors that could cause actual results to differ materially from Company's expectations include actual exploration results, changes in project parameters as plans continue to be refined, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, delays or inability to receive required approvals, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking statements which speak only as of the date of this article. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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One thought on “WRP – Texas Billionaire Backs Tiny Western Pacific In A Big Way”

tc says:

December 10, 2013 at 4:05 pm

i think converts are bad business for such small cos … big cos, fine … small cos, they somehow chew into market cap and introduce short sales, cheap paper and other toxins …

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WRP – Texas Billionaire Backs Tiny Western Pacific In A Big Way

One thought on “WRP – Texas Billionaire Backs Tiny Western Pacific In A Big Way”

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