Armed with a private placement of $4 million, Douglas Nicholson is back in business. The well-known ex-mining analyst and architect of the successful MFC Mining Finance Corp., has started another version of the mining finance house concept. Known as RFC Resource Finance Corp., the company will focus on cash flow or potential cash flow-generating mining projects.
Backed by a $3-million private placement from Kerr Addison Mines, which holds a 49% stake in rfc, the new company has already begun scouting for projects. Another $1 million was raised privately from European sources, Nicholson says.
In 1985, Nicholson and partner Carl Ashenhurst, another respected Canadian mining engineer and former Noranda Inc. executive, brought the Blackdome gold mine in B.C. into production. A small tonnage, high grade operation, the Blackdome mine proved to be a strong money maker from the production of more than 29,000 oz of gold during its first seven months in 1986. This success was quickly followed by the purchase of a 50% interest in the Stibnite gold mine in Idaho. In that same year, mfc earned $3.5 million from the operations.
Nicholson and Ashenhurst lost control of the company after Kerr sold its block of stock to Brohm Resources for more than $25 million last year.
With a proven track record and cash, rfc plans to emulate the success of mfc. The company’s first acquisition is a control block in New Kelore Mines, a tse-listed junior.
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