All posts by Angela Harmantas

CSE Issuer Stories, Magazine

Pioneering an innovative “flower-first” approach in the cannabis world

Innovation in cannabis involves improving upon or introducing new ideas, be it in the form of genetics, product formulation or packaging. But for brands to really thrive, they must do what successful companies in any industry do: address consumer needs.

MTL Cannabis (CSE:MTLC) is a case in point. The family-founded company prides itself on being a “flower-first” group, emphasizing the importance of the cannabis plant itself. Having recently completed a successful reverse takeover of Canada House Cannabis Group (CHV), MTL is positioning itself to harness a variety of revenue streams, including Canadian recreational and medical cannabis markets, as well as international export opportunities.

Notably, the company has self-financed its organic growth, integrated the various CHV business units and expanded operations while responsibly servicing its creditors, with plans calling for continued expansion, bolstering working capital and reducing capital costs.

Mike Perron, Chief Executive Officer, is a seasoned industry professional who helped shape Canada’s regulated cannabis landscape, first as an advisor with MNP LLP and then taking on various leadership roles within the industry. Perron then teamed up with MTL’s founders, brothers Rich and Mitch Clement, to bring the cannabis world a flower-focused brand with quality and innovation at its core. He spoke with Canadian Securities Exchange Magazine recently about corporate culture and what comes next.

MTL Cannabis has positioned itself as a brand that defines modern street cannabis culture. Can you elaborate on how you are achieving this and what it means to be a “flower-first” company?

This focus on flower is at the heart of our company. Our founders originate from this world, and our expertise lies in doing what we do best. We’re not attempting to reinvent the wheel or add unnecessary bells and whistles. Our primary concentration is on flower-based products, encompassing dry flower and pre-rolls, with some additional forays into producing hash, as we have the knowledge and resources in-house to expand into this category.

MTL Cannabis has gained considerable success in dried flower sales since its recreational market launch in 2020. What are the key factors that have contributed to your brand’s rapid growth and success in this segment?

From a sales perspective, our growth has been largely organic. Until last January, we didn’t even have a dedicated sales team — just one exceptional sales representative working closely with the provincial boards and hitting the streets by himself on the weekends to introduce the brand to dispensaries and budtenders.

Our story, brand and products have spread primarily through word of mouth. Budtenders and consumers trying our products and recommending them to others have been pivotal. Quality is our top priority, ensuring that everything leaving our facility is of the highest standard. When you uphold that promise to consumers and medical patients, everything else falls into place. 

The recent share exchange agreement with Canada House Wellness Group represents a significant development. How do you envision this partnership impacting MTL Cannabis?

Canada House has its roots in clinics and medical cannabis, going back to the original Canada House asset, which was a clinic in Oromocto, New Brunswick, called “Marijuana for Trauma,” and was founded by veterans for veterans. The veteran population is a significant part of our business, representing approximately 96% of our medical sales. We have 12 clinics across Canada, in addition to virtual clinics, with most strategically located near military bases.

Our approach differs from the classic licensed producer (LP) model, where clinics direct patients to their LPs; instead, we prioritize offering the best service to veterans, whether through us or other LPs. 

The transaction is set to provide MTL Cannabis with additional licensed cultivation space. How will this expansion benefit your company and its consumers?

Canada House represented significant expansion possibility, particularly with the IsoCanMed facility in Louiseville, Québec. While the facility had strong foundational elements, it required substantial improvements.

Our team, with its focus on operational excellence, recognized the facility’s potential, from efficient HVAC systems to room sizes, and invested over $2 million to enhance its capabilities. Currently, we are expanding it further, as we’re reaching our capacity limits as sales continue to increase.

MTL Cannabis aims to blend “old school knowledge with new school techniques.” Could you describe how you balance traditional cannabis cultivation practices with modern innovations, and how this approach sets you apart in the market?

When it comes to innovation, the most groundbreaking aspects have been on the supply chain and processing side, primarily driven by one of the founding brothers, Mitch.

Our innovation journey encompasses everything from post-harvest processes to packaging, making us one of a kind. It’s like a DIY project — we’ve built everything from scratch.

I often joke with Mitch, calling him a “MacGyver in manufacturing.” If you handed him a toothpick and a stick of chewing gum, he’d create a packaging line out of it. He’s found ingenious ways to scale our business, sometimes repurposing main manufacturing equipment but mostly rethinking how we do things. Coming from the culinary world, he’s like the Gordon Ramsay of our packaging operations. His relentless focus on improving efficiency is remarkable, such as optimizing the time it takes to fill three pre-rolls in a tube, trimming fractions of a second to improve speed. This stems from his passion for serving customers flawlessly, repeatedly and quickly, ensuring they have a fantastic experience every time.

The company’s portfolio includes products like dried flower, pre-rolls and hash under different brands. What’s the strategy behind the brands, and how do they cater to various consumer preferences?

In all honesty, our approach is about simplicity and authenticity. We take immense pride in our products, and we stand by them.

I’ll share a story that highlights our commitment to quality. We introduced our second SKU, starting with the Sage n’ Sour strain, and later the Cookies n’ Cream strain. It was well-received by customers and sold exceptionally well. However, when we realized that it fell short of our standards, we made the decision to discontinue it and replace it with superior genetics.

The original move might have been fine at most LPs, but it didn’t align with our stringent criteria and commitment to quality. We hold ourselves to a higher standard than anyone else ever could. Our core principle is simple: if it comes from our facility, it must be best-in-class. If it’s not, we will do everything in our power to rectify it immediately.

That’s interesting. You don’t often hear about companies pulling a top-selling product from the shelves voluntarily.

Well, our consumers are of utmost importance to us. Personally, I enjoy sitting down with our sales representatives, whether they’re on Vancouver Island or in Southwestern Ontario. I often ask them, “What’s the word on the street? What are consumers saying about our products? Is there consistent feedback or reviews that call for an upgrade, update or enhancement?” If there’s any room for improvement, we’re quick to respond. Our goal is to ensure that consumers have the best possible experience, and we want to consistently reward their commitment to our brand. 

What experiences and lessons have shaped MTL Cannabis from operating hydroponic supply stores to becoming a Health Canada–licensed cannabis cultivator?

Quality, both in terms of product and service, is our guiding principle. We acknowledge the industry’s shortcomings, often characterized by flashy promotions and over-hyped marketing with a lack of real execution. In contrast, we’re not here to put on a show. Our focus is on running a business rooted in quality, customer care and keeping our promises of quality to our consumers and patients. By fulfilling these promises, it inevitably benefits our shareholders in the long run. 

Let’s finish by discussing how you plan to meet the evolving needs of medical and recreational consumers in the cannabis industry.

I want to see continued expansion and a relentless dedication to meeting consumer needs. My hope is that, in a few years, I can look back and say that we played a role in building the best-managed and top-performing company in this industry, a company deeply rooted in quality.

I’ve been part of the cannabis industry since 2014, and our results speak volumes. There’s much work ahead for the entire industry, considering that it has, to some extent, lost the trust of investors. We aim to be a part of an industry-wide effort to regain that trust. Rebuilding trust takes time, and we want to be one of the companies leading the way in restoring investor confidence.

This story was featured in Canadian Securities Exchange Magazine.

Learn more about MTL Cannabis at mtlcannabis.ca

CSE Issuer Stories, Magazine

Hillcrest Energy Technologies: Perfecting Clean Energy Breakthrough (That could soon be coming to an EV near you)

electric car, electric vehicle parking, charging point, EV charging point

Hillcrest Energy Technologies Ltd (CSE:HEAT) is a Canadian clean tech company playing a role in the global shift to green energy. The company specializes in optimizing electrical systems, such as those used in electric vehicles, with its proprietary Zero Voltage Switching (ZVS) Inverter Technology, a cutting-edge approach that minimizes switching losses.

