2012 – Page 21 – Republic of Mining

NEWS RELEASE: SOLID GOLD RESOURCES CORP.PRIVATE PLACEMENT AND SHARES FOR DEBT

November 22, 2012

Toronto, November 19, 2012 – Solid Gold Resources Corp. (“Solid Gold”) (TSXV: SLD) is pleased to announce a non-brokered private placement (the “Offering”) pursuant to which it proposes to raise gross proceeds of up to $300,000 through the issuance of common share units (“Units”) at a price of $0.05 per Unit. Each Unit will consist of one common share (“Common Share”) in the capital of Solid Gold and one common share purchase warrant (“Warrant”) of Solid Gold. Each Warrant shall entitle the holder thereof to acquire one Common Share at an exercise price of $0.10 per Common Share for a period of two years following the closing of the Offering. All securities issued pursuant to the Offering will be subject to a four-month hold period. Finders’ fees may be payable to eligible persons with respect to the Offering and will be subject to regulatory approval. The net proceeds from the Offering will be used for working capital. Closing of the Offering is subject to approval of the TSX Venture Exchange (the “Exchange”).

In addition, Solid Gold announces that it has entered into agreements with certain arms-length service providers, pursuant to which Solid Gold will issue 1,470,000 Common Shares and 1,470,000 Warrants in satisfaction of indebtedness of $73,500 currently owed to such service providers, based on an agreed issue price of $0.05 per share and $0.10 per Warrant. Solid Gold also announces that it has entered into agreements with certain non arms-length parties, pursuant to which Solid Gold will issue 1,170,000 Common Shares in satisfaction of indebtedness of $58,500 currently owed to such service providers, based on an agreed issue price of $0.05 per share. Solid Gold determined to satisfy the indebtedness with Common Shares in order to preserve its cash. The share issuance is conditional upon acceptance by the Exchange. The Common Shares issued in satisfaction of the indebtedness will be subject to a four-month statutory hold period from the date of issuance.

One area where we are not risk adverse [Canada junior miners] – by Douglas Mason (Globe and Mail – November 22, 2012)

November 22, 2012

Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Canadian junior mining companies often operate in the most remote and unstable countries in the world, in a sector rife with failure

There are few business sectors where Canada can claim global dominance, but as a centre for mining development, it is an industry leader.

The Toronto Stock Exchange (TSX) and its small-cap partner, the Venture Exchange, are home to 58 per cent of the world’s public mining companies and raised 36 per cent of global mining equity finance from 2007 through 2011. Collectively, they are first in the number of listed mining companies with nearly 1,700, well ahead of competitors, the London Stock Exchange and Australia’s ASX, according to the TSX.

No other place has the same concentration and depth of services and financial market sophistication to support mining finance and development.

How does Canada do this? According to Kevan Cowan, president of TSX Markets, Canadians have a long history of participating in early-stage mining investments and a “whole ecosystem” has developed to support the industry.

Critics celebrate surprise end of mega quarry north of Toronto – by Renata D’Aliesio and Karen Howlett (Globe and Mail – November 22, 2012)

November 22, 2012

Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

MELANCTHON TOWNSHIP — While in their vast vegetable fields Wednesday, harvesting the last of their brussel sprout crop, Bill French and his son received a stunning text message: The bid to develop one of the largest rock quarries on the continent, one that would have encircled their family farm for 50 to 100 years, was dead, unexpectedly abandoned by the Canadian and American investors behind the divisive project.

The French family rejoiced as the text messages kept coming. The hard-fought battle that had united a motley crew – farmers and urbanites, politicians and entertainers, aboriginals and top Toronto chefs – was over, for a while at least. Some of Southern Ontario’s finest farmland would no longer be transformed into a massive limestone pit.

“It’s really good news,” said Mr. French, 57, said as he sat on his red tractor. “I was surprised they withdrew it this early. I thought it would go on for another five years.

The story behind the mega-quarry began six years ago when Ontarian John Lowndes began buying up prime farmland in Melancthon Township, about 120 kilometres north of Toronto. Mr. French and other farmers contend Mr. Lowndes portrayed himself as only interested in producing potatoes, but suspicions soon surfaced. Those suspicions were confirmed last year, when The Highland Companies submitted an application to the province to develop a limestone quarry.

Coalition of farmers and urban foodies halts Ontario mega-quarry – by Joe Friesen (Globe and Mail – November 22, 2012)

November 22, 2012

Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

It would have been the biggest quarry in Canada, but it was stopped in its tracks by an unusual coalition of farmers, urban foodies, artists, environmentalists and native bands, one that suggests a model for organizing opposition to resource projects.

