Financial Press » FP Exclusives http://financialpress.com Breaking Business, Financial & Economic News Headlines Fri, 30 Jan 2015 23:01:19 +0000 en-US hourly 1 Massive Uranium Numbers Re-Ignite Buy-out Rumours http://financialpress.com/2015/01/28/massive-uranium-numbers-re-ignite-buy-out-rumours/ http://financialpress.com/2015/01/28/massive-uranium-numbers-re-ignite-buy-out-rumours/#comments Wed, 28 Jan 2015 13:25:11 +0000 http://financialpress.com/?p=46259 Micro-Cap Makena Resources Develops Uranium Project Adjacent To Discovery –-By Financial Press

Interview with Negar Adam, President, Director
Makena Resources(MKN-TSX.V)(CANSF-OTC)

On January 9, 2015 Fission Uranium Corp. (FCU-TSX.) released a maiden resource estimate for its Triple R Deposit at Patterson Lake South, Saskatchewan that radically exceeded the projections of all uranium analysts.

The deposit contains an indicated uranium resource of 79.6 million pounds U3O8, plus an inferred resource of 25.9 million pounds for a total resource of 105 million pounds. The estimate has heated up rumours of an FCU buyout – which could have significant ramifications for other uranium explorers adjacent to the discovery.

One of the smallest of these companies – and arguably the most leveraged is Makena Resources(MKN-TSX.V)(CANSF-OTC), whose Patterson property directly border Fission’s Patterson Lake discovery.

“Our Patterson land package is bordering the Fission discovery,” confirmed Makena President and Director Negar Adam in an exclusive interview with Financial Press, “We believe this may have caught the attention of the market and is giving Makena a wider audience.”

Makena is about to conduct a gravity survey on its property for the first time, with the intention of defining drill targets by March 2015.

Buyout candidates for FCU include Denison Mines Corp. (DML-TSX), the Lundin backed uranium producer that has expansion ambitions in the Athabasca Basin. Cameco Corp. (CCO-TSX), Canada’s largest uranium company, is another potential buy-out candidate. Cameco bid for Hathor’s Roughrider deposit in 2011 but lost to Rio Tinto.

“Many investors who would profit if a buyout occurs are likely going to look in the Patterson district again, and more than likely will look at the juniors in the area. We may potentially be looking at up to $500 million of unallocated investment capital that may be reinvested in the Patterson district. As Makena has a current market capitalization of less than $2 million, management feels that Makena may potentially benefit from some of these funds considering we directly border this discovery,’” stated Adam.

Makena has recruited uranium legend Dr. Schimann to its advisory board. From 1977 to 1997, Schimann was employed by French uranium giant AREVA as a Senior Geologist, where he was a key member of the team that discovered the massive Cigar Lake uranium mine. Ten of Schimann’s years at AREVA were spent in uranium exploration and mine development, mainly in the Athabasca Basin.

“Adding a uranium geologist with Dr. Schimann’s experience and pedigree within the Athabasca Basin to our advisory committee demonstrates Makena’s focus on developing the Patterson Block of properties,” stated Adam, “With Dr. Schimann involved, we are even more optimistic about the ability to develop this uranium project.”

Combining magnetic and the electromagnetic data, three structures have been mapped on the Patterson Uranium Property. Two of these structures trend NW and one trends NE. The basement is estimated to be at a depth of about 150 metres, based on historical drill holes within the property and adjacent to it.

“We have multiple targets that we are in the process of testing,” stated Schimann, “The identified structures are often associated with uranium mineralization. The upcoming ground survey and drill program will reveal whether these anomalies have associated uranium mineralization.”

Makena appears to be part of a rising tide. Uranium prices have been suppressed by surplus inventories created by Japan’s 50 shut down reactors. Japan will begin restarting these nuclear plants in 2015.

China has 28 nuclear reactors under construction, with another 49 planned and 120 proposed. Vietnam, Turkey, Indonesia, Egypt and Kazakhstan are all building their first reactors.

According to the World Nuclear Association, Global uranium demand will rise 48% by 2023.

“In the future, the Athabasca Basin will be the biggest source of uranium for the whole world,” stated Uranium Guru Thomas Drolet in a recent interview with Financial Press.

Major mines in the Athabasca Basin include McArthur River (16.5% U3O8), Maclean Lake (50 million lbs produced), Rabbit Lake (186 million lbs produced), Cigar Lake (22.3% U3O8), Cluff lake (60 million lbs produced).

Nuclear power is the cleanest form of energy on the planet. Cities need a reliable supply of electricity. Renewable energy stops delivering when the wind doesn’t blow or the sun doesn’t shine. Coal is not clean. That leaves a big role for nuclear energy.

“Makena currently has one of the smallest market capitalizations of any company that borders the Fission Discovery,” stated Adam, “We are hopeful that the next exploration phase could significantly advance the valuation of our project.”

Fission Uranium’s latest resource estimate has confirmed that the discovery is real and it appears only a matter of time before they will be bought out. FCU’s current market capitalization is $430 million. The buy-out figure for FCU is projected to be half a billion to $700 million.

Makena is currently trading at $0.04 with an approximate market cap of $1.45 million.

Contact:

Makena Resources Inc.
Negar Adam
President, Director
1.604.685.5150
1.604.689.1733

 

Legal Disclaimer/Disclosure: This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Financial Press makes no guarantee, representation or warranty and a fee has been paid for the production and distribution of this Report.

 

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Expectations on Stimulus Fuel Hope For Copper Demand http://financialpress.com/2015/01/26/expectations-on-stimulus-fuel-hope-for-copper-demand/ http://financialpress.com/2015/01/26/expectations-on-stimulus-fuel-hope-for-copper-demand/#comments Mon, 26 Jan 2015 15:52:40 +0000 http://financialpress.com/?p=46256 Copper North Finds $200 Million of Precious Metal in Copper Project –

By Financial Press

Fitch Ratings has predicted that sustained Chinese demand will protect copper prices from a sharp sustained fall. While Chinese GDP growth is slowing, armies of cranes still clutter the skyline, and monthly copper imports are holding steady. “Copper is unlikely to see the same extended decline as oil and iron ore,” the Fitch report stated.

Copper North (COL-TSX.V) has unveiled a new processing plan for the recovery of copper, gold and silver at Carmacks project in the Yukon.

