ABRAPLATA RESOURCE – Blue Sky, Organic Growth, at a Massive Discount

Willem Fuchter the CEO of Arbaplata Resource Corp. sits down with Maurice Jackson of Proven and Probable to discuss a new, relative unknown Exploration and Development company that is truly unlocking mineral value in Argentina!  Abraplata was established in 2017 and already has a 43-101 Compliant Indicated Resource!  The company’s flagship project Diablillos, which is a silver-gold project located in Northwestern Argentina along with 3 blue sky porphyry projects, provides a very, unique value proposition for speculators at a massive discount trading 80% below its peers.  We are delighted to provide our subscribers this comprehensive interview outlining the virtues and merits of becoming a shareholder at a deep discounted price.  Important to note, Abraplata is currently conducting a financing opportunity for accredited investors.  The full details and correspondence are disclosed during the interview.

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Maurice Jackson:

Welcome to Proven and Probable, where we focus on metals, mining, and more. I’m your host, Maurice Jackson. Today, we will highlight a junior mining exploration company that has been quietly unlocking mineral value in Argentina.

I’m speaking of AbraPlata Resource Corp, trading on the TSXV, symbol ABRA, and on the OTCQB, symbol ABBRF. Joining us for a conversation is Willem Fuchter. He is the president and CEO of AbraPlata Resource Corp.

Before we begin, allow me to convey to our listeners that AbraPlata Resource Corp is a sponsor of Proven and Probable, and that we are proud shareholders of AbraPlata Resource Corp for the virtues we will convey in today’s message.

Mr. Fuchter, welcome to the show, sir.

Willem Fuchter:

Well, thank you very much for having me, Maurice. I’m looking forward to talking to you, both you and your listeners. I would like to start off by wishing you all a very festive season, and I look forward to following up with you for your listeners in the 2018.

Maurice Jackson:

Well, thank you sir, and we look forward to hearing from you as well. Willem, for first-time listeners, who is AbraPlata Resource Corp, and what is the thesis you’re attempting to prove?

Willem Fuchter:

Well, as you mentioned, AbraPlata is a brand new company. We’re not even eight months old yet. We came out of the gates on the TSXV in late April, and our principal project, which is the Diablillos silver-gold project in Northwestern Argentina is what we believe is an exceptional property. I think this project alone not only underpins our current share price, but it’s going to support a share price much higher than we currently enjoy. Not only do we have this principal project with enormous growth potential, first of all, this organic growth on the Diablillos property itself, our principal project, but on top of that, we’ve got three porphyry projects, copper-gold-moly porphyry projects all in Argentina. We see an opportunity to see some tremendous growth possibilities with the rest of our portfolio as well.

Maurice Jackson:

Now, for our subscribers, we wanted to share the AbraPlata Resource Corp story with you, because we believe that AbraPlata’s expansive portfolio has enormous value that luckily, I state this luckily for our listeners, the market has not recognized. Mr. Fuchter, let’s do a compares and contrast for someone new to the story. Per ounces in the ground, how is the company trading relative to its peers?

Willem Fuchter:

Well, thank you for mentioning that. Certainly, one of our bugbears that we have not yet received the recognition in the marketplace of the tremendous value that I think our portfolio brings to the company. We believe that a lot of that is because we’re completely unknown to most of your listeners at this moment in time being essentially a new company. We are currently trading under $10 an ounce in the ground, our principal project, Diablillos, and we have an indicated resource of 1.9 million ounces gold equivalent. It’s actually a gold deposit, but we’re casting it as a gold equivalent, just so that you can get some idea when comparing to some of the other gold-rich precious metal deposits.

We’re currently trading at about $10 an ounce in the ground, whereas many of our peers, companies with resources in the ground with the same market cap range that we have, they’re, on average, trading at about $60 an ounce in the ground. In our peer group universe, we also have two other companies that have got resources in Argentina, and they’re trading at $60 an ounce in the ground and $54 an ounce in the ground respectively.

You can see, A, what tremendous opportunity there is for growth in share price in AbraPlata, but also, quite importantly, that those companies that operate in Argentina do not have much of a jurisdictional discount given that the two other companies that are in Argentina are trading very close to the group average as a whole close to $60 an ounce.

Maurice Jackson:

Well, that certainly is trading in a discount relative to your peers. Now, let’s find out why this is the case. Your projects, they’re located in Argentina. Willem, for listeners that may not be, or may be a little apprehensive I should say with regards to Argentina, is this a good jurisdiction to be in?

