All posts by Angela Harmantas

Most people have never heard of a mineral called fluorspar, but they’ve most definitely benefited from it. We all have, in fact, as some of the electronic devices so ubiquitous in our daily lives would not exist in their current forms without it.

Fluorspar is an important commercial source for a chemical element called fluorine, the lightest of the halogens and thus in a league of its own for a variety of industrial applications. Fluorspar is also found in things such as cement and steel, not to mention camera lenses and other optical products. It is classified as a critical mineral in the United States.

James Walker understands that part of his role as Chief Executive Officer of Ares Strategic Mining (CSE:ARS) is to educate the public about the case for fluorspar, especially as Ares is currently the only U.S.-based fluorspar company with a permitted mine.

“It’s no surprise if you haven’t heard of fluorspar – honestly, most people haven’t,” Walker says candidly during a mid-November interview with Canadian Securities Exchange Magazine.

The U.S. once had a thriving fluorspar sector, but this was years ago before China grew its presence and flooded the market with cheap product. As a result, the U.S. fluorspar industry has been virtually nonexistent for decades.

That could change if Ares is successful in producing fluorspar from its Lost Sheep Mine in Utah.

The company went on a search some years ago for projects that it could bring into production quickly, required modest capital spending and contained something for which there was clear customer demand. Fluorspar wasn’t on Walker’s radar at first, but one day his team came across artisanal miners in Utah who were digging it out of the ground, bagging it and selling it directly to steel mills. Walker was intrigued, to say the least.

Lost Sheep was a lucky find, according to the CEO. “One of the geologists I was working with at the time had experience with fluorspar, having worked on Europe’s largest fluorspar mine. When he brought it to my attention, my first reaction was the same as most people’s: What’s fluorspar? But from there, everything started to fall into place.”

With a relatively low capital outlay, Ares seized the chance to build a modern, efficient industrial process to produce significant amounts of fluorspar domestically. The team viewed Lost Sheep as an opportunity to revive the U.S. fluorspar industry and claim significant market share. “With this fluorspar project, the material coming out of the ground was already about 50% of the final product, so the processing required was minimal,” Walker explains.

Ares inherited Lost Sheep’s permits with the purchase of the mine. Even more compelling was that the Lost Sheep Mine was part of a much larger fluorspar anomaly, stretching around 16 kilometres along an area in Utah called Spor Mountain. Fluorspar was everywhere, with showings breaking through to the surface and pipes in multiple locations. “It was fascinating,” says Walker.

Lost Sheep had never been professionally developed so Ares started by conducting geophysics, including LiDAR and electromagnetic surveys, to pinpoint where the anomalies were. From there, the Ares team began drilling, collected samples and conducted metallurgical testing.

Ares also engaged international partners to design the infrastructure for processing the fluorspar. With their help, the company designed plant layouts and, thanks to fluorspar’s critical mineral status, secured federal support in the form of a United States Department of Agriculture loan. This enabled Ares to purchase a 50-acre industrial site with existing infrastructure, including buildings that could be used for a processing plant.

A three-storey lumps plant is already on site, and Ares is now working to construct a flotation plant with support from the state of Utah. The facility is designed to produce higher-grade fluorspar for chemical manufacturers and defence contractors. There is critical infrastructure, including a rail spur for efficient transportation of the fluorspar, heavy mining equipment and an advanced ramp system to access the ore bodies.

Geologically, Lost Sheep is a pipe system that consists of non-contiguous pipes clustered together. This structure allows Ares to install a ramp system – a corkscrew-like framework – that intersects multiple ore bodies. Based on this setup, Ares reports that it should be able to extract around 130,000 tons to 140,000 tons of earth annually, which could translate into around 50,000 tons of final product per year for sale.

“When we first ran our estimates, we based them on a high-grade flotation product priced at about $500 per ton, which would result in roughly US$30 million in annual revenue,” Walker says. “However, given the upward trend in fluorspar prices, those numbers could be higher.”

