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| Rick Rule and Jeff Phillips join Nick Hodge to explain how prospect generators give investors more shots on goal…and why both men own all three of these companies.
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| Every junior explorer has to answer the same question: Who pays for the drilling?
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| Most answer it the expensive way: By selling more shares. Prospect generators take a different route.
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| They stake and advance promising ground, then bring in a major to fund the exploration. The generator keeps a carried interest or a royalty.
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| Rick Rule has been investing in prospect generators for almost 50 years. In the video above, he and Jeff Phillips sit down with Nick Hodge to explain why the arithmetic works so well.
They also explain why they’re both shareholders in three companies running the model perfectly right now.
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| Better Odds, Paid For By Someone Else
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| Rule learned in university that roughly one in 3,000 mineralized anomalies becomes a mine. The typical bet on a junior, he says, takes that one-in-3,000 chance in exchange for a 10-to-1 return. Rule calls it profoundly bad math.
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| Prospect generators improve those odds in two ways. They give investors more shots on goal…and someone else pays for most of each shot.
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| Rule’s own record shows the difference. Against those one-in-3,000 odds, his hit rate across the prospect generators he’s backed is closer to one in three: more than 25 economic discoveries from about 75 companies.
Rule adds another advantage. When a major spends millions to earn into a project, that spending is the due diligence. It’s done by the major’s own geologists, at the major’s own expense.
All three companies in the video have attracted exactly that kind of partner.
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| At Kincora Copper (KCC.V; BZDLF.OTC), AngloGold Ashanti can fund up to A$100 million of exploration across Kincora’s Northern Junee-Narromine Belt in New South Wales, Australia. Kincora runs the program and collects a 10% management fee.
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| Rule’s attraction is the size of the target. Kincora is hunting tier-one deposits, the kind a major wants, in ground its team already knows.
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| At Headwater Gold (HWG.CSE; HWAUF.OTC), Newmont, OceanaGold and Centerra Gold are all funding exploration across much of its portfolio in Nevada and Idaho.
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| Rule points to the American West as a region prone to 5-million-ounce-plus gold deposits. He also points to Newmont’s renewed hunt for tier-one ounces.
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| At Latin Metals (LMS.V; LMSQF.OTC), partners including Peru’s Minsur, Daura Gold and Moxico Resources are lined up to drill projects in Peru and Argentina. Minsur alone has agreed to terms for up to 60,000 meters of drilling at the Lacsha copper-molybdenum project.
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| Rule says he generally prefers that kind of outcome over a working interest that comes with the burden of raising development capital.
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| Meet All Three On Jeff Phillips’ Place In New Orleans
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| When the New Orleans Investment Conference opens October 28 at the Hilton New Orleans Riverside, you can put your questions to all three companies face to face. Kincora, Headwater and Latin Metals will be exhibiting on Jeff Phillips’ Global Market Development row, alongside eight other companies.
Phillips is also hosting two gatherings on Friday, October 30th...
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| • Global Market Development Beignet & Coffee Bar: 9:20–10:20 AM (Morning Break)
• Global Market Development Happy Hour: 3:15–4:15 PM (Afternoon Break)
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| Tickets are available at any of these booths at NOIC:
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| • Latin Metals Inc. & Latin Explore Inc. — Booth 222
• Empress Royalty — Booth 223
• Kincora Copper — Booth 224
• Daura Gold — Booth 225
• North Shore Uranium — Booth 226
• David Hall Rare Coins — Booth 227
• T2 Metals — Booth 228
• AuGold Corp. — Booth 229
• GreenLight Metals — Booth 230
• Headwater Gold — Booth 231
• Kingsmen — Booth 233
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| Rule built his case on getting more shots on goal. In New Orleans, you can line up three of them in a single afternoon.
Watch the conversation below, then come see these companies for yourself — register here.
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| CLICK HERE
To watch Rick Rule and Jeff Phillips join Nick Hodge to explain how prospect generators give investors more shots on goal…and why both men own all three of these companies.
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