Sphinx Resources Ltd. (TSX-V: SFX) is an exploration and development company focused on generating and acquiring projects in Québec. We learned from Normand Champigny, President and CEO of Sphinx, that there are three criteria they are looking for in a potential project: First, good infrastructure with road access; second, good social acceptability; and third, areas with precious metal potential in high grade metamorphic terrains. According to Mr. Champigny the key factor that sets Sphinx apart is the team, which includes three mine finders with tremendous experience in the industry and deep knowledge of doing work in Quebec. The company’s project generator business model is set up to minimize dilution. Having a number of promising projects maximizes the chances of discovery.
The original article is available on Metals News website.
Dr. Allen Alper: This is Dr. Allen Alper, Editor-in-chief of Metals News, interviewing Normand Champigny, President and CEO of Sphinx Resources LTP. Could you tell me a little bit about your company and what you’re doing in Quebec and your exploration?
Mr. Normand Champigny: We are a Quebec based mineral exploration company, focusing on identifying exploration stage projects in Quebec using three criteria: First the proximity to good infrastructure and road access, Second, areas where we believe there’s good social acceptability, and Third, areas that are characterized geologically by strong precious metal potential. The focus is in high- grade metamorphic terrains. By that we mean areas that have been subject to a lot of deformation through the geologic ages where significant discoveries can be made because these terrains have been overlooked through the years.
Dr. Allen Alper: That sounds good!
Mr. Normand Champigny: We started this process in Quebec, in 2015, with the acquisition of two projects that were brought in by Michel Gauthier. Michel is well known in Quebec and elsewhere with the Eleonore Gold discovery, now a mine operated by Goldcorp. Michel had identified areas with good mineral potential in the Pontiac MRC in southern Quebec, which also has good infrastructure, good social acceptability and some past production for zinc, silver and gold.
He had identified areas that had been overlooked for platinum group elements that were found on surface and led us to the acquisition to what we call the Green Palladium Project, where we have encouraging drill results. Also within this large area of claims are very good surface trench results for zinc. These have attracted SOQUEM, the Quebec mineral exploration agency to form a joint venture with us, which was announced earlier this year. We’re going to be working with them in the area to advance the zinc-silver-gold and the palladium projects.
In the center part of the Abitibi we’ll also have a project called Somanike, which is a nickel-copper-platinum elements project, with precious metals potential. We’ve done some drilling and received some interesting mineralization. We are planning to do additional work there. Also, we just announced a project in the southern part of the James Bay area, not far from the old Troilus mine, which again, has good access, good social acceptability and high-grade metamorphic terrain with exceptional precious metal potential. It has some encouraging values in boulders on surface and has never been explored. We’re going to be working there to find the source of the gold copper mineralization indicated by the boulders.
Dr. Allen Alper: Could you tell me a little bit more about your plans for 2016 and 2017?
Mr. Normand Champigny: We will advance both the Green Palladium and the Zinc-silver-gold project, Calumet Sud project in the southern Quebec. We’re planning to have work done on the Somanike nickel project and looking at the possibility of having a partner fund that work.
Then on Chemin Troilus we’ll be doing the first phase of work on the mineralization that occurs in boulders on surface. We’re also looking at one, possibly two, more projects to advance strengthen the company through project generation in Quebec. We’ll eventually do work elsewhere, as well.
Dr. Allen Alper: That sounds very good. Could you tell me a little bit more about yourself, your background, your team, and your board?
Mr. Normand Champigny: The Company has a board of six individuals. I’m President and CEO. I’ve worked in the industry for 35 years. In Quebec, Canada, internationally many years with PricewaterhouseCoopers, mining practice including a number of years in South America. I’ve had a chance to look at all aspects of the industry from exploration to decommissioning. I’ve been involved with junior mining for the last ten years, with a number of companies in Quebec and elsewhere. Our board includes Chairman of the Board of directors John W. W. Hick, who has over 30 years’ of experience in the mining industry in both senior management positions and as an independent director. We have Kerry Sparkes, who’s now VP Geology at Franco-Nevada. He has been involved in the discovery of Voisey’s Bay and Rainy River in Ontario. Our CFO and a director, Ingrid Martin, works with several mining and exploration organizations in Quebec and has considerable expertise in finance and business acquisitions and extensive experience with junior mining companies in Quebec. David Johnson is a Montreal based lawyer, again, with good experience in the industry. Michel Gauthier is the largest shareholder of the company, well known geologist, prospector in the province of Quebec. He has tremendous experience and is also a mine finder.
That’s our team. On the advisory board, we have Robin Adair, with 33 years in exploration and development and involvement in a number of discoveries here in Quebec. His experience spans exploration through discovery, development and production involving roles in senior management, business development as well as technical direction. So on our team we have three actual mine finders that have discovered and developed mines.
Dr. Allen Alper: What a very strong team and board you have, and experience in finding resources! That sounds like you’re well prepared to accomplish your objectives. Could you tell me a little bit about your finances and your share structure?
Mr. Normand Champigny: In a press release we issued on Chemin Troilus, we announced acquiring a property by essentially issuing shares and cash, but since we’re issuing shares, we’ll be around 47 million shares outstanding. We have received, as indicated in earlier releases, some tax credits from the Quebec government. More is to come, so we expect to have, for the next coming year, a million dollars of hard cash available. We have no debt except the debentures convertible into shares with Quebec institutions. These are convertible at the end of the year.
Management and the advisory committee hold about 18% of the shares. Of all these 47 million shares, 90% are with about 75 investors that have invested since 2014 in the form of private placement.
Dr. Allen Alper: Very good! Sounds like there’s a group that has great confidence in what your plans are and are supporting you to go forward and find raw materials. Quebec is a great place to work, so that’s excellent.
Could you tell me the primary reasons why our high-net-worth readers/investors should invest in your company?
Mr. Normand Champigny: The prime reason is the quality of the team we have, three mine finders, tremendous experience in the industry, and deep knowledge of doing work in Quebec, both geologically speaking, and also business wise.
Dr. Allen Alper: Any other reasons why they should invest?
Mr. Normand Champigny: We have a good share structure. We have a project generator model we are adopting that tends to minimize dilution. We have a number of promising projects, maximizing the chances of discovery.
Dr. Allen Alper: That sounds very good! Is there anything you would like to add?
Mr. Normand Champigny: Quebec remains a very attractive jurisdiction because of its potential and security. Also importantly, the high quality of the data that’s available, the infrastructure, and tax incentives available from the Quebec government. This has been shown by the discoveries made here over the years.
Dr. Allen Alper: Very good! Yeah, I think Quebec must be one of the best places in the world to explore. It has high quality deposits and strong support from the government. It’s a safe place. I would say you’re exploring in the right place.
Mr. Normand Champigny: The surveys, including the Fraser Institute Survey, have shown that over the years, Quebec ranks in the top jurisdictions worldwide, year after year. It was, for a number of years, number one, and it’s close to number one now. We see that from the number of companies that work here and the amount of work that’s being done.
Dr. Allen Alper: That sounds very good!
For further information, please consult Sphinx’s website or contact:
President and Chief Executive Officer