Hillcrest’s in-house power electronics hardware and control firmware combine to enhance efficiency, performance and reliability in electric systems – think control systems and power conversion devices for next-generation electric and fuel cell vehicle powertrains, charging applications and renewable energy systems.

In the booming electric vehicle (EV) market, Hillcrest’s ZVS Inverter Technology, along with its Enhanced Powertrain Solution, eliminates the need for an onboard charger and booster, and thus simplifies the charging process.

With EVs set to represent up to 18% of the global car market this year, according to the International Energy Agency, Hillcrest is driving innovation for lighter, more compact and more efficient solutions. This aligns with government initiatives and automakers’ electrification targets, such as General Motors’ US$35 billion investment and its ambition to have 30 electric models globally by 2025.

In an interview with Proactive, CEO Don Currie highlighted Hillcrest’s role in helping to shape the future of electrified systems worldwide.

Don, two years ago we’d have been talking to you about petroleum. What was behind Hillcrest’s shift from oil and gas to clean energy technologies?

We realized that the company had to shift from oil and gas because the sector wasn’t feasible for a small company any longer. Money was not easily available, and the investment world wasn’t behind it. We started looking at a strategic transition into clean energy and began that transition around March 2020.

Clean tech and clean energy had the interest of almost 100% of the investment community. We needed to find a niche that made sense for us. Our advisor at the time, now our Chief Technology Officer, Ari Berger, thought the company would benefit from focusing on power conversion technologies, such as inverters. Zero voltage switching is agnostic to the application and can work in renewables, solar and electric vehicles, where members of our team are extremely well connected.

What is the challenge that manufacturers face where inverters such as yours could come into play?

Soft-switching is a major focus for our company. Right now, nearly all electric vehicles in the world use hard-switching inverters. While they offer efficiency benefits, there are trade-offs involved. However, we have successfully developed the world’s first commercial prototype of a soft-switching inverter.

Soft-switching allows our ZVS inverters to operate at higher switching frequencies and eliminate losses associated with switching. One of the European original equipment manufacturers (OEMs) we are working with, for instance, is looking to lower electromagnetic interference (EMI) to a level where protective shielding would not be needed. Our initial tests indicate that we can meet or surpass this requirement, potentially saving them $200 to $225 per car. With production volumes of a single model of 100,000 units per year, that could translate into potential savings of $22 million. Alongside improved efficiency, our ZVS soft-switching technology delivers cost savings for OEMs, developers and manufacturers while enhancing convenience for consumers.

Would it be correct to say that it translates into not only a lower cost model, but also one that is more reliable and longer lasting?

Let’s consider the immediate impact of our technology. One EV manufacturer said that a 1% increase in efficiency translates to a 2% range increase. Our inverter, with its 99.48% efficiency, has shown up to a 13% increase in motor efficiency during our tests. This could potentially result in a 26% boost in range for consumers. While it’s uncertain whether manufacturers will pass on the savings to consumers, increased efficiency can reduce battery size and extend range. This directly benefits consumers who want a quicker return on investment. Our technology shortens the payback period, making EVs a more economically attractive choice for buyers.

The global inverter market is expected to see a huge amount of growth over the next few years, to $95 billion by 2028. What’s behind these numbers?

That $95 billion encompasses all uses of inverters, not just EVs, and translates to 5% annual growth. The actual EV inverter market is projected to reach $11.5 billion by 2027, which is about 23% annual growth. It makes sense because all the automotive manufacturers are moving toward full electrification, and it’s happening at an incredible pace. The growth is there and so is the market.

Take us through your commercialization strategy. You have several projects in development. When are they going to translate into revenue?

Well, we have ongoing commercial development deals with seven companies at different stages. These deals typically have staged milestones. The first milestone involves demonstrating the technology and ensuring its compatibility with their application. We recently announced the achievement of milestone one with a global tier one supplier, which is a significant step toward milestone two, and then moving toward milestone three where we expect definitive commercial agreements to be discussed.

We also have a partnership with Hercules Electric Mobility, which we expect to progress quickly. Additionally, we have publicly mentioned a European OEM that is providing a motor to our German partners for integration with our technology. We are now working closely with them to meet their specific requirements.

We anticipate starting definitive commercial agreement discussions with some, if not all, of our partners in the third and fourth quarters of 2023. After that, we’re expecting revenue to start flowing in 2024. Revenues are expected to climb through 2025 with significant revenue growth projected to occur into 2026 when the technology could be deployed in actual models.

At volume, and depending on the specific application, our inverters will be competitively priced and expected to be roughly the same cost as inverters currently on the market – around $1,000, depending on the currency exchange rate. If an OEM requires 100,000 units per year for a particular model, that translates to a contract value of approximately $100 million. Once we reach definitive agreements and have clarity on the numbers, the revenue ramp-up will be rapid.

Another important benefit of our inverter that sets us apart is the potential for our customers to offset the cost of purchasing our inverter with up to $700 in material savings across the powertrain system.

What are you working on in terms of R&D?

The inverter technology itself has undergone rigorous testing, and we have successfully demonstrated to the European OEM that the EMI tests meet or surpass the required protective shielding standards. Currently, our focus is on developing grid software technology in the lab. Our goal is to combine the benefits of our inverter technology with the new grid software into a proof of concept for an enhanced powertrain solution by the end of this year.

In the context of a vehicle, the powertrain encompasses the motor, inverter, batteries and onboard charger. We firmly believe that we can eliminate the need for an onboard charger, resulting in cost savings for manufacturers and more efficient, bidirectional charging capabilities for customers. This enhancement requires the installation of grid-related software, a task that is expected to be completed late Q2 or early Q3 this year. The bidirectional nature of this powertrain allows it to not only draw power from the grid for charging but also feed power back into the grid. By eliminating the onboard charger, the convenience and availability of charging options for users are significantly increased, which forms part of our enhanced powertrain solution.

Looking ahead, we are planning for the 2024 release of a multilevel power inverter, which involves utilizing a string of 250 kilowatt, 800 volt inverters. This configuration is specifically designed for grid-related applications with significantly higher power requirements. As we approach the end of 2023, we will actively engage with interested parties who have expressed their readiness to explore how our technology can be applied to their specific applications.

As the CEO of a clean energy technology company, what drives you?

I have never felt this level of excitement in my professional career. The industry we are involved in is growing faster than anyone imagined it would and every day brings new and positive developments. What drives me the most is the industry’s response to our work. Firstly, it’s all about the team. In such a short period, we have assembled an incredible team with world class connections. It’s astonishing what we, as a collective, have achieved in just two years – going from an idea to proof of concept and now having commercial prototypes.

What truly excites me is the demand for our product around the world. The reactions we receive from the industry are overwhelmingly positive, which in turn makes it easy to maintain a positive outlook. Watching the team consistently meet and surpass every milestone we set for ourselves, publicly and internally, is nothing short of thrilling. Every day at work is enjoyable and rewarding.

This story was featured in Canadian Securities Exchange Magazine.

Learn more about Hillcrest Energy Technologies at https://hillcrestenergy.tech/

CSE Issuer Stories, Magazine

Relevant Gold: Mapping Out a New District With Concepts 2.65 Billion Years in the Making

Relevant Gold (CSE:RGC) is a new company on the CSE with a bold idea.

