December 7, 2017
Dear Fellow Shareholder,
The Company has continued to concentrate its exploration efforts in 2017 on the Pecoy and Tororume Cu, Mo (Au,Ag) Porphyry District. In addition we have a Joint Venture with a major mining company, on the Hurricane Ni-Cu-PGE project in Peru. We have successfully outlined a large Porphyry Cu-Mo (Au,Ag) deposit at Pecoy that now has an estimated 43-101 Inferred Resource of 644 Million tonnes at a grade of 0.33% Cu, 0.011% Mo, 0.050 g/t Au and 1.24 g/t Ag and remains open. All work expenditures and cash payments required under the Pecoy agreement have been met to secure a 51% interest in the project. We are now proceeding to earn an 80% interest in the Pecoy project.
Preliminary drilling at the 100% owned Tororume East target completed late in 2017 was successful in intersecting Cu-Mo porphyry mineralization in all 6 holes and has confirmed the large size potential for the project (2-3 times larger than Pecoy). The geologic interpretation from the drilling suggests that the East Target occurs above the main porphyry which is exposed at the Potassic West target at lower elevation. The Potassic West and North Phyllic targets remain the priority targets at Tororume, with future drilling planned for the second quarter of 2018, once the activation of our permit for these targets has been received from the government.
In 2017, the work at Pecoy focused on various engineering studies, including power line, road construction, water plant, tailings and waste containment studies. These studies have been successfully completed along with additional metallurgical test work that has shown excellent metal recoveries. We have accelerated the PEA (Preliminary Economic Assessment) study and expect the final report to be completed early in the first quarter of 2018.
In 2018, with the Pecoy PEA and the additional Cu porphyry mineralization on the Tororume property, we are confident that we will attract a buyer for this new emerging Porphyry Cu District. As a result, the Company has decided to begin a process to sell the Company in 2018. It is our intention to retain the services of an investment banker to advise the Company and facilitate the sale process.
During this critical time for the Company, we will require additional funds to facilitate completion of a sale transaction from a position of strength. We will end 2017 with approximately CAD$1.5 million and are seeking to increase our cash position up to CAD$10 million to be financially strong and to continue drilling through the sale process.
In addition to using the funds for the sale process, the proceeds of this financing will be used to complete drilling at the Tororume West Potassic and North Phyllic zones that will add significantly to the value of the Company. In addition, we will continue to meet our obligations to increase our interest in the Pecoy Project to 80%.
This is expected to be our last financing, and due to current market conditions in the junior copper sector, we will be raising the necessary funds at a price of CAD$1.00 per share. We are inviting all our shareholders, who are interested, to participate in the financing. This CAD$10 million financing will have minimal dilution to the Company (10 million shares added to 144 million issued). A current shareholder has already invested CAD$1 million at CAD$1.00 per share. Please contact us at firstname.lastname@example.org or +1-778-327-6540 if you are interested in participating in this opportunity. We propose to end the financing on December 31st, 2017.
We believe that our successful exploration efforts at Pecoy and Tororume in Peru, along with an improving copper market will enable us to realize the value for our shareholders in 2018.
Brian R. Booth
President and CEO