We expect Lukas Lundin to storm the junior space back with his troops. He was out of the picture for a while and put his exploration ambitions on hold consolidating Canadian Gold Hunters CGH.to, Suramina Resources and Sanu Resources. He has grown up fast first in size of the controlled assets and status of Major League by Lundin Mining and then was hit with problems followed - he was busy saving them after the crash. But now we have a few signs of his team coming back into the junior M&A market space and we would like to speculate whether it could lead to any catalyst in juniors we are following.
He has put Fortress Minerals FST.v - Gold exploration play in Russia in a good hands of J/V with Kinross Gold and Gazprom Bank on the Russian side. Kinross Gold is already mining in the Russian Far East huge Gold Kupol deposit. By way of their progress we can tell that they know how to operate in tough environment.
Lukas Lundin looks like missing from our Lithium and REE fever: we can hardly call it an "exposure" via his holdings in Canada Zinc Metals CZX.v after investing in TNR Gold TNR.v
His Atacama Minerals is a settled producer of industrial minerals and hardly can move fast in exploration as another juniors.
"3. New Energy plays are not presented in the portfolio of Lundin Group, will Lukas add to his Uranium exposure Lithium in the near future? Will he chose to go for a building the portfolio of properties himself or will buy time in the hot sector by striking deals with other Juniors? How will it play out with our Value Web interconnections in the end?"
We can see a few potential points of presence which could lead to explosive repositioning of his new Global exploration play: across continents and across commodities.
1. Canada Zinc Metals CZX.v - his Lundin Mining has a stake around 5% in the company. Now after Tongling's investment in CZX.v Chinese hold around 13%. Lundin Mining seems to be out of the picture as a minor partner, but junior holds keys to a very prospective district in Canada and we still expect M&A plays around it with rising Zinc price. Will Canada allow to slip one of the largest Zinc and Lead deposits into the Chinese hands? We hope for a nice corporate battle around this question. Now Chinese Tongling seems to be calling the shots, but they are slow in accumulating further stake according to available filing. Our point is simple - there is still a door open to get the asset at very reasonable price even paying twice the market value now. It is relevant if you are in a Zinc business and need resources and Lundin Mining is there. We expect them at least to warm up Chinese to pay a better price.
2. Should they decide to be serious about it, suddenly old investment of Lukas Lundin - TNR Gold TNR.v could come into play. It brings Lithium and REE exposure with global scale and recent announcement of TNR Gold about confirmed move into Ireland Lithium and REE exploration give us some food for thoughts with Lundin Mining active in Ireland in J/V deals with another juniors on Zinc side.
"Further Zinc-Lead-Silver mineralisation encountered by drilling and Lundin accelerates pace of earn in
"Monday, 03 August 2009 00:00
The Board of Belmore Resources, a minerals exploration company with a focus on projects in the Republic of Ireland, is pleased to announce further encouraging drill results at its Kilbricken discovery. Additionally this project is now being accelerated with Lundin Mining Exploration Limited (“Lundin”) increasing the pace of its earn in.
Lundin, which is a wholly owned subsidiary company of Lundin Mining Corporation, has now completed its initial obligated expenditure requirement of €700,000 under its joint venture option agreement with Belmore Resources signed in February 2009. Following this initialspending Lundin has decided to continue its earn-in at an accelerated pace. Lundin has a right to earn up to a 70% interest in the Prospecting Licences that Belmore currently holds in Co. Clare. To earn the 70% Lundin needs to spend up to €14.7 million over anumber of years."
We are not sure how big is the recent holding of Lukas Lundin in Minera Andes MAI.v after Robert McEwen has taken the company over, but as we mentioned before TNR Gold TNR.v with its lawsuit holds potentially keys to Majority in partnership between Robert McEwen's Minera Andes and Xstrata.
It will be interesting to see Lukas Lundin Global Exploration Play next moves: whether he will choose to grow organically with his projects or decide to stir some waters with M&A games.
Why are we paying so much attention to all these interconnections? Junior mining business is very small in money terms, but it is even smaller in number of capable people involved and to stay in the game the most important is to reduce your risks to pure geological and metallurgical uncertainties. Go where people value their reputation more then money involved: it is not the ultimate guarantee for success, but it is an insurance from disaster.
