Ajax Resources: Building a South American Production Portfolio Through Strategic Acquisitions

• Ajax Resources is a London-listed natural resources investment company with a £6 million market cap, £2.5 million cash, and focus on acquiring undervalued South American mining projects with high historical expenditure
• The company recently acquired the Pereira Velho Gold Project from Appian Capital Advisor in Brazil, with Appian becoming a significant shareholder, validating Ajax's strategy of opportunistic acquisitions
• Ajax's flagship Eureka copper-gold project in Argentina is being drilled for the first time in its 400-year history, with 1,500 meters planned to define a maiden JORC-compliant resource by June 2026
• The company's Leon copper-silver project in Argentina features a historical 6.6 million ton resource at 0.62% copper, acquired via a four-year option with minimal expenditure commitments
• CEO Ippolito Ingo Cattaneo is the largest shareholder with 18.38% ownership and is primarily equity-compensated, positioning Ajax as an entrepreneurial, operator-focused company targeting near-term production and £100 million market capitalisation

Ajax Resources plc represents an emerging opportunity in the junior mining sector, combining strategic asset acquisition with a clear pathway to production. Listed on the AQSE Stock Exchange with a market capitalisation of £6 million and cash reserves of £2.5 million, the company has assembled a portfolio of four projects across Argentina and Brazil since transitioning from shell status in May 2025. The company's CEO and founder, Ippolito Ingo Cattaneo, outlined an investment thesis centered on acquiring high-quality assets with substantial historical expenditure at significant discounts, then advancing them rapidly toward production through focused exploration and development work.

The timing appears deliberate. With Argentina's political transformation under President Milei and copper prices reaching multi-year highs, Ajax has positioned itself in jurisdictions previously overlooked by international investors. The company's board-driven structure, with the CEO holding approximately 18% of shares and receiving predominantly equity compensation, aligns incentives directly with shareholder value creation.

The Ajax Investment Model

Ajax operates as a natural resources investment company with a distinctive acquisition strategy. Cattaneo explained: 

"The goal is to focus on assets that have a high historical expenditure. We acquire projects that have a latent value which simply hasn't been realised and opportunistically acquire them from companies that may have undergone board changes, strategy changes or are simply not performing."

This approach has yielded significant value capture opportunities. The company's first acquisition, the Eureka copper-gold project, cost just £170,000 - a fraction of the $8 million the previous owner paid in 2010. The Leon copper-silver project was secured through a four-year option costing $100,000 in shares, with a potential acquisition price of $3 million for a deposit that saw $25 million in historical expenditure.

The strategy relies on three core principles: identifying technically advanced projects that have been neglected due to non-geological factors, acquiring them at substantial discounts to their intrinsic value, and rapidly advancing them through focused work programs to demonstrate value to the market. Cattaneo emphasised a pragmatic approach: 

"We recognise that it won't be... in the best interest to commit to every single project we acquire. There may be situations where we have larger companies, much larger producers that come to us and say, you've done good work in defining or redefining this resource. Would you sell it?"

The Eureka Project: First Mover in Argentine Copper

The Eureka copper-gold project in Jujuy Province represents Ajax's most immediate catalyst. Despite 400 years of artisanal mining history, the project has never been drill-tested with modern methods. Equipment is currently being mobilised for a 1,500-meter initial drilling program across 10 holes, with plans to expand to 5,500 meters by June 2026.

Historical studies suggest substantial copper potential. Cattaneo noted: 

"That project has 62 million tons of copper. It's a non-JORC compliant historical estimate.”

The acquisition from Bezant Resources highlights the opportunistic nature of Ajax's approach. Bezant acquired Eureka for $8 million in 2010 but never advanced it due to board changes, strategic pivots toward African assets, COVID-19 disruptions, and Argentina's political instability. Ajax secured all 12 licenses for £170,000 with no royalties or deferred payments.

The company's objective is clear: "We want to transform this into a low-cost open pit copper production story within three years," the CEO stated. The project benefits from provincial support, proximity to infrastructure, and location in Argentina's only copper-producing province. Ajax is targeting a maiden JORC-compliant mineral resource estimate by mid-2026, which would provide the foundation for pre-feasibility work and production planning.