Willem Fuchter:

Very much so now, it wasn’t in the past. I’m sure that many of your end listeners will know that two years ago, we had a change in administration here in Argentina. Prior to that, Argentina was considered a bit of a pariah, and did not have access to international markets. Things were economically quite slow here. With the arrival of the new administration in 2016, what we’ve seen is a lot of the problems that Argentina was facing due to the actions of the previous administration, those have all been settled, and the direction that this new administration has taken certainly is giving a lot of international investors room for thought, and a lot of companies are either coming back to Argentina or are starting to invest in Argentina.

I think this has been particularly well confirmed by the fact that we just had midterm elections here in October this year, and the current administration has been returned to Congress with even more representatives than it did at the initial election two years ago. That all bodes well for the, I think, for both the project and ourselves. I also think that what large change that we see here in Argentina is that local investors are now putting money in Argentina, as well as into the mining industry. Argentina does not have a long history of mining. Really, mining took off here in the 1990s, and most of the mining investment was undertaken by foreign companies. We’re starting to see changes there, and a lot of Argentine businesses are now seeing the opportunities in mining and are starting to focus on mining. I think that bodes really well for the future of mining in Argentina.

Maurice Jackson:

I have a multilayered question here for you. Give us the name, again, of the flagship project, and what part of Argentina that it’s located in, but also give us some historical references.

Willem Fuchter:

Our principal project, as I mentioned is called Diablillos. It’s an epithermal silver-gold deposit. It’s located in the province of Salta in Northwest Argentina. Now, many of your listeners may know that the Fraser Institute of Vancouver in Canada has an annual survey where they look at the perception of various mining jurisdictions throughout the whole world. Salta currently enjoys the prime position of being the most mining-investment-friendly province of all the mining provinces in Argentina. It’s well-deserved, because they are very supportive of mining, and they have put in a lot of infrastructure to support mining. I think that’s pretty exciting for us.

Salta lies northwest of Argentina, and the project itself lies in the region called the Puna, which many people know as the truly Bolivian term, Altiplano. It lies 4,000 meters above sea level, and it’s basin and range type of topography, much like what you get in Nevada, except it’s high plains desert. There’s not much precipitation. As a consequence, during the winter, there’s very little snow, so we have access to the project throughout the whole year, and we can work at the project all year round. That’s also a strong positive. There’s a good network of roads in the area or be it all-weather gravel roads. We’re lucky enough that we’re in an existing mining camp. The importance of that is the fact that that mining camp over the years has dragged a lot of infrastructure with it.

For example, I mentioned Salta being a very supportive province. The Salta government actually put in a north-south gas pipeline providing to the various operation that exist in the mining camp. Most of those operations are either lithium or borate operations, but in their wisdom, the government also put a number of tee offs on that pipeline where there were advanced project. There’s actually a tee off allocated to Diablillos. As you can see, there’s relatively good infrastructure, although it is a 4,000 meters above sea level.

Maurice Jackson:

Now, we also have a 43-101 compliant resource. Give us the details on that.

Willem Fuchter:

The 43-101 resource was completed in November 2016 as part of our listing requirements for the TSXV, and was undertaken by Roscoe Postle Associates of Toronto, who are an independent third party specialist company that does a lot of resource estimation and due diligence work they do for banks and for other companies and so on. That’s a pretty comprehensive document, and you can find it either on Sedar or we will post it on our website for those people who might be interested to look at that.

Report has indicated that there are some 27.7 million tons of indicated resources, grading at 91.2 grams per ton silver, and .85 grams per ton gold, containing some 83 million ounces of silver, and 755 thousand ounces of gold, or if you want to cost this gold equivalent, 1.9 million ounces of gold equivalent. For those silver bugs, it’s about 140 million ounces of silver. You can see, the quality of that resources is quite considerable. It’s worthwhile just reflecting on some of the resources and reserves from individual minds and by some of the mid-tier silver companies. You can see that Diablillos is up there in the top quartile of deposit in terms of its size.

Maurice Jackson:

You can see for subscribers, based on the value proposition here, we have a resource, the numbers are fascinating, and the market cap is not reflective of what we’re discussing here today. Talk to us about the organic growth.

