Narrator: The SmallCapPower CEO interview featuring Viscount Mining.
Angela: Viscount Mining Corp. (TSXV: VML) is rapidly building a strong portfolio of exploration properties containing known deposits of silver and gold. The company has already targeted several highly-prospective locations in Nevada, where 80% of all gold and silver in America has been produced. Having assembled an expert team, Viscount has already received an independent NI 43-101 report with a highly favorable conclusion on its Cherry Creek properties located in White Pine County, Nevada.
Jim: My name is Jim MacKenzie, CEO, President, and Director of Viscount Mining. Viscount is traded on the TSX Venture Exchange under the symbol ‘VML’. My job with the company is to a) create shareholder value, b) is to find projects that fit into the mandate of Viscount. We are a project generator. We currently have two companies in our portfolio, the first being Cherry Creek in Nevada. The second is Silver Cliff in Colorado.
The Cherry Creek property in Nevada has a partnership with Sumitomo Corporation. They are a large entity out of Japan. They worked on the property last year. We signed an exploration campaign with them and ended up signing an earn-in agreement in February of 2015. They have to spend a minimum of $10 million on the property within the next eight years as well as complete a bankable feasibility study to acquire 75% of the property.
Angela: In which ways is your Nevada property better than other mining projects being developed at this time?
Jim: We were able to take a group of claims owned by a number of different families and put them together under the Viscount umbrella. That became 2,600 acres of over 20 previously producing mines on the property. The majority of those were patented. They produced up until the end of 1919, prolific gold- and silver-producing properties. In the 1940s, the U.S. government went on the property and mined the tungsten for the manufacture of munitions during the Second World War. And the properties really lay dormant until we got involved in 2010. Sumitomo went onto the property last year, in 2014, and conducted an exploration program. And during that time, they were very excited with the results they were getting off the property. That allowed us to take the property from 2,600 acres to over 9,000 acres, which we currently are today.
Angela: How do you plan to advance your project in this challenging environment?
Jim: One of the fortunate aspects of Viscount is we just completed a private placement at the end of 2014, beginning of 2015. And currently, the company is well-financed. With the Cherry Creek property in Nevada, we have de-risked that project by having Sumitomo involved. The agreement with Sumitomo allows them to spend a minimum of $10 million within the next eight years and complete a bankable feasibility study to acquire 75% of the company. Regarding the Silver Cliff project in Colorado, we are currently going to be working on an exploration program on the property this summer, looking towards completing a 43-101 to get a compliant resource based on the historical information that we have on the property.
Angela: Will you need to go back to the market to raise cash anytime soon?
Jim: Viscount is currently very well-funded. We also have 11 million warrants outstanding at 25 cents, which, if we need money, I’m sure that the shareholders, based on what we believe will be a very productive summer and fall, will certainly be looking to exercise those warrants. Based on our agreement with Sumitomo and not having to spend any money on the Cherry Creek property from this point forward, our burn rate is substantially low. We will be obviously looking at doing some work on the Silver Cliff property this summer and this fall. But again, we’ll not be cutting into currently the cash position that we have in Viscount.
Angela: Can you tell us what your shareholders have to look forward to in 2015.
Jim: There’s quite a bit that our shareholders will be looking forward to, as well as the company, in the upcoming months until the end of 2015. Obviously, the continuing work on the property in Cherry Creek, which I believe will lead to a drill program before the end of the year on the property by Sumitomo. On the Silver Cliff property, we’re going to be completing some work on there, some sampling, and a NI 43-101 to get a compliant resource on that property and bring the historical information forward to 2015.
Viscount as a project generator is also looking at a number of other opportunities in the western United States that we think will bring substantial value to the company along with the two projects we already have.
Angela: Thanks for taking the time to speak with us, Jim.
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