Leon: Copper-Silver Optionality in Salta Province

The Leon copper-silver project in Salta Province offers a different risk-reward profile. Alexander Mining defined a JORC-compliant resource of 6.6 million tons at 0.62% copper with 18 grams per ton silver through 10,000 meters of diamond drilling between 2005 and 2010, representing $25 million in historical expenditure.

Ajax structured this acquisition as a four-year option requiring just $100,000 in shares upfront, with a $3 million acquisition payment due if the company exercises the option. The minimum expenditure commitment is $1 million over four years - a relatively light obligation that preserves capital flexibility.

The technical opportunity extends beyond the defined resource. 

"The real unfortunate story about Leon is that it's a great project, geologically quite complicated, so it needs specific attention, but it's a great deposit. And if you test the sulfide formation, you may have a significant surprise."

Alexander Mining focused exclusively on near-surface oxide mineralisation, leaving deeper sulfide potential untested.

Ajax's strategy involves confirming and expanding the oxide resource to 10 million tons while simultaneously testing deeper sulfide targets. The company has partnered with the local investor who acquired Leon from Alexander Mining in 2010 and operates a drilling company in Salta, potentially securing favorable drilling rates and local expertise.

Interview with Chief Executive Officer, Ippolito Ingo Cattaneo

The Appian Transaction: Validation & Future Partnerships

Ajax's recent acquisition of the Pereira Velho gold project from Appian Capital Advisor represents a significant validation of the company's strategy. Appian, a major private equity group specialising in mining investments, rarely partners with junior exploration companies or accepts equity as primary consideration. The transaction structure speaks to mutual confidence. 

"They've sold us Pereira Velho, which is a very good project, but is simply too small for them and too early stage. So that's the rationale, but they've backed our strategy. They've agreed to accept most of the consideration in equity in our company."

Pereira Velho sits 20 kilometers from the Serrote mine, which Appian acquired in 2018 for $30 million and sold in May 2025 for $420 million - a 14x return demonstrating the region's potential. Appian estimates Pereira Velho contains approximately 110,000 ounces of gold, with only 10% of the deposit explored through 6,000 meters of drilling over the past two years.

The deal includes milestone payments: $150,000 upon signing, share considerations, and a $15 million payment (in shares) when Ajax defines a JORC-compliant resource of 350,000 ounces. There's also a net smelter royalty, but critically, no mandatory expenditure requirements. The CEO emphasised: 

"There's no obligation to do any of this work, but simply we wouldn't have acquired the project if it was just a kind of front window beauty exercise of having an interesting asset from Appian on the portfolio."

Board Alignment & Capital Strategy

Ajax's board structure differentiates it from typical junior resource companies. The CEO owns 18.38% of the company (down from 22% before the most recent fundraising), while Chairman Mike Hutchinson and director Richard Heywood also hold substantial positions. Two of three directors receive predominantly equity compensation rather than cash salaries.

"It's very painful for me to dilute, to lose my shareholding in the company or my percentage in the company each time we do a funding round. So I want to have as many shares as possible when we have a defining moment in our company's evolution, when we go from a five or six million market cap company which is what we are now to essentially a £100 million market cap company."

The company has raised approximately £3.6 million across three funding rounds since 2022, with each raise totaling approximately £1.2 million. Initial capital came primarily from board members and high-net-worth individuals in their network, while subsequent rounds incorporated more retail participation. The board consistently contributes significant capital at each funding round, demonstrating continued commitment.

Future fundraising will target institutional investors, particularly following the Appian transaction. 

"There's a number of people who now take us more seriously who look at us and say, 'well, gosh, Appian don't invest in small companies. They don't really partner with small companies'. Appian have sold us a project that's an integral part of the transaction, but they've also backed us."

Argentine Opportunity

Ajax's focus on Argentina reflects both geological potential and political timing. The country's mining sector suffered during the Kirchner government due to unfavorable policies, creating valuation discounts despite world-class mineral endowment. President Milei's election and subsequent pro-business reforms have begun attracting international capital back to Argentine mining.