Built by serial entrepreneurs with a track record of success in the exploration space, Relevant is casting “new eyes on old rocks,” as Chief Executive Officer Rob Bergmann likes to say.

And it has come up with a big hypothesis: shear-hosted gold mineralization throughout Wyoming is connected to the prolific Abitibi shear zone belts in Ontario and Québec, making the state the potential site of a new gold rush. The Abitibi is one of the world’s premier gold districts, with over 230 million ounces of gold produced over the last 100 years and more being uncovered throughout the belt.

Relevant Gold’s interpretation of geological records comes straight from science. Dr. Kevin Chamberlain is a researcher at the University of Wyoming and one of several technical advisors to the company. He has also authored publications on the tectonic reconstruction of the region and helped propel the structural thesis to the forefront, connecting the structure to the actual Superior Province, a crustal block stretching from Ontario and Québec to northern Minnesota, during its critical development window.

Relevant Gold’s other technical advisors include Dr. Tom Campbell, who spent his entire career working in orogenic shear-hosted gold systems, both at the Homestake Mine as well as in the Abitibi, and Dr. Dean Peterson, who did his PhD research on the Abitibi, specifically looking at the gold produced in the Timmins, Kirkland Lake and Hemlo camps.

The technical team hypothesizes that the gold deposits of the Abitibi formed around 2.65 billion years ago across the Abitibi province, or craton, and the Wyoming province. The two cratons started to drift apart around 2.1 billion years ago to come to rest beneath what is now the Canadian provinces of Ontario and Québec. Half a billion years later, major tectonic drifting occurred that moved those geologic provinces and plates apart to where they sit now.

Essentially, if the Wyoming craton was attached to the Abitibi, then the gold and the deformation happened in both provinces. Relevant Gold’s team of experts believes that its own reconnaissance is beginning to prove the model through extensive exploration in the state.

Bergmann told Canadian Securities Exchange Magazine that the team was “standing on the shoulders of giants” in connecting the dots to form its theory, building upon existing literature published by leading educators.

“We’re pioneering this idea from an economic level in today’s environment,” Bergmann explains. “There have been multiple papers published on the theory of these connections, but the science itself hasn’t been around for that long. One of our key advantages is that it is a relatively young science. A lot of it came from modern technologies that allow scientists to age-date the rocks more accurately, connect those in time and do that full reconstruction.”

Wyoming is not exactly unknown in a mining context. In 2020, the state was rated as having the second-most friendly mining policies globally by the Fraser Institute, so projects face lower social and environmental risk. As the least populated state in the country, Wyoming was founded on resource development, and permitting is about as streamlined as it gets. But it is other resources – bentonite, coal, rare earths and uranium – that dominate the state’s mining matrix; gold, less so. 

That said, Relevant Gold is one of a handful of companies zeroing in on Wyoming’s resources. Nasdaq-listed US Gold is looking to put its CK gold project into development, and other companies are starting to ramp up exploration activities.

Relevant Gold, however, is at the forefront of pioneering the Abitibi comparisons, which gives them a lot of room for exploration. In Relevant Gold’s case, that would mean searching for an orogenic-style gold deposit similar to the massive Timmins, Canadian Malartic or Hemlo operations in the Abitibi.

“When we set out to build the portfolio, we took a look at the criteria needed for an Abitibi-like system, and we narrowed in on district-scale opportunities,” Bergmann says. “Each one of our five properties that we’ve assembled is large enough to host a deposit of that scale, as well as the potential development footprint.” 

Relevant assembled five district-scale assets totalling over 40,000 acres of ground, including the current flagships, Golden Buffalo and Lewiston. While both projects are at the earliest stages of development, Bergmann and the team see “a lot of catalysts” in the near and longer terms.

“As a geologist at heart, it is exciting because this stuff has never been drilled, and the thesis is very new,” says Bergmann. “For example, we just completed our inaugural drill program at one of our projects, the Golden Buffalo project. We are the first ones to ever see those rocks at the subsurface, which is pretty exciting.”

Golden Buffalo has “an abundance” of high-grade visible gold at surface, according to Bergmann. The focus of the inaugural drill program is to define the geology and the structural architecture in the subsurface. As Bergmann explains, in the Abitibi, it can take on average around 70 to 100 drill holes before making a discovery. Usually, companies going into a drill program already have an abundance of knowledge of the subsurface. That’s where Relevant differs. 

“We went in and didn’t have any of that knowledge, but we were still able to complete 26 holes and about 3,500 metres in the inaugural program,” says Bergmann. “Ultimately, our main goal is to define the subsurface geology and the architecture and understand if this is truly a big orogenic system, meaning do these shear zones extend at depth into the subsurface and along strike? Is there fluid evolution related to that?”

From there, Relevant will start vectoring toward a gold deposit opportunity of scale. “We know that we’ve got a lot of gold at surface and that the system’s enriched, but we really need to confirm that the system is there at a scalable size,” Bergmann explains. “That would really help position us to continue to go at Golden Buffalo and also help guide our drilling on Lewiston and our other high-value targets.”

All told, Relevant Gold has assembled a very knowledgeable board with a management group and technical team that can carry out its plans efficiently and cost-effectively, a fact Bergmann stresses is important in today’s market. 

“Investors are looking at the markets a little bit differently, and rightfully so,” Bergmann says. “I’d like to think that at Relevant Gold, we are one of these juniors that is very well positioned in these current markets, which not a lot of folks can say. We’re a very clean company with a clean share structure and a long runway of opportunities and targets. We’ve been able to sustain some value in the marketplace, and with strong support and shareholders that are with us for the long term, we really believe in the team and our ability to create value.”

This story was featured in Canadian Securities Exchange Magazine.

Learn more about Relevant Gold at relevantgoldcorp.com. 

CSE Issuer Stories, Magazine

Fathom Nickel: Past-producing property containing several of today’s highly sought-after metals is attracting attention for good reason

Fathom Nickel (CSE:FNI) is, first and foremost, a high-grade story.  There is a reason that the company managed to raise $11.5 million last year before going public on the Canadian Securities Exchange in May 2021. That reason is the historic Rottenstone nickel deposit. 

Nestled in northern Saskatchewan, Fathom’s Albert Lake project is home to the formerly producing Rottenstone mine, which yielded eye-popping nickel grades of over 3% during the 1960s. 

Fathom acquired the property in 2015 during the bottom of the nickel cycle and has since expanded its holdings in the area. Today, Albert Lake consists of over 90,100 hectares, of which more than 80,000 remain virtually unexplored. The company plans to apply modern exploration methods on the property in a bid to prove that those historic grades were no fluke.

Chief Executive Officer Brad Van Den Bussche and Vice President Exploration Ian Fraser founded the company in 2015 with the goal of acquiring highly prospective battery metals projects in favourable jurisdictions. They spent time in the US early on, going from conference to conference in the battery technology space to get a feel for which metals were going to be needed as technology advanced. It was nickel that won the day.

“Ian and I both had some experience with Albert Lake and Rottenstone from years ago, so we knew the asset had had very high-grade nickel, copper, PGE’s (platinum group elements)  and cobalt,” Van Den Bussche explains. “And we were able to get it at the bottom of the nickel market for a very good price. Basically, we picked up the core property for some shares and a royalty that we recently bought back.”

According to Van Den Bussche, it was indeed the grades that first attracted them to the project.

“It was a combination of the grades and the mineralogy – the type of minerals that were in the mix. There’s a built-in hedge having nickel, copper, platinum/palladium and cobalt in there,” the CEO says. “It’s one of the highest grade nickel deposits mined in Canada.” 

