CopperBank capitalizes on mining misery

POSTED ON November 10, 2014 BY Tommy Humphreys
CATEGORY CopperBank Resources Corp, Featured Interview,

Gianni Kovacevic (left) and Ross Beaty (right) walk the streets of Geneva in January, 2012 (CEO.ca photo)

Several years ago when I was considering career choices with the potential to make me rich I was attracted to the mining space because of the extreme volatility of the sector.

In bear markets, or at times when commodity prices are going lower, there is little to no appetite for early-stage mineral projects. But when prices are rising, those same projects can be extremely desirable among investors and producers.

There’s no better illustration of this than the track record of geologist Ross Beaty during the last decade. Ross’s company, Lumina Copper, acquired a portfolio of ten out-of-the money copper projects in 2002-2003 for “almost nothing” only to spend the next 11 years selling those projects off for billions.

Mr. Beaty told us that story in a April 2013 interview, recalling that IPO investors in Lumina, if they held on, made an over 80X return on their money.

I had the chance to follow Mr. Beaty around Europe in January 2012 as he updated investors there about his various companies, including Pan American Silver and Alterra Power. The trip was arranged by a mutual friend, Gianni Kovacevic, a Vancouver-based investor with ties to Europe.

Day one of the trip taught me about Ross Beaty's work ethic. We flew from Vancouver to Iceland so he could take a few hours of meetings while I went for a swim in the Blue Lagoon. Then we flew to Dublin, Ireland so Ross could meet another potential partner, while I swilled pints and sang songs in a local pub. When I finally rested my head on a pillow that night in Paris, France, having crossed the world that day, I realized that the best entrepreneurs in mining have other-worldly energy.

It was an inspiring trip and evidently Ross’s story had a big impact on our travel companion, Mr. Kovacevic. Fluent in 4 languages, Kovacevic built relationships across Europe and became an important conduit for early stage companies looking to build an audience for their story there.

At home in Vancouver, he became one of the best connected players in the space, and a substantial investor in early stage companies.

He is one of the founders, a large shareholder and Executive Chairman of a new company that started trading on Friday called CopperBank Resources Corp (symbol CBK on the Canadian Securities Exchange).

CopperBank is following the Lumina Copper model by assembling a portfolio of early stage copper projects at a time when there is little to no outside financing available for them.

Their plan is to house multiple projects under one low overhead roof to ride out the bear market before beginning to option off, sell or re-ipo those projects when times are better.

The company has a few things going for it. To start with, it has two established copper projects already that are in line with the company’s strategy. In an email Friday, Kovacevic said these projects were acquired for less than 1/3rd of 1 penny per pound of copper in the ground.

CopperBank’s first two 100% owned projects are Contact, located in NorthEast Nevada and Pyramid, located on the Aleutian Islands of Alaska.

Highlights of Contact:

100% consolidated ownership
7,000 acres of patented and unpatented mining claims
2013 PFS design for 50 million pounds per year of copper cathode production
Heap leaching with SX-EW to make copper cathode at site
Located in NE Nevada near the border with Idaho, one mile west of Highway 93
Excellent infrastructure with available roads, grid power, and water
Extensively drilled with over 250,000 feet of drilling (329 core and RC holes)

Highlights of Pyramid

Porphyry Copper, Moly, Gold discovery
Extensive supergene copper enrichment blanket
Near surface mineralization
Adjacent to tidewater, 25km from SandPoint Alaska
Completed 7486 metres of drilling in three years with former joint venture partner Antofagasta
Established an open ended mineralized footprint of 1,800 metres by 1,050 metres
Situated on Native owned lands (Aleut Corp.), avoids Pebble like project complications

The company intends to use its stock to acquire additional projects in the near future. They are looking for projects with established resources, little to no ongoing work commitments, and obviously, realistic financial terms.

Another strength of CopperBank is its shareholders. Kovacevic has been able to attract some impressive investors, from Chilean-based family owned miner, Antofagasta, to Lukas Lundin’s Denison Mines.

As Executive Chairman, Kovacevic is Copperbank’s driving force. He has a new book out on copper that provides a unique platform for also telling the CopperBank story. The book is called My Electrician Drives a Porsche?, and US Global Investors founder Frank Holmes wrote the forward. Many of the mining industry's most influential CEOs have already read it, and you can get a copy on Amazon here.

Behind Kovacevic is a team of experienced engineers, geologists and capital markets professionals to help CopperBank evaluate and acquire other projects. The team also includes Rob McLeod, Will Willoughby, Todd Hilditch, and Terry Ortslan. These gentlemen have long track records of accretive mining transactions.

The company raised $1.6 million in cash and has a $13 million market cap, based on roughly 130 million shares outstanding with the last financing price at $0.10.

The mining down-cycle is now almost 4 years old and Copperbank may be early in its strategy. On the other hand, their timing might be perfect.

For more information, visit copperbankcorp.com and add CBK to your watch list.

Disclosure: Author owns shares in CopperBank Resource Corp and they are a CEO.ca conference sponsor. The company had no influence on this story. All facts are to be verified by the reader. Always do your own due diligence as this is not investment advice.

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.

Always do your own due diligence. We seek safe harbor.