John Proust: Contrarian Gold Investing in Historic Prolific Mining Jurisdictions
John is chairman and CEO of Southern Arc Minerals which is an investment bank that looks for high-grade gold opportunities in safe political jurisdictions. They look for ways to add value to companies they invest in. John has been involved in the resource space for thirty-one years.
Southern Arc likes to do their homework and take advantage of opportunities and deploy new technology and techniques. They try to put the right teams together to find the opportunities that have been lost to time and find a way to bring them back.
They are quite passionate about Japan being the first mover in the region after the changes in the mining laws in 2012. Through Japan Gold (TSX-V: JG) (OTCQB: JGLDF) they have applied for and reserved 17 significant projects throughout the country. There was a discovery in 1981 and that mine produced at 47.3g/ton and they hope to be able to make a similar discovery. The projects they have reserved include some forty of seventy mines that were shut down during World War II. He discusses why Japan Gold is such a unique opportunity for investors.
They recently invested in Rise Resources Gold (CSE:RISE) because they felt they had an outstanding management team and it looks like Rise has done their homework on their mine in Southern California. The original mine was closed in 1940 by the government and it had produced at 17 grams per ton. Southern Arc did their own due diligence review of the geology and assessed the opportunity. Their investment is going towards acquiring the surface rights and expanding the exploration of the property. California can be a problematic jurisdiction, but the county is very pro-mining. He feels there is no reason geologically why there should not be good potential.
Talking Points From This Weeks Episode
• Japan Gold has reserved 17 significant projects.
• He expects to see an upturn in the gold price in 2018.
• You want safe jurisdictions and excellent management teams.
John Proust is Chairman and Chief Executive Officer of Southern Arc Minerals Inc. He has successfully founded and managed several resource companies. Mr. Proust has served on the boards and held senior operating positions, and has directed and advised public and private companies regarding debt and equity financing, mergers and acquisitions and corporate restructuring since 1986. Mr. Proust is currently Chairman and CEO of Japan Gold Corp., Chairman and a director of Canada Energy Partners Inc., a director of Rise Gold Corp., non-executive Chairman and director of Tethyan Resources plc, executive director of TekModo Industries Inc., a director of Pinedale Energy Limited and a director of Q Investments Ltd. Mr. Proust has extensive experience in corporate governance, is a graduate of The Directors College, Michael G. De Groote School of Business at McMaster University and holds the designation of Chartered Director.