Double Crown Resources Inc. (OTCMKTS:DDCC) is a public, fully reporting company in the natural resources industry. In addition to its minerals and global commodities supply business, it markets the patent-pending, multi-advantage container system called Translock2. This system is designed for highly efficient, economical and environmentally friendly shipment of aggregate commodities. Additionally, the company holds a 100% interest in the Bateman gold and nickel prospect near Thunder Bay, Ontario, Canada. Double Crown Resources, Inc., originally founded in 2006, is based in Henderson, NV with marketing offices in Houston, TX.

Double Crown Resources in Focus

Mining & Minerals

The primary mining & mineral assets of Double Crown Resources are provided by its established business relationships with many private mine companies throughout the world.  Through these established sources it is able to provide industrial quantity shipments of high grade strategic minerals, particularly those needed by the oil & gas drilling industry such as barite, bentonite and fracturing sand.  It is also able to provide the associated plant-based drilling commodity guar gum as well as specialty chemicals all of which are needed for modern extraction methods such as hydraulic fracturing and horizontal drilling.

Double Crown Resources supplies vital mineral commodities globally and transports them with the Translock2 (TransLock Squared) interlocking bulk material transport system.

PROPERTIES:

Bateman Gold Property

Located in the Thunder Bay District of Northwestern Ontario, Canada. This area, known as The Shebandowan Belt, has become a prolific gold play. Some of the features that make this property especially attractive are listed below:

The Thunder Bay District is the hub of mining activity for Northwestern Ontario. Many mining companies have field offices here as well as support companies (e.g. 3 assay labs).

• Excellent government geological services as well as congenial First Nation’s relationships.
• Similar rock types that host Cu-Ni mineralization of the past producing INCO Shebandowan Mine occur on the Bateman Property. Bateman is an area serviced by forestry operations, allowing for easy access to promising unexplored grounds.
• Preliminary work was completed in 2008 by Linear Metals successfully indicated the presence of significant Ni-Co-Au+PGE mineralization within the komatiitic rocks.

Double Crown intends to work on several prospecting programs, including drilling to target for three types of geological conceptual targets:

• Shebandowan type high grade nickel-cobalt-gold-platinum sulphide deposits.
• Disseminated nickel sulphides of Mount Keith type with bulk tonnage potential.
• Gold mineralization within an extensive conglomerate unit; of potential open-pit bulk tonnage configuration.

Translock2

Translock2 is an interlocking intermodal material transport system. This system is designed  for highly efficient, economical and environmentally friendly shipment of aggregate commodities to the oilfield services industry, as well as a wide range of other industries including agriculture, chemicals, construction materials, etc. The unique Translock2 system offers gravity feed, pneumatic, venturi systems, double stack capability and a dual interlock inter-modal design for global transport,  trans-load and transfer by road, rail and water routes. One of the great advantages of the Translock2 system is its ability to immediately convert standard flatbed rail cars into sealed, 100 ton aggregate commodity carriers to help relieve rail industry transport backlogs.  The individual units can further be employed as portable silos and storage containers on site.  Translock2 will transform the global industrial commodity shipping market. Translock2 is a patent pending technology by Double Crown Resources, Inc.

Opportunity Overview

Double Crown Resources could be considered a double-barreled opportunity. One of those barrels is the supply of precious metals and other commodities. The other is the potential monetization of a patent-pending materials transportation system that turns traditional intermodal transportation services into dry-bulk goods transportation service providers. Both are something for DDCC shareholders to look forward to in the foreseeable future much more so than the market may have seen in the recent past.

That’s the long way of saying the current operation has expanded greatly within the past few months, and the revenue potential now isn’t evident in the company’s trailing results.

For example, in early February the company announced it had executed a binding Letter of Intent  to acquire controlling interest in a Latin American precious metals resource property which has yielded gold, silver and other valuable metals for hundreds of years.  Upon completion of due diligence, Double Crown will contract to purchase 51% ownership of the property and assume its management role.

Since all previous precious metals extractions from this property have been done only by local populations using manual methods, there is excellent opportunity for Double Crown to utilize modern technology to expand the scale of recovery to a level appropriate for the global markets.

Double Crown intends to finance new commercial production of the region and this acquisition by leveraging the revenues earned from its recent gold supply contract announced on January 7, 2016. The loan package that is being developed will provide for acquisition and production costs. Debt servicing of the loan will be paid for by Double Crown from its negotiated fees on the first supply contract.

Double Crown has committed to invest up to $1,000,000 of its fees towards the new loan which will provide Double Crown controlling interest in mineral rights. It is estimated that Phase I of production can result in cash flowing to Double Crown by June of 2016.