The movement against the Ontario quarry was launched with nothing more than a basic story. An American company had convinced local farmers it was buying up chunks of land for a potato farm. Potatoes were only part of the plan, however. It soon made an application to build a massive quarry that the opposition said would threaten the groundwater and soil in one of the most fertile land belts in the country.

The plan seemed outrageous to many locals. But how could anyone else be convinced to care if it wasn’t happening in their backyard? The rest of the province had to be persuaded that the fight was about them, too. That meant mobilizing people in the cities. The best way proved to be through their stomachs.

On Wednesday, the Highland Companies withdrew its controversial application to build a limestone quarry in Melancthon township, about 100 kilometres northwest of Toronto, citing a lack of support in the community.

The need for aggregate puts the GTA between a rock and a hard place – by Renata D’Aliesio (Globe and Mail – December 10, 2011)

November 22, 2012

Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

PLEASE NOTE THIS ARTICLE IS FROM DECEMBER/2011.

Deep beneath vast fields that grow a dozen varieties of potatoes lies a valuable gray rock tinged with light browns and blues. The rock is hard, durable and dense, part of the 400-million-year-old Amabel Formation that once belonged to a warm, shallow sea.

To Toronto’s high-rise condominium developers and road-construction engineers, this high-quality limestone, known as Amabel dolostone, is an invaluable ingredient in the making of superior concrete and asphalt. Builders turn to it when they need to make the sturdiest of structures. The CN Tower, Highway 401 and Pearson International Airport all contain bits of Amabel dolostone.

Yet this precious rock, a building block of the ever-growing Toronto region, is at the heart of a quarry battle of the likes never seen before in Ontario. Quarries are almost always controversial. No one wants to live near an industrial pit with loud blasting, thick dust and a steady stream of big trucks. But the fight over the proposed Melancthon Quarry, about 120 kilometres north of Toronto, is different.

Unlike previous conflicts over quarries that tended to remain largely local schisms, the Melancthon battle has reverberated far and wide. The effort to stop the massive pit has united farmers and urbanites, renowned Toronto chefs and aboriginals, environmentalists and affluent entrepreneurs.

Mushkegowuk wants unique mining plan – by Shawn Bell (Wawatay News – November 21, 2012)

November 22, 2012

Northern Ontario’s First Nations Voice: http://wawataynews.ca/

In response to what it claims are shortfalls with Ontario’s new mining act, Muskegowuk tribal council says it has started discussions with the province on the creation of a unique mining plan for the Mushkegowuk region.

Mushkegowuk Grand Chief Stan Louttit said it may be time for Ontario to implement specific legislation and policies giving First Nations consent over mining and exploration activities in the Mushkegowuk region.

Louttit said a clear regional plan would add certainty for industry and First Nations alike.

“We believe the recent changes to the Mining Act still do not fully acknowledge the rights of First Nations,” Louttit said in a press release. “Government, the mining companies and the public have to wake up to the harsh reality that First Nations are here.”

“We are unique, we are different, we have Treaty Rights and (government and industry) should know that consultation and consent are critical and mandatory for any activity on our homelands,” Louttit added. “Yes, there may be 133 different approaches to consultation but the cold reality is: nothing will happen until governments and companies realize this.”

Phase two of Ontario’s new mining act started to take effect on Nov. 1. Under the changes the province will inform all affected First Nations when a claim on traditional lands has been staked, and companies are required to consult First Nations identified by Ontario.

Leaders plan trades school for NAN students – by Rick Garrick (Wawatay News – November 21, 2012)

November 22, 2012

Northern Ontario’s First Nations Voice: http://wawataynews.ca/

A First Nations trade school is on the horizon after Deputy Grand Chief Goyce Kakegamic met with international aid agencies, mining companies and education officials on Nov. 16.

“Canada is opening immigration due to a shortage of skilled workers and the mining sector is bringing skilled workers from all over the country — two weeks in, two weeks out,” Kakegamic said after the meeting with about 30 international aid, mining sector and education representatives at Dennis Franklin Cromarty High School in Thunder Bay. “We have a lot of able bodies walking around in our territory. No one is going to do it for us; we are the ones that have to provide that avenue to (ensure) our students have the aspiration to go that route.”

Kakegamic said the trade school would provide an option for high school students who are interested in a career in trades.