Globally, there is a handful of very high-grade nickel deposits, such as Norilsk in Russia. Closer to home, the Raglan mine in Quebec and Voisey’s Bay in Newfoundland both stand out. The Rottenstone grade was essentially as good – or even higher – than some of the biggest economic deposits currently in operation. Fathom’s team believes that Albert Lake’s geological setting  supports the thesis that the Rottenstone is one of several variable size, high-grade nickel deposits similar to the multiple deposits that make up the Raglan nickel camp.

Not all nickel deposits are created equally, of course. There are essentially three types of nickel sources: limonite ore, saprolite ore and nickel sulphide ore. Currently, nickel sulphide is the preferred source to develop high purity Class 1 nickel which goes into creating nickel sulphate required for battery production. The pathway to creating Class 1 nickel from limonite and saprolite ores is more costly and typically creates a much larger environmental footprint.

It should come as no surprise that Albert Lake is a sulphide deposit. From the outset, sulphide opportunities were the focus for Fathom’s team.

“From Day One, we were focused on sulphide deposits,” Van Den Bussche says. “Our mandate is to look for electric vehicle battery minerals that are high in grade, particularly nickel. Nickel sulphide deposits are basically the main pathway to Class 1 nickel, which is necessary in the production of stainless steel and the EV/battery components.”

The mineralization of the historic Rottenstone deposit is unique and contains several notable associated metals. Initial sample metallurgy indicates metal recoveries of greater than 90% nickel, copper and cobalt are possible – all essential ingredients for the green economy. Furthermore, initial studies indicate recovery in excess of 80% can be expected from palladium and platinum.

Things look encouraging at the historic Rottenstone deposit, but with 80,000 hectares left to explore, the challenge for Fathom is to find out whether those grades extend throughout the property. The original deposit itself was small, which doesn’t faze Van Den Bussche, but he knows that the team must prove there is more there than just Rottenstone.

“We need to focus on understanding the system,” Van Den Bussche says. “Those kinds of high grades have to come from a very large system. There’s just no way in the geological model concept that you can have those kinds of grades without a large melting pot. The Rottenstone mine has to be one deposit within a much larger system.”

To that end, Fathom is planning an airborne electro magnetic survey and follow-up ground geophysics to zero in on prospective drill targets this year. A key part of its exploration activity is utilizing a portable Vanta XRF Analyzer (pXRF) to provide real-time litho-geochemical, multi-element data on core from current drill holes, and on historical drill core left by previous operators.

The pXRF results confirm the presence of nickel and copper in present and historic drill cores, and assay results will also test for the presence of platinum group elements, a significant component of the historic Rottenstone deposit that is not detectable via the pXRF. 

Saskatchewan may not seem like the first place a company would visit to explore for nickel, but the province is quickly emerging as a leading global mineral jurisdiction. The Fraser Institute’s annual investment attractiveness survey ranked Saskatchewan in third place in 2020, with a particular spotlight on the province’s mineral potential. The prolific Trans-Hudson Corridor runs directly through the province then veers east to cover northern Manitoba, northern Quebec, northern Labrador and across to Greenland. 

What has held Saskatchewan back from developing its own world-class base metal deposits has historically been, in part, the political situation. But that has changed completely in the last 20-plus years, according to Van Den Bussche. 

“During much of the 1970s and 1980s, a Saskatchewan Crown Corporation (SMDC) had the rights to become up to a 50% partner in exploration projects in the province. While a lot of exploration and development was occurring next door in Manitoba, many exploration companies chose not to take on a government partner and explore in Saskatchewan during this period,” Van Den Bussche explains.

“But that has completely changed and now Saskatchewan is a great jurisdiction to work in. There is a lot of opportunity, and it’s getting a lot of interest from many companies, including the majors. Rio Tinto is a major explorer in the province, and BHP is starting to look as well – they already know Saskatchewan because they’re a big player in the potash industry. Saskatchewan is in the right place in the system, and it’s got the potential to have continuations of some of the Manitoba base metal opportunities, including nickel.”

Fathom is operating during a wild time in the nickel industry. The silvery-gray metal is an essential component in electric vehicle batteries, and manufacturers are scrambling to secure safe supplies. As the green energy economy ramps up, so too does nickel demand – so much so that in early 2022, trading was suspended on the London Metals Exchange after nickel prices breached the $100,000 per tonne mark.

For Van Den Bussche, the dynamics of the current nickel market point to the necessity of developing a safe, stable supply of the metal within North America.

“There is definite urgency to try to lock up some supply of nickel from mines that are currently producing, but also to feed the supply chain two, three, four or five years out. Good projects in good jurisdictions that have a pathway to growing a resource and getting into production are essential. I think there’s going to be a huge move to gain control of the raw materials needed for these strategic businesses.”

This story was featured in the Canadian Securities Exchange magazine.

Learn more about Fathom Nickel at https://fathomnickel.com/.

CSE Issuer Stories, Magazine

Mindset Pharma: Pursuing breakthroughs in the psychedelics field with the help of “hard science”

Psychedelic drug researchers have moved mountains over the last 30 years, helping to show that these misunderstood substances have vast potential to benefit people, while being safe and non-addictive.

Today, psilocybin is in Phase 2b clinical trials, MDMA is in Phase 3, and the US Food & Drug Administration (FDA) has given both trials breakthrough therapy status. There is tremendous momentum behind getting psychedelic drugs approved against a backdrop of two frustrating trends in North America: the opioid crisis and the negative effect of COVID-19 on mental health.

Mindset Pharma (CSE:MSET) saw early on that there would be a wave of interest in using psychedelic drugs as medication, but that ultimately there would be even more interest in next-generation drugs delivering greater benefits as medication with full patent protection.

From the outset, the company’s goal was to apply drug design, behavioural pharmacology and medicinal chemistry, which are essentially the tools of modern pharmacy, to try to harness the power of psychedelic drugs. 

Chief Executive Officer James Lanthier joined Mindset in early 2020 and was sold not only on the calibre of the scientists involved, but the specific strategy the team had developed.

“We’re applying hard science to these substances to try to create the best possible medications for people – that’s it, full stop,” Lanthier explains. “There’s now tremendous evidence to suggest that psychedelics have a breakthrough role to play to treat psychiatric mood disorders, but in our view, the classic psychedelic drugs did have some shortcomings.”

Essentially, Mindset wants to create new drugs that deliver the same or superior benefit but will work more predictably for the widest possible patient set. The team selected a psilocybin-like compound known as MSP-1014 from its Family Number One of novel drugs. The group of compounds is structurally closer to psilocybin but has the potential to deliver a more pronounced psychedelic experience than psilocybin does at similar doses. Given its higher efficacy, the drug would boast an improved safety profile because, theoretically, a patient could take less of it in order to achieve the same effect.

When Mindset tested MSP-1014 in mice and compared it to psilocybin at a range of doses, the company found that psilocybin reduced body temperature by as much as nearly six degrees, which is hardly a nominal amount. MSP-1014, however, showed no effect on body temperature, an early indication of the compound’s safety profile.

Another interesting piece of data from the lab studies confirmed MSP-1014 was comparable to psilocybin after a drug discrimination assay. In the lab, rats were able to determine the distinction between MSP-1014 and saline, which gives even further credence to the drug’s efficacy. “When we take a drug into clinical trials, you want to have as much confidence as possible that the drug is going to be effective and safe,” Lanthier says. “It’s another strong data point that will help us move forward with more confidence.”

