Minotaur built its success so far on the Prospect Generator business model. Here’s how it works…
1. Minotaur purchases land and mineral rights “counter-cyclically” – when the corresponding commodity markets are out of favour.
2. It then divests a portion of those mineral rights to a larger mining company in a joint venture (JV) agreement.
3. The larger company then assumes the bulk of overhead expenses for exploration, mining, and processing the minerals.
4. Ultimately, that larger firm pays Minotaur a royalty (and, under certain arrangements, also shares revenue). This translates into low capital expenditure, minimal debt assumption, and thus little downside for Minotaur and its investors.
MEP Price at posting:
7.5¢ Sentiment: Buy Disclosure: Held