Categories: Precious Metals
Topics: Gold Stocks

Revival Gold (TSX-V: RVG)(OTC: RVLGF) CEO Hugh Agro on Securing C$29M in Strategic Funding & Advancing Drills at Mercur and Beartrack-Arnett

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president & CEO of the suddenly very popular Revival Gold Inc. (TSX-V: RVG)(OTC: RVLGF) — Mr. Hugh Agro. Hugh, what a difference a couple of quarters make. How are you today?

Hugh Agro: I'm fantastic. Thank you for having me back, and I really appreciate the opportunity to speak with you today.

Gerardo Del Real: As you know, I cover Revival Gold on the publishing side — separate from this business — in one of the paid letters to subscribers, and I’ve done so for several years. We talked a bit off-air, and I mentioned how, during that time, I’ve been preaching to subscribers not to confuse the share price with the actual value in the company.

So it’s really rewarding — for me, for the company, and especially for subscribers — to see the market begin to recognize that value. And let me emphasize begin, because I think there’s a lot more to come.

You just announced a very strategic financing that was increased twice and now totals C$29 million. Dundee Corporation came in early, and EMR Capital Management also decided they wanted a big seat at the table.

For years, there was this lingering idea that, ‘Yeah, Revival Gold has six or seven million ounces of gold between two projects, plus a lot of exploration upside — but they’ll need to raise capital eventually, so let’s wait and see if we can get it cheaper.’

Well, that window is now closed. Congratulations. Can you give us the context as to why now — and why these specific strategics came in?

Hugh Agro: First, I’ll agree with you right off the bat that we’re only just getting started. It has taken us seven years to put together this portfolio but those were seven well-spent years.

We now have two projects, 6 million ounces, as you point out, over 30,000 acres of land, and big geological systems. That’s why groups like Dundee Corporation came in earlier this year, and now EMR Capital — one of the most notable, savvy, strategic investors in the space.

They’re mine builders and owners in their own right, so they know how to recognize a good opportunity. It’s a big vote of confidence to have this financing backed — and to now have a second strategic joining the story.

And I’m glad you pointed out that Dundee exercised their anti-dilution rights when EMR Capital came in. Of course, they’re not related parties at all, and it’s great to have two respected, smart investors competing for a place on the register.

Gerardo Del Real: Look, it’s one thing for Gerardo Del Real — sitting in his little office just outside of Austin — who’s known Hugh for a while and is admittedly partial and biased because we’ve been involved with the company for so long.

It’s one thing for me to say, ‘They’ve got the goods. This is going to be a cash cow. The infrastructure is excellent. There are two projects. Permitting couldn’t be better for a US-based company right now.’ But it’s very different when the likes of EMR and Dundee do their due diligence and put their stamp on it. That speaks volumes to the rest of the market, especially to those who’ve been on the sidelines.

Groups, institutions, funds are well aware of the level of due diligence those two do, and now they’ll take a closer look. So the million-dollar question — or I guess the C$29 million question — is: You’re cashed up now. Where’s the cash going to go?

Hugh Agro: Well, job one is drilling, and that should be of interest to all shareholders. As you know, we took the steps to put all of the drill permitting in place earlier this year. One rig arrived on site at the end of last week. I was down there this week with our team and a few other folks. There continues to be a lot of interest in the project.

But more importantly, the team is on the ground. The core rig is drilling, and we’re already seeing some encouraging rock coming out. We have a second rig — an RC rig — arriving at the end of the month, and we’ll be doing about 40,000 feet of drilling this year at Mercur. The focus of that program is to move toward a Pre-Feasibility Study. We have infill drilling to complete, metallurgical work, and some exploration holes as well.

You might remember the deposit is open to the east where we have a chance to grow the existing resource. And in the South Mercur area, we have some really interesting targets — and that’s before we even get to the western part of the project, which remains entirely underexplored.

That’s where we’re starting. The initial program is focused on Mercur but we’ll also be heading out to our second project in Idaho — the 4.6-million-ounce Beartrack-Arnett project — later this year with a third drill rig. Lots of drilling coming out of this financing.

Gerardo Del Real:  I’ve been to Beartrack-Arnett a couple of times. Nick’s been to Mercur. I haven’t yet made it to Mercur — but before I let you go, I have to ask: Are there aliens at the Mercur project like there are at Beartrack-Arnett?

Hugh Agro: [Laughs] No — we haven’t seen any aliens yet. But Mercur does sit up in the hills above a US Army base so I’m sure if they do show up, we’ll be well defended.

Gerardo Del Real: We’ll settle for gold. Hugh, congratulations on an incredibly impressive first half of the year. You’re off to the races in the second half. I can’t wait to see those assays — and you know me, I’m especially excited about the exploration drilling.

Great to see you in a position to take some real shots with the drill bit now that you're well capitalized. Congrats again.

Hugh Agro: Thank you, Gerardo.

Gerardo Del Real: Cheers, chat soon.

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