Rosslyn Resource: Monetization and Sales Strategy

Rosslyn Resource identifies exploration targets (potential mineral deposits) in the mining industry and advances them until the project can be monetized, usually through sale to a larger mining company, in return for an upfront fee and a royalty on future revenues. Rosslyn has invested heavily in developing proprietary, innovative equipment and geological data sets that would make exploration cheaper and faster. Rosslyn must decide what to do with the Two Rivers site, for which a preliminary study shows favorable results. Rosslyn could follow its standard approach and sell Two Rivers, or it could move further down the value chain by developing an operational mine at the site (which would be a first for Rosslyn). The potential financial reward for doing so would be far higher, but this option entails higher risk and capital expenditures than Rosslyn is used to. This case can be used in advanced undergraduate, MBA, or executive-level courses.