Barrick Makes a Strategic Bet on Kingfisher Metals

0:17 >> Welcome back into Mining Stock Daily everybody. Big news this morning from Kingfisher Metals and their Highway 37 project in the Golden Triangle. They have a new strategic from a little company named Barrick coming in for 9.9% for the company and raising almost 21 million dollars Canadian with 15 and a half million units in the financing non-broker private placement. Happy to welcome in Dustin Perry, CEO of the company here.

0:49 So Dustin, congratulations. Great financing, wonderful new strategic investor. Walk us through this. You know, is you know, what Barrick is seeing within the company, why Kingfisher was a good position for them to get kind of another place in the Golden Triangle. How did this all come about? >> Yeah, thanks for having me, Trevor. Good morning. So, you know, we've been in discussions with Barrick for a long time. This is not like it It's not like they've they this is new to them. So, we've been in discussions for, you know, couple years.

1:26 They've done very rigorous due diligence on this. I will add that very recently, they've they've really been building out their team and I think there was some announcements about this a while by them. They've they've added a new vice president of exploration who's a I think he's an ex ex-Anglo American. They've got a chief geo who's ex-BHP. They're their Chilean porphyry guys. and you know, Barrick knows porphyries quite well and if you want copper gold porphyries in the Americas, well, look no further than the Golden Triangle. That's where the biggest one on Earth is, KSM. And, you know, we've got the same geology as KSM, as well as a few other deposit types in the region.

2:11 And we've just got so much of the ground. so, I think what appealed to Barrick was you know, we did the consolidation. I remember chatting at the very beginning when we optioned when we did our first option agreements and we're at I think 360 square kilometers, I would say, "Look, this is what I'm going to go do." And it was kind of a "Oh, yeah. Everybody says they're going to do that." >> >> tying up all this ground. He's like, "If you do that, you're going to be rewarded." And sure enough, here we are now. We've got that validation that we've been rewarded for for tying up all the ground. But further to like, you know, it's beyond just tying up the ground. We built an incredibly good technical team.

2:49 we've done what we said we're going to do. We've done good geoscience. no funny stuff. put a lot of emphasis on building a strong relationship with the Tahltan, which is obviously you know, stakeholder indigenous relationships are are increasingly more important these days. And and I think there's a lot of evidence pointing towards the within the Golden Triangle, the Tahltan, they are they are open to do business and they they are sophisticated when it comes to mining.

3:17 So, I think we we ticked a lot of boxes in that regard. And then obviously making a discovery helps. >> >> that that validates the prospectivity of the ground. and it also, you know, we get we raised 30 million earlier in the year at 65 cents. So, it I think that effectively it puts a little pressure on these things, you know? Like we're we're we're in the middle of a 15,000 m drill program. Prior to this raise, I was forecasting we'd end the year with about 10 1/2 million in the bank after spending 20.

3:47 this will put that up to, you know, if if If look at all the warrants that are in the money right now, if you if you put those all in together with this, we'd be closer to 37 million at the end of the year. so, this really does set us up. It was a no-brainer for us to do this. You you get the endorsement, you get access to their technical capabilities. but, you're also protecting any downside potential. You know, you're you're If if the market doesn't like what we drill this year, which I'm not trying to to telegraph anything whatsoever.

4:18 but, if if, you know, if we come up short or or or whatever, we we live to fight another day incredibly well funded. And if we have success, well, you got to buy in the market. So, it's it sets the company up really well. we like there's not a lot of companies globally at this stage of exploration that are as well funded as we are. so, yeah, I'm we're we're super happy with this. >> Yeah. >> really pleased.

4:46 >> But, the And and you kind of you basically summarized my question, but how does this does this change your capital allocation for not only for this year? I mean, are you obviously you're able to go bigger if you'd want to, but obviously you could also just see the runway out for the next year or two here. What changes here in the in the mid-term? >> Well, I was waiting until we got this announced to reach out to a few of the larger drill companies that I'd love to develop a relationship with. So, I've already been connected at with one this morning, and that's one thing we're looking at. I'm not going to make any commitments of whether we're going to add rigs or not.

5:25 but, it's something we're evaluating. >> Mhm. >> you know, it is a seasonal story, so you you want to get as many meters in as you can, but you also want to get you don't want to drill holes that that aren't ready or that aren't as high priority. keep in mind, like our targeting over the winter, we outlined way more meters of drilling, you know, targeted holes than what we'll be able to achieve with three rigs.

5:53 but, what having this this treasury now enables us to do is it allows us to we don't have to rush into things. Like we can Well, A, we can expand upon regional work, so we can get to the to the, you know, picking a drill target or or or the definitive, like, are we going to drill this or not? We can get there sooner. but, we also have the flexibility to just, you know, not race into things because we've got you're not you're not like scrambling and trying to drill Hail Marys. You're you're able to be more systematic, which has always been our mandate and the company ethos of like doing things like the like the really successful companies in the past, like the CRM and the Western Mining, like really good examples like that. It's just do proper geoscience. And this sets us up incredibly well for that.

6:47 >> Okay. Other than the capital that they're coming in with this private placement and their interest and stake in the company, what else is Barrick bringing to the, you know, bring bringing to the company as far as technical expertise, kind of insight into exploration ideas, advisory, so forth? >> Yeah, so there's there's no board seats on there. They they are they either vote with us or abstain for the duration of the IRA. they're locked up for 18 months. And then on the technical side, we'll be forming a technical committee with a couple of their people, a couple of our people.