Willem Fuchter:

Well, most of the resources, in fact, all the resources, and I’ve talked only of indicated resources, because the indicated resources are all captured by a pit shell, right? Everything above the pit shell lies in the indicated resource category. There are some inferred resources, some of which lie below the pit shell. At this moment in time, we don’t really consider it, and we really only talk about the indicated resources, because those are the ones that, at this moment in time, are going to be available for mining. I think it’s important for you to understand that we’re talking about indicated resources not total resource, and the 1.9 million ounces gold equivalent refers to the indicated resources.

Now, all of these resources are located in a single deposit, which we call Oculto. We have been drilling off a satellite deposit 600 meters to the west of Oculto, and we have drilled off some additional resources, and the drilling has also indicated that those resources are structurally connected to Oculto. That’s quite interesting. This satellite deposit is called Fantasma. Now, in addition to Fantasma, there’s another eight satellite deposits on the property. The property is large. It’s some 8,000 hectares or 80 square kilometers. North-south, it runs about nine kilometers, and east-west, it runs about nine kilometers. It’s a very large property. There are these other eight satellite deposits in addition to Fantasma and Oculto.

Now, many of these are much smaller than Oculto. Oculto seems, by far, to be largest deposit. Most of those deposits have one or two drill holes in them. We’ve intercepted mineralization above cut-off grades and over mineable widths on all of these satellite deposits. The organic growth possibilities of the property are quite exceptional. Not only has Roscoe Postle Associates, who did the original resource estimate in 2016, indicated that there is potential to increase the resource in the Oculto deposit because of the density of drilling. There’s been a lot of drilling done on the property. There’s been some 85,000 meters of drilling done in over 400 drill holes. Most of those are in the Oculto deposit, but nevertheless, when you want to move an indicated resource to a measured resource, which is the next step that we have to take, we have to increase the density of the drill holes. Roscoe Postle has indicated in the report that there are opportunities where there are holes in the drill data to increase that.

Moreover, we recently had a consulting geologist who’s an expert on epithermal and porphyry deposits, and he spent five weeks on the property, relogging some of the key holes, remapping many of the outcrops on the property, and he has identified a high grade gold-rich zone at the bottom of the current pit shell, indicating considerable opportunity to have a gold-rich portion added to the silver-gold mix in the Oculto deposit. He has indicated that there is some zonenation in the deposit. The filler veins that lie underneath the deposit tend to be gold and copper-rich. When you get into the bottom of the deposit, they tend to be gold-rich. The bulk of the deposit, silver-gold, and the top of the deposit is silver-rich.

He’s indicate huge opportunity to really add significantly to the gold content of the deposit at the bottom of the deposit above the pit shell. We’re really quite excited about the organic growth, the potential, and we are pushing the Diablillos project through the various stages of feasibility, but at the same time, we’re going to be doing a lot of drilling both in the Oculto deposit as well as in the satellite deposits. What you’re going to see in the future, I believe, is that as we move from preliminary economic assessment through to pre-feasibility study, through to the definitive feasibility study, as such you’re going to start seeing not only the development aspect being progressed, but also an increase in the indicated resources from the property.

Maurice Jackson:

Well, the story just gets better and better. What is the-

Willem Fuchter:

Well, we’re pretty excited, and we certainly hope that we can get your listeners excited about this too.

Maurice Jackson:

Well, it’s a mutual excitement here. What is the current status of the PEA?

Willem Fuchter:

Well, we’ve been working on the PEA since about September, and both Roscoe Postle and Associates, who are the lead consultants, they are looking after the mining aspects of it, so looking at the new pit design, the mine planning, the mine scheduling, and all aspects of bringing mineable material to the plant head, and then we’ve got GR Engineering from Perth, Western Australia, who is looking at the processing aspects of the PEA. They’re looking at the design of the flow sheet, and they’re looking at all the infrastructure that’s required to support our plant there. That PEA is quite well-advanced, and we’re expecting it to come out late January, early February, so probably early February is a more conservative and more accurate estimate of when that’s going to be ready.

Maurice Jackson:

Now, upon completion of the PEA, how aggressive will AbraPlata be on conducting a pre-feasibility, and then conversely, a feasibility study?

Willem Fuchter:

Well, first of all, this PEA is not going to be a stock-standard PEA. It’s actually a little bit more than a PEA, because Silver Standard Resources, the company that we acquired the project from, they have done quite a lot of work towards the PEA, a lot of metallurgic test work. They drove water wells, tested those, and they’ve done a lot of geotechnical work. We’ve add to that an additional metallurgical test work, and done some more work on the infrastructure. I think it’s going to be a lot more than just an ordinary PEA.