“If they have a reachable goal (in trades), that would motivate them to attendance, that would motivate them to apply more in literacy and numeracy,” Kakegamic said. “That will give them the motivation to excel, and they can excel if you give them an opportunity.”

Kakegamic said the trade school would be focused on a variety of trades, such as carpentry, mechanical and other skilled trades, in addition to mining-specific trades.

Can a Liberal become Ring master? – by Brian MacLeod (Sudbury Star – November 22, 2012)

November 22, 2012

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

Ontario Liberal leadership candidates are trying to woo northern Ontario, but one wonders whether they’re not playing with the Ring of Fire.

That would be the 5,120-square-kilometre swath of the James Bay Lowlands that is said to contain riches in chromite and other metals that could rival the value of the Sudbury Basin, some $1 trillion worth. (Chromite is a key ingredient in stainless steel.)

Progressive Conservative Leader Tim Hudak has likened the Ring of Fire to Alberta’s oil-sands. Economist Don Drummond noted in his report that the area “offers the prospect of substantial socio-economic opportunities for all northern residents.”

More than a dozen mines have already been identified for possible development within the next five years and a smelter is set to be built north of Sudbury. Thousands of jobs are expected to be created, with millions of dollars in tax revenues rolling into the province.

In the last two weeks, Liberal leadership candidates Glen Murray and Kathleen Wynne, as well as Premier Dalton McGuinty and NDP Leader Andrea Horwath, have visited the area of the province that covers about

800,000 square km with a population of about 730,000 people.

Summary of Points North interviews about Solid Gold/First Nations Sudbury controversy – CBC Radio Sudbury (November 7 – 12, 2012)

November 22, 2012

http://www.cbc.ca/pointsnorth/

Points North interview Jason Turnbull conducted the following interviews after junior miner Solid Gold’s CEO and President Darryl Stretch gave a controversial presentation at the Ontario Prospectors Symposium in Sudbury Ontario on November 7, 2012. During that presentation, Mr. Stretch was accused of using disrespectful and racist language towards First Nations communities.

Wednesday November 7, 2012 – Tensions continue between First Nation and mining company

Mining can be a contentious issue in the north.

Click here for Wahgoshig Chief Dave Babin and NAN Grand Chief Harvey Yesno interviews: http://www.cbc.ca/video/news/audioplayer.html?clipid=2301643232

Thursday November 8, 2012 – Solid Gold responds to First Nations concerns

First Nation in the northeast raise concerns over comments made by Solid Gold president.

Click here for Solid Gold’s CEO and President Darryl Stretch and NAN Grand Chief Harvey Yesno interviews: http://www.cbc.ca/video/news/audioplayer.html?clipid=2302189668

Boom bust cycle normal in mining industry [Jason Turnbull interviews mining analyst Stan Sudol] – CBC Radio Sudbury (November 1, 2012)

November 22, 2012

http://www.cbc.ca/pointsnorth/ Slumping nickel prices and a bit of slowdown on base metal prices have caused speculation that Vale is not interested in maintaining full operations in Sudbury. Points North’s Jason Turnbull interviews Toronto-base mining analyst Stan Sudol about the recent cutbacks by Vale at their Sudbury operations. Click here for the interview: http://www.cbc.ca/video/news/audioplayer.html?clipid=2299263418

Quebec budget: Marceau says mining royalties plan isn’t ready yet – by Lynn Moore (Montreal Gazette – November 20, 2012)

November 21, 2012

http://www.montrealgazette.com/index.html

QUEBEC — A widely-anticipated hike in mining royalties didn’t make it into the Parti Québécois government’s first budget because of time constraints, Finance Minister Nicolas Marceau said on Tuesday.

But he and other cabinet ministers are hammering out that royalty framework for natural resources development, Marceau told the National Assembly.

“We want to bring in these changes in an orderly and responsible manner to ensure the stability of the mining sector. We will consult the industry and the stakeholders concerned about this issue so that everyone benefits from the changes that will be made,” he said.

Earlier, Marceau told reporters that the new regime will be unveiled “sooner rather than later.” “In the time I had at my disposal (since the election), it wasn’t possible to arrive here today with a royalties regime,” he said.

During the election campaign, the PQ said it would introduce a five-per-cent royalty on all mining operations, increasing it to 30 per cent if the mine’s profits reached a certain level. Marceau said he remains convinced that an “obligatory royalty based on the net value and a tax based on excess profits are still viable approaches.”

