What is the Project Generator Business Model:
Advantages to Yale shareholders:
- Stage 1: Identify and acquire high potential properties then compile and upgrade data
- Stage 2: Perform early stage or confirmatory exploration and/or advance property to the drill-ready stage
- Stage 3: Find partners that will earn an interest in projects by committing to exploration costs and by making share and cash payments
- Stage 4: Act as operator to manage exploration. Partner funds all exploration on project.
- Stage 5: Create Joint Venture after partner has 'earned-in'. Each partner is then responsible for their percentage interest.
REASONS FOR PARTNERING WITH YALE:
- Partners take the risk of exploration
- Partners fund exploration until 'earn-in' is completed
- Share in any success of exploration by being shareholder in partner
- Reduces risk to Yale shareholders and protects them from downside.
- Reduces the need to finance (and continual dilution) via cash and share payments to Yale for partners earn in.
- Yale has an established and extensive contact base in Mexico.
- Yale can provide on the ground expertise and be the operator for the project.
- Yale's expertise allows for low overhead with respect to running projects.
- Yale has already shown the capacity to find potentially significant projects.
- Yale's in-house legal team has the ability to handle all types of negotiations and situations with vendors, contractors and land owners.
- Yale's management and Board of Directors has significant exploration and production experience.