That bodes well for being able to finish the pre-feasibility study, and we’ll be starting directly into the pre-feasibility study, which we hope will be completed in the third quarter of 2018. Then we’ll go on to the definitive study. We hope to have that finished a year later in June, July 2019. The reason why we want to get it done then is because our agreement with the Silver Standard requires that we make the next large payment to Silver Standard to the acquisition of their property in November 2019. We’ll finish the definitive study by June, July 2019, so we’re ready to make the decision to pay the 5 million, which is then due in November 2019.

Maurice Jackson:

Switching gears on to copper projects. Now, Willem, just alone what we’ve heard today is quite impressive and eye-opening, but AbraPlata has three Blue Sky copper projects. What can you share with us?

Willem Fuchter:

Well, we certainly are quite excited about those as well. They’re not as advanced Diablillos, and of course, Diablillos is taking most of our energy, both with respect to technical resources as well as financial resources. We do have three copper-gold-moly projects as well. One of them, interesting enough, actually lies on the Diablillos property. This(Cerro Viejo) is a copper-gold dacite porphyry, where two drill holes have intersected values of .87 grams per ton over 31 meters in the carapace overlying the dacite porphyry, and a good copper grades as you go in from the carapace into the dacite porphyry itself. That’s quite exciting. We’ve had quite a lot of interest from large base metal companies who’ve requested to look at signing confidentiality agreements, with a view to seeing if they can assist with further development of that porphyry.

Likewise, we’ve got the Samenta, copper-moly-gold porphyry, which lies also in the south of province, some 50 kilometers due south of the great TacaTaca porphyry, which you might recall in 2014 was sold by Lumina Copper to First Quantum for $470 million US. It’s quite a considerable deposit there. It’s got some 21 billion pounds of copper as a resource. First Quantum is continuing with the feasibility study, with the view to put into production in the next two or three years. Samenta is also very close to the Rio Grande porphyry copper deposit of Regulus, as well as the Fortuna’s Lindero copper-gold project, which Lindero is currently finalizing their feasibility with the view of putting them in production probably sometime next year.

That’s in a good camp, and there are some drill holes in that property already. It’s a cluster of two. It’s got two specific independent porphyry intrusions. Both are mineralized. Both have good geophysics, and some drill holes, and trenching services indicated that there is mineralized material above the cut-off grade and over mineable widths on the property. Our idea there is to do some deep-penetrating geophysics, because TacaTaca was a fairly modest porphyry at surface, and was only when they did the deep drilling that they really intersected some really, really good numbers. What we’re hoping to be able to show is by digging the deep-penetrating geophysics using systems like Orion or those type of things, where you could look down over a kilometer, and then we’re going to try and see if we can get a senior industry partner to come in and assist with the further development of that.

Our most exciting porphyry project is the Cerro Amarillo project, which is in Mendoza province in West Central Argentina. It lies in a camp of behemoth porphyry projects, and I think typified by the El Teniente deposit in Chile. The El Teniente is the largest underground copper mine in the world, and in post-reduction and current reserves, it’s got 171 billion pounds of copper. It’s enormous. It’s really behemoth. Not giant. Not super giant, really behemoth. Our property is hosted by the same Neogene belt of volcanics, which also hosts El Teniente, and Los Bronce, and Los Pelambres, and the Altar deposit. They all have the same geological age, round about 6 to 7 million years in age. The intrusions are very similar.

Like all these other behemoth properties, it’s not a single porphyry project. We’ve actually got five individual porphyries on the project. The project area is 168 square kilometers, some 14 kilometers east-west, and 12 kilometers north-south. Again, a very large property, and there’s five individual porphyry intrusions on them. All of them got excellent geochem at surface. We’ve mapped copper mineralization at surface on four of them, and we’ve done geophysics on two of them, which indicate that there’s chargeable material lying below copper mineralization mapped at surface. That one is ready to drill. Again, as a small company, we don’t have the financial wherewithal to be able to do justice to a property that’s got five porphyries on it, and so we’re looking for a senior partner to assist with that.

Maurice Jackson:

That really sticks with the theme here of unlocking mineral value in Argentina. Let me ask you this for clarification. Are there any reversionary interests on these projects?

