Fancamp Exploration: Insider-Backed Junior Advances Mixed Asset Mining Strategy

• Fancamp Exploration is a Canadian mineral exploration company with a diverse portfolio of projects and royalty interests
• Its assets include a large stake in iron ore producer Champion Iron, a secured convertible promissory note with KWG Resources in the Ring of Fire region, and the Magpie titanium project
• Fancamp recently established a joint venture in New Brunswick to explore prospective copper-gold properties near Puma Exploration's project where Kinross Gold is investing heavily
• The company has a strong balance sheet with over $20 million in cash and marketable securities to fund exploration while minimizing dilution
• Fancamp takes a prudent, long-term approach focused on creating fundamental value for shareholders rather than reacting to short-term market fluctuations

Fancamp Exploration is a Canadian mineral exploration company with a diverse portfolio of projects spanning gold, copper, titanium, rare earths and other metals. The company's assets are primarily located in top mining jurisdictions across Canada. What sets Fancamp apart is its unique business model combining direct project ownership with equity investments and royalty interests in other companies. This strategy provides multiple avenues for value creation.

Strong Financial Position

One of Fancamp's key strengths is its robust balance sheet. As of January 2025, the company had over $20 million in cash and marketable securities against a market capitalization of just $17-18 million. In other words, Fancamp trades at a discount to the value of its cash and stock holdings alone, providing a margin of safety for investors. The company's largest stock position is a 2.7 million share stake in Champion Iron (TSX:CIA), currently worth $15-17 million. Champion is an established iron ore producer generating strong cash flows.

Fancamp CEO Rajesh Sharma emphasized the company's financial flexibility in a recent interview, stating:

Really speaking, we unlike many of the other juniors, financing the projects has not been a problem for us, given the backers we have and also our strong balance sheet.

Exposure to Critical Metals 

Fancamp's portfolio has diverse exposure to critical metals such as titanium and rare earth elements (REEs). The company holds a 96% stake in The Magpie Mines Inc., which the U.S. Geological Survey cites as one of the world's largest undeveloped hard rock titanium deposits. Titanium has important applications in aerospace, defense, and electronics.

Additionally, Fancamp owns convertible debt and a 2% NSR royalty related to the Ring of Fire chromite deposits in northern Ontario.

We have got a very interesting position in the Ring of Fire, which is one of the most prospective and unexplored regions in North America for critical and strategic minerals.

The debt earns 6% interest and converts into a 10% equity stake in KWG Resources, which owns several chromite deposits in the region.

Interview with CEO Rajesh Sharma

Copper-Gold Exploration Upside 

While Fancamp's balance sheet and royalty assets provide a stable foundation, the blue-sky potential lies in its mineral exploration projects. The company is particularly focused on its New Brunswick joint venture with Lode Gold Resources. This large land package is located near Puma's copper-gold project where major gold miner Kinross plans to invest $15-20 million in exploration over the next few years.

This is where our exploration dollars are going right now, in the New Brunswick joint venture, and we already raised $4 million in the beginning of 2024. The team is confident of getting some very positive results.

Long-Term Value Focus 

What really stands out about Fancamp is management's long-term mindset. While many junior miners are obsessed with short-term stock price movements, Fancamp is focused on methodically building a strong portfolio of assets to create enduring shareholder value.

We look at where can the long-term value be created. Can it be created in what we have done on KWG? Can it be created in this very interesting structure in New Brunswick which we have come up with? Can it be created at another investment which we made in NeoTerrex Minerals, which is a rare earth element company? So we look at it that way.

This patient, value-driven approach, combined with strong insider ownership (24% held by management and directors), aligns Fancamp's leadership with shareholders.

In a crowded field of junior mining companies, Fancamp Exploration stands out for its asset base, financial strength, and experienced team. The company's stake in Champion Iron and other investments provide downside protection, while its exploration projects, particularly in New Brunswick, offer significant upside potential. With exposure to both precious and critical metals, Fancamp is well-positioned to benefit from the secular commodity bull market. 

The Investment Thesis for Fancamp Exploration:

• Significantly undervalued: Fancamp trades at a discount to its cash and stock holdings, providing limited downside and strong upside potential
• Exposure to critical metals: Stakes in major titanium and chromite projects position Fancamp to benefit from growing demand for these strategic metals
• Drilling upside in a prospective district: Fancamp's New Brunswick JV offers blue-sky potential for a major copper-gold discovery in a district seeing substantial investment from larger miners
• Balanced business model: Combining exploration projects with investments and royalties provides multiple avenues for value creation
• Proven management with skin in the game: Experienced leadership owns 24% of shares, aligning their interests with investors

The world is in the early stages of a new commodity supercycle, driven by the global energy transition, infrastructure spending, and rising living standards in emerging markets. At the same time, years of underinvestment in exploration and development have left many metals in structural supply deficits. This is particularly acute for critical metals like copper, nickel, titanium, and rare earths which are essential for clean energy technologies.

Junior miners provide direct exposure to this powerful macro theme. As Rajesh Sharma of Fancamp Exploration explained,

We believe that gold and gold-rich polymetallic projects will always be there. Our focus is on trying to create as many opportunities as we can where we can participate in the right jurisdiction, on the right kind of properties, with the right kind of partners.