Psilocybin is showing promise in early trials, but its effects can last up to eight hours. Mindset is hoping to tackle that challenge with its Family Four group of DMT analogues, which could offer similar benefits in a therapeutic context but with a much shorter trip of between 15 to 30 minutes. Its lead candidate in that group is MSP-4018, which is being compared against a serotonin analogue known as 5-MEO-DMT found in plant species and toad venom.

Researchers think this could be useful for in-clinic psychedelic-assisted psychotherapy. Because 5-MEO-DMT results in a total duration of experience of between 10 minutes and two hours, it would mean less time to spend in a clinic and fewer resources needed to treat a patient. 

Mindset’s research uncovered meaningful safety improvements with MSP-4018. “We saw signs of serotonin syndrome at a whole range of doses with 5-MEO DMT, which is a really unpleasant basket of symptoms that can afflict people with high levels of serotonin in their bodies,” Lanthier says. “MSP-4018 showed no signs of serotonin syndrome, but we saw behaviour that suggested that it was just as psychedelic as 5-MEO DMT. It’s really encouraging because it looks like we’ve got a drug that is just as psychedelic but potentially quite a bit safer.”

All of this is a step toward proving the concept behind Mindset to make better drugs than the original psychedelic by applying science. The company is building its value on those tweaks and improvements.

“This is about creating new chemical designs that make changes to the structure of the original drug, and then testing them rigorously to see the effect of the changes,” Lanthier explains.

Essentially, Mindset is changing the underlying molecule, synthesizing the elements of the particular drug. It’s an important distinction from its peer group, as companies can patent protect this type of intellectual property to a much greater degree than a formulation of the original drug.

“If you’re not changing the active pharmaceutical ingredient, but just putting it in a different solution, the level of intellectual property rights is quite shallow,” Lanthier states. “Another group can come along with a slightly different formulation and compete against you.”

In Mindset’s case, they’re getting intellectual property rights on the composition of matter, which Lanthier calls the “gold standard.”

The group has also selected two indications for its lead therapy MSP-1014: treatment-resistant depression and end-of-life cancer anxiety. Both are tragic mood disorders with, sadly, large populations.

Nearly 30% of people who suffer from depression do not find relief from traditional antidepressants or therapy sessions. It’s a field where pharmaceutical companies haven’t brought many innovations in the past few decades, leaving it ripe for psychedelic drugs to fill the void. And potentially, very lucrative: by dollar value, antidepressants represent a $15 billion industry.

Now comes the hard part. Mindset is hoping to move out of the lab and into clinical trials in 2022, which does not come without risks. As all drug discovery companies know, success in the lab doesn’t always translate to success in clinical trials. It takes a while to do all the testing and work through regulatory requirements until the drug gets to a point where regulators are comfortable having them taken by humans. 

But psychedelic discovery is different than many other drug discovery efforts because there is so much data available on how existing psychedelics work.

“Based on all the data, we have a pretty high level of confidence that many of these drugs will have a role to play in treating neuropsychiatric and mood disorders,” Lanthier says. “We’re not reinventing the wheel – we’re simply trying to make changes to the chemical structures that will make them safer and more effective. So, it’s a bit different than a typical biotech venture that’s working on something that’s brand new.”

The goal for Mindset is to stick to what they’re good at: discovering and developing new psychedelic drugs. The firm is positioning itself to partner with other groups, be it pharmaceutical firms or psychedelic companies, that want to get into the space and have the expertise and infrastructure to run clinical trials. 

“We don’t think that we’re going to have to raise billions of dollars to become the next Pfizer and take these drugs through late-stage clinical trials,” Lanthier notes. “We think there will be lots of opportunities for Mindset because we were filing intellectual property early and developing data early.”

This story was featured in the Canadian Securities Exchange magazine.

Learn more about Mindset Pharma at https://www.mindsetpharma.com/

CSE Issuer Stories, Magazine

Gage Growth: The steady hand wins the race in this company’s playbook

When it comes to cannabis in the state of Michigan, Gage Growth (CSE:GAGE) is the name an increasing number of consumers are turning to. Still a young company, having been in operation for just over 18 months, Gage has nonetheless amassed one of the largest asset portfolios in the state. Experience at the leadership level is key to this success.

Gage’s Chief Executive Officer, Fabian Monaco, is a former lawyer and investment banker who was actively involved in the evolution of the cannabis industry. He was a key member of the team that transacted the first cannabis acquisition, Tweed (now known as Canopy Growth)’s purchase of Bedrocan, and also the first-ever cannabis IPO. Also on the team is cannabis impresario Bruce Linton, who serves as Chairman. Another big name is TerrAscend’s Executive Chairman Jason Wild, who has a large stake in the company.

What is it about Gage that attracts some of the most successful executives in the cannabis industry? For one, Gage is on track to be Michigan’s number one operator by the end of 2021, with 14 facilities either in operation or planned. Its first set of financial statements as a public company showed a big quarter-over-quarter jump in revenue, and a corresponding increase in its profit margin.

Clearly, the decision to start things off in Michigan was a good one.

“One of our founders is from Michigan and the other founder has a strong connection to Michigan through family,” says Monaco. “The biggest reason we chose the state, though, is that it had the second-largest medical cardholder system behind California for many years. Their caregiver program was introduced in 2008, and thanks to that, individuals have been going to dispensaries for over a decade.”

Monaco goes on to explain that close to 75% of the population in Michigan is of age to consume, and that after December 1, 2019, which was the first day of adult-use sales in the state, cannabis commerce skyrocketed. Michigan was outside the top 10 states by revenue at the time, but quickly vaulted to sixth, just behind Illinois. Today, it surpasses Illinois consistently and ranks third.

“It’s been playing out pretty much as we thought it would,” says Monaco.

In a market that size, there is bound to be healthy competition. But Gage has established some important points of differentiation and leverages them to the fullest.

“We really focus on every part of the value chain of the business, from seed to smoke,” says Monaco. “We’re constantly hunting, looking for new cultivars to bring to the table for patients and for consumers. A lot of producers out there – especially some of the publicly traded ones – don’t really grow a lot of varieties, and we pride ourselves on having 40, 50, sometimes even 60 different flavours within our retail locations for people to choose from.”

Monaco says that post-production processes are just as important, and that Gage hang-dries its product, trims it, and packages it. “We have this fun, bright, engaging packaging as well for our flower that people enjoy, and we manage most sales through our own retail channels.“

In addition to having identified a prime jurisdiction in which to operate, Gage also knows who it’s targeting to buy its products.

“In general, we’re going after the former medical user – a refined consumer, someone who has been consuming the product for many, many years,” Monaco explains. “We have a really wide variety of customers.”

The Gage business strategy calls for vertical integration and establishing operations strongly in a single state before taking its proven model and applying it in other states.

“We’re going to focus on one market for the better part of 2021, although we do anticipate doing something outside of Michigan near the end of the year,” Monaco says. “We’re trying to follow that Trulieve (Trulieve Cannabis; CSE:TRUL) model where you execute really well in one state and use that as a springboard to enter other states. Once we feel comfortable with where we’re at, especially as we approach the end of the year, you’ll see us branch out into other states.”

With expansion seemingly just around the corner, the question of where Gage will decide to go next is an obvious one. Monaco believes there is “phenomenal” opportunity throughout the United States and his team has already assessed several states this year. He says there is a lot to like. Plans call for focusing on some of the larger markets with Gage’s first few acquisitions. Massachusetts, Illinois, Ohio, Maryland, California and Pennsylvania are all in the running.

“You’ll probably see us make a move into one of the larger states pretty soon,” says Monaco.

Looking out over the next two or three years, Monaco says Gage is strongly positioned to take advantage of a wide range of opportunities that present themselves as the industry evolves.