“Since taking over this project in March 2014, I have been working on three principal objectives to change the economics of the project from average to spectacular,” stated President, CEO and Director Dr. Harlan Meade in an exclusive interview with Financial Press.

The first objective was to establish gold and silver credits. COL now has a Measured & Indicated mineral resource containing 133,700 ounces payable gold and 1,279,000 ounces payable silver.

“At today’s spot prices that is close to $200 million dollars of precious metals that were unaccounted for in previous economic modelling,” stated Meade.

The second objective was to reduce production cash costs. The gold and silver recovery creates a projected 28% increase in life-of-mine net revenue – reducing cash costs from US$1.60 per pound of copper to US$1.07 per pound.

“On a graph with our global peers, that moves us from the middle of the cost curve, to the very bottom,” stated Meade “This significantly de-risks the mine because we will still be profitable at much lower copper prices.”

The third objective was to improve the short and long term financial health of the Copper North.

“When I took over ten months ago, Copper North was $1.5 million in arrears,” stated Meade “Shortly it will be debt free and have enough cash to cover expenses and fund on-going feasibility work. We are exploring gold and silver metal streaming transactions to fund project development. This would enable us to raise a big chunk of the capex of the mine, without share dilution or hedging of the copper.”

A pilot test program confirms that the oxide mineral resources at Carmacks can be optimized using an “agitated tank leach” for both copper and the gold and silver.”

Meade cites three reasons why the agitated leach is an important milestone. “One, we do not need to grapple with the environmental stigma around leach pads. Two, it eliminates logistical challenges that come from maintaining a leach pad during extreme winter conditions. Three, it removes a number handling steps and provides more operational control to optimize recovery.”

The agitated tank leach is a contained system with a small footprint. The July 2014 Preliminary Economic Assessment projects a capital cost reduction for the mine of about 30%. The new target is about $150 million.

“Leaching of heaps in winter was a concern – tank leaching eliminates the concern,” stated Meade, “With the new system we are getting leach times of less than 24 hours. With agitated tank leach and elimination of heap leach pads we reduce the Capex by about $75 million and get rid of a lot of tricky and costly procedures to operate it. It is also much cleaner environmentally and gives us additional process control.”

The New Process Plan consists of three-stage crushing, followed by rod mill grinding. The ores are then placed in an agitated tank with weak sulphuric acid. The leachate is pumped to electrowinning plant for recovery of cathode copper. The copper cathode can be sold directly to end-users for fabrication.

Residues from the cyanide circuit undergo destruction prior to deposition in a dry stacked waste facility. Dry stacked tails are a preferred means of storing waste as it eliminates the need for a tailings pond.

Copper North’s has engaged the Beijing General Research Institute Of Mining and Metallurgy, and they have begun design work for the agitated leach process as part of a Prefeasibility Study to be completed by the end of Q2, 2015.

Improvement of recoveries and advance revenues from precious metals and the opportunity to enter into metal streaming contracts, have radically improved the economics of the Carmacks project.

The proposed mining area consists of multiple zones spanning approximately 600 metres of the main structure. The mineral resources include 11.98 million tonnes of Measured and Indicated resources grading 1.07% copper, 0.456 g/t gold and 4.58 g/t silver.

“The 2014 exploration program confirmed the opportunity for significant expansion of both oxide and sulphide mineral resources. A larger program is being planned for 2015 with the goal to expand the oxide mineral resources in pursuit of extending the potential mine life.”

The Carmacks project is only 30 km off the Alaska Highway. There are power lines 9 kilometers from the property providing electricity at about 9.5 cents per kilowatt/hour – 30% of the cost of diesel generation.

Reduced transportation costs are another advantage for Copper North. The Carmacks project will generate 99.9% pure copper on site. It will not have to truck concentrate to a smelter. The company will be loading 400 pound copper plates onto the back of a flatbed truck.

Production is forecast is 30 million pounds of copper a year, 17,000 ounces of gold, and 165, 000 ounces of silver. The combined revenue from the metals at current spot prices is about $105 million per year.

Copper North is currently trading at $0.06 with a market cap of $6.9 million.

Contact:

Copper North Mining Corp.
Dr. Harlan Meade
President and Chief Executive Officer
604 398 3451
info@coppernorthmining.com

www.Coppernorthmining.com

Legal Disclaimer/Disclosure: This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Financial Press makes no guarantee, representation or warranty and a fee has been paid for the production and distribution of this Report.

 

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Gold Set to Soar in 2015 http://financialpress.com/2015/01/21/gold-set-to-soar-in-2015/ http://financialpress.com/2015/01/21/gold-set-to-soar-in-2015/#comments Wed, 21 Jan 2015 15:20:16 +0000 http://financialpress.com/?p=46248 Gainey Capital Generates Cash Flow With Gold Mill in Mexico  –By Financial Press

So far, gold is having a good year. In 2015, the spot price of gold is up 6%, ishares Silver Trust (SLV-NYSE) is up 12% and the gold junior ETF (GDXJ-NYSE) has surged 20%. The combined assets of SLV and GDXJ are now $6.7 billion.

The U.S. Mint has also set a new sales record for its American Eagle silver bullion coins, with sales of 43 million coins. Physical bar & coin consumption is now 46% of industrial demand – a 500% increase in the last six years.

The most successful junior metal companies are generating cash by processing gold from 3rd party miners. The share price of Inca One (IO-TSX.V) – operating a gold milling facility in Peru – is pushing a 52-week high. Dynacor (DNG-TSX) Mines also operates a gold ore-processing business. Its share price has risen from .20 to $1.65 in the last 5 years – an increase of 1,300%.

Gainey Capital (GNC-TSX.V) (OTCQX: GNYPF) is a junior gold/silver company following the same business model as Inca One and Dynacor. The cash positive company is a toll-processor and exploration company operating in Mexico.

“Last year we spent about $500,000 upgrading our systems to optimal efficiency,” stated Gainey CEO & Director David Coburn in an exclusive interview with Financial Press, “Negotiations for long-term milling contracts are ongoing and include mom-and-pop mining operations in Mexico and publically traded miners.”

Gainey plans on Bulk Sampling 30,000-60,000 Metric Tons of Material through its 300 TPD Mill/Processing Center in 2015. Revenues are projected around $5.8 million USD with EBITDA in the 35% level. GNC employs a conservative $940 an ounce gold benchmark in analyzing the economics of processing/bulk sampling from its fully owned Mineralized zones. The 300 tpd facility is planned to be increased to 600 tpd by the end of Q4 2015.

