Interview – VG Life Sciences, Inc. – November 19, 2020
PSN: For those who are not familiar with VG Life Sciences, Inc. (OTC: VGLS), how can we describe your company and activities in the best way possible?
VGLS: We are shifting our focus to the mining sector, specifically copper, alumina and potash. We will also produce precious metals including silver and gold. Our copper operations involve mining, milling and flotation of copper ore to produce copper concentrates, that contain other precious metals; and the refining of copper concentrate to produce copper cathodes. Additionally, we produce refined copper using solvent extraction/electrowinning technology (“SX-EW”) at our facility.
PSN: Because on November 19, 2020, various press releases state that VGLS is drastically shifting its focus to the mining sector. What is your motivation to operate in this new segment?
VGLS: Copper is an important component in the world’s infrastructure. It is the third most widely used metal, after iron and aluminum. Copper has unique chemical and physical properties, including high ductility, malleability, thermal and electrical conductivity, and resistance to corrosion that has made it a superior material for use in electrical and electronic products. Going forward, whatever way you view the global drive to decarbonize the economy, whether through the prism of electric vehicles, renewable energy or smart grids, each path chosen translates into a requirement for more copper wiring. The new green infrastructure will have copper wiring at its core. Copper’s green credentials are being reinforced by robust market dynamics with recent spot prices at five-year highs.
PSN: Based on the previous question, what is the current sector that VGLS is active in? And what will happen to the activity in this current sector? Will this cease to exist or will VGLS be active in various segments?
VGLS: VGLS will focus on mining going forward. We anticipate having one reporting segment, copper mining although we do intend to expand into alumina, potash and iron ore that are abundant in Utah.
PSN: How much experience does VGLS have in the mining sector? And how do you want to separate yourself from the competition?
VGLS: VGLS will be hiring an entirely new team to secure and exploit the properties being acquired. We believe we are entering the market with a low-cost infrastructure that when combined with the SOPerior Fertilizer JV’s production of sulfuric acid provides a unique synergy to become a low cost producer.
PSN: When does VGLS expect the transition to be fully completed? And what activities are in the pipeline for 2021?
VGLS: We believe we can complete the acquisition of Tamra in December. It will take several months to rehab the equipment and hire the operating staff. That said, we believe we can be operational in Q2 of 2021. Our pipeline is attractive given that we looking to develop the SOPerior Fertilizer Blawn Mountain reserves, North America’s largest alumina reserve, but we are also in discussions to acquire additional properties to leverage our low cost acquired infrastructure.
PSN: In which regions does VGLS want to establish itself and why these locations? What are the pros and cons of these areas?
VGLS: Our new base of operations will be located near the town of Milford, Utah. This is a mineral rich and mining friendly jurisdiction. Clearly, the pros are a function of the attractive geology and superior logistics since the properties are located immediately adjacent to the Union Pacific rail system. The con is a function of our smaller size, but we do plan to mitigate that by incorporating the best available technology, specifically sorting technology to improve efficiency and lower our cost of processing.
PSN: Which documents or permits are required for the mining industry and does VGLS obtained all the necessities to operate in the near future?
VGLS: VGLS will be merging with an existing mining company that has the mining permits in place.
PSN: VGLS has identified key figures to join the management team to support the restructuring efforts. What strategy has been devised and what is the added value of these key figures?
VGLS: VGLS has identified several key managers to join the team. We plan to incent them with stock ownership, so we all have one goal in mind beyond running a safe operation, and that is creating shareholder value.
PSN: There are also many references on the internet to Renewabuilt, a real estate company. What is VGLS’ relationship with this company and how will the future mining activities affect this current business?
VGLS: VGLS has no relationship with Renewabuilt so it has no impact on our future mining activities.
PSN: Which events has VGLS experienced since the outbreak of COVID-19? How did the pandemic effect the business/activities and how did you deal with this?
VGLS: Since the operations have been idle for nearly two years, the COVID outbreak had no impact on operations. We will, however, employ best in class protocols has we rehab equipment and rehire our staff.
PSN: What can be shared about the figures of VGLS over the last quarter? To what extent has it fulfilled your objectives and business goals? Or what can go better in the next quarter?
VGLS: As I mentioned earlier, the operations have been idle for nearly two years so there is little to report regarding the recent quarterly results. We expect Q1 of 2021 to be a quarter focused on rehabilitating the equipment and hiring staff. We don’t expect production to commence until Q2. That said, copper prices are attractive, and we are looking forward to restarting production.
PSN: What is the current financial state of VGLS in 2020? Thinking about: the assets, income, revenue, and possible debts? In other words, are you a ‘healthy’ company?
VGLS: With the capital raise and with the recent surge in copper prices we believe the outlook is very positive. We also believe we have an attractive growth story that will help us diversify across two key industrial metals, copper and alumina and we will also expand into potash (SOP).
PSN: Why did VGLS enter the stock market? What expectations or results can you share?
VGLS: Like others, we entered the stock market to access capital and share in what we believe is a tremendous growth story and one that can create significant shareholder value.
PSN: For those being quite unfamiliar with the current and new sector you will operate in, what is the main incentive for a company like VGLS to make it profitable and interesting for new investors or shareholders?
VGLS: I come back to the answer to your first question, copper is a key base industrial metal that will be a vital component to decarbonize our economy. It is both a growth story as the Asian economies build out their electrical infrastructure and a growth story with the shift to the new green economy.
PSN: Why should potential shareholders choose for VGLS? What are the benefits for a shareholder or investor who becomes a part of your company?
VGLS: My answer is twofold, wonderful geology in a mining friendly jurisdiction with a new management team that will be just as focused as the new shareholders in seeing shareholder value being created
PSN: Finally, is there anything that has not been discussed in this interview about VGLS that you would like to share with us?
VGLS: I would also like to mention we have phase two of our growth story already in place so while we are rehabilitating Tamra, we plan to expand and diversify our production profile by developing the Blawn Mountain property under a joint venture agreement with SOPerior Fertilizer Corporation ( see more information related to Blawn Mountain at www.soperiorfertilizer.com ) where we have the right to earn an 85% controlling interest in the project. This 11,400-acre property represents one of North America’s largest non-bauxite alumina deposits coupled with vast resources of associated potassium sulphate potash fertilizer (“SOP”). Blawn Mountain’s pre-feasibility study report (Canadian National Instrument 43-101) shows proven and probable mineral reserves of 153 million tons from two of the four explored areas of the lease. Blawn Mountain is located approximately 35 miles southwest of our processing infrastructure that will be enhanced to process copper, alumina and potash, concurrently. One synergy resulting from the integration of the operations is that alunite processing results in the production of a by-product, sulfuric acid, that will be utilized in the SXEW copper operation thereby displacing purchased acid, resulting in an overall lower cost of operation.
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