Willem Fuchter:

No, we have rights to 100% of these properties. In the case of Diablillos, we acquired that from Silver Standard for payments of $15 million split over five years. As I mentioned earlier on, we have a $5 million payment due in November of 2019, or at bankable document, whatever comes first. We have our final payment of $7 million due at start of construction, or November 2021, whichever comes first. With Samenta, we have access to the mineral rights through an option agreement with the underlying owners, and likewise, with Cerro Amarillo.

Maurice Jackson:

Now, is the goal here to build a full production mine on these projects, or are we looking for arbitrage?

Willem Fuchter:

Well, our expertise and our experience is more in the exploration and development side. I suspect that we would look for a mid-tier company who has got a track record of mining particularly in Latin America to see if we would now combine with one of those companies at the time when it comes to put these projects to production.

Maurice Jackson:

All right. Looking at your capital expenditures, talk to us about infrastructure on these projects.

Willem Fuchter:

Well, of course, I think the one that’s most relevant is Diablillos. I’ve mentioned some of the infrastructure aspects for Diablillos. I think the most important thing is that energy seems to be not a problem, because we’ve got a gas pipeline with a tee off allocated to Diablillos. There’s a good network of roads there. The standard drill, the number of water wells, and Mark Pisol, who did the test work on those, pumping test and so on, they’ve indicated that the groundwater resources are sufficient in quantity and quality to support mining operations on the property.

Then I think the final most important aspect for development of mining operations there is the terrain. Despite the fact that we are up at 4,000 meters, the terrain is relatively benign, and there’s plenty of space to put tailings storage facilities, waste dumps, plant, and mining camp. Mark Pisol in the past has done compaction tests in some of these areas, and we know that the soils are going to be able to support the tailings storage facilities and waste dumps, and of course, there’s plenty of flat area where we can put the processing facilities and all. I think those three important aspects of mine development give us a good feeling of comfort, and I think that your listeners would be able to see that in the PEA, when that comes out in early February.

Maurice Jackson:

I have a off-balance sheet question here for you. How about community relations?

Willem Fuchter:

Eugenio Ponte, who is our senior VP, he specializes in community relations, and he does not only the community relations, but all the government relations for us. Eugenio was with Argentine national. He’s been in the mining business for over 20 years. He’s managed mining operations in Jujuy, the province to the north of Salta. He’s done a lot of work in Peru in difficult areas with indigenous tribes, and has managed always to get the permits for operating there, as well as actually being invited onto some tribal lands to look at explorations.

We’re lucky that we got people who are experienced with the community relations, but importantly, in Salta province, up in the Puna, there are very few communities, because it’s very remote and up high. Those communities that do exist there are largely employed in the mining industry, particularly in the borate operations and the lithium operations. I don’t see that we’re going to have problems whatsoever with respect to community relations.

Maurice Jackson:

We’ve covered the latent material on the ground. Let’s discuss what I consider the most important aspect, and that is the people. Who is on your board of directors, and what makes them qualified for the task at hand?

Willem Fuchter:

Let’s start with the chairman, Hernán Zaballa. He’s an Argentine national. He’s also one of the top mining lawyers in Argentina, and he served in local board of such companies as Barrick, Pan American Silver. He’s done work for most of the majors and just about all the juniors that have passed through here, Silver Standard Resources. You name it. He’s just been working on that. He was also the director who was able to solve the problem that vexed Silver Standard for so many years, and that was the overlapping mineral rights owners in the Diablillos, which was solved in August this year, as you can probably read in one of our press releases from that time. We’re very fortunate to have Hernán as chairman. He’s executive chairman, so he actually spends a lot of time working directly for the company.

We’re also lucky to have people like Dave Doherty, who’s a well-known personality in the financial community out Vancouver. Dave was responsible raising the RTO money of some $3.8 million in April this year. Dave’s originally raised about $75 million for various other companies. I think we enjoy to have someone like Dave who has the ability to raise money for us.

John DeCooman is the Standard representative from our board. Standard owns 19.9% of the company, and as part of the acquisition of Diablillos. He is vice president of business development for Silver Standard. We’re getting a lot of support from Silver Standard, so we’re very happy to have John on the board.

We have Eduardo Perlicz from Miami in the United States, who also assist in our board. Eduardo is a well-known mineral property broker. He has brokered a number of mineral properties in Mexico and many countries in South America. Many of those deposits are now being mined. It’s good to have him on the board as well.