7:24 we'll have full access to their their teams, which, you know, spans from, say, spectral spectral setting, like remote sensing through to structural geology, geophysics, geochemistry, right through to the social side. and you know, we'll have the ability to have a couple of their people on site at their cost going forward, not this year, but but going forward. Mhm. so I think that's a a good benefit. one thing I will note though is that you know, to some readers that this might appear as though it's it's like the final relationship for the company, but this deal we were ca- careful to structure it so that it doesn't limit us from you know, bringing on another strategic shareholder down the road. And there was one important component of this, there's no right of first refusal right of first refusal on the project. we do have to spend 80% of the funds in the ground, which we're fine with.

8:23 You know, there's only so much money you can spend on going to conferences or whatnot. so we like we're we're on side with that. we had wanted to do a charity flow-through raise, but they wanted to get this deal done quickly and it generally takes about a month additional to close a charity flow-through raise, which which would have given us more money, but on the flip side, we get 30% back of any hard dollar spent on on the expiration we're doing from the from the government. So that works out well, too.

8:55 and then there's no time frame on this money spent versus the charity flow if you raise it now, it'd have to be spent by the end of next year. So there there's pros and cons to both. what else? So I I said there was no right of first offer, but there is there was an accommodation that we made basically a project level restriction where we can't joint venture the project or or sell a stream on it for the next 2 years, which was never our intention. So that was that was an easy compromise.

9:25 there was no issue there. It you know, it was an immediate yes. people have asked us about would we bring in a joint venture partner in the past and it's like, "Look, in the bear market we were we were able to raise funds to do early stage exploration. Now, as of today, I think we've got it or once this closes in a week, we'll have around 47 million forward-looking statements. We'll have around 47 million, so why would we be looking to give up, you know, project upside?

9:53 That that does not block us from doing a corporate transaction. >> Right. Right. Very good. Okay. Give us a sense of what's happening there on the ground. Highway 37, obviously, you're in the middle of the exploration work here in this campaign. We are awaiting, you know, updates, you know, drill results. That's those are coming, but you know, weeks if not months away here yet. Dust but what can you share? How are things going on the ground there?

10:22 >> Yeah, so obviously, I can only say so much because there's technically an open financing right now. So, there's not going to be any update until after that's closed and I'm going to be up on site next week. I've had to I've I've had to cancel two site tours or not tours, but two site visits of my own this year to to get this across the line. but I will get my one trip of the year and then I'm on lockdown with a baby on the way at the end of the summer.

10:49 >> >> But in terms of updates on drilling, like all three drills are turning. I can't really provide much more info than that, but as we outlined in our previous disclosure, we got three drills turning. They're in the Hank general Hank area testing porphyry and epithermal targets. we've got soil sampling crew doing a lot of regional work. We've got Stephanie Sicora out there mapping. Gail's been on site a few times with her VPX Tyler, so she'll be there again next week. We'll have the whole technical team on site next week.

11:24 as well as some other visitors. we've got IP geophysics. I think it's it's starting any day now. We've got our Airborne surveys starting soon. You know, constant clearance with archaeologists whatnot. We've We've been moving ahead with a secondary camp location to allow us to expand in the future. So there's a lot going on. Really busy time up at site. I'm can't wait to get there.

11:54 >> Yeah, yeah, absolutely. Okay, very cool. Again, congratulations. The stock was up like 17% or something. This morning, there was a nice premium to the financing as well. So obviously very good for shareholders. We'll get this thing closed. Should be closed I think within the week is what you had in the news release this morning here Dustin. So should be done pretty quickly. And probably shortly after that get more of an exploration update here from the company in the early part of August I'm assuming to you know, give it shareholders a sense of what's what's been going on. So exciting huge summer here for Kingfisher Metals and another strategic investor coming in taking a big chunk of the company like everything to see. What else do we need to know Dustin? I mean you just kind of laid it all out there. Did we miss anything?

12:43 >> Well, I think I think it's important to you know, there's been a lot of talk recently about you know, the state of Dripa related things. So you know, surrounding indigenous consent and there's there's been a lot of a media attention to that in British Columbia. But at the end of the day, like if you look at news from what's happening in BC, it's just like one good piece of news after another and I've been skeptical of of of the federal government with a lot of the claims they made and I'll wait to see until everything's actually spent or or or you know, or these projects start, but from what I've seen, it looks like we're in a bit of a renaissance in the resource world in in Western Canada, and I've always thought that the Golden Triangle would be a, you know, incredibly critical component to Canada's critical minerals strategy, but also just to the BC economy, and I think we're going to see a lot more of this going forward, and I think Barrick entering BC for the first time in my in my memory, you know, they've owned things like Eskay Creek in the past, but I don't know of them making a strategic public investment.

13:59 and well, I think it's great validation that they picked us. You know, we're in an incredibly prospective part of the world with a lot of infrastructure going on to it. We're progressive in terms of our relationships with the the the Taltan, and it's yeah, I think it's it's a great move to see that that this really is the location in North America where you get the really big copper plus gold deposits. So, very pleased with this validation, and it's an exciting place to be working.

14:32 >> Yeah, very good. Okay, Dustin, thanks so much for your time. Good to connect with you. and best of luck here in the next couple weeks, not only with exploration, but also starting your brand new family. Really happy for you, buddy. That's awesome. >> >> So. >> Thanks, Dustin. >> More to come. More to come from Kingfisher Metals trading on the venture with KFR and on the OTCQB with KGMF. >> The information presented should not be considered investment advice. Mining Stock Daily and its affiliates are not responsible for any loss arising from any investment decision >> >> in connection with the material presented herein.

15:07 Please do your own research or speak with a licensed financial representative before making any investment decisions.