Gainey’s mill/processing center is the only one in the region to include a gravimetric/flotation processing center, which optimizes gold and silver recovery rates.

“Gravitational separation is a cost effective system that uses an inclined table with a shaker to move the material along a table,” explained Coburn, “The combination of gravitational separation and floatation achieves extremely high recovery rates.”

Gainey’s best-in-class mining team includes former Barrick Gold management Jorge Valenzeula Cantua a Mexican silver veteran who has strong ties to the local community, exploration leaders Minera Cascabel and MAG Silver’s Dr. Peter Megaw and technical board member Larry Segerstrom who was the Geological Manager for Freeport McMoRan at Grassberg, one of the largest gold mines in the world.

“Our proximity to power, transportation, water and skilled labor has kept operating costs well below industry standards,” stated Coburn, “We are connected directly to the federally operated power grid.”

The water systems have also been upgraded with new pumps and motors. With power and water issues solved, Gainey is projected to maintain below-industry operating costs in the future.

The mill/processing center is located 15 kilometers on a paved road from Highway 15 South, which is a main Federal highway connecting the many ports and airports to the USA. It is only 5 km from a large military base, ensuring high security and a strong supply of skilled labor.

“We’ve formed a strong relationship with the local Huajicori community, which has been supplying skilled and unskilled labor,” stated Coburn, “We are also renting equipment from them, which has saved money and strengthened our working relationship.”

Gainey’s flagship El Colomo property is about 19,000 hectares. A detailed prospecting program around the main vein systems will be announced by the middle of February, 2015 and will commence in Q1 2015. With dozens of visible outcrops of substantial size, prior exploration delivered grades as high as 13.75 grams per tonne gold equivalent.

Gainey’s strategy of combining toll processing and exploration activities mitigates risk by generating revenues from the mill to fund exploration and development in this mineral rich area of Sierra Madre in western Mexico.

Gainey’s largest single investor is Mexican billionaire Ernesto Echavarria who operates a conglomerate of companies close to El Colomo.

Gainey’s mill/processing center is paid in full and is currently processing ore. By the end of 2015, the company intends to process its own ore and become a fully sustainable mining/processing company with positive revenues from its own gold/silver production.

“We have about $2.5 million in cash and no underlying debt,” stated Coburn, “Optimizing relationships with metal producers in the area and ramping up tonnage at our modern processing facility, we are positioned to become a profitable gold and silver producer in 2015.”

To date, GNC has delivered on its publically stated financial and operational milestones.

Gainey Capital is currently trading at .25 with a market cap of $5.94 million.

For information, please contact the Company:
Phone: +1 602-315-1231
E-mail: info@gaineycapital.com
Website: www.gaineycapital.com

Legal Disclaimer/Disclosure: This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Financial Press makes no guarantee, representation or warranty and a fee has been paid for the production and distribution of this Report.

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How to Reduce Exploration Risk to Zero http://financialpress.com/2015/01/14/how-to-reduce-exploration-risk-to-zero/ http://financialpress.com/2015/01/14/how-to-reduce-exploration-risk-to-zero/#comments Wed, 14 Jan 2015 15:15:31 +0000 http://financialpress.com/?p=46234 Inca One Generates Cash from Gold Mill in Peru By Financial Press

In the last two years, Peru’s government has aggressively reigned in and regulated 200,000 small scale miners – establishing environmental controls and creating tax revenue from the massive rogue industry.

Prior to the new regulation, an estimated two million ounces of untaxed gold was produced every year in Peru – creating a $2.9 billion hole in Peru’s GDP.

The new mining legislation in Peru has created a perfect storm of opportunity for Inca One (IO-TSX.V) – a Canadian-based resource company with a gold milling facility in Peru. Bucking a downward trend in junior precious metal companies, IO’s share price is pushing a 52-week high.

“The rules in Peru create something of a captive market for Inca One,” confirms influential Gold Newsletter Publisher Brien Lundin in the summer 2014 issue.

“The easiest way to explain what we do is to use a forestry analogy,” stated Inca One President and CEO Edward Kelly in an exclusive interview with Financial Press, “The miners are the loggers. Inca One is a pulp mill. We buy raw product from a variety of sources and process it into gold – not paper.”

Construction of Inca One’s 100 tonne per day milling plant is complete. The new machinery is being broken in – in the same way that you break in new car. Initial teething problems – like bearings heating up – are now fixed. The company is currently processing about 40 – 50 tonnes of ore a day, ramping up steadily to full capacity.

“We do not stake land, run seismic or drill,” confirms Kelly, “Inca One just makes gold, at a healthy margin.   Our risk is metallurgical, not geological. We need to run the mill efficiently to be profitable, and that is where our focus is.”

Inca One recently hired Carlos Santana as Chief Metallurgist for the Chala One gold milling plant. Mr. Santana, who has a Chemical Metallurgy degree, is joining Emilio Ortiz and Jaime Polar, two mill operating managers with extensive previous experience at Barrick Gold Corp.

“We anticipated grades of 15 grams per tonne,” stated Kelly, “But we are getting 27 grams per tonne. This means that we have to leave the ore in the tanks longer than we projected. The unanticipated high grades have slowed us down a little. It’s a good problem to have.”

Peru is one of the world’s top producers of gold, with substantial production coming from artisanal miners who now need government permitted milling facilities to process their ore.

“’Artisanal Miner’ is a term that need to be qualified in Peru,” explains Kelly, “These are not Mom & Pop operations panning for gold with dinner plates. It is a huge multi-billion dollar business. While building our company I have met hundreds of these so-called ‘artisanal miners’ and they are usually business-savvy millionaires.”

 

IOO Kelly states that a typical miner that trucks ore to the Inca One facility is extracting 10 tonnes of ore a day, at over 1 oz. per tonne – that’s about $100,000 a week of bullion. The scale of the operations and the money that is being made in Peru is significant.

“The price we pay for the ore is based on the closing price of gold in London that day,” stated Kelly, “Since it takes 30 days to extract the gold, we take a discount to hedge against a drop in the spot price. And we also charge for the metallurgy, the toll milling fee, and chemical fees. With gold at $1,250 an ounce, we will keep roughly $550 and the miner will keep $700.”

Inca One is currently processing about 30 tonnes per day – generating about $15 million a year in projected sales. In the next 60 – 90 days, the processing volume expected to more than triple.