“We have a solid cash balance to execute our plans in Michigan and didn’t really take on any harsh payment obligations, in terms of sale leasebacks or debt, over the past couple of years,” Monaco explains. “Now we have the opportunity to tap into some of the lower cost of capital opportunities that cannabis companies are seeing these days. Because our cultivation assets are unencumbered, and we own our retail locations, it really affords us the opportunity to go after some debt to fuel growth without having to dilute shareholders.”

From an earnings perspective, Monaco believes Gage can both increase revenue and expand margins rapidly, because Gage products so frequently sell out.

As for the higher goals, Gage is probably not all that far from achieving some of them already, though the walk before you run mindset remains firmly in place.

“Personally, I’d love to be number one in Michigan, our home base, and then a top player in two or three other states. I think it’s important to remain focused in Michigan before we branch out. We’ll look to be one of the top three in each respective state we go to within the next 24 to 36 months.”

This story was featured in the Canadian Securities Exchange magazine.

Learn more about Gage Growth at http://www.gageusa.com

CSE Issuer Stories, Magazine

Temas Resources: Financial and environmental benefits are some of the good things that come from thinking outside the box

At first glance, Temas Resources (CSE:TMAS) is an explorer with two key mineral assets: a titanium project in Quebec and the intent to acquire a boron property in Serbia. As these commodities are used to make products such as paint, fertilizers and pharmaceuticals, Temas is positioned as a potential supplier to the specialty chemicals sector.

A deal was announced by the company in late January of this year that adds an exciting new strategic dimension. With its acquisition of a large stake in ORF Technologies, Temas will have access to patented, cost-efficient and eco-friendly processes for extracting, separating and recovering nickel, iron, gold and titanium dioxide.

Expanding the number of angles to the Temas story suits Chief Executive Officer Michael Dehn just fine. The new CEO has been involved in the titanium industry for years but honed his early skills in the gold sector in Red Lake with Rob McEwen and Goldcorp.

“I see us becoming a mining technology or mineral processing company,” Dehn tells Public Entrepreneur.

The key here is how all of the assets work together. The company’s flagship La Blache project is a 2,653-hectare property approximately 100 kilometres north of the community of Baie-Comeau, Quebec. It is home to the Farrell-Taylor magnetite-ilmenite lens, where consistent iron, titanium and vanadium grades are found across the entire length of the complex.

Preliminary metallurgical testing of oxide mineralization indicated 90% recovery of iron and 95% recovery of vanadium into a final high-purity product. A titanium dioxide product suitable for further processing to pigment-grade titanium dioxide was fully recovered in testing.

La Blache’s value lies not only in the ground but also in its proximity to key end users in North America. Temas is looking at processing in Ohio, which is close to at least five major US paint producers. What’s more, production at La Blache could be powered by tapping into the area’s electrical grid, making it a greener option than alternatives reliant on diesel.

There are other ways in which the project is green as well, as Dehn describes. “Your mine is wherever the rocks are. In our case, about 65% of the recovered rock goes into a finished product. We’re using around 65% of the rock to recover iron, vanadium and titanium.”

Shortly after Dehn joined Temas in November 2020, the company formed a strategic partnership with Erin Ventures to develop the Piskanja borate project in Serbia. Piskanja has an indicated mineral resource of 7.8 million tonnes averaging 31% boron oxide and an inferred resource of 3.4 million tonnes averaging 29% boron oxide. The project will be the only production of borates on the European continent, according to Temas.

Boron is primarily used in chemical compounds, with around half of all boron used as an additive in fibreglass for insulation and structural materials. The next leading use is in polymers and ceramics in high-strength, lightweight structural and refractory materials.

For Temas, adding Piskanja to its portfolio didn’t trigger much debate. “It’s such an obvious project,” says Dehn. “We have reasonable capital expectations to get to production in a country with very strong mining roots. The European Union and European Bank for Reconstruction and Development are trying to encourage Serbia to phase out coal mining, which means there is going to be a locally skilled workforce that will be looking for another opportunity.”

Under the terms of the agreement with Erin Ventures, Temas will commit to spending a total of €10.5 million toward the development of Piskanja within a three-year period. Erin will remain operator on the project until Temas has exercised the option to earn a 50% interest in its subsidiary, Balkan Gold, at which point Temas will become operator of Piskanja. The two companies expect to finalize the agreement by April of this year.

Between Piskanja and La Blache, Temas already has a couple of company-making projects. The acquisition of ORF Technologies was the missing component that can take things to the next level.

ORF’s technology is estimated to be 59.2% better on a production cost basis, leading to a process that is around 144% more cost-efficient than that used by the world’s largest titanium dioxide producer, The Chemours Company. ORF’s process is less energy-intensive than the industry standard and can create high-quality titanium dioxide from low-grade materials, which contain contaminants that competitors must discard, according to Dehn.

With the ORF approach, rock is dissolved in hydrochloric acid to selectively extract metals such as titanium, nickel or vanadium. The purity of the extracted elements is extremely high.

“We can go right from an ilmenite ore to a titanium dioxide without having to go through several intermediate steps, which is what the rest of the industry has to do,” Dehn explains. The same goes for commodities such as nickel, which now is in higher demand thanks to the red-hot electric vehicle market.

Temas plans to acquire a 50% interest in ORF. The company will fund certain ongoing expenses through secured loans, including acquisition and development of new technology, to be repaid from income generated by ORF before declaration of dividends to ORF shareholders.

Temas is in good financial shape to advance its 2021 agenda. Since November, the company has raised $5 million via Crescita Capital and an additional $3.6 million in flow-through funding.

It’s an undeniably exciting time for Temas, and right where you would expect to find a team that Dehn says is constantly thinking outside the box.

“We don’t want to do things the traditional way,” says Dehn. “Instead of blindly going forward with how things are always done, look for the opportunity that’s going to give you a quicker return on your investment but also leave a smaller environmental footprint.”

This story was featured in the Public Entrepreneur magazine.

Learn more about Temas Resources at http://www.temasresources.com/

CSE Issuer Stories, Magazine

Red Light Holland: Proving the potential of recreational psilocybin begins with choosing the right market

One of the more interesting small-cap market developments of 2020 is increasing investor comfort with the psychedelics industry.

The year has seen multiple psychedelics companies IPO on exchanges in Canada and the US, and M&A activity is ramping up, too. Momentum in the sector is being driven by legislation in Canada opening the door for end-of-life patients to use psychedelics as a therapeutic option, while in the US, the Food and Drug Administration designated psilocybin as a “breakthrough treatment” for mental health disorders. The industry clearly has plenty of runway heading into next year.

Most of the publicly listed companies in the segment focus on therapeutic applications, working on research and development of psychedelic-based treatments for mood and anxiety disorders.

Canada’s Red Light Holland (CSE:TRIP), however, has found its niche in the recreational part of the market by selling small doses of psilocybin to adult consumers seeking to experience the psychedelic effect without a prescription. In the process, it has set itself on a clear path to revenue, which is an immediate point of differentiation compared to most peers.

The Toronto-based firm is the first publicly traded company that has a legal psilocybin product on store shelves and online (in the Netherlands). Its iMicrodose pack is a collection of “magic truffles” – a type of fungi that contains a lower concentration of psilocybin than their mushroom brethren but still enough to produce a psychedelic experience.

While making very clear that medical claims cannot be made at this point and highlighting that substantial research is still being done to prove certain beliefs, Chief Executive Officer Todd Shapiro tells Public Entrepreneur that he thinks psilocybin has the potential to “change the world” for people suffering from depression and mental health disorders. “For me, the opportunity was never about a trend,” Shapiro explains during a recent interview. “It’s about making a difference with a long-term plan. And it’s about empathy, compassion and providing access.”

