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Tuesday, July 7, 2009
TNR Gold Announces Strategic Investment by Canada Zinc Metals With Participation in $1 Million Private Placement TNR.v, CZX.v, LUN.to, CGH.to, ABX,
Posted by andre at 5:15 AMCS. Timing is always important in investments. You can be right on the idea, but wrong on timing and result will be a financial disaster. Electric cars are as old as other cars in dreams of inventors - first one were built back to 19th century. In modern times powerful Oil lobby has killed the idea before. Why do we think it is going to be different this time? You can find answers on this Blog: for the short one - look where the money are flowing and what people involved are doing.
Billions are coming into our Next Big Thing: Green Mobility revolution - new factories for lithium batteries are under contraction and new Electric Cars models are rolled out. In Lithium Supply chain, which will benefit from newly born Bull, place is not very crowded, but success will depend on people involved, their energy and ability to develop the projects.
We have wrote before about our investment in TNR Gold TNR.v and its recent aggressive move into Lithium and REE space with idea of building and spinning out of International Lithium Corp. We are more then biased and, please, do not consider anything as an investment advise as usual. Question remained on the part of the market place: whether these properties are of merit and will International Lithium be able to develop it. Move was very quick and Goal is very ambitious: to build a Global Lithium and REE exploration play. Today we have some answers.
First lets look at the big picture and China's place in commodity world:
"Making King Kong look like a Pygmy Marmoset. We have spoken many times this year about the 800-pound gorilla and its nearly insatiable appetite for everything resources, from uranium to copper to iron ore to oil and even solar power. China sees the forest through the trees and knows that it must stockpile a large amount of resources now to ensure it can feed its evergrowing population and economy in the future. Last week, the 800-pound gorilla took a bite out of Canada's largest base metals miner, Teck Resources, in the form of $1.74 billion worth. Also last week, but on a smaller scale, China's National Nuclear Corporation agreed to purchase 69% Western Prospector, which is developing the Saddle Hills Uranium Project located in eastern Mongolia.
Other foreign investments of significance by China this year (highlighted by the Globe and Mail) include:
1) June 24, 2009 – Sinopec, China's largest oil refiner, agreed to buy Swiss oil explorer Addax Petroleum for $7.24- billion, a deal that will give it access to high-potential oil blocks in West Africa and Iraq.
2) June 23, 2009 – Chinese power company GCL-Poly Energy Holdings said it would pay $3.38-billion for a Jiangsu province solar parts maker in a move to tap the country's growing solar energy industry.
3) June 9, 2009 – Canadian mining and exploration company Consolidated Thompson said it had finalized terms of an agreement with China's Wuhan Iron and Steel Corp for a $240-million investment.
4) May 24, 2009 – Asia's largest oil and gas producer PetroChina agreed to buy Keppel Corp.'s 45.5%-stake in Singapore Petroleum Company for US$1.02-billion.
5) April 30, 2009 – Chinese state-owned China Nonferrous Metal Mining Group agreed to take a majority stake in Australian rare earths miner Lynas Corp Ltd. $185.7-million.
6) April 1, 2009 – Australian zinc miner OZ Minerals agreed to sell most of its assets to China's Minmetals for $1.21-billion.
7) Feb. 24, 2009 – Chinese steel mill Hunan Valin Iron and Steel said it will pay $1.2-billion ($770-million) for a 16.5%-stake in Fortescue Metals Group.
8) Feb. 5, 2009 – Shenzhen Zhongjin Lingnan Nonfemet, China's third-largest zinc producer, wins Australian government approval to acquire a controlling stake in zinc miner Perilya."
Other foreign investments of significance by China this year (highlighted by the Globe and Mail) include:
1) June 24, 2009 – Sinopec, China's largest oil refiner, agreed to buy Swiss oil explorer Addax Petroleum for $7.24- billion, a deal that will give it access to high-potential oil blocks in West Africa and Iraq.
2) June 23, 2009 – Chinese power company GCL-Poly Energy Holdings said it would pay $3.38-billion for a Jiangsu province solar parts maker in a move to tap the country's growing solar energy industry.
3) June 9, 2009 – Canadian mining and exploration company Consolidated Thompson said it had finalized terms of an agreement with China's Wuhan Iron and Steel Corp for a $240-million investment.
4) May 24, 2009 – Asia's largest oil and gas producer PetroChina agreed to buy Keppel Corp.'s 45.5%-stake in Singapore Petroleum Company for US$1.02-billion.
5) April 30, 2009 – Chinese state-owned China Nonferrous Metal Mining Group agreed to take a majority stake in Australian rare earths miner Lynas Corp Ltd. $185.7-million.
6) April 1, 2009 – Australian zinc miner OZ Minerals agreed to sell most of its assets to China's Minmetals for $1.21-billion.