The only comparable to Inca One is Dynacor Mines (DNG-TSX.V) that also has a gold ore-processing business in Peru. Its Dynacor’s plant has maximum capacity of 250 tonnes per day. The company also has an exploration project. Dynacor’s share price has risen from .20 to $1.60 in the last 5 years – an increase of 1,300%.

“The, chemical companies, shippers, security firms and government agencies. We have built intricacy of our business gives us some insulation against competition,” stated Kelly, “There are a lot of moving parts to running a mill in Peru. We have relationships with miners, metallurgists, labs, truckers what I would call a proprietary skill set. It is now part of the DNA of our company and we plan to replicate it in other parts of Peru.”

Inca One is currently trading at .225 with a market cap of $14.75 million.

 

Legal Disclaimer/Disclosure: financial A fee has been paid for the production and distribution of this Report. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this article should be construed as individualized investment advice. A licensed advisor should be consulted prior to making any investment decision. Financial Press makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the authors only and are subject to change without notice. Financial Press assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this article and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this article.

Also, please note that republishing of this article in its entirety is permitted as long as attribution and a back link to financialpress.com are provided. Thank you.

Contact:

For More Information

Kin Communications Inc.
Email contact
1-866-684-6730
1-604-684-6730
Email contact

 

 

 

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Headlines Signal Bear Market Bottom for the Canadian TSX-Ventures Exchange http://financialpress.com/2015/01/12/headlines-signal-bear-market-bottom-for-the-canadian-tsx-ventures-exchange/ http://financialpress.com/2015/01/12/headlines-signal-bear-market-bottom-for-the-canadian-tsx-ventures-exchange/#comments Mon, 12 Jan 2015 15:30:34 +0000 http://financialpress.com/?p=46216 Dajin Resources Cited in Landscape of ‘Good Buys’By Financial Press

Historical evidence is mounting that TSX Venture Exchange has now hit bottom, and investors have a rare opportunity to create wealth by investing in good companies and catching a rising tide.

We sat down with capital market veteran Ron Loewen to discuss the potential to create wealth in the current market. Loewen specializes in funding and restructuring public resource companies.

“I’m a technical contrarian by nature,” states Loewen in an exclusive interview with the Financial Press, “I seek value and I make money where it is there to made – including shorting overvalued stocks.”

“The TSX Venture Exchange can be a difficult animal to understand and to predict,” admits Loewen, “When times are bad, it’s hard to make aggressive decisions. Part of us always feels, ‘it’s different this time’ ‘things won’t get better’. But the history of the TSX.V proves – not just that they will – but they always do.”

Loewen stresses that it is human nature to have a ‘herd mentality’ and not think rationally. ‘A herd appears to act as a unit,’ explains evolutionary biologist, W. D. Hamilton, ‘but its function emerges from the uncoordinated behavior of self-seeking individuals.’

“It’s sad, but we need bear market bottoms to purge investors, brokers and weak public companies out of our industry,” explains Loewen, “Negative headlines of broker layoffs, over regulated markets, sinking commodity prices and general despair are the signal that we have reached the bottom and are about to enter a new bull market.”

‘Buy on Bad News – Sell on Good News.’ It’s easy to say, harder to do. Historical data confirms that when a stock index plummets dramatically on what seems like never ending bad news, it will rebound just as dramatically. And for more than 30 years, widespread negative newspaper headlines have been an accurate predictor of Canadian Venture Exchange market bottoms.

DJI F

 

To see the full infographic by Visual Capitalist click here.

 

To illustrate his point, Loewen retrieves News Headlines from his research files on other bear market bottoms and we begin to see a trend.

Just prior to the stock market bottom of 1982: “VSE Twisting In Economic Winds”, “Vancouver Stock Exchange Closes Lower For 27th Consecutive Day,” “Index Passes Another Milestone On Its Downward Path.”

Just prior to stock market bottom of 1984: “Economic Slump Leaves VSE Reeling,” “VSE Is The Last Vegas Of North American Stock Exchanges,” “VSE Slide May Be Worse Ever In Canada”

Prior to market bottom of 1989: “Scam Capital Of The World,” “VSE In Free Fall,” “Gold Falls To $370,” “VSE Plummets To All Time Low”.

From 2013/2014: “TSX Venture is Broken”. “US Dealer Shutters Toronto and Calgary Offices Amid Gold Slump.” “Investors Run For Cover” etc.

When pressed about the sectors he is following, Loewen mentions lithium where acquisitions and takeovers with senior lithium producers continue (i.e. Albermarle’s purchase of Rockwood Holdings for $6.2 billion dollars). At the same time the mid-cap lithium sector saw Toronto Stock Exchange listed Orocobre Limited officially open their Olaroz lithium mine in December of 2014.

Pressed for an example of an interesting junior lithium company, Loewen mentions Dajin Resources (DJI-TSX.V), which holds 100% interest in lithium and boron claims in the Teels Marsh region of Mineral County, Nevada and significant land holdings of lithium targets in the Jujuy province of Argentina, near Orocobre.

“There are a lot of very good buying opportunities in the juniors markets right now,” states Loewen, “I’ve got my investment group focusing on a number of things, but in the junior space, Dajin because their Teels Marsh is a potentially huge lithium asset in the direct vicinity of Tesla Motors’ announced Gigafactory, in Nevada.”

“The Tesla Gigafactory will use 25,000 metric tons of Lithium per year,” states Loewen, “around a fifth of the world’s capacity. What Tesla is doing has validated to the mainstream what many of us in the Lithium space have known for a long time, that there are huge advancements happening in battery and ion technology that are going to change the face of how we power everything around us. We’re right on the cusp of that – Supplying the Gigafactory is predicted to raise demand for lithium in the battery industry by about 55%, and demand in the overall market by 20%.”

Loewen continues, “While the Canadian Venture Exchange has gotten pounded, I’ve been quietly mentoring Dajin. The company has done a great job of getting themselves in the right position at the right time. Dajin is involved in two of the world’s best known brine based lithium salars with the underlying metal experiencing increasing global demand.”

The International Energy Agency predicts 40 million battery electric vehicle sales per year by 2050, from current annual sales of 150,000.   This macro trend is spreading quickly from West to East.

According to the World Bank, air pollution costs China around $300 billion a year in health problems and loss-of-productivity. In response, the Chinese central government just announced a slate of pro-electric car policies including slashing charging station rates by 30%.

