MineHub Technologies (TSX-V: MHUB)(OTC: MHUBF) Executive Chairman Vince Sorace on Sumitomo’s C$1M Non-Dilutive Capital Injection Toward MineHub’s Industry-Wide Digital Commodities Platform


Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the executive chairman of MineHub Technologies — Mr. Vince Sorace. Vince, how are you today?

Vince Sorace: I'm doing great, Gerardo. Thanks for having me.

Gerardo Del Real: Well, let's get right into it. I personally wrote a check into MineHub a few weeks back because I simply didn't see any peer comps that were doing anything to the level and with the quality of partners that MineHub Technologies is doing. 

And so I’m rest assured in writing that check that anytime I see the likes of a Sumitomo or some of these other major players in the mining industry, mining giants, anytime I see them come to the table and want to sit at the table with MineHub, that gives me some relief as far as the due diligence process goes.

You had some news today that put a smile on my face as a shareholder. Sumitomo has decided to contribute C$1 million to MineHub to accelerate the digitization of the concentrates market. So I wanted to have you on just to provide a little bit of context and then to kind of get an idea of what comes next.

Vince Sorace: Yeah, and a little more on what you just mentioned, and this is what I think people really need to pay attention to here is that the companies and the conglomerates that we're working with right now with MineHub — from the Codelcos and the BHPs and Southwires and Sumitomos — I mean, these are some of the largest companies in the world. 

And one of their mandates here is not only a solution to their problems with respect to supply chains but really pushing a standard. And what we continue to hear from the Sumitomos and others is that there needs to be a standard — and MineHub is there. MineHub is the one. There's nobody out there doing this like we're doing this, and they're really driving this in that direction. 

And this Sumitomo contribution of C$1 million, this is non-dilutive; they're not getting shares for that. This is Sumitomo believing that MineHub is going to be that standard. And this money basically helps promote the adoption of MineHub and the concentrates applications that are very important for Sumitomo — not only for themselves but also for their customers. 

And so this is just much more evidence and proof of where this industry is going with MineHub, its customers, and the path that we're on.

Gerardo Del Real: Let me read the quote from Sumitomo because it's one thing for me to say it as a biased shareholder or for you to say it as an executive chairman… but the quote from Sumitomo was, 

“Digitization of the metal concentrates market is very important for our business and our customers. But that can only happen if the industry adopts a common standard, and we believe that the MineHub platform and the concentrates application is the clear and only candidate to become that standard.”

When I was growing up and reading Warren Buffett books and Benjamin Graham books and some Charlie Munger quotes, the thing that they always preached was having a moat. And the moat being that ‘it factor’ that separates you, that gives you an advantage that's unique to your company or the business that you're speculating or investing in. 

And when I have someone like Sumitomo telling me that, in their opinion, MineHub’s platform and concentrates application is that clear and only candidate to become that standard, again, as a shareholder, that puts a smile on my face because I have to believe if you're some of these other major players in the space, I suspect that you're going to be getting, if you're not already getting, more phone calls as a result of this contribution as you worded it and phrased it. 

And of course, you mentioned why it's a contribution; it's not dilutive, you're not giving anything up in exchange for this. It's just so important to Sumitomo to accelerate this that they're willing to write a check to advance that mission.

What comes next, Vince?

Vince Sorace: Well, let's expand on this because, although this is Sumitomo putting in C$1 million, and Sumitomo saying that this is part of their business plan, this concentrates application, specifically — and that is just one of the features that we can handle within this platform — this isn't just specific to Sumitomo. This application, this concentrates application, specifically, is going to be used by many other players in the industry. 

Although we've been working with Sumitomo to kind of perfect this application, this is something that our existing customers will be using as well from the Codelcos and the BHPs. So this Assay Exchange is more geared towards the bulk commodity side, which is, again, one aspect of our business and will be used amongst all of these other customers that, not to make it confusing, but that have already signed up on, say, the Weybridge platform that we acquired.

So this is all feeding onto each other. There's a much bigger picture here with this than even is being portrayed in this press release. So next, that's what this is all about. And we spoke a little bit about this in the previous interview — this is the virality effect. 

So one, you’ve got MineHub moving quickly and becoming the standard in the market. When it becomes the standard in the market and you've got these large players on board, it's about driving their ecosystems onto the platform as well. So this virality, or this viral adoption, starts to happen very, very quickly. 

Moving forward here, that's what we are seeing. And we believe we will continue to see this network effect through the variety of options and services that we offer through this platform. This is just one of them. And so I think this company is poised to have a very good future in front of it.

Gerardo Del Real: Excited about the future and excited to write a check at higher prices. I think you hit the nail on the head in saying that once adoption starts accelerating, it's going to happen very, very quickly. 

And I think speculators out there in the space that always complain about the mining industry not being innovative and how innovation takes so long would be well, well served paying attention to what MineHub is doing and the partners and collaborators it's doing it with. 

Anything else, Vince, to add to that?

Vince Sorace: I think this is all part of the excitement right now. And I would encourage people to continue to monitor the situation and watch what we'll be doing in the coming few months and, definitely, over the coming year as this opportunity continues to unveil itself.

Gerardo Del Real: Looking forward to having you back on. Always a pleasure, sir.

Vince Sorace: Thank you, Gerardo.

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