Gentor Resources GNTOF

Gentor Resources Inc. is a mineral exploration company that focuses on the acquisition and evaluation of properties containing base metals and copper. The firm is incorporated under the Companies Law of the Cayman Islands and maintains its executive office in Toronto Ontario. Its historical activities have included exploration programs in Oman where it held interests in Block 5 and Block 6 properties and in Turkey where it pursued the Hacimeter and Karaburun projects. The company also previously held a molybdenum tungsten project in east central Idaho which it relinquished after determining that further work was not warranted. As of the end of 2017 Gentor had disposed of its Turkish interests and is presently assessing new business opportunities.

Gentor Resources Inc. does not generate regular operating income from mineral production. Its cash inflows have come from private placement financings from investors and from the disposition of assets. Notable among these is the sale of its Oman holdings to Savannah Resources which provided an upfront cash payment and contingent future payments tied to development milestones. Additionally Gentor entered into a settlement agreement with Savannah that settled outstanding consideration for a cash amount and issuance of shares. The firm has also received option payments from potential joint venture partners such as the cash consideration received from Lidya Madencilik under a letter of intent. Gentor has never paid dividends and intends to retain any earnings to support future exploration activities.

Gentor Resources Inc. operates within the junior mining exploration sector where many companies seek to discover economically viable mineral deposits before attracting larger partners or being acquired. Its peers include other exploration firms focused on base metals and copper in regions such as the Middle East and North Africa. The company’s competitive position has stemmed from its portfolio of exploration rights in Oman and Turkey which gave it exposure to prospective volcanogenic massive sulfide systems. Management’s technical expertise in geology and its ability to raise capital through private placements have also contributed to its ability to sustain exploration programs despite limited revenue. Over time the firm has faced challenges including the relinquishment of projects when results did not meet expectations and its recent transfer to the NEX board of the TSX Venture Exchange reflecting difficulties in meeting continued listing standards.

Because Gentor Resources Inc. does not produce minerals for sale its customers are primarily other mining companies investors and joint venture partners that seek to acquire interests in its exploration assets. The firm has sold its Oman portfolio to Savannah Resources a publicly traded resource development company listed on the AIM market. It has also engaged in discussions with Turkish entities such as Lidya Madencilik Sanayi ve Ticaret A S for potential joint ventures on the Karaburun project. In addition the company receives funding from private placement investors who purchase its shares in exchange for capital to support ongoing exploration work. These investors include members of management and directors who have participated in various financings. The firm continues to seek opportunities that align with its strategic focus on base metal exploration.