Junior Exploration Sector – Page 38

Ottawa should make mining companies more accountable (Toronto Star Editorial – August 21, 2016)

August 22, 2016

https://www.thestar.com/

The Trudeau government should re-introduce — and strengthen — a bill to make Canadian mining companies act more responsibly.

Canada likes to think of itself as a principled middle power, projecting a moral voice in the world. But in the rugged fields of international mining, oil and gas, it is a muscular giant whose power is not always wielded in an ethical way.

That’s why Father Melo, a Honduran Jesuit priest who is under death threats for defending environmental rights, travelled to Toronto last week to plead for help from Prime Minister Justin Trudeau. He wants the prime minister to make Canadian mining companies accountable for respecting human rights and environmental standards, including a halt to displacement of local indigenous communities.

Why Australia will be at centre of lithium boom (Australian Financial Review – August 4, 2016)

August 4, 2016

http://www.afr.com/

Australia is on track to host the world’s two biggest lithium mines as soaring sales of electric vehicles and mobile phones in China drives demand for the rare metal.

Surging production of electric vehicles and the lithium batteries that power them is expected to underpin demand for lithium, the key Diggers and Dealers mining industry conference has heard.

Pilbara Minerals, which is developing the Pilgangoora Project in the iron-ore rich Pilbara region of Western Australia, has recently signed an offtake agreement with Chinese firm General Lithium and plans to start mining next year.

COLUMN-Small Australian miners are the canaries of commodity prices – by Clyde Russell (Reuters U.K. – August 4, 2016)

August 4, 2016

http://uk.reuters.com/

Aug 4 Are the strong gains this year in small Australian resource companies a harbinger of sustainable rallies for both bigger miners and commodity prices in general? Past evidence suggests yes.

The Australian Stock Exchange (ASX) Small Resources Index has jumped 66 percent so far this year, comfortably ahead of both large mining stocks like Rio Tinto, which has gained 10.5 percent, and a broad commodity price indicator, such as the Bloomberg Commodity Index, up 8.6 percent.

What this tells you is that small-capitalisation resource stocks have been the outperformer, but if you believe history is a guide then it is worth noting that the minnows have in the past rallied and peaked prior to major companies and overall commodity prices.

Australia’s tiny miners rise from the ashes of the bust – by James Regan (Reuters U.S. – August 2, 2016)

August 3, 2016

http://www.reuters.com/

SYDNEY – From gold to graphite to zinc to lithium, Australia’s army of “penny dreadful” stocks is rising from the ashes of the mining bust and growing at rates that majors like BHP Billiton and Rio Tinto can only wish for.

Micro miners are posting double or even triple-digit gains, buoyed by a belief that metals prices have bottomed, while companies that managed to come through the downturn are being aided by cheaper labor and operating costs.

“It’s about the growth and the profit that can come very quickly,” said Perth-based retail investor Tim Larmont, who has been dabbling for over two decades in a sector that’s known as a hothouse for day traders and speculators.

Canada’s junior mining sector unearthing new prospects – by Ian McGugan (Globe and Mail – July 21, 2016)

July 21, 2016

http://www.theglobeandmail.com/

After four years of hard times and grinding retreat, Canada’s junior mining sector is once again attracting fresh capital and new investors.

The recent outburst of enthusiasm is centred on gold miners, says Michelle Grant, senior vice-president at consultants Ernst & Young and leader of its mining and metals transactions team in British Columbia.She expects acquisition activity in the sector to pick up speed in the months ahead as companies look for ways to ride the upswing in precious metals prices.

“There’s a new fear of missing out,” she says. She has talked to several mining executives who already regret not bidding more for potential acquisitions last year, given the big run-up in gold miners’ shares since the start of the year.

Are private placements the new poison pills? – by Drew Hasselback (Financial Post – July 20, 2016)

July 20, 2016

http://business.financialpost.com/

The dollar values may be low, but the stakes are huge. Idaho-based Hecla Mining Co. has launched an unsolicited bid to take control of Vancouver-based junior miner Dolly Varden Silver Corp. According to Bloomberg, the bid has a cash value of only $10 million. But Canadian M&A lawyers are following the deal because it’s sparked a legal battle over the country’s hostile takeover rules.