Shapiro, a former Toronto media personality, began to explore the world of psilocybin through conversations with guests on his SiriusXM radio program. Sensing opportunity, he assembled a team of investors and advisors containing some truly boldface names: Bruce Linton, Terry Booth, Brad Lamb and even comedian Russell Peters, who serves as the brand’s chief creative officer.

The group decided to explore the opportunity to sell psilocybin as a recreational product in a legal market and settled on selling truffles in the Netherlands. It raised nearly $4 million before going public on the CSE in May 2020.

At this point, it’s fair to ask – aren’t magic mushrooms illegal? The answer lies in the composition of the fungi. In the Netherlands, where iMicrodose recently debuted in smartshops across the country, magic mushrooms themselves are illegal, but truffles – a network of interconnected filaments that branch out from the mushroom below ground – are legal to buy and consume.

The pursuit of the recreational market as opposed to medicinal psilocybin is a huge part of what differentiates Red Light Holland. “We would love to be a part of helping to prove how psilocybin can help human beings, be it supporting studies or trials,” Shapiro says. “I think that the medical side is extraordinarily important, but why are we limiting the potential of responsible adult use? When we do that, we are limiting a lot of adults who have access to information, education and early trial data as well as anecdotal research. I don’t think we should do that for people who want to try this responsibly.”

Echoes of the cannabis sector’s growth trajectory ring through Red Light Holland’s story. Early acceptance of medicinal marijuana paved the way for the recreational market and, eventually, legalization. Shapiro is hoping that Red Light Holland can blaze a path to tolerance of recreational psilocybin. “Magic mushrooms have been used for generations for a wide variety of purposes,” Shapiro notes. “Red Light Holland wants to offer it to people who want it in legal jurisdictions, much like we saw in the cannabis market.”

That’s not to say that the company isn’t exploring possible therapeutic applications as well. Its scientific division, Scarlette Lillie Science and Innovation, recently secured a relationship with US-based Jinfiniti Precision Medicine to explore potential roles that psilocybin and truffles can play for age-related and psychiatric disorders.

Red Light Holland may not take the lead on clinical trials, but it wants to carefully look into how it can support the science by perhaps teaming up with people who could potentially get involved in trials in some capacity. “If we can learn more about the truffle itself, that would be our goal,” Shapiro says. “Maybe there’s a CBD-like element to the truffle that we don’t know about yet.” 

The therapeutic psilocybin market is poised to reach a value of nearly US$6.7 billion by 2027, according to Data Bridge Market Research, making it an attractive proposition for investors. While the recreational market is obviously much smaller in value, Shapiro hopes to find a new consumer – a young professional, a firefighter or a modern couple who just put their kids to bed.

“I want iMicrodose packs powered by Red Light Holland to be consumed by the Ketel One drinker, someone who loves a glass of wine, essentially an adult who wouldn’t necessarily walk into a smartshop but would rather order legally from an easy-to-use e-commerce store. I want to help expand the market,” says Shapiro.

There are signs that other countries will soon follow the Dutch lead of legalizing truffles, or at least relax the relevant laws. In Brazil there are no laws against the sale, distribution or use of magic mushrooms. Jamaica has long been a destination of choice for psychedelic retreats, and Bulgaria is on the radar. For now, though, Shapiro appears to have Red Light Holland firmly focused on its namesake country.

“A lot of the issues at cannabis companies came about because they thought there was a bigger market than there actually was, and then they wound up expanding too quickly,” Shapiro says. “We like the idea of learning who our customers are and expanding from there with education, information and responsible use initiatives.”

iMicrodose debuted in Amsterdam in September, retailing for €25 per pack. Distribution quickly spread to Rotterdam, Eindhoven and Den Bosch, as well as online. Shapiro and his team hope to have iMicrodose in as many smartshops as possible over the next year while growing brand recognition.

Red Light Holland is blazing a trail in the psychedelics sector as the first psychedelics company with a legally available product to list on a major exchange, and it fills Shapiro with pride.

“It helps legitimize what so many pioneers and advocates have pushed for, because we’ve gone through the regulatory bodies,” he says. “It’s not something that we’re doing underground. If you’re in the Netherlands, you can order iMicrodose packs online right now. Let’s end the stigma together.”

This story was featured in the Public Entrepreneur magazine.

Learn more about Red Light Holland
at https://redlighttruffles.com/

CSE Issuer Stories, Magazine

Northstar Gold: The new face shining brightly in the Kirkland Lake gold camp

When you’re a new name in exploration on the market, it helps to have an established project with a proven team at the helm.

This statement certainly holds true for recently listed Northstar Gold (CSE:NSG), a company that is working on advancing the Miller Gold Project in Ontario’s famous Kirkland Lake Gold District. This region has historically delivered more than 25 million ounces of gold from seven mines.

Northstar is led by Chief Executive Officer Brian Fowler, a seasoned mining executive with over 38 years of experience in mineral exploration under his belt. Behind Fowler is a veteran team of mining and capital markets experts with decades of insight and success advancing resource companies and projects.

Miller is a 1,100 hectare property just south of the town of Kirkland Lake, central to a district that has been producing gold for more than a hundred years.

In the early 1900s, the historic Miller Independence Mine saw a number of shallow shafts and three levels of development on the high-grade gold No. 1 Vein, with limited success. Exploration by Northstar and others since then has defined additional shallow high-grade gold veins, with a historic estimate of 270,000 ounces of gold at 11.5 grams per ton, and a lower-grade bulk tonnage gold exploration target at Planet Syenite that may contain up to 500,000 ounces of near-surface gold ranging in grade from 1 to 3  grams per ton. None of these targets has been tested at depth.

It’s the geology, however, that excites Northstar’s CEO the most. “The Miller Gold Property has very compelling geological similarities to the Macassa SMC (South Mine Complex) and other Kirkland Lake gold deposits,” explains Fowler. “Miller has the same style of vertical and flat, high-grade gold-telluride veins that are a unique feature of the Kirkland Lake District. Furthermore, gold mineralization on the Miller Property is controlled by a ‘first order’ fault structure (the Catharine Fault) that joins the regional Kirkland Larder Break and similar first order structures within the Kirkland Gold District. These fault structures acted as channels and traps for gold deposition.”

Fowler goes on to explain that it has been determined that gold mineralization at Miller was emplaced at the same time as that at the Kirkland Camp gold deposits, some 2.6 billion years ago. These similarities and geological features suggest Miller could be tapping the same gold source as the Kirkland Gold District.  The Macassa mine has been in production since the 1930s and owner Kirkland Gold continues to find and produce high-grade gold more than 2 kilometres below surface. The Miller Property, on the other hand, is essentially unexplored below 300 metres.

“We’re really excited [to have] both Kirkland-style high grade gold-telluride veins and broad low-grade intrusion-related gold mineralization in significant quantities on the Miller Property,” Fowler says, “Our main job now is to do some drilling on these targets and bring them to 43-101 status. If you stand back and look at it, we could be knocking on the door of around 700,000 to 800,000 ounces here.”

Since Northstar picked up Miller in 2012, the company has spent around $2 million on exploration. Including the use of  ground magnetics, 3D IP surveying, and nearly 6,000 metres of diamond drilling in 27 holes. Those holes returned multiple high-grade and broad low-grade intersections with abundant visible gold. In 2016, the company mined and processed a 932 ton bulk sample from the historic No. 1 vein that averaged 5.1 grams per ton gold.

