Fellow HAY Shareholders,
As per the news release this morning, the management of Hayasa is extremely pleased to announce the sale of a 1.25% net smelter return (NSR) joint royalty to Franco Nevada (FNV) and EMX Royalty Corp. (EMX) for total proceeds of US$1M.
Also… I wanted to highlight that for a ridiculously small (i.e.: cheap) company, we have attracted the interest of TECK (10% owner) who is interested in property #1 (copper gold porphyry) and FNV and EMX in property #2 (gold). And we are about to enter an outsized newsflow period on Q4 drilling results on property #2. And we are going to get a 3rd property! Look for photos of drill core to be posted on X and ceo.ca in the coming days now that the FNV/EMX royalty has crossed the line.
The bane of many (perhaps all) junior exploration companies is the absence of earnings and thus the lack of capital to fund drilling activity. The non-dilutive capital raise announced today enables the company to undertake a second drill program at Urasar in 2025. The current land footprint at Urasar is a little over 30km2 and we are in the process of doubling the land package which we expect to deliver during 2025.
More importantly, the transaction aligns us with two sterling companies, FNV and EMX, that have historically shown outsized support for companies they invest in. It should be noted that their acquisition of the Urasar royalty represents the first co-investment between FNV and EMX as part of their Joint Acquisition Agreement.
Dennis Moore, Chairman of Hayasa, has spent the last three years of his life putting the property package together and when I joined the company in August 2024, we agreed on 3 major goals that we felt we could achieve in calendar 2025:
1. Secure a royalty on Urasar.
2. Sign a JV with a partner on Vardenis.
3. Obtain an exploration license on a third property.
We can cross off #1. We are already working on #2 and #3 and if we succeed, 2025 will be a great year for HAY shareholders.
Furthermore, we are about to deliver outsized news flow to the market over H1 2025 starting with lab results from our 2024 drilling program at Urasar expected on the following schedule:
· UDD-001, UDD-002 late January, both locations at Copper Creek
· UDD-004, UDD-007 beg February, Oxide Basina and Black River
· UDD-003, UDD-006 end February, both locations at Golden Vein
· UDD-005, UDD-008, UDD-009 beg of March, HIRIP anomaly, Brick House, and Black River
Other expected news flow in Q1 includes:
· IP report on Vardenis
· Vardenis Ground magnetic survey report
· IP report on Urasar
And in H2 2025, shareholders can look forward to planned drill programs of 3,000m at Vardenis and another 2,000m at Urasar. As a reminder, drilling costs in Armenia at S$150m (~$250m all in) are materially less than drilling costs in North America. Your investment dollar goes a lot farther daylighting value with Armenian drilling rigs than American/Mexican/Canadian drilling rigs. Plus we have an additional advantage of having mineralization at surface so we don’t have to drill through 200m of granite.
Over a longer time horizon, this should result in more assay results per investment dollar which should result in less dilution through time.
Thank you for your continued support and as always, please reach out to me at anytime to discuss Hayasa’s activities and plans including today’s news release.