"Argentina had such a huge discount applied to it despite having similar geological potential [to Chile] that for a small company such as ourselves it was the right place to go." 

Jujuy Province, where the Eureka project is located, represents one of Argentina's premier mining jurisdictions with established infrastructure and supportive provincial government.

The Eureka project particularly benefits from this context as Argentina's only active copper producer operates in Jujuy Province. 

"They had a project which had no studies conducted on it, so it was very much of a Greenfield story, and they went to production and they're ramping up production as we speak." 

Near-Term Catalysts & Production Timeline

Ajax has established clear milestones for 2026 and beyond. The Eureka drilling program represents the most immediate catalyst, with results expected throughout the first half of the year and a maiden JORC resource estimate targeted for mid-2026. Success here would validate the investment thesis and demonstrate the company's technical and operational capabilities.

"The first milestone we want to define between now and June is the Eureka project, because the Eureka project we acquired for £170,000. If we come back to the market and say, 'Look, this is the MRE we have and it's 10x or 20x what we acquired it for,' then that will show that we are good operators and that we know how to make right decisions. That proof of concept is what we need." 

Beyond Eureka, Leon offers medium-term potential, while Pereira Velho provides longer-term upside with Appian's endorsement. 

The production timeline focuses on Eureka within three years, with Leon following a similar trajectory depending on drilling results. The strategy emphasises incremental production growth and cash generation rather than large-scale development requiring significant capital raises. This approach aims to preserve equity while building production capacity and demonstrating operational competence.

The Investment Thesis for Ajax Resources

• Deep Discount Acquisition Strategy: Securing projects with $5-25 million in historical expenditure for £170,000-£3 million, creating immediate value arbitrage opportunities
• Near-Term Catalysts: Eureka drilling program commencing immediately with maiden JORC resource expected mid-2026, providing clear proof-of-concept for investment model within six months
• Strategic Validation: Appian Capital Advisor becoming significant shareholder endorses Ajax's capabilities and provides potential future funding pathway or partnership opportunities
• Jurisdictional Timing: Argentina's political transformation under Milei creates window of opportunity before major producers re-establish presence, allowing Ajax first-mover advantage
• Production Timeline: Three-year pathway to copper production at Eureka with supportive provincial government and proximate infrastructure reduces development risk
• Portfolio Diversification: Four projects across copper, gold, and silver in Argentina and Brazil provide multiple value creation pathways without over-concentration risk
• Capital Efficiency: Modest £2.5 million cash position sufficient for near-term drilling programs while option structures on Leon and Pereira Velho minimise dilution requirements
• Comparable Success: Appian's 14x return on nearby Serrote mine (£30M to £420M in six years) demonstrates regional potential and exit opportunity template
• Institutional Pathway: Current £6 million market cap with 100 million shares provides clean capital structure for institutional investors post-Eureka resource definition

The confluence of global copper supply constraints and Argentina's political transformation creates a compelling backdrop for junior copper explorers. With major producers struggling to replace depleting reserves and new discoveries increasingly rare, projects with historical validation but previous political or ownership impediments present asymmetric opportunities. Argentina's mining sector, historically world-class but suppressed under unfavorable governments, is experiencing renewed international interest following President Milei's market-oriented reforms. 

Junior explorers establishing positions now may capture significant value as major producers seek near-term production additions to meet electrification and energy transition demand. Ajax's strategy of acquiring neglected copper assets with substantial historical work at fraction-of-replacement-cost valuations positions the company to benefit from both commodity fundamentals and jurisdictional re-rating.

TL;DR

Ajax Resources has assembled four South American copper-gold-silver projects through opportunistic acquisitions at significant discounts to historical expenditure, with the CEO owning 18%+ of shares and receiving predominantly equity compensation. The Eureka copper-gold project in Argentina begins drilling this month - the first in its 400-year history - with the maiden JORC resource expected mid-2026 to validate the investment model. Appian Capital Advisor's recent equity investment and project sale endorses Ajax's strategy, while Argentine political reforms under Milei create favorable timing for first-mover copper explorers.

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