Investments

Current Projects

Toachi Mining

In 2015, Metaform was approached regarding a potential project in Ecuador. The project was a Volcanogenic Massive Sulphide project that was polymetallic and very high grade.

Metaform reviewed all the existing drilling information and data. The company had a non-43-101-compliant resource of around 900,000 tonnes of resources at a very high grade (gold, silver, copper, zinc and lead). In addition, it appeared that the property had excellent exploration potential. We noted that not all of the drilling was used to complete the resource, some of the resources were truncated and some of the intersections were actually much wider. It was our view that the actual resource may be between 1.5 and 2.0 million tonnes at a lower (but still very high) grade.

We met with Allen Brown (owner of the project) in 2015. Over several days of discussions, we agreed on a memorandum of understanding and investment plan. Toachi would make an initial investment to earn an initial 60% interest in the project, with a potential of 75% by completing a feasibility study and funding the building of the mine. Metaform would subscribe for Toachi shares and become a significant shareholder in the company. Jonathan Goodman would become Chairman of Toachi.

We travelled to Ecuador in November 2015 for meetings with the Ecuador Minister of Mines, the Canadian Embassy, the Mayor of the local community and members of the mining community. We interviewed and met with local counsel to confirm our understanding of mining laws and ensure that the title of the project was in good standing. In addition, we took the opportunity to visit the site and inspect the project, which provided us a good understanding of the overall project.

From this visit, we confirmed that Ecuador is an up-and-coming country from a mining perspective. The local officials acknowledged the importance of a robust mining sector, and are in the process of changing their policies to be more attractive to international mining investors. Once the legal part of the due diligence was confirmed we closed the deal and got to work. With a new name, project, board and purpose, Toachi stock rose from C$0.05 (Metaform’s initial investment) per share to C$0.25 per share.

At C$0.20 per share, we were able to raise C$3.9 million, with a half a warrant at C$0.30 per share. This capital is funding the drilling of the initial resource and to support further exploration. We completed an additional financing of C$4 million at C$0.40 per share.