It wasnt just that it was set up as a two-tier operation, with one division designed to hold shorter-term assets and another to hold longer-term projects for development. It was also that Paul Johnson, the man behind much of the success of Metal Tiger in its early years, had brought the company back to life after a near-death experience.
Johnson set about looking for new assets, initially in the lithium and cobalt spaces, and in so doing set the company on its current path. As it turned out the asset base doesnt currently consist of any lithium, but there is cobalt, as well as some gold and uranium. And the shorter-term investment division is still in place too, to some extent, via a 6.2% holding in Cobra Resources, a company which will soon be listed separately on the market.
Gerritsen is a seasoned operator, with extensive experience in the mining sector across almost all the major mining jurisdictions, and a significant interest in making a success of MetalNRG in the shape of his 3% holding. Given that non-executive director Christian Schaffalitzky holds just over 2.5%, and chairman Christopher Latilla-Campbell holds a chunky 13%, its clear that directors interests are firmly aligned with shareholders.
But what can investors expect from MetalNRG, now that its listed and its shares seem to be on the move?
The companys strategy is to invest in projects that offer near-term cashflow that it can then use to further develop available exploration upside on that project.
The key area of focus in the immediate term will be the Gold Ridge project, which meets the above criteria.
“Gold Ridge,” says Gerritsen, “consists of three previously producing gold mines in Arizona. The previous incumbent had gone bankrupt after its trucks full of ore were stolen, but we saw an opportunity to try to monetise what had been left behind and explore areas not explored thus far.”
To that point, there are reams of data relating to the old mines, dating back to the early 1900s. But perhaps more significant for the near-term are the waste dumps and mineralised pillars that remain.
“There are a number of underground pillars on the project,” says Gerritsen.
“Those pillars are currently being sampled. There is visible ore and were going to see how much its worth.”
The infrastructure around the pillars seems to be in good condition, so the possibilities of extracting the ore successfully look good. So cash from mining the pillars combined with the cash generated by processing the waste dumps ought to provide a good working capital base for MetalNRG to get on with the larger project of bringing the mines themselves back into production. These will likely run to pretty high grades, all though at what volume of output remains to be seen.