Another advantage is relatively low operating expenses. Unlike many mining operations, Lost Sheep doesn’t require a large workforce.

Ares has agreements lined up with end users of fluorspar and has been forging partnerships with entities such as the Department of Defense and the Department of Energy, which are actively seeking domestic supply sources.

For example, the U.S. produces around 80 million tons of steel annually, requiring about 20 pounds of fluorspar per ton. And with aluminum production using about 60 pounds of fluorspar per ton, these two industries alone create a significant domestic requirement.

That growing demand isn’t limited to traditional industries like steel and aluminum, however. The rise of lithium-ion batteries is set to become a major driver of fluorspar consumption, reshaping the market’s dynamics.

And this brings us to acid-grade fluorspar, or acid spar, which undergoes additional chemical refining to achieve a purity level of 97% calcium fluoride (CaF2). Currently, there is no operation in the U.S. producing acid spar, marking a substantial opportunity for producers.

“If we have our plant up and running, we’ll be able to serve about two-thirds of the U.S. fluorspar market,” Walker explains. “By producing acid spar, we can cater to a much larger portion of the U.S. fluorspar market and meet the needs of these key industries.”

International demand for fluorspar is increasing too, as China’s fluorspar reserve has suffered due to excessive mining. The Chinese government tightened its control over the material, leading to a decline in fluorspar exports. Official customs data reveals a steady drop in China’s fluorspar exports over the years, accompanied by a surge in imports, particularly in 2023. Now that China is facing these challenges, the pressure they once placed on the market is gone. This creates an opportunity for other countries to step in.

These factors mean it is a good time to be transitioning from exploration to production. But shifting from a junior mining company to a manufacturing company brings challenges from both operational and financial standpoints.

Walker is counting on his experience in nuclear engineering and project management to lead the company into its next phase. In the past, the Ares CEO has helped to build large manufacturing facilities such as for reactor cores for submarines – billion-dollar projects that required hundreds of personnel.

“I have had extensive exposure to large-scale project management, cost control and the implementation of manufacturing and processing operations, which has been invaluable in how I approach managing new manufacturing operations at Ares, overseeing processing and organizing the team,” Walker says.

Fluorspar demand is expected to grow by 2.76% annually over the next five years, according to Mordor Intelligence. Given this outlook, Walker sees a lot of potential. In five years, the CEO is looking beyond the Utah operation toward untapped potential across the entire continent.

“There used to be a thriving fluorspar industry in the U.S. before it moved overseas, and effectively, we’re working to bring it back.”

This story was featured in Canadian Securities Exchange Magazine.

Learn more about Ares Strategic Mining at https://www.aresmining.com/.

CSE Issuer Stories, Magazine

A Model of Balance as Production in Colombia Designed to Support Exploration in the Yukon

March 5, 2025 Angela Harmantas

For junior mining companies, the path to generating revenue, let alone achieving profitability, is often a long and winding road. But if Forge Resources (CSE:FRG) continues to reach the objectives it has set for its flagship assets, it might just become a member of that exclusive club.

The assets in question include a Yukon gold project named Alotta, located near Western Copper and Gold’s renowned Casino deposit, and the La Estrella coal project in Colombia, a fully permitted asset poised for revenue generation (Forge holds a 40% interest and can acquire up to 60%).

Canadian Securities Exchange Magazine spoke with Forge Chief Executive Officer PJ Murphy and Chief Operating Officer Cole McClay in early December to learn more about the company’s goals and how Forge has positioned itself to build value and minimize dilution at the same time.

It is rare to see a junior resource company on the cusp of funding its own exploration. Can you tell us how this all came together?

Cole McClay (CM): We initially acquired the Alotta project after stepping away from our previous exploration efforts in Mexico. After evaluating several prospects, Alotta stood out due to its strategic location just 40 kilometres from Western Copper and Gold’s Casino deposit, within the same geological setting.

