Rick Rule: The Prospect Generator Model

The prospect generator model has long been a favorite for Rick Rule, president and CEO of Sprott U.S. Holdings, who has been quite successful with his picks. 
There are many reasons why Rule favors this approach for junior mining companies. For example, in a recent interview, he explained that these types of juniors generate multiple investment ideas while using other people’s money to do the “heavy lifting,” and that through joint venture partnerships, world class mining companies such as Barrick (TSX:ABX) or Rio Tinto (NYSE:RIO,LSE:RIO,ASX:RIO) or BHP (NYSE:BHP,LSE:BLT,ASX:BHP) do some of the due diligence on those prospects.
To provide some more insight into this model for investors, the Investing News Network recently hosted a Webinar on prospect generators, moderated by Rick Rule. Participants in the webinar panel included the CEOs of three prospect generators in which Rule holds substantial investments:

• David Cole, Eurasian Minerals (TSXV:EMX,NYSEMKT:EMXX)
• Miles Thompson, Lara Exploration (TSXV:LRA)
• Scott McLean, Transition Metals (TSXV:XTM)

Rule spoke about his success with investing in the prospect generator model, and about how other investors can effectively use the same strategy.
Access the full video here to see what Rule had to say: