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NEWS

Discovering success

It has been a quick ascent for While much of the North Amer-
West Perth-based Discovery ican risk money which would

Capital Partners co-founders usually find a home in junior

Adam Miethke and Adam Santa metals and mining is parked in

Maria. blockchain and medical marijua-

Just over a year ago the pair na opportunities, a vibrant jun-

operated from a mate’s base- ior resources sector in Australia

ment with little more than a lap- stands to benefit from investors

top and biro. Now, they are forg- yearning for exposure to com-

ing ahead with ventures backed modities.

by the world’s biggest miners. “These types of products

Discovery – an independ- [blockchain, medical marijuana]

ent merchant banking and cor- have attracted a lot of risk capital

porate advisory services firm, in the last 12 months and prob-

which also runs the Discovery ably outperformed the general

Horizon Fund – has revitalised mining sector. So, for people try-

ASX shells and delivered Raid- ing to find reasons to come back

en Resources Ltd, Calidus Re- to junior mining it has probably

sources Ltd, Kopore Metals Ltd been a bit hard because the up-

and the soon-to-be listed Adri- side in these other products has

atic Resources Ltd. been so big,” Miethke said.

The suite of plays cover cop- “You might see a flight of capi-

per and gold opportunities in tal to some assets that might be

hotspots such as the Pilbara better suited to the North Ameri-

and Botswana’s Kalahari cop- can market come to Australia to

per belt, while Raiden’s licences access capital. Things like Bra-

in the Western Tethyan metallo- zilian gold projects or a cobalt

genic belt, Serbia, has caught project in Ontario, which might

the eye of Rio Tinto Ltd. make sense for it to be listed in

In March, an earn-in and JV Canada, might make its way to

agreement on Raiden’s Zapadni Australia. You have seen some

Majdanpek, Majdanpek Pojas of those turn into success stories

and Donje Nevlje projects was in the last 12 months, certainly in

agreed, whereby Rio Tinto has the cobalt space and others.”

the option to spend $US31.5 Discovery Capital Partners co-founders Adam Miethke and Miethke made such observa-
million for a 75% project level Adam Santa Maria at their West Perth headquarters tions in light of attending PDAC,

interest over three stages. Rio where it was also noted that com-

Tinto is manager of the JV, giving Raiden the mining sector. petition for broking products was very

a clear run at four other projects it has The deal makers branched out into the high and expected to see more syndicat-

bearing similar styles of mineralisation in cryptocurrency blockchain space earlier ed deals in the Canadian space.

Serbia. this year where the lure of turning small “They tend to work pretty well together,

“Rio Tinto’s involvement validates the investments into large returns is whetting but to get deals away in Canada, to ex-

project and speaks volumes about the the appetite of investors, particularly in ecute them you probably need to share

jurisdiction, which is easy to operate in,” North America. more so now than you would have to in

Miethke told Paydirt. Recognised as a high-value growth the past to access that capital pool,” Mi-

Miethke is no stranger to Rio Tinto, sector, crytpocurrencies will no doubt ethke said.

having started his career in the major’s continue to appeal to investors, how- Miethke expects risk capital and liquid-

iron ore division before joining Snowden ever, that does not mean capital will be ity to revert back into Canada’s resourc-

Mining Consultants and grafting his way stripped from emerging mining compa- es sector at some point, as major mining

across the world to cover all commodi- nies in Australia. houses start to enthusiastically engage

ties in Australia, Africa, Eastern Europe “People want to be involved in that with juniors.

and South America. [cryptocurrency] space because they “People from BHP [Ltd], First Quantum

Many would be familiar with Miethke’s know that even though the risk is higher, [Ltd] and Rio Tinto have really made an

more recent role as a director of the cor- similar to a junior mining play, the upside effort to talk to us. They are now show-

porate finance team at Argonaut Capital in that space can be very good. In Aus- ing a genuine interest in the junior space

Ltd, leading the metals and mining divi- tralia, there is still a very strong appetite and are realising the upside junior com-

sion. for quality junior mining plays and there panies can bring by diligently working

Along with Santa Maria’s law and cor- is lack of that same appetite in the North through projects and making discover-

porate finance experience, former Credit American side of things, with the influ- ies. It makes sense for them to look at

Suisse investment banker Aaron Kidd is ence tech plays are having,” Santa Maria JVs or corporate deals which gives them

part of the Discovery outfit well versed in said. access to deals early on,” Miethke said.

PAGE 20 MAY 2018 AUSTRALIA’S PAYDIRT