7) Feb. 24, 2009 – Chinese steel mill Hunan Valin Iron and Steel said it will pay $1.2-billion ($770-million) for a 16.5%-stake in Fortescue Metals Group.
8) Feb. 5, 2009 – Shenzhen Zhongjin Lingnan Nonfemet, China's third-largest zinc producer, wins Australian government approval to acquire a controlling stake in zinc miner Perilya."
We were following Canada Zinc Metals CZX.v on the merits of its property and Lundin Mining involved. Lukas Lundin has his own Midas touch and we still have sweet memories from Tenke mining run from 0.9CAD to 21CAD. Like we mentioned potential M&A play with Sanu Resources SNU.v, when its CEO Wojtec Wodzicki became CEO of Canadian Gold Hunters CGH.to, so we put TNR Gold and Canada Zinc Metals on our M&A screen. Non Executive Chairman and largest shareholder (25% according to TNR Gold filing) Kirill Klip is an adviser to the Board of Canada Zinc Metals.
Varshney family has its own success and proven record in building public companies from scratch. Hari Varshney is a founder of family business and a respectable charity supporter. It is our beloved case in Junior mining, when reputation of people worth more then money involved. He is on the TNR Gold board and his son Peeyush Varshney is running CZX.v with Jim Mustard: President of Canada Zinc Metals and former Vice President of Haywood Securities with literally hundreds of projects researched before joining CZX.v
Tongling investment deal earlier this year highlighted and confirmed our own observations: CZX.v was able to strike a deal at 0.425CAD with more then 100% premium to the trading price! Stock even today is still below this level. Deal was closed few weeks ago and now CZX.v made this move with TNR Gold TNR.v investment.
Now we have not only a solid Zinc recovery play with strong cash position in a district with potential of 100 mil ton with further exploration, but dynamic M&A front runner of Chinese giant looking for further opportunities. Quick move has secured options opened in new hot area of Lithium and REE in International Lithium corp. and CEO CZX.v has opened space for speculation with his comment on Los Azules. Is Tongling up to the Xstrata's plate? Rob McEwen will be another name to mention in this context. Company now have positioned itself for dynamic recovery in Chinese production cycle even with shaky general markets in Zinc. Strategy looks like Investment expansion:
Tongling - Canada Zinc Metals - District play with TEC and Korea Zinc - Lundin Mining on board - Zinc and Lead - Cars - Growth space: China largest auto market from March - New Bull - Electric cars - Lithium and REE - TNR Gold and International Lithium Corp.
For TNR Gold TNR.v it is a first fruition of its aggressive strategy of project generation company with J/V strategy for their further development. It is an acknowledgement by the Industry Insiders of its successful strategy to secure and develop wide range of projects in Lithium and REE, Gold and Copper.
Financing availability is the last piece of a puzzle for this dynamic company. Company is not for sale at this level:
"TNR's Non-Executive Chairman, Mr. Kirill Klip, will be taking a significant portion of the financing along with other insiders and management."
Insider can sell in a lot of circumstances - they buy only in one case: when they know with all available to them information that company is still undervalued. Now he is not alone in his beliefs and we like his new company. It is always important to see that management is also buying into financing and not just cashing in cheap options. It looks like Gary Schellenberg and Kirill Klip made a good team moving TNR Gold fast forward above many other juniors still day dreaming about last summer happy days which are gone forever.
Now they have financing in place to develop the properties and perform the spin out of International Lithium Corp. and we can only speculate about Los Azules development further with Chinese interest on board. Xstata will not be able to pretend that lawsuit is without any merit. Minera Andes MAI.to has already disclosed information about it in its filing this year.
"Peeyush Varshney, Chairman and CEO of Canada Zinc Metals, commented, "This strategic investment into TNR and its proposed spinoff subsidiary, International Lithium Corp, will give our shareholders diversification into the growing opportunities that rare metal industries are offering. Furthermore, the investment gives us an interest in TNR's stake in the significant Los Azules copper project in Argentina."
We think that project evaluation is still ongoing behind the closed boardroom doors on El Salto, El Tapau and Alaska.
It is a ground breaking milestone for both Juniors involved: value network in action.
TNR Gold has attracted interest from Canada Zinc Metals and its shareholders including Chinese Tongling and Lundin mining with opportunities opened in Lithium and REE market.
Los Azules project is getting a new valuation with rising Copper prices, signs of recovery and its recent development.
TNR Gold opens a new page in its history with access to Canada Zinc Metals solid record of developing mineral deposits and attracting Major industry players for financing and mine building expertise.
Canada Zinc Metals with this move has secured its strategic entry into Lithium and REE markets and TNR Gold's Gold and Copper projects, including Los Azules opened for future strategic deals under further consideration of the company.
Los Azules project is getting a new valuation with rising Copper prices, signs of recovery and its recent development.