Navigant Research predicts that global lithium ion battery sales for all devices – including cellphones, laptops, commercial aviation and aerospace – will increase 400% by 2023.

“Investors should not wait for more positive headlines before allocating some of their capital to overlooked and historically cheap stocks,” advises Loewen, “history does matter. The barrage of negative headlines aimed at the Venture market is the signal that we have reached the bottom. When the turn-around happens it will be dramatic and the markets will reward the early and the bold.”

Contact:

Ron Loewen can be reached at ronwloewen@gmail.com and found at ca.linkedin.com/in/ronloewen

Dajin Resources Corp. can be reached at info@dajin.ca and found at http://dajin.ca

Legal Disclaimer/Disclosure: A fee has been paid for the production and distribution of this Report. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this article should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. Financial Press makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the authors only and are subject to change without notice. Financial Press assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this article and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this article.

Also, please note that republishing of this article in its entirety is permitted as long as attribution and a back link to FinancialPress.com are provided. Thank you.

 

 

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Bet Smarter on the Internet of Things http://financialpress.com/2015/01/12/bet-smarter-on-the-internet-of-things/ http://financialpress.com/2015/01/12/bet-smarter-on-the-internet-of-things/#comments Mon, 12 Jan 2015 15:20:28 +0000 http://financialpress.com/?p=46213 Visionstate Replaces Paper Protocols with Digital –By Financial Press

Your grandmother’s iron stove did not collect data. Now many household and corporate devices do – but that information is seldom levered into profitable action. Interactive analytics is a new game-changing field that boosts efficiency and cost savings through collection of data.

Although most of the innovation in this field is being done by small cap companies, the big boys are moving in. In 2014, Google (GOOG-NASDQ) paid $3.2 billion for Nest Labs who make remote app-driven thermostats that adjust the temperature of your house according to location and user habits.

Visionstate (VIS-TSX.V) is a leader in interactive technology software. Through touchscreen directories, mobile applications and cleaning management software, the company provides innovative solutions for corporations, retailers and government institutions.

“We are in the business of replacing paper directories with a digital interactive interface,” states Visionstate President and CEO, John Putters, “Our flagship product WANDA (Washroom Attendant Notification Digital Aid) is a smart device for public restrooms.”

Although restaurants and hotels are judged loudly on social media by the cleanliness of their washrooms, the bulk of these facilities use maintenance protocols that are now 60-years-old.

“We have all seen paper hanging on the wall of public restrooms with unintelligible scribbles,” stated Putters, “WANDA replaces the paper with a touchscreen device mounted at the entrance to restrooms, requiring maintenance staff to digitally log their cleaning activities and resources.”

WANDA allows managers to harvest a host of information that will deliver efficiencies and enhanced resource use. Putters explains that as the database of information grows, the device will learn to predict unusual service level requirements. A pub franchise can anticipate that its restrooms will require extra servicing during televised play-off games.

But the benefits go beyond superior service and resource allocation. WANDA also provides an audit trail on the maintenance history of the venue. The latter point can be important if a customer slips on the floor and claims that it wasn’t recently cleaned.

“If somebody falls and decides to sue, the contracted maintenance company will need to prove that they fulfilled the terms of the contract,” stated Putters, “That is difficult to do when you’re dealing with paper that can be easily back-dated. So as well as increasing employee accountability, WANDA functions as low cost insurance against frivolous law suits.”

WANDA currently provides two revenue streams for Visionstate. A one-time fee for the hardware, and a monthly fee for the software license that manages the data. Visionstate is investigating adding a third revenue stream derived by digital advertising.

Putters sees hospitals and airports as a natural home for Vision State Technology. He is currently running a 15-unit pilot project at Pearson Airport, in Toronto.   Visionstate is planning to launch a 10 inch version of WANDA, reducing the capital of cost of the unit from $2,200 to about $900.   The 10 inch version is expected to be released in 2015.

In the world smart devices, big profits lie in the nooks and crannies. Something mundane, like replacing a piece of paper inside a restroom with a touch-screen – can generate significant cash flow. Visionstate’s mandate is to identify paper protocols that can be replaced by digital ones – enhancing profitability.

Visionstate recently signed an agreement with CBL Properties to deploy digital interactive kiosks in 30 of their largest shopping malls in the US. ViCCi (Virtual Interactive Client Care Interface) allows shoppers to locate products, shops and services through Visionstate’s proprietary interactive touch technology.

“Simultaneous with our roll-out plans for WANDA and ViCCi, we are working on new ventures in the hotel and hospitality industry,” stated Putters, “Further announcements will made as we hit milestones in development cycle.”

Google’s $3.2 billion acquisition of Next is a leading indicator. “The Internet of Things” has arrived. In the last 6 months smart locks and Wi-Fi -connected security cameras have hit the shelves, along with Water Hero – a device that turns off your home’s water supply if it detects a major leak.

Given the stakes, there is a lack of competition in this space, although Planar Systems (PLNR-NASDAQ) is developing video walls, large format LCD displays and interactive touch screen monitors. Planar’s share price has increased 490% in the last two years.

IDC Research estimates that the worldwide market for “Internet of Things” solutions will grow from $1.9 trillion in 2013 to $7.1 trillion in 2020.

Visionstate is currently trading at .13 with a market cap of $3 million.

Contact:

Visionstate Inc.
Derek Wood

Investor Relations
(403) 200-3569
derek@visionstate.com

Legal Disclaimer/Disclosure: A fee has been paid for the production and distribution of this Report. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this article should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. Financial Press makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the authors only and are subject to change without notice. Financial Press assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this article and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this article.

Also, please note that republishing of this article in its entirety is permitted as long as attribution and a back link to FinancialPress.com are provided. Thank you.

 

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Supercapacitors To Replace Batteries? http://financialpress.com/2014/12/16/supercapacitors-to-replace-batteries/ http://financialpress.com/2014/12/16/supercapacitors-to-replace-batteries/#comments Tue, 16 Dec 2014 14:35:02 +0000 http://financialpress.com/?p=46140 Lomiko Metals Launches New Graphene Supercapacitor Venture - 

Reliable energy storage is one of the biggest obstacles for Electric Vehicles and Smart Phones.  With 1 billion mobile phones sold every year – and most of them running out of juice by noon – this is big news.