In November 2023, we negotiated an option agreement with Strategic Metals to acquire 60% of the project and commenced our maiden drill program. The property was previously undrilled, and our first hole revealed 211 metres of 0.46 grams per tonne gold near surface, which was very promising. Following that, we drilled two holes in late 2023 and another four between May and July 2024, all of which showed near-surface porphyry-style mineralization.

While still in the exploratory phase, we’re gaining a clearer understanding of the project’s structure. Our next phase of drilling is planned for May 2025, once weather conditions in the Yukon are favourable.

As for the La Estrella coal project, it came to us through a colleague in Colombia. The project was already fully licensed, with production and environmental permits in place, which made it an attractive opportunity. We negotiated an option to acquire and have since obtained the surface rights and conducted additional drilling to update the 43-101 report. Currently, we’re conducting underground bulk sampling to further refine our understanding of the resource.

It sounds like you’ve got a busy year ahead in 2025. PJ, could you share the strategic focus for the company over the next three to six months?

PJ Murphy (PJM): Right now, our primary focus is on Colombia. Cole, a few team members and I just returned from overseeing construction of the portal and the start of underground operations at the La Estrella property. It’s an exciting stage for Forge.

To get into production at La Estrella, initially we don’t have to go very deep, only about 50 metres underground to reach our first cross-cut, which allows access to six of the eight large coal seams. We’re moving forward with a bulk sampling program, and we have an offtake partner for that coal.

The bulk sample alone is expected to be revenue-generating, which is a crucial step toward full production. The property is fully permitted for 180,000 tonnes of coal production annually with the potential to scale up to 360,000 tonnes per year. According to a historical SRK Consulting NI 43-101, we are sitting on an estimated 22.5 million tonnes of coal – measured, indicated and inferred – in the ground and a mine life of about 45 years. The project has significant potential.

For now, our focus is on advancing the Colombia asset to a revenue-generating stage, which would help us to self-finance our exploration work in the Yukon. For a junior mining company, reaching a point of profitability and positive cash flow is rare. It’s even more uncommon to be able to self-fund exploration, but that’s exactly what we’re aiming to do with the Yukon project.

Speaking of the Yukon, we’ve already drilled six holes there and hit mineralization in every one. As Cole mentioned, we’ve identified where the next drill holes should go for the upcoming season. If La Estrella is revenue-generating as anticipated, we’ll be well positioned to fund a more extensive drill program and further define the resource.

We’ve reviewed the initial six drill results and the property’s geological signature. With that information, we can strategically target shallow drill holes to maximize value and further prove the Yukon asset’s potential. Though it might seem unconventional to have both a gold-copper project in the Yukon and a coal project in Colombia, there’s real synergy between the two.

Profitability is a term we don’t often hear in the junior mining space. Could you walk us through Forge’s path to profitability?

PJM: Our immediate focus is on developing the underground infrastructure for a bulk sampling program. Initially, we estimate that we can extract 20,000 tonnes of high-grade coal for sampling and analysis. The key here is that we can also sell the coal we extract for analysis purposes. We already have an offtake partner lined up, ready to take that coal Free on Truck. This bulk sampling program is a significant step toward generating revenue and moving closer to profitability.

There’s talk of the world moving away from coal, but demand, particularly from Asia, India and Europe, tells a different story. Could you explain where the demand is coming from and why Colombia is positioned to help meet it?

CM: The demand for both thermal and metallurgical coal has never been higher, and I think global demand will remain strong for decades.

As long as the world needs concrete and steel, metallurgical coal will be essential. Similarly, thermal coal will continue to be required as long as countries build coal-powered electricity plants. What’s particularly advantageous about this project is that we have access to both high-grade thermal coal and metallurgical coal at depth, positioning us to meet a wide range of global demand.

PJM: Globally, coal demand remains strong, especially in Southeast Asia, where up to 43% of electricity is coal-derived. Despite this, rolling brownouts and blackouts persist due to insufficient power generation, highlighting the ongoing need for coal.