In November, Double Crown Resources Inc. announced that a new mineral supply agreement had been negotiated for industrial shipments of cement copper slated for South Korea. Cement copper is used in the production of copper matte for the final preparation of refined copper and has many end-use applications.  A letter of credit is in place to fund the initial pilot shipment.  Upon the completed pilot delivery and its successful testing results, final details will be established on a proposed 36 month contract valued at $1.1 million per month, for a total gross revenue of over $40 million.  This contract has the potential to increase significantly as the market demands.

In early January the company announced a final contract has been signed with a major buyer of precious metals from South Korea for regular shipments of gold products in 2016 valued at over $20 million per month, gross revenue. Terms of the agreement specify monthly deliveries of no less than 500 kg of gold dore bars and 100 kg of gold bullion over the next 12 months. Precious metals sources for these orders will be from multiple locations in Double Crown’s established mining resource network throughout Central & South America.

Such deals have recently become the new norm.

Simultaneously, although the patent has yet to be granted, Translock2 container-shipping equipment is already being made and sold. In September the company announced a conditional purchase commitment has been reached for a $1 million investment from a heavy equipment fabricator to fund manufacturing of  the first 50 production units of Translock2. In March the company announced its U.S. patent application had been put into the Patent Prosecution Highway Program, where it will be accorded special status and will receive fast-track examination procedures. In view of these positive developments, Double Crown is optimistic that its Translock2 technology will soon be patented in both U.S. and foreign markets.

And make no mistake – the time for such a rethinking of how the world buys and delivers dry-bulk commodities has never been better. As Dr. Jean-Paul Rodrigue and Dr. Theo Notteboom in their co-authored white paper ” The Containerization of Commodities”:

“Integrating the movements of commodities within containerized distribution systems involves a new set of challenges as their dynamics differ. Still, there is substantial potential for growth in the usage of containers to carry various commodities on global markets. With the continuing growth of the global population, the agricultural sector and its commodity chains has much to gain from the velocity, ubiquity and flexibility of containerized freight distribution.”

Outlook & Analysis for DDCC

To be clear, Double Crown Resources is a (effectively) young, two-pronged speculative investment.  The first prong is the acquisition and/or development of a variety of minerals and resources mines.  It has produced a modest amount of revenue in that arena so far, that the more significant revenue has yet to surface.  It’s coming soon, though, as the company has only recently accelerated its supply and wholesaling efforts.  The fruits of that labor have yet to appear on any quarterly report.

The second prong is the patent-pending Translock2 dry-commodity storage and shipping systems that allow goods that traditionally ship in massive vats to become transportable in containers the same size and shape as intermodal containers.  Not only does is provide revenue opportunities for outright sales of such systems to users, but can also facilitate revenue by licensing the technology to other manufacturers.

The Translock2 system has proven to be a much simpler and much more cost effective solution than gathering the commodities in question at one single point and then breaking that pile out into individual shipments; every time a commodity hoard is touched – regardless of the reason – causes inefficiency and the risk of loss.  By packaging dry-commodity orders at this foresight and delivering it in full two the buyers location in a container that also serves as a dispenser, money is ultimately saved on both ends of such a transaction.

Resources and minerals haven’t been a particularly great business to be in of late, although that’s largely on the shoulders of minors to acted too aggressively, establishing mining operations on faith that demand would materialize.

Double Crown Resources has avoided falling into that trap by limiting its exploration and mind-development activity to producing a supply only when a confirmed demand was in place.  And, what it couldn’t immediately supply to its customers was readily available to Double Crown Resources through other miners and suppliers.  In many regards, Double Crown’s resource business has been a wholesale model.  Margins may not be wide using that model, but practically no capital is tied up, and there’s little to no risk.

Either way, it should be re-noted that Double Crown Resources has established several new such revenue-bearing agreements in just the past few weeks.  That revenue does not appear on any prior quarterly statements, but will appear on future ones.

As for Translock2, it’s difficult to make a meaningful prediction about what sort of revenue opportunity it may present.  But, for perspective, intermodal containers can sell for anywhere between $10,000 and $20,000 apiece, and approximately 25,000,000 of these containers are in use in the United States alone right now.

It’s not a perfectly relevant set of numbers.  The target market for Translock2 are the goods that specifically don’t use intermodal containers right now.  On the flipside, not every commodity that’s currently shipped in a dump truck or in the hull of a seafaring vessel is a candidate for delivery by the Translock2 system.  But, we do know as much as $30 billion is spent each year on shipping dry goods.  If Double Crown Resources can just capture a small part of that total annual spend – which seems more than plausible – it would still be a relative windfall for the $6.8 million company.