Lomiko Metals (LMR-TSX.V) (LMRMF) (DH8B.F) worked with Stony Brook University and Graphene Laboratories on a proto-type graphene supercapacitor to solve that energy storage problem in 2013.  Now, they have formed a new company called Graphene Energy Storage Devices Corp to bring that proto-type to commercialization for EVs, smart phones.

“What is completely unique about us,” stated Lomiko CEO Paul Gill in an exclusive interview with Financial Press, “is that we’re building links to each part of the chain.  We invested in Graphene 3D Labs (GGG-TSX.V) and they are developing the 3D-printable graphene battery, Graphene ESD is developing a graphene super capacitor. Lomiko has licensed and will produce a power converter, and we are exploring graphite resource assets in Quebec which will provide the raw materials for conversion into graphene.”

The properties of graphene, including its conductivity, mechanical strength, and high specific surface area, make it an ideal electrode material for electrochemical devices uses such as supercapacitors and next-generation Li-ion batteries.

Energy storage solutions have not kept up with the current rate of electronic component evolution. Conventional batteries store a substantial amount of energy, but they are large, heavy and slow to release and charge.

The Tesla Model S is a case in point.  It can go three hundred miles on one charge but it takes more than 24 hours to re-charge using a standard 120v wall socket.  The slow recharge time is a barrier to wider consumer adoption. Capacitors charge and release energy quickly, but they hold less energy than a battery.

Supercapacitors appear to be the answer to future mobile energy storage needs.

They hold 10,000% more electrical charge than a standard capacitor and they work at very low temperatures.  The only problem right now is that they aren’t cheap. Graphene supercapacitors could change that.

“The demand for energy-efficient electronic devices is surging,” stated Gill, “with the advent of re-chargeable batteries and the new market for quick-charge supercapacitors, Lomiko is moving into a growing market with a profitable business model.”

Gill explains that a supercapacitor is a high power version of a battery that holds high density energy.  Graphene technology may prove to be the magic bullet for affordable energy storage, with fast charge and discharge rates.

Current supercapacitors can store about 150 Farads of energy per gram.  The upper limit for graphene-based supercapacitors is 400% higher. As well as being lightweight and compact, graphene based supercapacitors have the potential to be produced cheaply.

“A quick charging retail supercapacitor will solve your energy storage needs,” stated Gill, “and we can design them for cars, golf carts, any application. You’ll no longer have to plug things in and sit around while they charge.  Just plug and go – that’s the ultimate freedom – not having to worry about your mobile devices going dead.”

LMR1

While exploring the graphene supercapacitor opportunity, Lomiko is working on another front to create revenue.

“We currently have a power converter product-line which is expected to produce short term cash flow,” confirmed Gill, “First, there is a power converter that will go into a ballast for a fluorescent or LED lighting system we are producing. Second, there is a unit which will turn our 120v AC/DC plug into a charging station with 6 USB ports for recharging laptops, smartphones and tablets for e-commerce sales.  Thirdly, we have a 60 Watt LED driver.  Powerconverters are not the sexiest product.  But anything you plug into a wall plug has to have one.  It’s a trillion dollar business and we want to be in it.”

Gill has an order from a core customer for 5,000 units per month starting in February, 2015.  In parallel with its sales plans and new e-commerce site, Lomiko will distribute its power converters to electronics suppliers and engineers so that they can test it and incorporate it into their next build.

Gill sees strong synergy with the power converter business and his graphene technology division.

“Utilising graphene to build a faster, stronger more efficient power converter – would give us a significant competitive advantage in a trillion dollar market,” stated Gill.

Lomiko is currently trading at .06 with a market capitalisation 8.2 million.

CONTACT:

www.lomiko.com

Paul Gill at 604-729-5312

email: info@lomiko.com

Legal Disclaimer/Disclosure: A fee has been paid for the production and distribution of this Report. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this article should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. Financial Press makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the authors only and are subject to change without notice. Financial Press assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this article and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this article.

Also, please note that republishing of this article in its entirety is permitted as long as attribution and a back link to FinancialPress.com are provided. Thank you.

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Sales of Silver Coins Reach New Record http://financialpress.com/2014/12/15/sales-of-silver-coins-reach-new-record/ http://financialpress.com/2014/12/15/sales-of-silver-coins-reach-new-record/#comments Mon, 15 Dec 2014 14:35:35 +0000 http://financialpress.com/?p=46135 Kootenay Silver Makes High-Grade Near-Surface Discovery in Mexico - 

American Eagle silver coin sales reached 43 million ounces in 2014, an all-time yearly high.  Physical purchases have pushed New York silver futures to 20% gains in the last two weeks.  Surging demand prompted the U.S. Mint to briefly halt sales last month because of a lack of inventory.

While the SPDR Gold Shares (GLD-NYSE) has lost $2.8 billion in assets in 2014, the biggest physically-backed silver ETF, (SLV-NYSE), has added over $494 million in new assets this year.

“Silver enjoys a unique duality,” observed Kootenay Silver’s President and CEO, Jim McDonald, in an exclusive interview with Financial Press, “It has a large industrial demand and it also is a monetary metal like gold.  Right now, the historical gold/silver ratio is out of whack.  Speculators are buying silver coins in a frenzy because they recognise that a return to norm will bring huge profits.”

Kootenay Silver (KTN-TSX.V) has just made a silver discovery at La Negra Breccia prospect, about 6.5 kilometers north of its flagship Promontorio Silver Resource in Sonora, Mexico.  The final two holes echoed earlier bonanza grades including 459 grams per tonne of silver over 13 meters.

Phase I drilling was conducted in widely spaced fences along 400 of 500 meters of La Negra’s length. The Phase I drill program totaled 25 HQ diameter core holes with 3173.5 meters of drilling.

“La Negra is our second big discovery on the same property,” stated McDonald, “The Promontorio asset is an extremely valuable silver asset.  But La Negra has significantly higher grades and the silver comes to surface. It is a diatreme hosted system which means that it has the potential to be very large. The mineralisation forms a hill about 120 meters high.  Based on these early dramatic results, I envision the potential for a low cost, open pit, low strip ratio operation.”

Kootenay did some laboratory work from surface samples and discovered that the silver mineral is the same as the major silver mineral to the Pan-American Alamo Dorado deposit 190 kilometers to the south.  That suggests that the La Negra deposit will leach well. The Alamo Dorado has been a good money maker.  In 2013 the mine produced about five million ounces of silver and 17,600 ounces of gold.