Colombia, with coal as its top resource export, provides a favourable regulatory environment and access to world-class coal miners and engineers. At La Estrella, we’re progressing toward our bulk sampling phase, where we anticipate extracting coal at a total cost that we expect will help us to maintain favourable margins. We’re noting that metallurgical coal currently commands a strong spot price, and assuming that remains the case, it gives us reason to be optimistic.

Moving to Canada, there seem to be similarities between the Alotta property and the Casino deposit. Can you talk about these and how that might be shaping your next steps?

PJM: The Alotta property shows striking similarities to the Casino deposit, which is incredibly encouraging. We’re just 40 kilometres away and based on what we’ve staked and the geological signature at Alotta, we’re very encouraged. The initial results from our first six drill holes have been very promising and are driving us to move forward with more extensive exploration to truly prove out the asset.

Finally, what makes Forge a unique proposition at this stage?

PJM: When you look at Forge Resources as a small-cap junior mining company, we are on a unique path moving toward potential revenue generation through a bulk sample program, progressing to full production, and potentially self-financing our drilling exploration in the Yukon. This combination is incredibly rare.

Forge has consistently set clear goals and benchmarks, and we have delivered on what we’ve promised every step of the way. This track record not only cements our credibility but also sets us apart in the industry. It’s an exciting journey for both us and our shareholders, and we are committed to continuing to deliver value.

This story was featured in Canadian Securities Exchange Magazine.

Learn more about Force Resources at https://www.forgeresourcescorp.com/.

CSE Issuer Stories, Magazine

Israeli Food-tech Company Helps Alleviate Health Concerns Related To Commercial Frying

December 4, 2024 Angela Harmantas

Beyond Oil (CSE:BOIL) is aiming to improve the health of untold numbers of people who enjoy the occasional guilty pleasure at their favourite restaurant: deep-fried food. Diners will probably never be aware of the healthier cooking going on behind the scenes thanks to this revolutionary technology, but it is important and deserves recognition.

While it took nearly 15 years to perfect, the company now has a powder that addresses the degradation of frying oil. Harmful carcinogens such as acrylamide, as well as free radicals with the potential to cause cell damage, can build up in oil used for commercial frying. Customers and kitchen staff are both exposed to serious health risks as a result.

Beyond Oil’s powder absorbs harmful elements and extends the oil’s lifespan while maintaining its quality. First tested and now selling commercially in Israel and Canada, the product has been shown to improve food quality and support environmental sustainability.

The next phase of the growth strategy calls for expanding adoption of the product across North America. In an interview with Canadian Securities Exchange Magazine, Beyond Oil Vice President Robert Kiesman discussed the company’s origins and its efforts toward achieving this important goal.

What inspired the development of Beyond Oil’s solution for improving the health profile of oil when it is used for cooking?

Our Founder and President, Michael Pinhas Or, is the inventor of the product, and he started it due to a personal health condition related to acidity. Like many Israelis, he approached the issue as a layperson, learning everything he could. He studied intensively and spent about seven years in his backyard shed going through trial and error.

Or invested his family’s fortune into developing the product. After his “aha” moment, the inventive breakthrough, he secured a patent, as well as clearance to sell from the FDA and Health Canada. Since then, he has remained heavily involved, and his son, Jonathan, became Chief Executive Officer after the company went public.

One of the reasons Beyond Oil is such an easy story to tell is because it connects to something universal: food. Everyone, no matter where they live, eats fried food, whether it’s fries or other items unique to their region.

When people see the photos comparing black, smelly, smoky oil to a jar of clean Beyond Oil, the reaction is clear. They don’t want to eat food fried in dirty oil; they want food cooked in clean oil. These visuals stick in people’s minds, which is a big reason why our story is catching on so well.

Can you explain how the technology works?

It’s a powder that needs to be filtered out. Most restaurant fryers use built-in filtration, external filtration or paper filtration. The good news is that Beyond Oil works in all three contexts. We are classified by regulators as a filtration aid, not a food additive, which makes it much easier to get regulatory approval in many countries.

The process is simple. You add the powder at the end of each day, the powder mixes with the molecules of toxins and attaches to them and then it all gets filtered out, which removes the toxins from the oil.