Double Crown Resources Management Team

Jerry Drew – CEO & Chairman of the Board

For over 30 years, Jerry Drew has been a successful leader in business development and marketing positions ranging from involvement with large-cap public and private companies to joint marketing relationships and successful entrepreneurial business endeavors of his own.

Mr. Drew’s marketing experience started in the early 1980s where he was employed on a high-end architectural management level with J.D. Barton Company working in association with Benjamin Thomas Lighting fixtures of Atlanta. In this capacity he was responsible for planning, managing and overseeing the large scale distribution of lighting fixtures to major electrical wholesalers in the Sacramento Valley and throughout northern California. Later, Mr. Drew was called upon by Mendocino Mineral Water of California to work directly with a former top executive of The Coca-Cola Company, on remodeling Mendocino’s bottling plant with the objective of sharpening the plant’s competitive edge on higher marketing levels. Mr. Drew is further credited with developing and implementing a very successful product marketing plan for Mendocino Mineral Water. Most recently, before joining the Double Crown Resources management team, he started Jerold S. Drew Interior Design & Residential Planning which remains in profitable business operation today. This business serves the full, high-end architectural development needs for a wide range of upper income customers. Jerry Drew earned his higher education degree from California State University, Sacramento, in Business Management.

Allen Lopez – President

During the past 30 years, Allen E. Lopez has been working as a Master Planning Developer in the commercial real estate field and the oil & gas industry. As Director of Oilfield Services with M. Nasr Partners P.C. of Houston, Texas Allen Lopez was responsible for the development of international relationships to oilfield minerals. mixed use planned development projects for over ten years. This experience of bringing multiple moving assets together for a common purpose has made Mr. Lopez an ideal choice to handle the oilfield service projects of Double Crown Resources as many of the same skill sets apply. M. Nasr Partners is a recognized leader in the supply of vital materials for a wide range of industrial, energy resource and construction companies.

Mr. Lopez was also the former President of Canaan Consulting in Houston, TX with over 20 years of experience as a real estate developer, national home builder, construction manager, as well as director of marketing for many master plan subdivisions and mixed use developments.

Allan Jones – Director

Allan P. Jones has over 15 years of experience with large scale industrial construction and petroleum industry support projects. He served as Vice President of Sales and Marketing for Oilfield Services at M. Nasr Partners, a successful building design, construction and industrial services company based in Houston, TX. In this position Mr. Jones initiated and maintained relationships with company representatives from the oil & gas industry. His responsibilities included negotiating contracts, business strategy development, new business procurement, project operations as well as direct client interaction and support. His projects included the sale and delivery of vital oilfield mineral and related commodities including fracturing sand and guar products to petroleum exploration and drilling companies throughout the US. Through his professional experience he has gained considerable working knowledge of the key requirements for structuring a successful sales and logistical supply plan suited to the specific needs
of modern oilfield drilling operations. In addition to his position with Double Crown Resources, Mr. Jones currently holds the position of Sales Representative and Facilities Manager for Claymex Brick, a Mexican company based in Houston, TX.

Prior to working on the oilfield services projects at M. Nasr Partners, Allan P. Jones was President/partial owner Huntington Custom Homes, a subsidiary of Hometown Concepts, Inc. of Houston, TX, a successful real estate development company with a multi-million dollar operating budget. Under Mr. Jones’ leadership, company revenues increased an average of 10% per year with a corresponding increase in annual profit margins averaging 22%. Before this Mr. Jones held high level sales, marketing and management positions with Hampton Homes of Houston, TX where he also significantly increased annual revenues and profits. He has been presented with numerous professional awards. Mr. Jones attended Rio Salado College of Tempe, AZ and North Harris Community College of Houston, TX.

Joe Menton – Director

Joseph L. Menton brings over 10 years of experience working at a range of positions in the construction and technology industries reaching upper management levels. In addition to his position with Double Crown Resources, Mr. Menton currently serves as Vice President of Menton Builders, Inc. He was also a primary project manager for general, public use buildings including a library and a hospital. His specific areas of expertise include corporate management, business development, marketing, web design, drafting/design work as well as preparation of contracts budgets and project timelines. He is especially accomplished in building lasting and successful client relationships.

Joseph L. Menton attended San Diego State University. ?During his academic studies, Mr. Menton began working in regional sales, covering the Pacific Northwest for Systems Machines Automation Components or SMAC, a miniature robotics company based in Carlsbad, CA which serves the manufacturing industry worldwide. Mr. Menton worked in the binary programming department programming advanced pneumatics for setting up a wide variety of micro-measuring devices. These devices are used in automated assembly lines for a range of industries from automotive to communications to medical applications. Mr. Menton became the liaison between SMAC and several Northern California business customers focusing on customer service, sales and technical support in addition to his binary programming duties.