Maurice Jackson:

Tell us about Willem Fuchter, the CEO. What unique skillsets does he bring to the table?

Willem Fuchter:

I’m a geologist by training. I grew up in Africa. My father was a geologist, and so I grew in mining camps and exploration tented villages in Africa. Perhaps, not surprising that in the end the lifestyle was particularly attractive to me, and so I ended up doing geology as well. My father worked for many companies, one of them was Falconbridge Gold. His advice was for me to at least go and do some studies in Canada. He felt that Canadians weren’t necessarily the best geologist in the world, but certainly are very good explorers. I took his advice, and I did my master’s and PhD in Canada. I certainly have to agree with him that Canadians certain are talented explorations, and I’ve been fortunate to do some considerable amount of work in Canada, and appropriate some of their exploration methodologies if you will.

I’m also lucky that I’ve worked in Africa, in Asia, in Europe, the Middle East, and have been able to visit many deposits. I think this gives you certainly the ability to look at geological data and see things in different environments and saying, “Wow, I’ve seen that before. That’s something we’ve got to chance.” I’m considerably really fortunate I’ve been able to have that experience.

Maurice Jackson:             You mentioned you’ve been a world traveler, I would say. Talk to us what languages do you speak as well.

Willem Fuchter:               Well, I’m actually Dutch by origin. Obviously, I speak Dutch. Dutch is very similar Afrikaans, so I spoke Afrikaans in Africa. Of course, I’ve been living here in Argentina for over 15 years, and so I’ve added Spanish to that. I’m afraid exhausted when it comes to other … I worked for a while in China but was not able to pick up Chinese except for a few words.

Maurice Jackson:

We won’t hold that against you. Now, should something happen to you in your absence, who will lead the company?

Willem Fuchter:

Oh, I think we’ve got a very competent team of local geologists as well as international consultants. We’ve been working both the people in the company as well as the consultants that we use for the last 10, 15 years in various other companies on various projects throughout the world. I have no doubt that my colleagues, Hernán and Eugenio and the rest of the board and committee be able to carry on without me.

Maurice Jackson:

What about your technical team? Tell us about them.

Willem Fuchter:

Well, I’ve mentioned Nick Tate, and the work that he’s done in the past with us, and particularly the five weeks he spent recently at Diablillos remapping and relogging. Nick Tate is an Australian. We’ve been working together since 2007. He has worked with us in a lot of companies in South American, in Ecuador, in Peru, and here in Argentina. He, in fact, discovered three of our porphyries on our Cerro Amarillo deposit. Only two are known to us at the time. His mapping, boot leather and hammer skills go to another three porphyries. He is the one that’s identified the deep gold zone of Diablillos. He’s put together a geological technical narrative that really holds together well of Diablillos. He spends a lot of time … He comes here two or three times a year.

On the locally, we have Jose Antonio Cires, who I first met in Ecuador when I was working there. He and I have been working together since then. He’s a highly skilled GIS operator. He’s basically our manager of all the data, but has considerable field experience. He organizes and arranges all the set ups in our various projects. We then parachute in local geologists and international expert whenever we need them and from wherever they come. That’s really how we carry out our exploration and development work.

Maurice Jackson:

Let’s get into some numbers here. Talk to us about the current share structure.

Willem Fuchter:

Well, the stocks of the company at this time is as follows. We’ve got about 65 million shares and outstanding. On top of that, we’ve got about 1.2 million warrants and out, and 2.3 million options. The options are exercised for 63 cents, so they’re underwater at this moment in time. The 1.2 million warrants are between 25 cents and 60 cents.

Our major shareholders, insiders if you will, are almost 40% of the company. Silver Standard own 19.9%. Management own 12.3%, and then there’s a fund out of Los Angeles in California, Genautica, which owns 7.4% of the company. We come to trading around about 24, 25 cents Canadian. It gives us a market cap of somewhere between 15 and 16 million dollars. We have absolutely no debt at this moment in time.

Maurice Jackson:

It’s always fun to hear that there is no debt, so you’re good stewards of capital. Talk to us about your burn rate.

Willem Fuchter:

Well, our standstill burn rate is about $120,000 a month. That’s because we got operations here in Argentina, but we also have got a very modest office in Vancouver. That standstill rate does include our IR and marketing aspects, because we pay a lot of attention to that. We know that it’s important to get our message out there, so that people can see the opportunity that exists in the company.

