Categories: Precious Metals
Topics: General Precious Metals

Zacapa Resources (TSX-V: ZACA)OTC: ZACAF) CEO Ian Slater on a Unique Gold Financing Opportunity for Accredited Investors

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the executive chairman of Zacapa Resources, Mr. Ian Slater. Ian, it is great to have you back on. How are you today?

Ian Slater: Well thank you. I'm doing great.

Gerardo Del Real: Well listen, let's start with... I don't typically do this, but this is one of those situations where a couple of things. One, I think we have a gold bull market that's going to provide a really good trading environment here in the second half of this year. We have the dollar index above 104, and yet gold is holding that 1950, 1960 level really, really beautifully.

The other thing that's happening simultaneously is, and Zacapa's no exception, a lot of the juniors are trading at a severe disconnect. You announced a private placement here recently that's going to allow you to move and advance some projects that I really like. And when I looked at the market cap and then the term sheet, I said, "You know what, Ian? I'd love to be able to offer this up to anyone in our audience that is an accredited investor." So you're doing a financing, you're raising up to $2 million. It's at 5 cents a share with a full warrant good for three years at seven and a half cents. At what market cap are you financing right now, Ian?

Ian Slater: It's just $5 million...

Gerardo Del Real: Right.

Ian Slater: Canadian.

Gerardo Del Real: And so again, to me, it just screams opportunity. You just acquired the Kramer Hills Oxide Gold Project, which we've talked about Bullfrog before, and if that wasn't enough to more than justify the $5 million market cap, Kramer Hills most definitely is. Can you speak to that acquisition and some of the merits of that project?

Ian Slater: Sure. We worked on that for a long time. It's so difficult to find projects with the brownfield mines. So this thing was built in the 1980s, and it never got into production. But technology has changed a lot in the last 40 years, and this is almost two grams per tonne oxide at surface, so it definitely would be a mine today.

Gerardo Del Real: And so when you say almost two grams per tonne oxide, right at surface, obviously, how many ounces are we talking here?

Ian Slater: In the historical resource, there's 400,000 ounces, but that's only down to... There's nothing that goes below a hundred feet, so it's completely open at depth, and it's open along strike either way, as well. And we staked all around this old private grounds that we purchased.

Gerardo Del Real: You mentioned it being a Brownfields project. I believe that the gold occurrences extend over an area. The news release describes some seven and a half kilometers by eight and a half kilometers. That suggests to me that's a pretty darn well mineralized extensive system on the property.

Ian Slater: Oh it is. And you can see when you drive into it, you can see the drill collars, hundreds of drill collars along that stretch, which the results have been lost from. But you don't put that many drill holes into something unless you're hitting mid-grade, and that's all outside of the existing resource.

Gerardo Del Real: What comes next as far as Kramer Hills? We mentioned it's Brownfields. We mentioned it's advanced. There's several targets, a lot of exploration upside of great oxide gold resource anchoring the valuation. What comes next there?

Ian Slater: Oh, we're permitting the private patented ground, so that should be done very quickly so that we're able to drill it and that we're going to do first pass with RC drilling. So it's cheap and quick, and this is at surface, so it'll be easy drilling.

Gerardo Del Real: Excellent. Let's talk South Bullfrog and let's talk about what you're going to do with the proceeds of the financing.

Ian Slater: Well that one's already drill permitted and it's ready to go. So we have some targets there that are analogous to the projects that Anglo is doing. So if we discover gold on these targets, which from geophysics and geochemical alteration perspective are identical to multimillion ounce deposits just a few kilometers away, it'll be a complete game changer also for Zacapa.

Gerardo Del Real: It's a lot of bang for your buck at a $5 million valuation. South Bullfrog is within a district that I think is going to gather a lot of attention here in the coming years with a lot of mines actually coming into production in that area, and I see that entire region as ripe for consolidation. Obviously, you're hoping for a discovery there. You already have a very, very robust, as far as the grade goes, resource at Kramer Hills, and obviously, you're looking to get those ounces closer to a million than 400,000, which is what the historic resource outlines, correct?

Ian Slater: Exactly, yeah. That's just in a small pit, so that'll be easy to expand.

Gerardo Del Real: Wonderful. Ian, if people want to participate in this financing for exposure to quality gold exploration story with a resource in place at one of the project's permitted property with South Bullfrog, how can they get ahold of you?

Ian Slater: Call us, email us. Email us at financing@zacaparesources.com.

Gerardo Del Real: Wonderful. We will make sure to put a link to the email. Ian, thank you for your time as always, sir.

Ian Slater: Great. Always good to talk to you, Gerardo. Thank you very much.

Gerardo Del Real: All right, chat again soon.

Ian Slater: Okay, talk soon. Bye.