The Power of Discovery - "Building Shareholder Value"

Sandfire Resources America Inc.(name changed from Tintina Resources Inc.) is a copper mining company (TSX.V: SFR)  focused on the exploration, development,  and mining of its 100% owned flagship property, Black Butte Copper. 

The principal of Futura Capital Limited (Raj Chowdhry) was co-founder of the business in March 2009 and CEO & Co-Chairman when the company acquired the Black Butte project.

This mining project is located in White Sulphur Springs, Montana, USA. The Company is led by a highly-experienced executive management team with a successful track record of building shareholder value through exploration, corporate finance, and mine development.

Black Butte Copper received final approval of the Mine Operating Permit for its Johnny Lee Deposit on August 13, 2020. Phase I construction commenced August 17, 2020.

Phase II construction was subject to mitigation water rights and legal challenge resolutions, project financing, Board approvals, and further bonding requirements. 

The Montana Supreme Court (on February 26, 2024) ruled in favor of Sandfire Resources (Tintina) and the Montana Department of Environmental Quality (DEQ), reinstating the operating permit for the proposed 1,888-acre Black Butte Copper Mine in Smith River watershed.  The decision overturned a district court ruling in favor of conservation groups, which found that the state's review of the mine did not adequately address concerns over safety and enviornmental impacts

Once Phase II construction commences, it will take approximately two years to complete construction and commence production of copper.

The Johnny Lee deposit underpins an 8-year mine life and is designed to be mined at 1.2 million tonnes of ore per annum. Average annual production is estimated at approximately 23,000 tonnes of copper at a cash cost of $1.51/lb.

JOHNNY LEE IS CONSIDERED BY THE COMPANY TO BE ONE OF THE HIGHEST-GRADE COPPER DEPOSITS IN THE WORLD

Total production is forecast to reach 805,000 dry metric tonnes of copper concentrate containing 189,500 tonnes of copper metal over the life of the mine. This would generate $1.3 billion in gross sales and $518 million in pre-tax net cashflow during mine operations, based on a copper price of $3.20/lb.

The project has a pre-tax NPV of $124.9 million and a post-tax NPV of $77.6 million.

The project has been designed to meet or exceed all of the standards and obligations required under its stringent mine operating permit conditions, Sandfire said.

The company has also provided an updated mineral resource estimate for the Lowry copper deposit located 3 km southeast of the Johnny Lee deposit.

Based on new geological models, the Lowry deposit is now estimated to contain 8.3 million tonnes of inferred mineral resources at 2.4% copper for 199,500 tonnes of contained copper. This deposit is not covered by current environmental permits and will need to undergo a further approvals process.

The updated mineral resource for the Lowry deposit demonstrates the significant exploration potential at the Black Butte copper project. The deposit is located just 1.8 km from the underground access portal for the Johnny Lee deposit and is a high-priority for the next round of exploration.

Mountain Province is a publicly listed diamond mining company (TSX: MPVD).  The company is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada’s Northwest Territories. Gahcho Kué is the world’s largest new diamond mine and projected to produce an average of 4.5 million carats a year over the projected 12 years of the first phase of mine development.

The principal of Futura Capital Limited (Raj Chowdhry) was director of the company and involved in the financing which lead to the drilling of the “discovery” hole on the project. 

Through its joint venture with De Beers, the company is well placed to capitalize from the experience of the world’s leading international diamond producer. 

Canada is now the third largest and most politically stable diamond producing country.

The Gahcho Kué project consists of a cluster of four diamondiferous kimberlites, three of which are being developed in the first phase of mining and have a probable mineral reserve of 35.4 million tonnes grading 1.57 carats per tonne for total diamond content of 55.5 million carats. Mountain Province intends to maximize shareholder value through the optimal operation of the Gahcho Kué mine.

America Mineral Fields Inc. changed its name to Adastra Minerals Inc. and was then acquired by First Quantum Minerals Ltd.  (TSX:FM)

In 1995, the principal of Futura Capital Limited (Raj Chowdhry) , together with an associate formed America Mineral Fields Inc. (“AMZ”) with Jean-Raymond Boulle and other management from Diamond Fields Resources Inc. (“DFR”). 

Shortly thereafter, DFR sold its Voisey Bay, Newfoundland nickel project to Inco Limited for $4.3 billion in the summer of 1996.

AMZ has significant resource projects in the Democratic Republic of Congo, including the historic Kipushi mine, a high grade zinc-copper deposit, and the Kolwezi Tailings reclamation project, one of the world’s largest and lowest-cost sources of cobalt as well as a major source of copper.

During 1996, AMZ completed a $30 million financing, listed on the TSE and had a peak market capitalization of over $500 million. This represented a share price going from $0.08 to a pre-split high of $30.  The Company later changed its name to Adastra and was was later sold to  First Quantum Minerals Ltd.  (TSX:FM)

International Thunderbird Gaming Corporation ("Thunderbird")  was a manufacturer of video gaming terminals having revenue share deals with many of the Native Indian tribes in the state of California. Thunderbird expanded globally and became one of the largest owner and operator of casinos in the Latin and South American markets.

The principal of Futura Capital Limited (Raj Chowdhry) was a co-founder of the business in August 1994 and lead the company through its expansion as its CEO and Co-Chairman.

The company grew from an idea in 3 years from a startup with a handful of employees to over a hundred employees with $35 million in revenues, EBITDA of $12.8 million and $5.9 million of net income (post-tax).  

Thunderbird’s market capitalization on the TSE reached  $140 million.

In 1997, the company ranked No.489 in the Financial Post Top 1,000 companies in Canada and No. 70 in Business in Vancouver’s Top 100 public companies in BC.

Two financings of note:

In 1994, the company’s first significant financing was a $3 million private placement at $1 per unit with a listed tradeable warrant. Within 2 years, the common shares were trading at $6 and the warrant was trading for $4.15 making the $1 investment worth $10.15.  In 1995, the company completed the first listed convertible debenture in the history of the Vancouver Stock Exchange. The $5 million bond paid a 10% coupon and from its initial trading price of $100 reached a peak of $300 in just over a year. 

In 1995, Futura Capital Limited co-founded Axion Communications Inc., one of the first Internet Service Providers in Vancouver, B.C., Canada and and North America,   We consolidated 3 other ISPs in an M&A rollup play & sold to Uniserve Communications in 2005. 

The company had listed on the TSX Venture Exchange at $0.25 & was sold for $3/share.