These toxins include trans fats, total polar materials (TPM), acrylamide and others. There are dozens of these toxic compounds.

One reason oil smokes when it gets old is that plastic-like molecules form in it, meaning you’re essentially burning plastic into the air. Beyond Oil works to clear that out.

Is there a rationale for restaurants using Beyond Oil’s product aside from serving healthier food to their customers?

The biggest part of our story is that we offer a legitimate health solution with positive ESG outcomes, and we also save restaurants money because they don’t need to replace the oil every two or three days. They can use it longer because the oil stays cleaner. How many stories do you know that have a positive health outcome, provide an environmental benefit and save businesses money?

The environmental benefits are clear. Producing oil requires water, electricity and fuel. By extending the oil’s life, we reduce the demand for oil, meaning less oil production, transportation and disposal. So, in addition to the health and cost benefits, there’s also a legitimate environmental impact.

Could you elaborate on the specific markets you’re targeting?

We’re focusing on two main uses for Beyond Oil. The first is restaurants, and the second, which is much larger, is the industrial frying market. These are large industrial factories that use thousands of litres of oil and typically freeze the fried food before sending it to retailers like Costco or Superstore. This is a much more sophisticated context for us to be working in, and while we’re publicly focused on restaurant deals and the rollout, we’re quietly advancing into the industrial market as well.

In the industrial sector, we’ve conducted pilot programs with several large, multibillion-dollar companies in North America. We also announced that we signed a letter of intent (LOI) with a multinational company that designs and builds highly sophisticated filtration systems for these large frying factories. The goal is to run full-scale pilots with these industrial operations because our powder seems to be compatible with their filtration systems, which is a significant breakthrough for us.

What kind of feedback have you received from these initial industrial tests, and how do you plan to scale this system globally?

The feedback has been tremendous. First, I want to highlight that we have two main distributors – one in Canada and one in Israel. Both distributors, who are now selling our product commercially, made strategic investments in our company during the first six months of this year. This is a significant achievement for a small-cap company and indicates their strong confidence in our product.

We’ve received a range of positive feedback from end users. Firstly, our customers report a decrease in oil consumption. Secondly, they find the product healthier due to fewer toxins. Thirdly, the food tastes better because the oil is cleaner, resulting in crispier, fresher and lighter food that isn’t soaked in oil.

Additionally, we’ve received unexpected ancillary feedback. Customers need less warehousing for oil and experience reduced steam and smoke. Multinational customers examine the outcomes in great detail and are providing valuable insights, such as improvements in flavour. Overall, the feedback has been overwhelmingly positive, with no significant negative comments.

What catalysts can investors anticipate in the near future?

We’re expecting catalysts in all three areas of focus that I’ve outlined: expanding into the West with the two multinational fast food chains that we are now selling to in Israel, adding new U.S. chains as customers and getting fully commercialized into the industrial frying market. I’d also like to point out that we have hit major milestones on a consistent basis since the beginning of the year.

But as impressive as our performance has been this year, it’s not going to be a major success story until we hit it big in North America. The plan now is to take the success that we’ve had in Israel and Canada and really push it west into Europe and then into the U.S. We have all the regulatory approval we need in Canada and the United States. Success in the U.S. is unlike success anywhere else.

This story was featured in Canadian Securities Exchange Magazine.

Learn more about Beyond Oil at https://www.beyondoil.co/.

CSE Issuer Stories, Magazine

Innovative delivery technology designed to change the nature of cannabinoid consumption

September 4, 2024 Angela Harmantas

StickIt (CSE:STKT) has carved out a niche for itself in the cannabis market, despite not exactly being a cannabis company.

Listed on the CSE since October 2023, StickIt develops innovative consumer products resembling toothpicks, as well as straws and spoons, which can be infused with different types of cannabinoids, such as THC and HHC.

StickIt operates primarily through a B2B model that allows the company to leverage its patented technologies by relying on partners to handle mass manufacturing. This facilitates market penetration and scalability across multiple regions without requiring large capital outlays to establish production facilities.