Maurice Jackson:

What are the change of control fees?

Willem Fuchter:

There are no change of control fees. We don’t have any poison pills or anything like that out. If a company considers that we’re worth the money, and they make a good bid to the shareholders, we of course are very open to look at what’s best for the shareholders.

Maurice Jackson:

Now, when was the last time you purchased shares and at what price?

Willem Fuchter:

Well, I’m co-founder of the company. We worked on this for many, many years. We’ve been funding the company over all those years with our personal funds. As a consequence, I do own a fair amount of shares in the company. As you can see, management owns any 12% of the company. We’re going to be doing a project, basically, quite soon, because we’re getting low on funds. I’m still going to be participating at that. I think that we’re probably going to come out at around about 20 cents on that. I’ll be acquiring additional shares of 20 cents.

Maurice Jackson:

Multilayered question here, what is the next unanswered question for AbraPlata, when should we expect results, and what determines success?

Willem Fuchter:

Well, I think that what’s going to really kickstart us are the results from the PEA. We’ve been working on the results. They’re not finalized. Of course, I cannot disclose them at the moment. Suffice to say that I think people are going to be pleasantly surprised with that. It’s certainly a really good deposit. It’s in a good jurisdiction. It’s technically a quality project, and size-wise, it’s really quite considerable. It’s not something that maybe Barrick would get interested, but certainly, I think a lot of the silver companies are going to get quite excited about this one once we come out with the PEA.

I think that PEA is probably the next milestone that is going to be meaningful. In the meantime, when we raise the money, we’re going to be allocating that not only to finalizing the PEA and moving that through PFS, but we want to do almost drilling for the deep gold zone, and the infill drilling to add to the resources in Oculto, and then drill off all these satellite deposits, which are quite small. It’s going to take some drilling, but it’s not going to be too onerous, and we’re hoping to do that simultaneously in a twin-track approach in the next 18 months to two years as we bring this thing to definitive study. You’ll see the PEA come out with certain indicated resource that helps with the PFS. It’s going to come out with a larger indicated resources, and finally, the full feasibility study.

Maurice Jackson:

Willem, what keeps you up at night that I forgot to ask?

Willem Fuchter:

Well, what keeps me up at night, we brought a lot of people in the company, and a lot of people believe in us, and believe in the narrative, really think that this is a great opportunity. We have a lot of responsibility to those people as well as to any new shareholder to make sure that we’re adding value all the time. It never goes in straight lines. There’s always ups and downs, and so you can imagine, when it’s a little bit down, it certainly keeps me up at night, but we have a lot of faith, and we’re lucky to have a number of shareholders that similarly have that faith that this is going to be a very well worth endeavor.

Maurice Jackson:

You alluded to financing here. Can you hare with us the financing details?

Willem Fuchter:

Well, we want to do a large financing on the back of the PEA, right? That’s going to come out some time in February, and we want to try and raise $5 million US or approximately 6.5 million Canadian. The reason we want to do that is because as part of our agreement with Silver Standard, their 19.9% rests after what’s called an agreement of qualifying financing of $5 million US or more. Every time we do a smaller financing, then we have to chop up Silver Standard 19.9%. Once we do a qualifying financing, then Silver Standard either dilutes or has the right to maintain their 19.9%. That’s an important step, and we want to do what on the back of the PEA, because we think the PEA is going to give a lot of confidence to people when they see that the extremely robust economics of this project.

Maurice Jackson:

This financing, we want to make sure that our listeners are well aware, this is for accredited investor. Willem, for someone listening that wants to get more information about AbraPlata Resource Corp and the financing, please share the website and the contact details.

Willem Fuchter:

Our website number is quite simple. It’s www.abraplata.com, and Rob Bruggeman, our investor relations person can be accessed at rob@abraplata.com, or his phone number is 416.884.3556.

Maurice Jackson:

Last but not least, please visit our website, www.provenandprobable.com, where we interview the most respected names in the natural resource space. You may reach us at content@provenandprobable.com.

Willem Fuchter of AbraPlata Resource Corp, thank you for joining us today on Proven and Probable.

Speaker 3:

Thank you for joining us today on Proven and Probable. Remember to like and subscribe for more conversations with the most respected names in the natural resource space. Check out our website at www.provenandprobable.com.

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