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Tuesday, February 21, 2012

China and M&A in Canada: Canada Zinc Metals: Zinc set to shine among commodities czx.v , lun.to, tnr.v, ilc.v, bwr.to, cs.to, imn.to, ncu.to, tko.to, wrn.to, qux.to, rio, bls.to, tck


  
  Canada Zinc Metals has reported recently the number of solid results from its exploration program on Cardiac Creek Deposit. Chinese Copper and Zinc giant Tongling Non Ferrous holds a 36% stake in the company now and Canada Zinc has announced that PEA is ongoing on the project. Another significant shareholder in this emerging M&A story in Canada is Lundin Mining.


M&A Watch in Canada: Canada Zinc Metals: Drilling Intersects 14.54% Zinc + Lead over 8.5 metres in A-11-98 on the Cardiac Creek Deposit. 




Please find below, for your information, a recent article on zinc in the Financial Times.

Regards,

Canada Zinc Metals Corp.
TSX.V: CZX; Frankfurt: A0RAQJ
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The following article was published in Financial Times on February 15, 2012.

Zinc set to shine among commodities

By Jack Farchy, Financial Times, Feb 15, 2012.

The outlook for the zinc market may not be the top priority for many British pensioners. But the metal could soon be a major driver of profits for one of the main constituents of the FTSE 100 blue-chip index.

Although zinc prices have remained subdued as copper, gold and tin have hit record highs, it is one of the commodities about which analysts are most bullish in the medium term.

Zinc is the top pick among the base metals of Macquarie’s closely watched commodity research team based on predictions for 2014. The main reason for the bullishness is the outlook for mine supply: some of the world’s largest zinc mines, including Xstrata’s Brunswick mine in Canada and Minmetals’s Century mine in Australia, are due to close starting in the first half of next year.

“There will be a significant number of large mines closing,” says Duncan Hobbs of Macquarie. “On paper there seem to be sufficient projects to replace those closures; but there’s a rising risk that those projects come later than we are expecting.”

Demand is also likely to be supported by construction-intensive growth in emerging markets. In a recent presentation Nyrstar, the zinc producer, noted that only 4 per cent of steel used in China is being galvanised, compared to 18 per cent in the Europe and the US.

Mr Hobbs of Macquarie predicts prices could hit $3,000 in the next three years – up nearly 50 per cent from current levels.

Others are more optimistic still. Graham Deller, head of zinc research at CRU, the consultancy, says he firmly believes “prices will go through the roof”.  “Anything you pick up now is going to look cheap in three or four years’ time. Tripling [from current prices] is conservative,” he says.
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About Canada Zinc Metals Corp.

Canada Zinc Metals is a mineral exploration company focused on unlocking the potential of a future long life mining district in British Columbia, Canada.   The Company is the dominant land holder in a world class mineral belt called the Kechika Trough which hosts in excess of 80 million tonnes of base metal resources.

Canada Zinc Metals owns a total of 77,754 hectares in 236claims which extend northwestward from the Akie property for a distance of 140 km.

The Company has filed a NI 43-101 report supporting the estimated inferred resource of 23.6 million tonnes grading 7.6% Zn, 1.5% Pb and 13.0 g/t Ag (at a 5% Zn cut off grade) at its flagship Akie property.  Using this estimate, the deposit contains 3.95 billion pounds ofzinc780 million pounds oflead and 8.95 million ounces of silver.  The deposit remains open in all directions.

Tongling Nonferrous Metals Groupand Lundin Mining are significant shareholders of the Company.

Please visit us at www.canadazincmetals.com

2012-01-26 08:56 ET - In the News

The Financial Post reports in its Thursday, Jan. 26, edition that Lundin Mining aims to make an acquisition in 2012 valued at as much as $500-million (U.S.). A Bloomberg dispatch to the Post reports that chief executive officer Paul Conibear says: "We're looking at a few things that are non-public. ... I'd like to do something significant this year." In March, Lundin terminated an agreement to be acquired by Inmet Mining, while defending itself against a hostile bid from Equinox Minerals. Lundin began a process to consider "strategic alternatives" and said in May that offers received for all or part of the company were too low. The Equinox bid ended in April when the Australian company agreed to be acquired by Barrick Gold. Mr. Conibear was Lundin's senior vice-president of corporate development in May when he was appointed to become interim CEO to replace Phil Wright. The CEO appointment was made permanent in late October. Lundin says it will consider copper, zinc and nickel acquisitions in a range of $100-million (U.S.) to $500-million (U.S.). Mr. Conibear says one asset under consideration is family owned. He says, "We're looking off the beaten path."



  Canada Zinc Metals is very well positioned now to participate in further consolidation in the industry, number of Zinc mines will be coming off line in the nearest future and the player, who can consolidate and unlock this region with Teck Resources and Korea Zinc holdings involved, will benefit the most.



China M&A in Canada: Canada Zinc Metals: Drilling Intersects 10.62% Zinc + Lead over 10.31 metres in A-11-93 on the Cardiac Creek Deposit 

"Canada Zinc Metals has come out with another great exploration results, deposit has all chances to grow further.  Stock was moving Up strongly from the recent lows couple of months ago fueled by this drill program expectations and constant rumours about Chinese consolidation. Chinese giant Tongling Nonferrous holds 36% in the company and the only question left is when they will move to increase their stake. Lundin Mining keeps all its options open with the strategic stake in the company - these two companies can easily make this Canadian region play into one of the largest Zinc and Lead mines in the world. We can talk about the magnitude of 100 million tons Zinc and Lead above 5% grade combined after consolidating the Korea Zinc and Teck Resources J/V property in the region.
   In our small interconnected world Canada Zinc Metals holds strategic stake in TNR Gold with its Lithium, Rare Earths and, now - Iron Ore projects. The most intriguing part is Los Azules litigation TNR Gold vs Minera Andes with more than Half of this "Big Copper deposit in Argentina" at stake now. One day, after Canada Zinc Metals acquisition, Chinese Tongling can be knocking together with TNR Gold on the Minera Andes and US Gold door after their merger.








  We have a new report issued on Canada Zinc Metals.




  Company has announced recently its shares buy back in the market - and it is almost like printing money for us. The latest financing was at 0.75CAD and now the stock is trading at 0.38CAD. Company was also granted an exploration permit for the underground drill works and now this promising deposit will enter in the resource definition stage at a much faster pace.
  During this market we are looking for the solid value and the ideal special situations when we have the growing asset and the buyer for it. In case of this company we have both - growing deposit in the very important elephant scale deposit region due to consolidation and Chinese giant Tongling which is holding 36% of the company."



Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advise on this blog and there is no solicitation to buy or sell any particular company here. Always consult with your qualified financial adviser before making any investment decisions.


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