Nickel Mining Like its 1864 – by Richard (Rick) Mills (www.aheadoftheherd.com – November 2012)

November 21, 2012

http://aheadoftheherd.com/

Nickel Sulphide Project Pipeline Empty

Nickel is present in over 3000 different alloys that are used in over 300,000 products for consumer, industrial, military, transport/aerospace, marine and architectural applications.

Nickel’s biggest use, about 65%, is in alloying – particularly with chromium and other metals to produce stainless and heat-resisting steels. Its primary function is to stabilize the austenitic (face-centered cubic crystal) structure of the steel. Normal carbon steel will, on cooling, transform from an austenite structure to a mixture of ferrite and cementite. When added to stainless steel nickel stops this transformation keeping the material fully austenite on cooling. Austenitic stainless steels have high ductility, low yield stress and high tensile strength when compared to carbon steel – aluminum and copper are examples of other metals with the austenitic structure.

Another 20% is used in other steels, non-ferrous alloys (mixed with metals other than steel) and super alloys (metal mixtures designed to withstand extremely high temperatures and/or pressures or have high electrical conductivity) often for highly specialized industrial, aerospace and military applications.

About 9% is used in plating to slow down corrosion and 6% for other uses, including coins, electronics, in *batteries for portable equipment and hybrid cars, as a catalyst for certain chemical reactions and as a colorant – nickel is added to glass to give it a green color.

New Quebec budget delays moves on mining royalties – by Louise Egan (Mineweb.com – November 21, 2012)

November 21, 2012

http://www.mineweb.com/

The first budget from Parti Quebecois since it won a September election is being viewed as far more conciliatory than expected, especially toward business.

QUEBEC CITY (REUTERS) – The Canadian province of Quebec promised on Tuesday to overhaul its system of mining royalties next year in a budget that was otherwise seen as more business-friendly than expected.

After winning a September election, the separatist Parti Quebecois (PQ) ruffled feathers in the corporate sector with talk of increasing the financial burden on wealthy households and on companies in order to pay for tax breaks for low and middle-income households, as well as to cover the cost of reversing the previous Liberal government’s decision to raise university tuition and electricity rates.

While the PQ, which has a minority of seats in the legislature, says it still plans to follow through on some of those promises, it scaled back those ambitions somewhat in a budget seen as more conciliatory.

“If we listened to their promises during the election campaign and then look this budget, it’s not the same government,” said Carlos Leitao, chief economist at Laurentian Bank.

Financing in place for Broken Hammer [Sudbury] project, says miner – by Star Staff (Sudbury Star – November 21, 2012)

November 21, 2012

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

Lively-based Wallbridge Mining Company Limited announced Tuesday it has secured financing to help develop its promising Broken Hammer Project, located north of Capreol.

The company said Callinan Royalties has agreed to provide Wallbridge with a line of credit for $2 million. In addition, Callinan will purchase 8,333,333 units of Wallbridge, at a price of $0.18 per unit, for gross proceeds of $1.5 million, subject to the approval of the Toronto Stock Exchange.

“We are pleased to have entered into this transaction with Callinan, a reputable royalty firm, for two reasons,” Marz Kord, president and CEO of Wallbridge, said in a release. “First, this new capital injection allows Wallbridge to accelerate the development plans for the Broken Hammer Project without significant equity dilution.

“Secondly, Callinan’s interest in financing the corporation at a premium to the current market in return for the option to purchase royalties on our 100%-owned Sudbury properties underscores the inherent value in these exploration assets, as well as broadening our already strong shareholder base.

[Sudbury] Local likes [Glencore-Xstrata] mine deal – by Carol Mulligan (Sudbury Star – November 21, 2012)

November 21, 2012

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

The takeover of mining giant Xstrata Nickel by trader Glencore could be a good thing for Sudbury, says the president of the union representing 855 production and maintenance workers at Xstrata’s Sudbury operations.

The $31-billion takeover approved by Xstrata shareholders Tuesday could result in more investment in exploration and mine development, said Richard Paquin, president of Mine Mill Local 598/CAW.

The deal isn’t final, said Paquin, as it requires regulatory approval by several countries, including the European Union. But it is one step closer to a merger almost one year in the making.

Xstrata shareholders were expected to approve the takeover offer Tuesday and they did, but they surprised observers by failing to endorse a plan that would pay top Xstrata executives big money to remain with the merged company.

Those key executives won’t get that protection with this approval, said Paquin, adding that is not his and his union’s issue. Nor are Paquin and his union worried about being taken over by another foreign company.