While the whole world is saying that China has more money and more opportunities, Feng Tao is looking abroad. Last year, Yongxuan invested in a gold mine in BC province in northern Canada. At present, the exploration reserves of this mine are more than 2,500 tons of gold, which is equivalent to the sum of the four major gold mines in China, and the money spent may only be 20% of that in China.
Investment exhibition Pretivmresources, Canada gold rush
Investing in resource projects for many years, Yongxuan team has formed its own "methodology" for such projects at home and abroad. In Yongxuan's eyes, foreign mining projects are large in scale, good in quality and relatively reasonable in price, but the professional division of labor is clear, and those who do exploration often do not set foot in mining. Partner Wang Ying said that if we look at more than 2,000 listed mining companies in Toronto, we can understand that most of these companies are small and complex exploration companies, but there are few mining companies.
The Yongxuan team saw business opportunities from here. Domestic mining companies often combine exploration and mining, and need a steady stream of high-quality resources to supplement them. Investing in foreign exploration companies can provide new resource channels for domestic mining companies.
With Feng Tao's experience in investing in mining projects in Ivanhoe, Yongxuan team first targeted Canada, and a gold mining company named Pretivmresources came into view.
"This gold mine is very large, with at least 2,000 tons, which is bigger than any listed company in China. It can be said that it is one of the largest undeveloped gold mines in North America. " Wang Wei said.
Why don't local investors eat grass beside their nests so well? Is there a problem? The investigation of Yongxuan team found that this mine is large in scale, but its grade is relatively low, it is difficult to mine and the amount of funds needed is also very large.
"In China, 1 ton ore contains gold 1 g, which is of mining value, and 5 g or 10 g belongs to high grade. But this mine may not have the grade of 1 gram. " Wang Wei said.
During the communication with the management team of the gold mine company, Yongxuan team learned that this gold mine may contain undeveloped rich ore. This unexpected good news made Yongxuan team decide to continue to understand, and hired a professional exploration team to inspect and confirm, and finally decided to "Boyibo". Last year, it invested more than 70 million US dollars and became the second largest shareholder of the gold mine company.
The following year, the gold mining company invested hundreds of millions of dollars to focus on the exploration of rich mines, which brought incredible surprises to the Yongxuan team. "Nearly 500 tons of rich ore with a grade of 20 grams have been discovered, which is already super-large in China. The highest drilling sampling result is that 1 ton has more than 40,000 grams of gold!" Next, Yongxuan team plans to seek enterprise cooperation for gold mining companies in China, even not excluding seeking merger and acquisition cooperation to graft resources for enterprises in China.