The Project Generator Model
Marifil Mines Ltd. is an early stage royalty company that uses a project generator model to increase shareholder value. First, Marifil locates and acquires high potential properties in Argentina and preforms early stage exploration to increase the property's value. Marifil then, either forms a strategic partnership with a joint-venture partner, spinouts the property, or sells it to earn an incoming stream of cash flow.
When forming a strategic partnership, Marifil's joint-venture partner will earn a stake through share and cash payments to Marifil and by conducting further exploration on the property. Once the partner has earned joint-venture status, Marifil will still retain a royalty and stake in the partner to ensure continued shareholder gains as the property is developed.
This model allows Marifil to have four different incoming cash streams:
- Cash: We earn cash through payments from our partners for a stake in our properties, which we amortize over 3 -5 years and/or take an NSR, advanced royally payment creating an annual cash flow.
- Shares: We receive shares through our partners and our investment in them allows us to gain value from their stocks.
- NSR: An NSR allows us to receive an incoming cash flow when a property enters into production.
- Retained Interest: A retained interest in the property gives us a cash payment if the property is sold.
Why Invest in the Project Generator Model
The project generator model provides Marifil and our shareholders with many distinct advantages compared with other exploration juniors. The risks of exploration are passed onto Marifil's partners and they fund the majority of exploration until they have earned in. Share and cash payments from our partners to Marifil finance our exploration and acquisition costs, providing a cash stream and reducing the need to finance and dilute the stock. And importantly, Marifil will share in the success of our joint-venture partners by keeping a retained interest and royalty in the project.