Value Creation Strategy
Duncan Park seeks to enhance shareholder value through the successful exploration for gold and other precious metals in Canada, one of the most politically stable regions of the world.
Funds are typically raised by way of private placement of shares. For planned exploration in Canada the Corporation issues “flow-through” shares pursuant to which the available tax benefits for Canadian Exploration Expenses are transferred from the Corporation to the investor.
Exploration properties may be acquired on three bases.
By lease. Leases traditionally have increasing annual payments up to some maximum with an option to purchase the property and penalties for insufficient exploration.
By earn-in. The company earning-in is required to spend specific minimum annual amounts to earn a specified interest in the property and the vendor typically has the option to claw back a portion of the interest earned by paying a multiple of the amount spent. The advantage of this approach is that the investors’ money is going directly into exploration.
By staking claims.
In 2010 the Corporation signed an option agreement which is an earn-in with a claw back arrangement with respect to certain Ontario properties in the Red Lake area which is generally known to have been a productive gold region. (See sections on “Properties")
Exploration commenced in May, 2010 in the Red Lake mining camp that has produced in excess of 25.5 million ounces of gold since 1930, from 29 mines in the Red Lake Mining District. (to December 2009; Lichtblau et al., 2010). Application of new exploration technologies in recent years have resulted in new discoveries by Rubicon Minerals, Premier Gold and aggressive expansion by the major producer in the camp, Goldcorp. The oldest and richest gold mining camp in Canada is enjoying a renewed exploration boom in which Duncan Park plans to participate.