In this interview, Jamie Keech shares where the Resource Insider group of accredited investors have and will be investing their money in the mining sector. Jamie is a Vancouver-based financier with a background in mining engineering. Having worked on mining projects across the world, he is focused on providing catalytic capital to high quality teams in the mining and natural resources sector, which he believes is on the cusp of reversing its multi-year trend of being an unloved market.
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TRANSCRIPT:
Bill: You told me that you are looking at an investment in Africa. And before you share about that, I’d like you to just kind of bring listeners up to speed as where have you been putting your money in the past few months, and then where are you going to be putting your money here soon?
Jamie: Yeah, well, I mean I’ve been allocating my money I will say slowly and very carefully. Over the last year in particular, me and my partner at Resource Insider, Chris MacIntosh, we recognized this as a unique opportunity to build a very strong portfolio, and one that has a lot of torque to really move when commodities start to take off again. And, we’ve been building out what I would consider a very balanced portfolio. We’ve got everything from gold exploration, we’ve got a gold operating company, we’ve got money in uranium stocks. We just invested in a really, really exciting copper/zinc exploration story. And some of these are private stills, some of these are public. And, we’re really just trying to take advantage of this really rough market we’ve seen, and build out an awesome portfolio that’s got a lot of torque and can take advantage of a moving commodity market. So that’s what we’re focused on.
Bill: And when you say a lot of torque, I’m assuming you’re also implying warrants with the deals that you do.
Jamie: Yes. So not all of them. So we kind of look at things in two ways. If a company’s publicly trading already, we want to get warrants. I mean your listeners by now probably are well familiar with the value that these will add and that extra sort of uplift that you’ll get in the event that the stock is successful. But the other thing we also look for and look to do is participate in early rounds., and in particular seed rounds. So these are, when a new is being launched, we want to be one of the first groups in there providing that catalytic capital to get the company off the ground.
And, if you’re willing to take that sort of risk, because these often are riskier investments, you can very often get rewarded by a significant upside. And you’re very, very closely aligned with management and the key shareholders, because that’s often the round that they are coming in as well and positioning themselves. So I like to see that me and our members at Resource Insider are getting the same terms as management, because I know that they’re going to be extremely incentivized to make that work.
Bill: If you’re listening to us and you don’t know what a seed round is, I would point you back to Jamie’s speech presentation that he gave at the VRIC in January of this year. That’s on the Cambridge House YouTube page. And that was a very popular and informative lecture that Jamie gave, informing the average retailer as to where different people come in in the launching of a private company that’s going to be a public company. Jamie, also the people that partake in the seed round, those have to be accredited investors, is that right?
Jamie: That’s right. So, the research service that I run, it’s called Resource Insider. It is purely for accredited investors. And that will vary from jurisdiction to jurisdiction, but in Canada and the United States, that means that typically they will make over $200,000 a year for the last two consecutive years, or they have a million in assets, not including their primary residence. So, the idea behind this is that these people hopefully have a level of sophistication that enables them to make riskier investments. So we focus our product and our research on opportunities that are specific to accredited investors. So that means investing in private companies, or it means participating in financings and private placements. And the advantage of this is this is where you do get the seed stock. This is where you do get access to warrants, and a lot of these perks that are unfortunately not available to the average investor buying stock on the market.
Bill: With every opportunity there comes downside or risk. What would be some of the key risks that would be associated with participating in seed rounds?
Jamie: Well, one of the key risks is often the seed round is into a private company. Now, most investors in the resource space are investing into publicly listed companies, typically on the TSXV, now on the CSE, but often the seed round is into a private venture. And, the problem with a private venture is that there is little to no liquidity. And often if you invest in this and it doesn’t go the way that management says it’s going to go, you can never get your money back. So, in these public deals, even if they blow up, you can typically sell your stock at a loss. In the private deals, if things fall apart, often that money is trapped. So, there is a level of risk there that is congruent with the potential for high rewards.
