VR Resources Limited (“VR”) is a new listing in the junior mineral exploration space (TSXV: vrr.v). VR successfully closed a C$ 4.4 M financing concurrent with the RTO and listing process, and is fully funded for a two year exploration strategy, including G&A.
VR is the continuance of 4 years of active exploration by a Vancouver-based private exploration company founded and run by two geologists with diverse experience in global mineral exploration, and a proven track record in the junior sector, having steered the sale of three companies in the past 5 years for an aggregate valuation in excess of C$1.3B. VR is a registered British Columbia corporation, and will continue to operate out of Vancouver. Mineral exploration assets are held in a wholly-owned, Nevada-registered subsidiary.
The focus of VR is copper exploration in the western United States, namely Nevada. The precursor private company spent two years, and some C$600,000, completing the high-risk, early-stage evaluation and target delineation work on VR’s QT and core asset, the Bonita Property. VR intends to drill-test Bonita in 2017. The potential upside of a discovery at Bonita is leveraged by multiple factors, including:
- tight share structure of the new listing, including insider position of approximately 20%;
- 100% ownership of the asset; no joint venture interests, no carried interests, no royalties;
- good infrastructure (roads; power; railroads) for cost-effective exploration and mining;
- Nevada is a jurisdiction with a long history of regulatory support for the exploration and mining sector.
The western United States is an important district for global copper production and overall copper resource endowment; most of the world’s largest copper companies are active in the western United States. The goal of VR is early-stage discovery and asset sale to a major copper company, in order to capture the steepest part of the value creation curve in mining for shareholders.