General Base Metals
Generation Mining (TSX: GENM)(OTC: GENMF) Executive Chairman Kerry Knoll on Developing a Critical Green Metals Resource Within the Friendly Confines of North America
Gerardo Del Real: This is Gerardo Del Real from the 2021 Precious Metals Summit in beautiful Beaver Creek. We have music… we have mountains… I have the executive chairman of Generation Mining with me — Mr. Kerry Knoll. Kerry, how are you doing?
Kerry Knoll: I'm great. Really good, thanks.
Gerardo Del Real: Thank you for taking the time. We talked a bit off air, and you mentioned to me in private — and I hope I'm not abusing of that privacy — you mentioned to me that this is the best project you've had the opportunity to try and finance.
Kerry Knoll: Absolutely. I've never had so much interest. It's a combination of things. It's a time in the development of the mining industry where there are more sources of financing. There's private equity, there's streamers, there's the usual brokers, and there's a lot more banks involved these days than there used to be.
So we've got a really good time. And then, to add to that, we've got a really good project in a good jurisdiction we're in. We're in Ontario, Canada. And we also have a commodity — palladium — that is unusual in that this is the only advanced palladium open-pit project in the world. So it's a short time to production.
Gerardo Del Real: We know that there's a pivot towards clean energy. We know that that will require substantial amounts of palladium, copper, among other metals, right? And this project tends to have that in spades.
Kerry Knoll: Well, palladium is interesting because it's needed now.
Gerardo Del Real: Right.
Kerry Knoll: It's not a metal of the future that may or may not happen. This is needed in every car in the world — every gasoline powered car in the world. And the cars are needing more and more palladium every year as governments increase emissions standards.
And then, we've also got significant copper, which is, of course, a big part of an electric car. And then, we've got a pretty good byproduct of platinum, which is going to be required in the fuel cells. So we've got the whole suite — not the entire suite of green metals — but we've got three important ones.
Gerardo Del Real: Absolutely! You also have great exploration upside, right, as evidenced by your recent releases made, what to me, is a new discovery. You stepped out; more copper. Talk to me about the exploration upside at the project.
Kerry Knoll: Yeah, there was a drill hole drilled about 15 years ago that was never followed up for a variety of reasons. We followed it up and discovered — only 300 meters from our mine — we discovered what looks to be a new ore body.
And so, of course, it's preliminary; it's early days. It needs a lot more drilling, etc., and it wouldn't be permitted right now. Nevertheless, it's higher grade than our deposit, and so it looks like it's going to be a part of this mine's future.
Gerardo Del Real: You mentioned the financing… you mentioned having so many options… the quality project. I’ve got to believe — and you've said this publicly in the past, I believe — that you're looking to minimize the dilution aspect of it whichever way it ends up being financed. Can you speak to that a bit?
Kerry Knoll: Well, like everybody else here, I think that our shares are undervalued.
Gerardo Del Real: Sure.
Kerry Knoll: But I think they really truly are. And as a result, we don't want to dilute at these prices if we don't have to. We do want to advance the project so we're looking at some of the other alternatives — the non-dilutive financings — and that could potentially include a partner or it could include a stream. It could include a lot of different things.
And we're talking with dozens of groups right now, and we'll decide on the final outcome probably in the next month or so.
Gerardo Del Real: Seems like you're at the sweet spot, Kerry. Anything else to add to that?
Kerry Knoll: No, just that this is, to me, the best project I've had the pleasure of working on in my career. And it's going to be my last. So I'm pretty excited about having a good one.
Gerardo Del Real: Well, before I let you go, I can't let you go without you reminding the audience of the success that you've had in the past. When you say this is going to be your last… I don't believe that you're going to go out with a whimper, right?
Kerry Knoll: Well, with various partners, I've started six mining companies over my career; that’s over 35 years. And four of those mines went into production; four of those companies. And two of them were sold at the feasibility stage. So it's a pretty good track record… and I'd like this one to be the crown achievement.
Gerardo Del Real: There you have it. Kerry, thank you!
Kerry Knoll: Thank you.