Most of the past drilling done at Miller has been vertical in nature.  Subsequent surface stripping and sampling by Northstar has defined numerous vertical high-grade gold veins and structures, which cannot be assessed, let alone discovered, by vertical drilling. This year’s drill program will see Northstar utilize angled holes to properly test these new targets.

“We’re very confident that we’re going to make new discoveries at Miller, possibly within the Catherine Fault zone itself, which amazingly has never been drilled,” Fowler says. “It’s comparable to Kirkland Lake Gold’s Amalgamated Break where they’ve found an incredible amount of high-grade gold mineralization that remains open at depth. These structures can be incredibly rich and with kilometre-scale strike and depth continuity. We believe we have all the makings of a Macassa SMC-like gold mineralizing system at Miller and we’re really anxious to get the drill spinning.”

At 3,000 metres, the Phase 1 drill program is scheduled to commence in late February. This will have a preliminary focus on confirming and expanding portions of the near-surface Miller Independence historic estimate and the Planet Syenite bulk tonnage gold exploration target. Drilling will also follow up other known near-surface, high-grade and intrusion-hosted gold targets, including Allied Syenite.

Having a few million dollars on hand to support exploration doesn’t hurt – Northstar closed its $3 million initial public offering on December 31st of last year at $0.30.

“Everyone thinks we either definitely have a gold market or we’re heading into a solid gold market,” Fowler says of the company’s healthy IPO. “We believe our timing was perfect.”

There’s even more to Northstar Gold than Miller, though. The explorer also has the Bryce Gold Property and the Milestone copper-nickel-cobalt claims. These could add value at the drill bit or through farm-out opportunities.

The task ahead for Northstar is to prove up the claims at Miller. “We’re going to do it through a concerted and robust exploration effort, which we are now permitted and funded to complete,” Fowler concludes. “I really believe there is excellent potential to make some significant gold discoveries at the Miller Gold Property this year.”

This story was featured in the Public Entrepreneur magazine.

Learn more about Northstar Gold at https://www.northstargoldmining.com/.

CSE Issuer Stories

Peekaboo Beans Inc. Has a Majority Female-led Board: Here’s Why It Makes Sense

It’s a sad reality that even in 2020, women are sorely underrepresented in capital markets. Studies have shown that, as career level rises, female representation declines.

The Workforce Today

According to a report by Mercer, although 46 percent of financial services employees are women, only 15 percent of the financial services workforce is comprised of females at the executive level.

The situation is echoed when it comes to women who serve on the boards of public companies in Canada. A 2019 report by law firm Osler found that women now hold over 18 percent of board seats among surveyed companies, but the pace is slowing, down from 2.5 percent in 2017 to 1.7 percent in 2018.

Traci Costa (left), Founder and CEO, and Sarah Bundy (right), Board of Directors Member at Peekaboo Beans

Despite the decline companies are slowly recognizing the need to adopt policies and practices to ensure female representation at the highest level.  In 2018, the Canada Pension Plan Investment Board announced plans to establish a policy to vote against the chair of the nominating committee of its investee public companies if the board has no women directors. And, earlier this year, Goldman Sachs announced it wouldn’t take companies public if they do not have at least one woman sitting on their board.

Peekaboo Beans

Even so, public markets have a long way to go before women are equally represented across all levels of management. As such, children’s clothing designer Peekaboo Beans Inc. (CSE:BEAN) is a trailblazer. The Vancouver-based company is spearheaded by CEO, Traci Costa, and a four-person board of directors that is 75 percent female. If its bottom line is any indicator, Costa and her team are demonstrating that having a diverse team makes good business sense.

Costa never set out to stack her board with women. “For me it was trying to find the best fit for our board, first and foremost,” she said.

Former Lululemon executive Darrell Kopke was the first to join, bringing his knowledge of growing an apparel business that aligned well with the Peekaboo Beans brand.

Sarah Bundy came into the picture after Peekaboo started to transition its model from a direct sales approach to an omni-channel marketing plan. The switch prompted Costa to look for an expert in affiliate marketing and Bundy, founder and CEO of All Inclusive Marketing Inc., was a perfect fit.

“When I came across Sarah, she had an immediate draw and a powerful force,” Costa said. “She is a mother and an expert in affiliate marketing. In this day and age, brand and culture are such big things and you really need to have that voice, so Sarah was a great fit.”

The most recent member to join is Tamara Mimran, a member of one of Canada’s first families of fashion. Mimran, an executive at premier label Alfred Sung, brings connections, industry experience and a strong focus on products and trends to the board.

Tamara Mimran, Board of Directors Member at Peekaboo Beans

Mimran admired Costa’s energy, calling her a “powerhouse” and something of a role model. At the time, the company was pivoting its business model to adopt a new sales approach, which any executive knows can be a challenge. “She really faced that head on,” Mimran said. “She’s morphing the company into something that will have a lot of longevity. She made those hard decisions that were right for the future of the company and had the courage to get in front of it. I was inspired by her and loved her story.”

A Diverse Team for Fresh Perspectives

Today, the board covers the growth, marketing, and product trifecta; Costa is currently looking for a finance-focused member of the team.

“The value of my digital e-commerce expertise mixed with the value of Traci and Tamara’s expertise, next to what Darrell provides, is fascinating to see come together,” Bundy said. “In the end, this is going to create an incredibly powerful brand and board, because we have a very unique mix of board members with different perspectives.”

The lone male voice on the Peekaboo Beans board, Kopke is a firm believer that diversity is a major contributor to business success.

“Homogeneity breeds complacency and self-congratulatory myopia,” he said. “Diversity forces contrarian perspectives that highlight great ideas and weeds out poor ideas. If a board is committed to active listening from different perspectives, as well as active participation from all of its diverse members, better results will follow.”

Newest member Tamara Mimran said the board’s makeup reflects the needs of the brand’s consumer base. “A lot of mothers purchase the product for their children, so it does make sense to have female voices at the board level,” Mimran said.

“Diversification is all over the place at the consumer level, so why shouldn’t that trickle up to the executive team and board members? The decision-making process will have a different perspective, just as the purchasing will have a different perspective. If we mirror that, I think the company will have a lot of success.”

A Successful Business Model

Over the last year, the company has transitioned to an e-commerce model that gives it the ability to scale nationally and internationally in a much more efficient manner. Since switching to an omni-channel sales model, the company is finally starting to see its revenues grow. In its most recent quarter, Peekaboo Beans posted a 229 percent revenue boost compared to the previous three months and an increase of 21 percent over the same period last year. January 2020 sales figures were strong as well.

“After trying various sales models in the past, we believe we have finally found the optimal model to drive sales and take our unique children’s clothing brand to the next level,” Costa recently told shareholders in a statement.

Sarah Bundy, whose All Inclusive Marketing Inc. was directly involved in helping shape the new strategy, concurred. “Seeing that shift already make a big difference is really exciting.”

The Future is Female

Costa and her team have built a company that directly reflects the needs of its consumers, and at its heart, Peekaboo Beans is a female-driven brand. A tour of Peekaboo Beans’ corporate offices reveals highchairs nestled next to work desks. The company takes every step to help foster a work-life balance for its employees – which Costa says can pay off in a business context.

Sarah Bundy (left), Board of Directors Member and Traci Costa (right), Founder and CEO of Peekaboo Beans

If you have happy employees, you have happy board members. You have happy individuals at every facet of your business; they’re going to perform at every level,” Costa said.

“Being a mother has informed me of what problems existed with dressing kids. All of the things that I’ve experienced as a mother led me to create Peekaboo Beans to make life easier for parents, because being a parent is hard enough.”