Bill: Your current deal that you’re doing, will that be a public or private deal?
Jamie: So what I’m working on right now, I can’t say much about it at this point, but it is something I’m really excited about. Our members have been waiting a long time for this. We’re investing in the seed round, alongside one of the most successful mining entrepreneurs in history. He’s a multi-billionaire. I don’t know how many dozens of companies he started, sold, and how much money he’s made for investors, but I know it’s in the tens of billions of dollars. And,, we spent a lot of time developing this relationship and doing our research and due diligence. So that will be coming out in the next week. Our members are extremely excited that we’re going to be participating in the seed round alongside these key investors and management.
Bill: Is there anything you can say about the jurisdiction or the projects at this point?
Jamie: I can’t say too much. I will say they’re focused in West Africa. So, for those of you who aren’t familiar with West Africa, these are countries like Burkina Faso, Cote d’Ivoire, Mali. This is one of the most prolific gold producing regions on the entire planet. Most gold comes from a geological deposit known as greenstone belts. They are… We see them all over the world. We see them in Canada, we send them in Brazil. I believe we see them in Australia too. And they’re responsible for such a huge amount of the world’s gold production.
And what makes this story so exciting to me is the country that is located in West Africa is massively under-explored. It’s the same rocks, it’s the same geological terrain, but for past political reasons, there hasn’t been the level of exploration and development there, that its neighboring countries has seen. So, this team, they’re planning to go in, they’re planning to really consolidate, or not planning, so they have really consolidated a massive land package there. And, they’ve got a great base of assets that they’re planning on expanding on. And it’s in a country with so much potential.
And it’s a team with such a proven track record. They’ve created billions and value. They are consummate technical professionals. And this is exactly the kind of place I want to be investing, and the kind of people that I want to be supporting. And so that’s why, for myself and my portfolio, I’m willing to take the risk on seed stock there because getting in alongside financiers like this management teams like this just has tremendous upside.
On the other hand, this won’t be right for non-accredited investors, and it won’t be right for people that are looking to make short trades or really value near-term liquidity.
Bill: Anything more you can say about the political situation and the government that oversees this jurisdiction where this project is located?
Jamie: I would say that it’s a stable jurisdiction, that they are supportive of mining, and that I believe that there won’t be any significant issues that stand in the way of success.
Bill: Jamie, if listeners want to learn more and talk to you about potentially joining your group and your newsletter, how would they best find you?
Jamie: Yeah. Now, if anyone out there is an accredited investor, they want to learn about what we’re doing, just go to resource-insider.com. We have a free subscription service. If you identify yourself as an accredited investor and you sign up, we are able to provide a lot more information on all the things we’re working on, and how we view things, how we view risk, and how we find opportunities. And, I think there’s a lot of education there for anyone who’s interested in really upping their game in the type of investments that they’re doing in the resource sector.
Bill: Jamie, do you have any upcoming speaking engagements or things we should be looking for you to appear at?
Jamie: Well, I will be talking at the VRIC again this coming year, or rather I guess it’s next year, next January. Nothing else planned for that, but we do release for our subscribers and our free subscribers, free YouTube videos, a lot of podcasts. I recently did what I think was a really excellent podcast with Ross Beaty, a multi-billionaire mining entrepreneur. We talk a lot about his history, how he makes decisions, what he looks for in investments, what he looks for in management teams and other entrepreneurs. So, we try to produce a lot of value for our subscribers in helping to understand how the industry works, where did we looking for opportunity, and who to be supporting.
Bill: Reach out to Jamie if you’re an accredited investor and you’d like to discuss his services and some of the deals that he’s working on. And just to be clear, as Jamie said, this discussion is not investment advice, and you do need to be an accredited investor to engage and put your money in these deals that we’ve been discussing today. With that being said, Jamie, it’s always great catching up with you. I look forward to chatting with you in the future.
Jamie: Yeah. Bill, thanks for having me on yet again.
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