The B.C. and Ontario Securities commissions are holding simultaneous hearings on Wednesday to decide whether companies can thwart unwanted takeover bids by selling a big chunk of their shares in a private placement.

Hecla, a silver producer, already owns just under 20 per cent of Dolly Varden. Hecla announced on June 27 that it would seek 50 per cent of the Dolly Varden shares it doesn’t already own. A formal offer was filed July 8.

NEWS RELEASE: Goldeye Explorations Agrees to Be Acquired by Treasury Metals

July 11, 2016

TORONTO, ONTARIO–(Marketwired – July 11, 2016) – Goldeye Explorations Limited (TSX VENTURE:GGY) (“Goldeye” or the “Company”) is pleased to announce that it has agreed to a proposal with respect to the acquisition of the Company by Treasury Metals Inc.
(TSX:TML) (the “Proposal”).

Given the complementary nature of Treasury’s development stage portfolio, and Goldeye’s exploration assets located in Northwestern Ontario, Goldeye believes that there is a compelling case for the combination of Treasury and Goldeye and that such a combination would be mutually beneficial to both sets of shareholders.

The Proposal contemplates that Treasury and Goldeye will enter into a business combination pursuant to a structure to be mutually agreed (the “Proposed Transaction”).

Grits stifling mineral exploration: Ambrose – by Mary Katherine Keown (Sudbury Star – July 4, 2016)

July 5, 2016

http://www.thesudburystar.com/

Rona Ambrose, the interim leader of the Conservative Party of Canada, was in Sudbury Monday to talk flow-through shares.

“I’m here to raise the alarm that the Liberal government is looking to get rid of the mineral exploration tax credit and the flow-through shares for mining and mineral investments,” she told The Star. “This is a huge concern for the mineral and mining sector, because (the flow-through shares) constitute 60 per cent of how they raise their money.

So in 2014, in a $54 billion industry, 90 per cent of the money that was raised by junior mining companies was raised by flow-through shares. … This is a huge revenue-generating investment instrument that is used by junior mining exploration companies.”

More than 10% of Canadian mining and metals companies delisted in 2014/15 – by Henry Lazenby (MiningWeekly.com – June 28, 2016)

June 29, 2016

http://www.miningweekly.com/page/americas-home

TORONTO (miningweekly.com) – More than 10% of the mining and metals companies listed on the TSX and TSX-V delisted during 2014 and 2015, according to a new study by professional services firm EY.

The report, titled ‘What is driving delisting in the mining and metals sector in Canada?’, found that 41% of companies delisted owing to mergers and acquisitions (M&A) activity, 33% delisted voluntarily, 33% failed to meet continuous listing requirements, and 10% delisted owning to formal insolvency proceedings.

According to EY senior VP for British Columbia mining and metals, transaction advisory services leader and report author Michelle Grant, 149 mining and metals companies delisted from the TSX and TSX-V in 2014 and, in 2015, a further 172 companies delisted.

Octoberfest for Lawyers: Prospecting in Ontario’s Far North – by Bill Gallagher (Sudbury Star – June 17, 2016)

June 18, 2016June 17, 2016

http://www.thesudburystar.com/

Bill Gallagher, lawyer, author and strategist.

The last six months saw Ontario courts issue two major rulings on accessing resources. Junior miners operating in the Far North have not had an easy time, mainly due to not keeping abreast of the rise of native empowerment nationally and how that dynamic impacts (or should impact) their approach to accessing traditional lands. That’s because natives have land rights writ large.

I track this phenomenon right across the country and have maintained a special interest in Ontario ever since I was kicked-off the KI reserve by the entire community; turned out to greet Platinex’s CEO and his archeologist. I personally witnessed the resulting litigation or public gyrations of all the juniors: Platinex, God’s Lake Resources, Solid Gold (and indeed Cliffs); attended many pivotal events like the roll-out of Matawa’s Ring of Fire policy, keynoted at PDAC’s grand opening, lectured at Lakehead, and attended closing arguments in the Northern Superior litigation.

My trump card was my strategic role in helping to bring-in the Voisey’s Bay IBA (although that precedent was never treated as relevant by the juniors) caught as they were in the throes of Queen’s Park and Mining Act turmoil – and the thrall of litigation lawyers.