“The La Negra drill results are remarkable,” stated McDonald, “All the holes are good to great. Hole 21, for instance, went from surface to 200 meters depth averaging 156 grams tonne of silver.  The trenching told us it could be good. But until you drill you don’t know what you have.  Now we are starting to get a sense of it, and it is looking like a game-changer.”

The La Negra drill program revealed high grades below the old water table, in the sulfide zone which is the original primary grade. That’s important for the depth potential.  McDonald’s geological team feels that the silver could extend down for several hundred meters more.

KTN image

McDonald has retained the services of renowned geologist Mr. Hans Smit to assist in the development of the La Negra Breccia Silver Discovery.  A specialist in guiding advanced exploration projects through to permitting – Mr. Smit’s immediate task is to expedite the La Negra discovery to a resource calculation.

“Under Mr. Smit’s guidance, we are now inputting all the drill data into a 3D modelling program,” stated McDonald, “We’ll be able to see the shape of the deposit and which way it is trending.  From this model we will design the follow-up drill program to fill in the gaps and chase the trends down”.

There is already a rig mobilised at La Negra.  The next drill program is expected to be 30 holes, 5,000 meters, with an estimate cost of about one million dollars.  Kootenay already has that money in the bank.  They expect to be drilling in the New Year, and McDonald anticipates they will be able to do a resource calculation on La Negra by the middle of 2015.

“Promontorio is only 6.5 kilometers away from La Negra,” stated McDonald, “We’ve found 40 million ounces of silver and 500,000 ounces of gold and approximately 400 million pounds each of lead and zinc.  I believe it will be a mine one day, but La Negra is higher grade and with potential for finding more ounces with low capital and operating costs. We can add more value for dollars invested. So that is where we are focussing our resources.”

There are currently 6 billion ounces of gold above ground and only 1 billion ounces of silver.  Prior to 1900, the Gold/Silver ratio averaged about 16:1.  In 1975 it was 40:1.   Today the ratio is 71:1.  A reversion to the historical Gold/Silver ratio would value silver at $86/ounce – 490% higher than today’s price.

Kootenay Silver is currently trading at .30 with a market cap of $21 million.

Legal Disclaimer/Disclosure: A fee has been paid for the production and distribution of this Report. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this article should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. Financial Press makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the authors only and are subject to change without notice. Financial Press assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this article and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this article.

Also, please note that republishing of this article in its entirety is permitted as long as attribution and a back link to FinancialPress.com are provided. Thank you.

 

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Money Manager Who Predicted 2008 Housing Collapse Says Gold Going to $5,000 http://financialpress.com/2014/12/08/money-manager-who-predicted-2008-housing-collapse-says-gold-going-to-5000/ http://financialpress.com/2014/12/08/money-manager-who-predicted-2008-housing-collapse-says-gold-going-to-5000/#comments Mon, 08 Dec 2014 14:00:00 +0000 http://financialpress.com/?p=46114 EGX Launches Innovative Financing for Elephant Gold Deposit In Ecuador - 

Peter Schiff, the CEO of Euro Pacific Capital, told Kitco News last week that “Gold is going to $5,000.”  During a run for the U.S Senate Schiff disclosed assets of $64 million.

His opinion on gold is notable because he is one of the only people on the planet to correctly predict the timing and the scope of the 2008 U.S. housing price collapse.

If Schiff is also correct about gold, the near future will bring dramatic wealth creation opportunities for the shareholders of gold explorers like Ecuador Gold and Copper Corp.(EGX-TSX.V) that controls five deposits within the Condor Complex in southeast Ecuador including Santa Barbara and Chinapintza – a joint venture with the Chinese Guangshou Group.

On November 14, 2014, EGX announced its intention to raise gross proceeds of up to $160,000 through a private placement offering to existing shareholders at a price of $0.05 per unit in addition to a further US$840,000 (being increased to US$1,070,000, as announced on November 24, 2014), which is being raised through a separate debenture offering.

“We’ve introduced an innovative financing that allows any of our existing shareholders, other than those in Ontario and Newfoundland, even if not accredited, to invest up to $15,000,” stated EGX CEO Glenn Laing in an exclusive interview with Financial Press, “of course, any accredited investor, even those in Ontario and Newfoundland, can still invest as an accredited investor.”  Under the new private placement exemption just introduced in March 2014, existing shareholders, other than in Ontario and Newfoundland, may invest up to $15,000.  Ontario is also expected to follow suit with the exemption early next year, but Ontario investors would need to rely on the accredited investor exemption for now.

“This financing is an opportunity for a retail investor to come in at five cents and still get a half warrant,” stated Laing, “Obviously junior commodity companies are riskier than Apple stock – but the timing looks great.  How great?  Well, the market cap of EGX is currently only about $17.3 million, which looks very modest in comparison to our increased gold resources described in our most recent technical report filed on SEDAR May 8, 2014 (also summarized in our news release dated March 24, 2014).  Factoring in that the political winds in Ecuador are shifting massively in our favour, I think the timing looks great.”

“Our mining laws have been a total disaster,” confirmed Ecuadorian President Rafael Correa on national radio this summer, “It has been a failure on the part of the government.”

The Ecuadorian government is planning to abolish the windfall tax which torpedoed Kinross Gold’s Fruta del Norte gold project.  Correa has a PhD in Economics from the University of Illinois.

“The Preliminary Economic Assessment is on track and will be finished by the end of January, 2015,” confirmed Laing, “We’ve acquired surface rights around the deposit, so we don’t have to negotiate with land owners.  With these subdued markets there is tendency for juniors to sit on their hands, but that isn’t in my nature. We are advancing Santa Barbara.”

“If [President] Correa is serious, it could favorably impact the prospects of miners and exploration companies with projects in Ecuador and attract new players to the area,” stated a recent Sprott report, “Legendary mining investor Ross Beaty, founder of Pan American Silver Corp., is already acting on the assumption that Correa will favorably reform the country’s mining laws.”

Laing was an early mover in Ecuador, and now the ‘smart money’ is flowing in.

“I feel very fortunate,” stated Laing, “Four years ago we were amongst the first movers into Ecuador.  We liked the rocks, realized the potential for mineral endowment, and we came up with an ‘elephant’.  Now big players like Lucas Lundin and Ross Beatty‎ are moving into our backyard in Ecuador intending to develop their own elephants”.

Laing agrees that the markets are ‘challenging’ and there are few new investors are coming in.