The approach sees StickIt license its delivery technologies to entities who produce and distribute the infused items under the StickIt brand name. And unlike some traditional cannabis products, which vary significantly in dosage and quality, StickIt’s offerings provide a consistent and reliable user experience.

The company’s primary product, the Extra-C “cannabis stick,” resembles a toothpick that can be easily inserted into a pre-roll. The stick consists of cannabis extracts that burn at the same pace as the pre-roll does.

A product that uses a similar concept but in a completely different form factor is the StickIt SipIt straw. The idea here is to provide people the soothing effects of cannabinoids while they enjoy their favourite beverage.

Unveiling the straw in March of this year, StickIt Chief Executive Officer Eli Ben Haroosh said: “This development eradicates the hassle of traditional consumption methods, offering rapid, discreet and precise dosing without compromising taste or experience. It’s a win-win for both consumers and producers, opening doors to untapped markets and elevating the cannabis experience to unprecedented levels. We’re not just changing the way cannabis is consumed; we’re revolutionizing it.”

StickIt is clearly onto something, so there are other products coming to the lineup as well, including a hot drink shaker stick.

Speaking to Canadian Securities Exchange Magazine, StickIt Chief Financial Officer Sophie Galper explains how these new products are intended for people who want to consume cannabinoids without the taste and smell of oil-based products.

“This is what’s unique about the straw. You want to have your juice or water or whatever you are consuming without it being mixed with the taste of cannabis oil,” explains Galper.

“The technology allows exactly this. It’s a delivery system. You’re sipping it but it’s only being activated in your stomach.”

To provide an even clearer idea, Galper draws an analogy with consuming sugar. “If it’s a warm drink, you feel the sweetness of the sugar. If it’s a very cold drink, the sugar is not dissolved, so you can consume sugar in your body without really tasting the sweetness.

“StickIt’s technology is essentially a delivery system that creates almost sand-like granules, and when you sip your drink it’s getting into your body without tasting like oil.”

One big plus is that StickIt-branded products come labelled with the precise dosage amount, so you know exactly what is entering your system.

But perhaps attention to detail should not be surprising, considering how the company views its position. “As much as StickIt is active in the cannabis market, it’s essentially a technology company, not a cannabis company,” Galper says.

And StickIt does indeed have considerable tech credentials behind it. The company’s founder, Dr. Asher Holzer, has decades of experience in starting and growing medical technology companies, including InspireMD, which is focused on the proprietary microNET stent platform technology for the treatment of complex vascular and coronary diseases.

StickIt is in the process of building joint venture partnerships in cannabis-friendly jurisdictions around the world, though Galper admits it hasn’t been completely smooth sailing so far.

“The business model involves licence agreements with local manufacturers in every country. Launching these agreements has taken longer than expected, as is always the case,” Galper explains.

“This is partially because there’s absolutely a shortage of people who want to fund this industry right now.”

Galper is referring to the elephant in the room here. For all of the hype and promise, the regulated cannabis industry has underperformed.

In Canada, in particular, the market has experienced saturation and regulatory hurdles that have made it difficult for businesses to thrive.

Nonetheless, StickIt is moving forward with strategic partnerships with licensees in multiple countries.

In 2023, StickIt entered into a licence and distribution agreement with Ripco Processing in Canada, authorizing Ripco to use StickIt’s raw materials in the manufacturing of products within the Canadian market. Ripco plans to focus on THC-infused sticks for the rapidly growing infused pre-roll segment.

Despite investors being cool toward cannabis investments at the time, StickIt went public on the CSE in October 2023 via a reverse takeover.

Funding was less of an issue for the group, having secured capital via two crowdfunding rounds. Plus, StickIt’s cash burn rate is “very low,” adds Galper.

Going public was a promise to the 600-odd crowdfunding participants and the CSE provided a liquidity venue for their shares.

“The public vehicle is a good platform to continue with M&A,” says Galper. “StickIt is very much oriented to M&A to integrate different technologies.”