Gowest gets go-ahead – by Len Gillis (Timmins Daily Press – June 17, 2016)

June 17, 2016

http://www.timminspress.com/

TIMMINS – The arrival of this sunny summer weather in Timmins this week brought some sunny news for Gowest Gold Ltd., which reached an important milestone for the new gold property it is promoting in Timmins.

Greg Romain, company president and chief executive officer, said the long permitting process is finally over. “Yeah, we got the last permit signed off yesterday. It has been a long time coming but we’re certainly happy about it,” the Timmins native said in an interview Thursday morning.

Gowest is a junior gold exploration company working to develop the North Timmins Gold Project located roughly 35 kilometres north of the built-up area of Timmins. The project, which is part of the well-known Bradshaw gold venture, has more than 400,000 indicated ounces of gold and more than 750,000 ounces inferred.

Junior mining in South Africa..? Think again. – by David McKay (MiningMx – June 15, 2016)

June 15, 2016

http://www.miningmx.com/

SPARE a thought for the junior mining companies. If it’s hard for large mining firms to attract investment and raise capital, then you can bet its doubly worse for the juniors, the intrepid entrepreneurs who are often the lifeblood of tomorrow’s minerals and metals supply.

In South Africa, it’s especially difficult for junior miners to gain traction. This is owing to the evaporation of confidence in the country’s regulatory framework, according to bankers, analysts and junior mining executives. A quick look at the Johannesburg Stock Exchange (JSE) tells its own story.

There are hardly any exploration plays and very few small junior miners to shake a stick at: Bauba Platinum, Miranda Minerals, Tawana Minerals, Firestone, ZCI … But with all due respect, there’s nothing here to set the world alight; not yet anyway.

Editorial: Northern Superior loses case in Ontario – by John Cumming (Northern Miner – June , 2016)

June 8, 2016

http://www.northernminer.com/

A long-simmering legal case revolving around the duty to consult in Ontario’s Mining Act has been resolved, with plaintiff Northern Superior Resources having its action against the province of Ontario in Ontario’s Superior Court of Justice dismissed.

If you’ll recall, Northern Superior Resources is a Sudbury-based junior mineral exploration company that has spent the last couple of decades looking for gold in Ontario and Quebec.

The claims at the heart of the court case — named Rapson Bay, Meston Lake and Thorne Lake — were staked by Northern Superior between 2005 and 2007 in the Red Lake Mining Division located 740 km northwest of Thunder Bay, with an eye to their gold potential.

Federal Liberals have ‘dropped the ball’ on mining: Angus – by Jonathan Migneault (Sudbury Northern Life – June 6, 2016)

June 7, 2016

https://www.sudbury.com/

The federal Liberals have “dropped the ball” in the north when it comes to the mining sector, said Timmins-James Bay MP Charlie Angus.

“The Liberal Party ran on a platform that said nothing about the mineral exploration community or mining. It’s one of the biggest drivers in our economy,” said Angus, who has long been a prominent MP with the NDP. “They’ve done nothing on the Ring of Fire.”

Angus’ criticism of the Liberals came after he proposed an amendment to extend the government’s mineral exploration tax credit from one year to five years. The Liberal-dominated finance committee voted against the amendment.

Georeference mineral claims to prep for digital system: ministry – by Lindsay Kelly (Northern Ontario Business – June 6, 2016)

June 6, 2016

http://www.northernontariobusiness.com/

The Ministry of Northern Development and Mines is encouraging people with mineral claims in Ontario to double-check their claim boundaries as the province inches closer to introducing digital claim staking.

The adoption of online claim system is part of the modernization of the Mining Act, which began in 2006. “We’re streamlining the process, moving Ontario into the 21st century by providing that type of service for our clients,” said project lead Roy Denomme. “This is really taking us to the next level.” Other provinces already using a digital system include British Columbia, Newfoundland and Labrador, Nova Scotia, New Brunswick and Saskatchewan.

Moving to a digital platform simplifies the process for Ontario’s international mining clientele, Denomme said. Many junior mining companies, for example, are headquartered in Vancouver or Australia, and the geographical distance makes registering staked claims at a bricks-and-mortar location more difficult.