Case Study: Metanor Resources
$10 Million Senior-Secured Credit Facility
Here's what we saw at Metanor Resources. An
exploration stage junior gold company rich in resources. Metanor
eventually put into operation a milling complex
and is now producing gold from its most prolific mine. Others
didn't see it. We did.
Third Eye Capital provided Metanor with financing for working
capital, production planning, and expenditures associated with
restarting a milling complex located on one of their main
properties in Northwestern Quebec, a major gold mining area.
Although publicly traded on the Toronto Venture Exchange, Metanor
sought a non-dilutive transitional debt facility that would be
repaid through an equity offering when its stock price
Metanor Resources Inc. is a gold exploration company, with
significant mineral properties in Northern Quebec and Ontario, and
possessing a senior management team with a track record of
developing profitable mines. In order to properly realize the
significant measured and indicated resource potential that had been
identified at one of its mining properties, Metanor needed a
financing partner that could recognize value not yet reflected in
the company's stock price. We saw a company with committed equity
holders, strong community and government support, and a solid
operational team with over 200 years of combined experience in the
gold exploration and production industry. We saw a mining company
with a milling complex that was strategically located in one of the
most prolific gold resource areas in Quebec. Metanor was an
emerging producer ready to shine, and we saw it.
OUR APPROACH & OUTCOME
Metanor's remote location and early stage production profile
thwarted other lenders, who failed to see the opportunity and value
in the company's assets. We took a hands-on approach to
understanding the company's needs, and developed a financing
solution that was customized to Metanor's unique circumstances. We
help good companies like Metanor, which cannot access conventional
credit due to perceived risk, size, complexity, or timing, reach
their busines goals. We assess transactions from the perspective of
the business owner, and match our capital to not just business need
but also asset value potential..
We aligned ourselves with Metanor by providing an interim
financing solution that enabled the company to execute on its
strong production opportunity. Metanor eventually unlocked value
for all of its stakeholders by getting its mining properties into
production. We saw so Metanor could shine.
"At Third Eye Capital, we pride ourselves on taking a
broader perspective in order to grasp a company's full potential.
We look through another lens to see the latent value hidden in
assets which allow a company to be viable and thrive."
Arif N. Bhalwani