This story was featured in Canadian Securities Exchange Magazine.

Learn more about StickIt Technologies at https://stickit-labs.com/.

CSE Issuer Stories, Magazine

Positioned just right as beneficial new rules set to sweep U.S. cannabis industry

August 21, 2024 Angela Harmantas

U.S. multi-state operator (MSO) Vext Science (CSE:VEXT) is looking forward to big federal and state catalysts that it and others in the cannabis sector have long been preparing for.

The vertically integrated cannabis company has established a significant footprint in its main markets of Arizona and Ohio. Vext is well known for state-of-the-art cultivation facilities, fully built-out manufacturing operations and dispensaries where consumers often choose its Vapen brand, one of the top-performing THC concentrate, edible and distillate cartridge brands in Arizona.

The company has made a big push into Ohio as that state prepares to transition from a medical cannabis market to an adult-use one. In early June, the state began accepting applications for dispensaries seeking to sell recreational cannabis.

This shift is anticipated to significantly reduce the illicit market and provide easier access for consumers who do not want to obtain a medical cannabis card.

Meanwhile, the U.S. Drug Enforcement Administration’s recent announcement about rescheduling cannabis from a Schedule I to a Schedule III drug will have beneficial tax implications for companies in the industry and could potentially lower costs for consumers.

Vext generated approximately US$4.4 million in net income after tax in the year ended December 31, 2023, and anticipates significant growth with the upcoming launch of the adult-use program in Ohio. The company will be well positioned with a Tier I cultivation facility, a manufacturing facility and four dispensaries in the state. It also sees potential for three additional adult-use licences based on proposed new dispensary caps in Ohio, which would give it the opportunity to operate a total of seven dispensaries in the state.

In a recent interview with Canadian Securities Exchange Magazine, Vext Chief Executive Officer Eric Offenberger discussed how strategic vision and a commitment to operational excellence position Vext to thrive in a market characterized by constant change, plus what the company’s plans are to capitalize on the opportunities that lie ahead.

Vext is a vertically integrated MSO with operations in Arizona and Ohio. What sets the company apart from its peers?

One of the key differentiators is our cautious approach to growth. We identified states with vertical integration and a limited number of licences to make better and more sustainable returns. We’ve also been prudent with our capital and balance sheet structuring, always considering what growth we could support and what our shareholder base could support.

Our philosophy differed from others who expanded broadly; we focused on depth rather than breadth. We also entered the market later, going public in May 2019, which allowed us to learn from others’ experiences and avoid some of the pitfalls.

Your Q4 and full-year 2023 results show a slight decline in revenue from a year earlier but a notable increase in earnings before interest, taxes, depreciation and amortization (EBITDA). What were the key drivers behind this improved profitability?

The magnitude of the increase in EBITDA needs to be considered in context as it includes a bargain purchase price for our Ohio asset, which led to an increase in EBITDA. We’ve been funding Ohio from Arizona for a couple of years.

The cannabis industry, like any other, is affected by inflation impacting consumer spending. Until this year, Arizona was the primary operational state funding our Ohio expansion. Now, with Ohio becoming operational, we’re seeing results, and we expect to see both revenue and cash flow ramp up significantly as adult-use comes online through the second half of the year.

With Ohio’s adult-use market projected to reach US$4 billion by 2028, how is Vext preparing to capture market share there?

From day one we knew we wanted to be vertically integrated and to focus on a footprint that would enable us to capture incremental wholesale profit in the early years of the market, while scaling only to the level where we could fully supply our own dispensaries over the medium and longer terms. Being vertical and supply-demand matching within your own operations is key to long-term success in these markets. Additionally, Ohio’s structured limitations on storefronts and cultivation prevent oversaturation, making it an advantageous market for us.

Through acquisitions, we have assembled a portfolio that includes a Tier 1 cultivation facility, manufacturing operations and four dispensaries. The latest of those dispensary acquisitions closed in March 2024.

