Evrim Resources PDAC Interview, a Mexican Prospect Generator Investors Should Follow

POSTED ON March 20, 2015 BY Tommy Humphreys
CATEGORY Evrim Resources,

The mining exploration business is very risky, with about 3 out of a 1000 good looking prospects becoming mines.

That's why some smart small exploration companies follow the "prospect generator" business model of generating ideas and finding more established partners to pay for the drilling. This shares the upside, but more importantly, gives the prospect generator multiple shots at discovery without unnecessary equity dilution.

An example is Vancouver-based, Mexico-focused micro-cap Evrim Resources (TSXV:EVM), which has 5 partner funded drill-programs planned for 2015.

The company is interesting for a few reasons. To start with, it boasts some impressive backers include John Tognetti (Haywood Chairman) Rick Rule (Sprott USA Chairman), Paul van Eeden (fund manager) and Adrian Day (fund manager).

The company has a roughly $6.2 million market capitalization and about $3.1 million in cash with its shares trading at $0.185. A month ago, Evrim's CEO told me that cash runway could last until early 2017.

All previous financings done by Evrim have been at much higher prices, with rounds at $0.50, $0.32, and again at $0.32. The company has never issued warrants, which is unusual in junior mining finance and a positive for Evrim as it protects the share structure.

Additionally, the thing about Evrim that really caught my eye is the appointment of Alain Charest as Senior Geologist back in early February. Mr. Charest has made several discoveries in Mexico and is one of the most experienced and active explorationists in the country.

It was for these reasons we asked CEO.ca cameraman Carter Smith to visit the Evrim booth at the PDAC, the world's largest mining convention, on March 1, 2015 in Toronto. Both CEO Paddy Nicol and Senior Geologist Alain Charest were present to quickly discuss the company's 2015 plans.

Here is a transcript of the above video:

Paddy Nicol, President and CEO: For 2015, for Evrim, we have 4 drill programs planned on 2 of our projects with one of our exploration partners, Silvercrest. We've also got a 5th drill programmed planned with Arcellor Mital down in Sonora. The first four for gold exploration, and the 5th drill program is for iron-ore exploration.

The first set of results came out earlier last week, and it was a discovery on one of our projects. First time ever, we're looking forward to seeing additional results come from that project over the next little while.

Mr. Charest

What we're looking for, is a discovery on our Ermitaño project, and we're basically looking to build resources now, and step out from what they've found already. The first stage program was a success and it's basically building on what they've discovered to date.

Alain Charest, Senior Geologist: I've 21 years of experience in Mexico, and a few discoveries behind my belt. Joining the team of Evrim, I think there's very good opportunity right now to pick up some very high quality projects in Mexico. It's time to go shopping, be selective, there's some good stuff out there. I think with the team of Evrim in Vancouver and our team in Mexico, there's a good opportunity to bring some new projects to the company that's basically going to give some more value to the shareholders and Evrim itself.

Forward Looking Information

This interview includes certain statements that may be deemed "forward looking statements". All statements in this interview, other than statements of historical facts, that address events or developments that Evrim Resources Corp. (the "Company") expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur.

Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward looking statements. Factors that could cause the actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by securities laws, the Company undertakes no obligation to update these forward looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

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.