Creating Shareholder Value Through A Hybrid Exploration and Production Model
Cyprium Mining (TSX.V: CUG) is building shareholder value through a hybrid exploration and production business model that acquires and develops past producing mines which offer near-term production potential and significant exploration upside. The mines are brought back into production in order to generate non-dilutive cash flow that is reinvested into further exploration of the mine, thus allowing the Company to grow organically, extend mine life and limit shareholder dilution.
This business model has been highly successful for similar mining companies operating in Mexico, including First Majestic Silver (Market Cap ~$3.15B), Endeavour Silver (Market Cap ~$1 billion). Cyprium has assembled one of the most experienced and proven Mexican-focused management teams in the industry, providing the company with the necessary expertise to successfully implement its business model.
- Focused on exploration and exploitation of polymetallic deposits: silver, lead, zinc and copper
- Controlling (53 percent) joint venture interest in Potosi property
- Historic Potosi silver mine- currently in production
- Five-year exclusive rights to operate the Aldama processing facility
- 51 percent interest in Las Cristinas copper/silver mine
- Renewable multi-year commercial agreement with Trafigura Mexico for the purchase of lead and zinc concentrates with silver content
- Strong relationship with Trafigura Mexico ensures future growth and potential for numerous projects and access to Port of Manzanillo
Cyprium Mining has acquired a 53% stake in the Potosi polymetallic mine located in the world class Santa Eulalia mining district of northern Mexico. This district is home to numerous other mining companies, including Southern Copper (NYSE: SCCO) and Mag Silver (TSX: MAG), who both control land packages directly adjacent to Cyprium.
The Santa Eulalia mining district is one of Mexico's largest silver and base metal producing regions, with reported production figures totaling more than 500 million ounces of high-grade silver, zinc and lead (over one billion AgEq). The district is also home to the largest carbonate replacement deposit (CRD) discovered in Mexico to date.
Since signing the joint venture agreement in October 2015, Cyprium has funded rehabilitation of the Potosi mine and operations to extract high-grade mineralized silver, zinc and lead material commenced in July 2016. Rehabilitation and commencement of production at Potosi took less than nine months and was done for a cost of less than CA$1 million.
Cyprium also continues to conduct exploration at Potosi, including work on a new high-grade zinc oxide zone recently discovered through underground sampling.
To process high grade mineralized material from Potosi, Cyprium acquired exclusive rights to use the Aldama flotation plant located 42 kilometers away from Potosi. Material is direct shipped Aldama and plans are underway to increase mill throughput to 100 tonnes per day.
The Company has also signed two toll milling agreements for Aldama to provide additional sources of mineralized material as well as entered into a commercial agreement with Trafigura Mexico to purchase lead and zinc concentrates produced at Aldama.
Alain Lambert / Chairman and Chief Executive Officer
Mr. Lambert's is the Chairman, CEO and co-founder of Cyprium Mining. He is an entrepreneur with over twenty seven years of experience in various industries including natural resources, manufacturing and technology. Building on this experience, Alain is providing leadership and guidance to the team with respect to formulating and implementing the company's business plan as well as playing a leading role in public markets strategy and governance, which is well evidenced by Cyprium Mining’s successful public listing in October 2013 and financings since Cyprium Mining was founded in November 2012.
Ronald Keenan / Chief Financial Officer, Chief Operating Officer & Director
Chief Operating Officer (COO) of the company. Between February 2006 and June 2013, Mr. Keenan held various positions with Newalta Industrial Services Inc., a wholly owned subsidiary of Newalta Income Fund, an industrial waste management and environmental services company listed on the Toronto Stock Exchange. His positions included Executive Director Strategic Accounts since January 2012 to May 2013, Executive Director Commercial Development from January 2011 to January 2012; Regional Manager from February 2007 to December 2010; and Sales & Marketing Manager, Eastern Canada from February 2006 to February 2007. He was also Executive Vice President with Matrec from October 2002 to October 2005. Mr. Keenan holds a Bachelor of Sciences degree from the Hautes Etudes Commerciales with a major in accounting. Mr. Keenan has been a Director of Section Rouge Média Inc. since October 2011. He was also, Chairman of the Audit Committee and a director of Nouveau Monde Mining Enterprises, a company listed on the TSX Venture under the symbol "NOU" between December 2012 to October 2013.
Robert Boisjoli / Director
Mr. Boisjoli is Fellow Chartered Professional Accountant (FCPA, FCA) and Chartered Business Valuator with over 25 years of operational and advisory experience. Mr. Boisjoli is currently the Chief Executive Officer of Global SeaFarms Corporation (GSF:CNSX) since May 2013 and prior to holding that position he was Chief Financial Officer since inception of the company in April 2010. Mr. Boisjoli is a managing director of Atwater Financial Group, a private company that provides a combination of investment banking and consultancy services since April 2010. Prior to Global SeaFarms, he was the founder of two life science companies where he has acted as both Chief Financial Officer and Chief Operating Officer. Also, Mr. Boisjoli is and has been Director and audit committee Chairman for several public companies. He was also an investment banker with various Canadian securities' firms. Mr. Boisjoli is also a Board Member of various not-for-profit organizations in the community and within the profession.
Carlos Arzola / Director
Mr. Arzola is a Mexican lawyer based in Chihuahua with strong experience in commercial law, corporate law, regulatory compliance and lobbying. His clients are mostly international enterprises that do businesses or wish to start doing businesses in Mexico That includes labor contracts and recruitment, legal and administrative procedures before tax authorities, corporate governance, and intellectual property protection, also represent financial institutions with collection matters as well as assisting clients who need funding for their projects through loans or loans. He advise mining companies on legal matters regarding any sort of administrative procedures, such as obtaining and renewing mining concessions, and in general complying with all the legal requirements related with mining activities such as securing surface rights, due diligence, incorporation of mining companies and drafting agreements related to mining concessions.
Jonathan George - Director
Mr. George is a consulting geologist and entrepreneur who has been involved in international mineral exploration and development for over 35 years. He has raised more than $60 million for various projects around the world, including Mexico. Mr. George was the President and Co-founder of Creston Moly Corp, which acquired Mexico's largest molybdenum deposit. Creston merged with Mercator Minerals in 2011 in a transaction valued at more than $176 million. Prior to his success with Creston, he was President and CEO of ESO Uranium (predecessor of Alpha Minerals) where he was instrumental in assembling one of the largest land packages in the Athabasca Basin, Saskatchewan; Alpha and its partner Fission Energy made one of the most significant uranium discoveries in recent history on their Patterson Lake South joint venture.
Shares Outstanding: 62.3 Million
Options/Warrants: 13.9 Million
Fully Diluted: 76.2 Million
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