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Kirrin Resources Inc. (KYM-TSXV) |
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October 16, 2009 Issue |
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The Most Powerful Name In Corporate News and Information |
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Kirrin Resources Inc. Focuses On Rare Earth Elements And Uranium, Minerals That Will Be In Short Supply Over The Next Five To Ten Years And May Therefore See Dramatic Price Increases |
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Kirrin is engaged in uranium and REE
exploration in Newfoundland & Labrador and in the expansion of its portfolio
through acquisition, merger, strategic partnership or joint venture. Its
strategy is well defined: enhancing shareholder value by combining technical
expertise, corporate development skills and professional management.
Kirrin's shares trade on the TSX Venture Exchange under the symbol KYM. Mr Moran is a graduate of Trinity College, Dublin and qualified as a chartered accountant while working with KPMG. He commenced his career in the natural resource sector in North America in 1978 and was an officer of Turbo Resources, an integrated oil and gas company operating in Canada and USA. In 1981, he joined International Energy Development Corporation of Geneva, becoming its Chief Financial Officer in 1983. Since 1987, Mr Moran has worked in international corporate finance and development and has been involved in a number of new and successful ventures. Commencing in 1996, Mr Moran has acted as principal when establishing new ventures and he is the founder and principal shareholder of Kirrin Resources. Mr Moran has spent most of his professional life involved in the management of publicly listed companies and has been engaged in natural resource projects in over twenty countries. He brings a considerable breadth of experience and a diversity of skills to the leadership of Kirrin Resources.
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Interview conducted by: Lynn Fosse, Senior Editor, CEOCFOinterviews.com, Published - October 16, 2009
Mr. Moran: That vision focuses on exploring for minerals that we believe are going to be in short supply over the next five to ten years and thus will enjoy sustained price levels. Kirrin will use its technical skills to select the best from a pipeline of exploration projects and carry those through to economic production.
CEOCFO: What minerals are you focusing on? Mr. Moran: Both uranium and rare earth elements. We have been in uranium exploration for two years and in rare earth elements since the middle of 2008. We believe that both uranium and rare earth elements will experience supply shortages in the short to medium term.
CEOCFO: What is involved with rare earth elements? Mr. Moran: Rare earth elements are hot in the market right now. Rare earth elements are used in new technology products, for example, computers, super conductors and specialized batteries and magnets. China produces about 95% of global rare earth elements and has indicated that it may impose export quotas and tariffs, which means that the rest of the world will be facing shortages of these essential minerals.
CEOCFO: Where are you looking? Mr. Moran: Our portfolio is all in Canada right now, but Kirrin’s executives have international experience, especially on the continent of Africa.
CEOCFO: Do you typically do these on your own, or joint venture partnerships; what is your philosophy? Mr. Moran: Thus far, we have optioned all of our projects from other companies. We have three underway presently, all in the Province of Newfoundland & Labrador. Kirrin is the operator of these projects. It is reasonable to say that, except in the developing world, one is more likely to option prospective ground that has a record of exploration work than stake it at the present time.
CEOCFO: Why do you like the Newfoundland & Labrador area for exploration? Mr. Moran: We like the Newfoundland & Labrador area because it is a mineral-friendly province, it is very much under-explored, and yet we feel that with modern exploration technology there is the prospect of significant discoveries of uranium and rare earth elements.
CEOCFO: You mentioned technology twice to me now, what is it that Kirrin utilizes that maybe others do not? Mr. Moran: It is not a question of what Kirrin utilizes and others do not, it is that exploration technology has improved dramatically over the last few decades and Kirrin applies the latest tools and technology. Therefore, exploration ground that was looked at twenty and forty years ago may deserve re-looking at today using new technology. It is out there for people to use. It just has not been widely used in parts of Newfoundland & Labrador.
CEOCFO: Would you tell us more about the uranium, and is there a particular mix you are looking in types of minerals or is it opportunistic? Mr. Moran: We are not opportunistic and have focused on uranium for very particular reasons. Uranium is one of the most common minerals around, so it is important to be selective when taking new projects. We are looking for economic uranium resources, hopefully close to infrastructure. It is not a case of just finding uranium; we want our discoveries to have particular geological structures and to be of sufficient volume of mineral resource to make it economic.
CEOCFO: What is the financial picture like for Kirrin today? Mr. Moran: It is a lot better today than it was nine months ago. I am sure that you are aware that the prospects for junior companies at the beginning of 2009 were very poor. By junior companies, I am talking about companies that have a market cap of less than $25 million. Kirrin is now completing a small offering and we understand it is going well. We are confident that we are going to be able to raise the capital not just for our exploration projects for the remainder of this year, but also for 2010. We have an exploration budget for the period through December 2010 of $2.1 million. We shall raise that through both hard and flow-through dollar financings, flow through dollar financing representing a particular Canadian form of financing where the subscribers get taxation benefits.
CEOCFO: Are you looking for a particular geographic mix as well as mineral mix? Mr. Moran: We focus very much on Canada and that is where we are spending most of our time looking for new projects. In terms of where are looking in Canada, yes we are being selective. We are looking at the Province of Quebec, which is a province that has a government that is quite friendly towards the industry. We are also looking in Labrador. We have looked in Saskatchewan, but, as far as uranium is concerned, the entry price is probably too high there for a junior company like Kirrin.
CEOCFO: Are the prices going up on properties or are there still a lot of bargains? Mr. Moran: Project prices have not moved down as much as one would expect. It is always the case that the management of a company thinks that its projects are worth much more than they probably are. We are taking a new project in the Otish Basin in Quebec and I consider we are paying a reasonable price for that. It is certainly lower than it would have been eighteen months ago. Where we are seeing prices coming down is on exploration costs. The costs of consultants, the cost of getting airborne service, the cost of drilling, all of these are coming down.
CEOCFO: In closing, why should potential investors pick Kirrin Resources out of the crowd?
Mr. Moran: First, look at our strategy
and how Kirrin focuses on particular minerals that will have strong future
demand. Kirrin is active in particular geographical areas that are mining
friendly. We have brought in the expertise necessary to execute our
exploration strategy and we have the right corporate team. The management in
Kirrin owns a significant stake in this company. I believe it is very
important that the ambitions of management in junior companies are clearly
aligned with the ambitions of shareholders and that is very much in place at
Kirrin. In summary, Kirrin’s attractions are a transparent strategy, clear
focus, a great team and a significant financial commitment by management to
the company. Finally, we expect some excellent exploration results. |
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Rare earth elements are hot in the market right now. Rare earth elements are used in new technology products, for example, computers, super conductors and specialized batteries and magnets. China produces about 95% of global rare earth elements and has indicated that it may impose export quotas and tariffs, which means that the rest of the world will be facing shortages of these essential minerals. - Derek J. Moran |
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Derek
J Moran