TNR Gold opens a new page in its history with access to Canada Zinc Metals solid record of developing mineral deposits and attracting Major industry players for financing and mine building expertise.
Canada Zinc Metals with this move has secured its strategic entry into Lithium and REE markets and TNR Gold's Gold and Copper projects, including Los Azules opened for future strategic deals under further consideration of the company.
Jul 06, 2009 18:39 ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 6, 2009) - NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO U.S. NEWSWIRE SERVICES.
TNR Gold Corp. (TSX VENTURE:TNR) ("TNR" or the "Company") and Canada Zinc Metals Corp. (TSX VENTURE:CZX) are pleased to announce a strategic initial investment by Canada Zinc Metals in TNR as part of a private placement for up to 5,000,000 million units (the "Units"), priced at $0.20 per Unit, to raise up to $1,000,000 (the "Offering"). Each Unit consists of one common share and one-half common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share of the Company at a price of $0.30 for a period of twelve months from the date of closing.
Canada Zinc Metals is a premiere base metals explorer focused primarily on developing its flagship Akie property, a significant zinc-lead deposit in northeastern British Columbia, Canada, containing a National Instrument 43-101 compliant inferred resource of 23.6 million tonnes grading 7.6% Zn, 1.5% Pb, and 13.0 g/t Ag. As evidence of the quality of the properties owned by Canada Zinc Metals, a large Chinese mining group, Tongling Nonferrous Metals Group Holdings Co. Ltd. ("Tongling"), has recently invested $4.9 million in Canada Zinc Metals for a 13-per-cent equity position.Tongling, a state-owned enterprise based in Anhui province, is one of China's largest copper smelting companies and ranked in the top 100 large-scale industry enterprises in China. Tongling's principal activities are exploration, mining, ore processing, smelting & refining and products processing of copper, lead, zinc, gold, silver and other non-ferrous and rare metals. China has over half of the world's deposits of rare earths, over 80% of worldwide production, and has recently shown significant interest in becoming majority shareholders of various rare earth miners such as Lynus Corp. and Arafura Resources.
TNR's Non-Executive Chairman, Mr. Kirill Klip, will be taking a significant portion of the financing along with other insiders and management.
TNR President and Executive Chairman, Gary Schellenberg states, "We are encouraged by the support in this current financing by insiders, management, and welcome the strategic investment from Canada Zinc Metals and all its stakeholders. It is clear that our recent aggressive acquisition plan of Lithium and Rare Metal properties around the world, along with continuing developments on our copper-gold properties in Argentina, is attracting significant attention in the mining and investment world."
Peeyush Varshney, Chairman and CEO of Canada Zinc Metals, commented, "This strategic investment into TNR and its proposed spinoff subsidiary, International Lithium Corp, will give our shareholders diversification into the growing opportunities that rare metal industries are offering. Furthermore, the investment gives us an interest in TNR's stake in the significant Los Azules copper project in Argentina."
A finder's fee of 7% on a portion of the proceeds raised is payable in cash, in units, or a combination of both, at the election of the finder. Any units issued in lieu of cash will be on the same terms as the Units of the Offering.All securities issued pursuant to this financing are subject to a 4-month hold period from the date of closing. The Offering is subject to TSX Venture Exchange approval and any regulatory approvals.Proceeds of the private placement will be used to fund the evaluation of TNR's Lithium and Rare Metal properties, implement the proposed spin-off of International Lithium Corp. and for general corporate purposes.
ABOUT TNR GOLD CORP.TNR is a diversified metals exploration company focused on identifying and exploring existing properties in Argentina and Alaska and new prospective projects globally. Upon approval of pending licences in Ireland, TNR will have a total portfolio of 32 properties, of which 16 will be included in the proposed spin-off of International Lithium Corp.It is anticipated that TNR shareholders of record will receive one share and one full tradable warrant of International Lithium Corp. for every 4 shares of TNR held as of the yet determined record date. This will result in TNR shareholders owning shares in both TNR and International Lithium. For further details of the spin-off please refer to TNR's April 27, 2009 news release or visit http://www.internationallithium.com/.The recent acquisition of lithium projects in Argentina, Canada, USA and Ireland confirms the Company's commitment to project generation, market diversity and building shareholder value.
ABOUT CANADA ZINC METALS CORP.Canada Zinc Metals is a mineral exploration company focused on unlocking the potential of a world class zinc-lead-silver district in British Columbia, Canada. It is the dominant land holder in an extensive mineral belt known as the Kechika Trough which hosts in excess of 80 million tonnes of base metal resources. Significant shareholders of Canada Zinc Metals include Lundin Mining Corp. (TSX: LUN) and Tongling Nonferrous Metals Group Holdings Co. Ltd.
On behalf of the board,Gary Schellenberg, President"
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