TGR: Are you getting more favorable terms from these junior companies?

EK: Without a doubt. Today, if you're an institution that actually has cash and has liquidity and is still writing checks and funding into the junior space, you can almost dictate the terms of your deals these days. That wasn't the case three or four years ago. But, you have to make sure that you use prudence and caution, don't overleverage and keep a lot of cash reserves because the juniors might come back to you for another round of financing.

TGR: You have management teams from different small-cap resource companies coming into your office and pitching you on investing in their companies. What are some things you look for?

EK: First, everything in life is run by human beings. You've got to understand the management; I like to see people who are positive and passionate about what they do. I also like to see management with experience in the industry and a good track record. Finally, I like to see a management team that has invested its own money into the company. I like to see management have a very big equity stake in the company. These are all junior companies so I don't want to see management that is taking large cash salaries and having very high travel expenses and other things like that. Let them put the money in the ground.

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