“So what do you do under these circumstances?” asks Laing rhetorically, “You go to all your existing shareholders and offer them discounted shares in the company – basically a ‘rights offer’ so that they can participate in the upside when it comes. EGX is also a first mover with this innovative financing mechanism.”

“The euphoric effects of our last round of QE haven’t worn off yet,” stated Schiff, “When this decline is over…I think gold is going to take a rocket ship back up.”

EGX is currently trading at .07 with a market cap of $17.3 million.

CONTACT:

Ecuador Gold and Copper Corp.
5000 Yonge St. Suite 1901
Toronto, Ontario
M2N 7E9
Phone: 1-416-227-3402
Fax: 1-416-628-3801
info@ecuadorgoldandcopper.com

Legal Disclaimer/Disclosure: A fee has been paid for the production and distribution of this Report. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this article should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. Financial Press makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the authors only and are subject to change without notice. Financial Press assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this article and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this article.

Also, please note that republishing of this article in its entirety is permitted as long as attribution and a back link to FinancialPress.com are provided. Thank you.

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Epilepsy Seizures Drop 50% In Cannabidiol Study http://financialpress.com/2014/11/24/epilepsy-seizures-drops-50-in-cannabidiol-study/ http://financialpress.com/2014/11/24/epilepsy-seizures-drops-50-in-cannabidiol-study/#comments Mon, 24 Nov 2014 15:05:56 +0000 http://financialpress.com/?p=46064 Lexaria Develops Proprietary Cannabidiol Technology -

A new study from Orrin Devinsky, MD, of the New York University School of Medicine, suggests that Cannabidiol (CBD) may radically reduce seizures in patients with epilepsy.

Dr. Devinsky administered cannabidiol to 23 patients with treatment-resistant epilepsy. Thirty-nine percent of the patients saw their seizure rates drop by more than 50%. Four patients (17 %) had no seizures for the last month of treatment.

Lexaria (LXX-CSE) (LXRP-OTCQB) has acquired 51% of PoViva Corp, an innovative health company developing Cannabidiol (CBD)-infused products. Lexaria may increase its ownership position to 75% at a later date.

“Most CBD’s taste awful,” stated Lexaria CEO and Chairman Chris Bunka in an exclusive interview with Financial Press, “Marian Washington and Michelle Reillo – the two principals at PoVivia – have developed patent-pending technology to bind CBD to a lipid. As well as enabling the body to process the CBDs more efficiently, this technology makes it taste much better.”

The first PoViva Tea by Lexaria will be a traditional black tea, which accounts for about 85% of all the tea consumed. Initially Lexaria will sell the CBD lipid-bound tea loosely – and then as the product line gets traction Bunka anticipates introducing flavored teas and tea bags.

In March, 2014 Lexaria entered into the medical marijuana market in Canada where it is legal federally. Its production license application is being reviewed by Health Canada.

“We continue to press for that license,” stated Bunka, “But we made an executive and board decision to build immediate value for the company pursuing opportunities in the hemp-based Cannabidiol (CBD) market – which does not require new licensing, laws or legislation.”

The Alternative Health sector is growing fast. A six year survey with 29,370 subjects monitored the adoption of “complementary and alternative medicine care professionals,” including “homeopathic, naturopathic, or herbalists.”

The study suggests that between 16.9 million and 18.5 million Americans are seeking an alternative health care professional at any given time.

“The US Department of Health has patented CBDs and claimed that they are beneficial in treating Parkinson’s, Alzheimer’s, Cancer, Cardio-vascular diseases and concussion,” stated Bunka, “An overwhelming body of research indicates that Cannabidiol has significant medicinal properties.”

Bunka sees Cannabidiol products as much more than a niche health market. There are many patients with Alzheimer’s and other diseases who don’t want to use marijuana.

Lexaria is planning to market its products to the 150 million daily tea drinkers in the United States. The market for CBDs is much larger than that of marijuana-users.

“We’re not changing focus, we’re sharpening it,” stated Bunka, “We are still in the same sector, but in a 100% legal part of it, which means we can produce foods that contain CBD and create short term cash flows for the company.”

Lexaria is in the process of launching a new e-commerce website and setting up a national distribution center, with 1-800 call ordering.

“Our marketing will include traditional media, direct marketing, and we also are building relationships with alternative health media outlets,” stated Bunka, “Some of these organizations have expressed interest in affiliate marketing campaigns so we are also exploring that.”

Bunka has a conservative approach to alternative medicine, including cannabis. The company has initiated a Responsible Marijuana Policy which states that Lexaria will not sell medical marijuana containing more than 0.3% THC to any medical marijuana patient under the age of 25.

Subsequent to Lexaria’s announcement, the College of Family Physicians of Canada created new guidelines that included the recommendation that medical marijuana in most cases would not be appropriate for patients under the age of 25.

Lexaria is currently investigating several popular food and drink sectors where its patent-pending lipid-binding Cannabidiol delivery system might prove effective. Lexaria has acquired a 3-year exclusive right to the patent-pending process to infuse CBD’s into all global markets outside of the USA.

The 2015 combined hot beverage markets of coffee and tea together, globally, is expected to be $69 Billion according to a report by Basu Majumder A., Bera B. and Rajan A.

According to the US Department of Health and Human Services Patent number 6,630,507, “Cannabidiol is particularly advantageous to use because it avoids toxicity that is encountered with psychoactive cannabinoids at high doses.”

Lexaria continues to pursue the Health Canada MMPR Licensed Producer status by way of its joint venture in Burlington Ontario with Enertopia Corp. Meanwhile Bunka is focussed on producing cash flows from new initiatives; including the CBD-sectors (like epilepsy treatment) derived from already-legal hemp.

According to the Center for Disease Control and Prevention, Epilepsy affects about 2 million people in the United States and accounts for $15.5 billion in direct costs and indirect costs.

Lexaria is currently trading at .09 with a market capitalisation of $3.1 million.

CONTACT:

Lexaria Corp.

950 – 1130 West Pender Street Vancouver BC V6E 4A4
p.  604 602 1675 f.  604 685 1602

e.  info@lexariaenergy.com

Legal Disclaimer/Disclosure: A fee has been paid for the production and distribution of this Report. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this article should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. Financial Press makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the authors only and are subject to change without notice. Financial Press assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this article and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this article.

Also, please note that republishing of this article in its entirety is permitted as long as attribution and a back link to FinancialPress.com are provided. Thank you.

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