Now typically not a lot of people get excited about an iron ore project, even if it is an astounding $1.3 billion project. What is important is that this reflects the current demand in China for high quality ore for construction. As I talked about before there is a spike in vanadium demand, which works as an alloy to make rebar and other materials incredibly strong. This demand by China is creating a demand for resources that are not being met. Gold, copper, lithium, cobalt and iron are all needed for the One Belt One Road Initiative in China, as well as the faltering infrastructure in the US.
The other interesting part of this story is the implementation of technology with mining. Fortescue Metals will be using autonomous driving trucks at the site.
The Lucky Strike 156sqkm Property lies 30 kilometres northwest of Goldcorp’s Coffee Creek deposit and 15 kilometres east of White Gold Corp.’s Golden Saddle deposit. The recent permit obtained from the Yukon government will kick off the most extensive diamond drilling by GSR. The data from last year has provided the key targets for the drilling while further trenching and IP (Induced Polarization) will continue along the Monte Carlo Zone. This is going to be a big summer for GSR as it has previously announced it will spin-out this Luckstrike property with this linked drilling strategy. The other major property called Plateau is being drilled with strategic partner Newmont Mining.
There are many minerals that people will not recognise on this list but some that are getting more traction in the news. Many of us forget how critical mining is for the future. Almost everything we use is because of mining from the infrastructure we need to the computers, gadgets and transportation we rely on. Some of the obvious ones are lithium and cobalt while others like vanadium, which I just wrote about and will have more on quite soon is a mystery to many. In all, there are many minerals on the list which the US has little control over. It highlights why Apple is able to buy cobalt directly from a mine; or why Softbank is investing in mines with the right to purchase 20% of its production or how vanadium is mainly under Chinese control. My message has always been that now is the time to take back control of our destiny. Buy commodities, resources that are required for the future. Buy the companies mining for these necessary materials or producing them and help feed the engineers, and scientists that are creating marvels.
Japanese hedge fund Soft Bank has entered the lithium market buying up to 9.9% of Canada's Nemaska Lithium and investing up to $78m through a private placement as part of the agreement. What is interesting is that in the agreement Softbank will be permitted to purchase up to 20% of the lithium from Nemaska. If you recall a few months ago Apple was bypassing markets and buying cobalt directly from mines. This looks like another similar strategy. To me this is a clear signal that smart money is purchasing resources, commodities and envisioning a future of stored energy in batteries. This is remarkable news for the industry and should stir people to consider what there money is invested in, and what they are exposed to.
In an enormous $4.07 billion deal, China’s Tianqi Lithium is buying a 24% stake in Chilean producer SQM from Canada’s Nutrien. This expands the Asian nation’s increasing hold over the market for the key component needed in the making of batteries that power electric vehicles. Do you think it is time to start investing in your own country? Canada is largely a resource based country, with mining being one of the strongest sector. This sector has been in a slump for years playing out is cycle. That tide is turning and money is coming home. Are you investing in green technology, future energy and infrastructure growth?
As talked about in some reports there is a desire to focus money back in North America in exploration because of the issues arising from dealing with third world countries. Bloomberg cites this new political change in approach is one of negating contracts, and simply having government 'renegotiate' different terms. Holding up permits, 'revising mining codes' and other strategies apparently allow these jurisdictions to stop previous agreed upon terms in favor of a better deal. Of course, this can happen but it sends a loud and clear message. You can explore here but if you find something we will renegotiate.
Pretty amazing news from California and for the Green Technology. Interest in solar, and wind power has been mounting and developments in solar panels have come a long way in years. This is huge boost for the mining sector. The metals, components, graphite, ceramics, elements and glass is all part of this sector. New discoveries with vanadium particularly with batteries and solar panels are going to be discusses in full soon on the site and this decision in California has a large impact.
This is a good signal to other counties, states, provinces and cities. Should we consider taking advantage of getting ahead of the curve on this by seeing if there are federal initiatives from your jurisdiction for putting solar panels up now? Is there a benefit to getting started on a two year plan for our own home? What does the energy storage landscape look like? These are all interesting questions for the modern world, that is coming fast upon us. We will be looking at this in detail in a future article.
Dalradian Resources, which is listed on the Toronto Exchange and London Exchange and published exciting growth from its Curraghinalt gold deposit showing a 46% increase in gold ounces and a 32% increase in inferred gold ounces when compared to the previous feasibility study from 2016.
The company says that Ireland has the 7th richest undeveloped seam of gold in the world but the political troubles of the past had kept investors away.
Dan Loeb of Third Point has come out publicly with a long list of other names like Ray Dalio, and Ron Paul. Of course, there are short seller funds out there that specifically look to profit from a companies stock price decreasing and this is not a panic piece. Short selling is necessary and Loeb is looking at specific targets, and acknowledges he does not believe, as some that we are nearing recession. It helps weed out awful companies, and allows people to punish companies that should be hit financially. I would not recommend running out and shorting companies. It is something that requires extreme due diligence. The natural, long term direction of the market is up, it is never a great thing to time the down, or recession.. Stepping in front of the Fed money printing machine is not a great idea. That being said take a step back, and take a bit more interest in your investments and consider a shuffle. Look at companies that make provide the resources to technology, infrastructure, energy and science instead of the companies that have already had massive growth. Shift your assets around a little.
The offer of $5/share, a 31% premium to Nevsun's closing price was rejected, leaving the $1.2 billion offer flat.
"The Nevsun Board of Directors is unanimous in its belief that the Non-Binding Unsolicited Proposal fails to reflect the strategic value of our asset base," said Ian Pearce, Chair of Nevsun's Board of Directors. "The Non-Binding Unsolicited Proposal also presents a problematic structure that could further undermine value to our shareholders."
It will be interesting to see the next move as this was an unsolicited offer, and not the first approach at Nevsun. As Cecilia Jamasmie, at Mining.com reports Lundin and Nevsun have some history over a property in Serbia, and one in Eritria. It appears that Euro Sun/Lundin are not going to shy away as they commented:
"After months of attempting to reach an agreement, we are disappointed that Nevsun has prevented its shareholders from considering our premium proposals. At this point in time, we believe that all Nevsun shareholders should be made aware of this opportunity,”