In “A Shot in the Dark with Elite Mine Financiers” Parts I & II, I speculated on how QRC may be disruptive in the mine finance space and rapidly grow. In the September 16th news release, Warren Gilman stated his business plan:
"Lithion Energy Corp. will become Queen's Road Capital Investment Ltd., a leading financier to the global resource sector. The Company intends to become a resource focused investment company, making investments in privately held and publicly traded resource companies. It is intended that the Company will acquire and hold securities for both long-term capital appreciation and short-term gains, with a focus on convertible debt securities and resource projects in advanced development or production located in safe jurisdictions.
The availability of traditional financing in the resource sector has deteriorated significantly in recent years, leading to a number of quality resource companies and projects being undercapitalized and in need of financing. Management of the Company anticipates the availability of many investment opportunities, has already identified a number of alternatives and is in discussions with a number of companies."
This was reiterated in the January 31st 2020 news release along with completing its name change.
On February 03rd, the presentation on QRC’s website provides more detail on the business plan, mentions an upcoming $.40 financing, and names a few of the main investors.
Often, the hallmark of a good investment is the calibre of the seed round investors, for example, like Silicon Valley venture capital groups and wealthy individuals like Bill Gates, Jeff Bezos and Richard Branson and their investments in the vegetarian food space, Beyond Meat. Rarely if ever do retail investors have the opportunity to participate at anywhere near seed round share prices.
The largest seed investors in QRC, along with a handful of others, are investing in excess of $73 million. QRC’s seed investors are among the elite of Australia’s business community:
Andrew Forrest net worth $8.00 billion (Fortescue Metals Group)
• Mr. FORREST IS AUSTRALIA’S MOST ACTIVE PHILANTHROPIST AND ONE OF THE MOST EFFECTIVE LEADERS OF HIS GENERATION
• HE IS THE FOUNDER AND CHAIRMAN OF FORTESCUE METALS GROUP (FMG.AX), ONE OF THE WORLD’S LARGEST IRON PRODUCERS WITH A MARKET CAPITALIZATION OF OVER US$20 BILLION. MR FORREST LED THE COMPANY FROM ITS INCEPTION TO ITS CURRENT TOP 20 STATUS IN THE AUSTRALIAN ECONOMY AND A LEADER IN GLOBAL IRON ORE
• IN 2001, HE CO-FOUNDED THE MINDEROO FOUNDATION WITH HIS WIFE NICOLE FORREST WHICH HAS SUPPORTED OVER 280 INITIATIVES ACROSS AUSTRALIA AND INTERNATIONALLY IN PURSUIT OF A RANGE OF CAUSES
• IN MAY 2007, MR FORREST ANNOUNCED ONE OF AUSTRALIA’S LARGEST PRIVATE PHILANTHROPIC DONATIONS OF A$400 MILLION
Jack Cowin net worth $2.80 billion (Competitive Foods Australia)
• MR. COWIN IS ONE OF AUSTRALIA’S MOST SUCCESSFUL AND HIGHLY REGARDED ENTREPRENEURS
• STARTING WITH A SINGLE KFC FRANCHISE IN 1969, HE BUILT COMPETITIVE FOODS AUSTRALIA PTY LTD. INTO ONE OF AUSTRALIA’S LARGEST RESTAURANT FRANCHISORS, INCLUDING THE EPONYMOUS HUNGRY JACK’S FRANCHISE
• HE IS CHAIRMAN OF ASX-LISTED DOMINO’S PIZZA ENTERPRISES LTD. WHICH HAS A MARKET CAPITALIZATION OF A$4 BILLION AND IS 27% OWNED BY THE COWIN FAMILY
• HE IS FAMOUS IN AUSTRALIA AS A SUCCESSFUL INVESTOR ACROSS A VARIETY OF INDUSTRIES INCLUDING MEDIA (TEN NETWORK), CATTLE RANCHING (STANBROKE PASTORAL), TOURISM (BRIDGECLIMB SYDNEY) AND WINE (TORBRECK VINTNERS)
• MR. COWIN RECENTLY RETIRED AS CHANCELLOR OF WESTERN UNIVERSITY IN LONDON, ONTARIO, HIS ALMA MATER
Brett Blundy net worth $2.0 billion (retail, property, agribusiness)
Mr. Blundy is the former Chairman of BB Retail Capital, which owns companies such as Sanity Entertainment, Bras N Things and Adventurous Property Group. Alongside Mr. Jack Cowin, Mr. Blundy was previously the co-owner of BridgeClimb Sydney, one of Australia’s biggest tourist attractions. Mr. Blundy founded a beef cattle business in Northern Australia. In 2010, Mr. Blundy co-founded fashion jewelry retailer Lovisa, which has over 270 stores worldwide.
John Singleton net worth $670 million (advertising, broadcasting, publishing)
Mr. Singleton is an Australian entrepreneur who built his success and wealth in the advertising business. He has diverse investment interests in radio broadcasting, publishing and thoroughbred breeding/racing.
With seed round Investors of this calibre, it is difficult to imagine a stronger endorsement of QRC’s business plan and management. QRC is no longer a “Shot in the Dark with Elite Mine Financiers”. Rather, I believe QRC is now a rare opportunity for investors to get in early on a company with a shot at becoming a unicorn within a few years, and unicorns are the ones you buy, throw in the drawer and forget about.
Disclosure: I have taken a position in the shares of QRC (formerly LNC ) and may buy or sell at any time and without notice. I have no affiliation with Queens Road Capital Ltd of any kind. The commentary is entirely my opinion based on my research and experience.