"Follow the money: we always add - Smart Money. Lukas Lundin is building his global Exploration Play. We have our Junior Mining Economics in action. We have wrote before about our expectations of Sanu Resources SNU.v to be taken out by Canadian Gold Hunters CGH.to - our list of Juniors Top Picks 2009 is getting smaller! It is time to buy assets at still distressed valuations, later with Gold over 1000 USD/oz, Silver above 15 USD/oz and Copper solidly above USD 2.0/lb will be the time to strike J/V deals and sell in the Seller's market, when everybody will be thinking: how on earth we can get this kind of valuations before. But it is the future and it is not for certain - that is why Lukas Lundin is buying again at cents per dollar in our second chance of Junior Mining Investment cycle. We follow his touch and legacy. Our other juniors from the Top Picks 2009 are in the game with bold moves into Gold, Lithium and REE."
Press Release
Source: Canadian Gold Hunter Corp., Sanu Resources Ltd.
On Thursday August 20, 2009, 7:00 pm EDT
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 20, 2009) - Canadian Gold Hunter Corp. (TSX:CGH - News; "Canadian Gold Hunter") and Sanu Resources Ltd. (TSX VENTURE:SNU - News; "Sanu") are pleased to report that the previously announced business combination between the two companies has closed.
Sanu shareholders approved the business combination at a special meeting held on August 17, 2009, and the transaction has received all the requisite regulatory and court approvals. Sanu is now a wholly-owned subsidiary of Canadian Gold Hunter. Sanu's common shares are expected to be delisted from the TSX Venture Exchange shortly hereafter.
Pursuant to the Arrangement Agreement, Canadian Gold Hunter acquired all of the issued and outstanding shares of Sanu on the basis of 0.5725 shares of Canadian Gold Hunter for each one Sanu share (the "Exchange Ratio"). All outstanding Sanu options and warrants have been exchanged for replacement options and replacement warrants of Canadian Gold Hunter based on the Exchange Ratio.
Dr. Wojtek Wodzicki, President and CEO of Canadian Gold Hunter, commented, "This transaction represents a pooling of the expertise of two well-regarded exploration companies and its resulting globally diversified portfolio provides a platform for entry into all major regions. The combined entity will move forward as a more powerful and relevant company with a significantly enhanced profile in the market place. We are excited about the opportunities ahead of us and look forward to much success and growth in the years to come."
In connection with the business combination, Dundee Securities Corporation provided financial advice and a fairness opinion to the special committee of the Board of Directors of Sanu.
Canadian Gold Hunter is also pleased to announce the appointment of Mr. Michael Winn to the Company's Board of Directors.
Mr. Winn served as a director of Sanu from March 2004, until the closing of the Company's business combination with Sanu on August 20, 2009. Mr. Winn is currently President of Terrasearch Inc., a consulting company that provides investment analysis and financial services to companies operating in the oil & gas mining, and energy sectors. Prior to forming his company in 1997, Mr. Winn spent four years as an analyst for a Southern California based brokerage firm where he was responsible for the evaluation of emerging oil and gas and mining companies. Mr. Winn has worked in the oil and gas industry since 1983 and the mining industry since 1992, and is also a director of several companies operating in Canada, Latin America, Europe and Africa. Mr. Winn has completed graduate course work in accounting and finance and received a B.S. in geology from the University of Southern California.
Dr. Wodzicki commented, "We are very pleased to have Michael join Canadian Gold Hunter's Board. He brings a wealth of financial and industry expertise to the Board."
Brian Bayley, Richard Clark and Neil O'Brien have resigned from the Board of Directors of Sanu to adjust for Sanu's Canadian Gold Hunter subsidiary status.
About Canadian Gold Hunter
Canadian Gold Hunter Corp. is an international, multi-commodity exploration company with a large portfolio of gold/copper projects in Canada, Mexico and several countries in South America and Africa. Projects range from grass-roots to advanced resource-definition stage.
ON BEHALF OF THE BOARD
Wojtek Wodzicki, President and CEO"
No comments:
Post a Comment