Ohio’s transition from a medical to an adult-use market is important given our exposure in the state. The potential customer base expands dramatically, presenting an intriguing opportunity. We’ve invested heavily in Ohio, using our Arizona assets and additional capital to fund this growth. We believe this positions us well to benefit from Ohio’s growing market.

The Arizona market is quite competitive. How is Vext positioning itself to maintain and potentially increase market share in that environment?

Arizona is experiencing an oversupply issue, with many cultivators entering the market and driving down prices. Inflation is also impacting consumers’ disposable income, leading to decreased spending.

We’re focusing on cost control and price discipline, ensuring efficiency in our operations. Despite the challenges, our vertically integrated model in Arizona helps us mitigate risks better than those heavily reliant on wholesale markets. While the market is down, we are only down about half as much. And this is a fantastic long-term market as supply and demand come into balance, as they always do in the long term. The population is expected to keep growing.

What strategies are you employing to handle these pressures?

We’re focusing on cost control, price discipline and inventory management. Basic business principles apply here, and we’ve been diligent about maintaining these even during better times. In Ohio, we anticipate a broader customer base, which will allow for growth in a more controlled market environment.

Can you comment on the innovative strategies Vext has implemented at the dispensary level?

We introduced “speed ” windows, similar to bank teller windows, allowing customers to quickly pick up online orders. This innovation improved customer traffic and transaction volume, outpacing state averages. It’s an example of how small changes can significantly impact operational efficiency and customer satisfaction.

As someone who has transitioned from COO to CEO and with your background in MSOs and manufacturing, what lessons have you learned about running a successful cannabis company?

My background in retail, distribution and manufacturing shaped my view of cannabis as a commodity like any other. Consumers seek value, convenience and consistency. Whether it’s milk, poultry or cannabis, the principles remain the same. Efficient operations and a deep understanding of consumer behaviour are critical for success.

Industries evolve and cannabis is no different. From my experiences in dairy and other commodities, I’ve learned that consumer expectations drive market dynamics. Understanding these expectations and adapting operations accordingly is crucial. Efficient growth, maintaining control over expansion and ensuring product quality are fundamental lessons that apply across industries.

President Biden’s administration is moving toward rescheduling cannabis from a Schedule I to a Schedule III drug. How do you foresee this impacting Vext Science’s operations and financial performance?

I think rescheduling cannabis as a Schedule III drug does a few things. It starts to change how people think about cannabis. If it becomes a Schedule III drug, it could lead more people back into the medical market, seeking pain relief or other benefits. It might become easier to prescribe and purchase, and it would have a different tax structure, potentially giving consumers more purchasing power.

Regarding banking, I’m not sure if it changes anything immediately. It might attract investors who have previously not focused on the sector, allowing them to view cannabis in a different light.

Socially, I’m unsure of the broader impacts, but I think it sets the stage for a more favourable environment. For a company like Vext, with a strong balance sheet and asset ownership, it creates a more attractive vehicle for future use, whether through acquisition or collaboration with like-minded companies.

How does your strategy for building the company ensure its resilience and value, particularly with the expected rescheduling of cannabis?

We always aim to build a company that someone would want to acquire one day – and that is not to say the company is “for sale,” because it’s not. However, by focusing on this end state even a long time down the road, you will naturally focus on building an efficient organization with happy and engaged staff and driving profitability and cash flow. Ultimately, this approach brings value to shareholders, employees and investors.

We believe rescheduling propels us into the next phase of market evolution. If you build the company right, you’ll be able to take advantage of future opportunities, ensuring the success of a strong, unified team.

This story was featured in Canadian Securities Exchange Magazine.

Learn more about Vext Science at https://www.vextscience.com/.

CSE Issuer Stories, Magazine

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

December 27, 2023 Angela Harmantas

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)

September 8, 2023 Angela Harmantas

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

May 17, 2023 Angela Harmantas

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

June 22, 2022 Angela Harmantas

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”

December 29, 2021 Angela Harmantas

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/

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Official Blog of the CSE – Canadian Securities Exchange