Financial Press » FP Exclusives http://financialpress.com Breaking Business, Financial & Economic News Headlines Wed, 17 Dec 2014 14:35:19 +0000 en-US hourly 1 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.

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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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Marijuana Goes Mainstream http://financialpress.com/2014/11/21/marijuana-goes-mainstream/ http://financialpress.com/2014/11/21/marijuana-goes-mainstream/#comments Fri, 21 Nov 2014 21:19:45 +0000 http://financialpress.com/?p=46070 Supreme Pharmaceuticals Builds Massive Medical Marijuana Facility in Canada –

By Financial Press

3,500 well-dressed investors and entrepreneurs converged last week in Las Vegas in what was the marijuana industry’s biggest event to date by far – the 3rd annual Marijuana Business Conference and Expo.

It was a monumental event, bringing together some of the top agricultural companies in the country with experts in security, logistics, software, packaging, even Wall St. was there as well as several reported celebrity sightings. To say we have a very hot new sector in this country is an understatement.

Supreme Pharmaceuticals (SL-CSE) (SPRWF-OTC) is looking like a champion on this frontier, having built a high-tech pharmaceutical-grade greenhouse in Canada, ideally suited for cannabis cultivation on a large-scale.

“In May 2014 we purchased a 342,000 square foot agricultural greenhouse in Kincardine, Ontario,” stated Supremes’ Director of Operations in an exclusive interview with Financial Press, “since then we’ve deployed over $4 million dollars to convert it into a medical marijuana growing facility that exceeds the federal regulatory requirements.”

The speedy execution of the construction phase reflects the financial, entrepreneurial and operational mix of Supremes’ management team. The company has a solid track record in capital markets, logistics and the marijuana space.

In January, 2014 Supreme received a “Ready-to-Build” letter from the federal regulator indicating its proposal to produce up to 24,000 KG of medical marijuana per year met the regulatory requirements. The ready to build letter states that a producer’s license will be issued following a successful pre-licence inspection.

As the pre-license construction phase comes to a close, the company is now one step away from a green light to commercially produce medical marijuana. “Within the next few weeks we anticipate completing all of the pre-installed regulatory requirements” stated Fowler, “that means the security infrastructure, quality assurance and record keeping protocols are all in place – and we’re ready to put seeds in the ground and turn the lights on.”

Fowler describes the Kincardine greenhouse as the ideal facility to produce high quality, low cost medical marijuana, which will become one of Supremes’ cornerstone competitive advantages. In addition to the traditional cost-saving benefits of greenhouse agriculture, this greenhouse is uniquely suited to medical marijuana production. “The greenhouse is designed to be much shorter than a traditional agricultural greenhouse,” Fowler continued, “which is ideal for shorter plants like marijuana. This design means there are millions of cubic feet of air that we do not have to manage with our climate control systems.   Reducing heating and cooling saves costs and boosts production efficiency.”

The size of the Kincardine facility gives Supreme a significant competitive advantage over other applicants. Health Canada’s regulatory guidance states that it intends to transform a sprawling cottage industry to a small number of scaled growing facilities. “Economies-of-scale have enabled us to make significant capital expenses with construction and quality control” said Fowler, “we’re doing premium installations that would not be practical for a 40,000 square foot facility.”

Supreme is also one of the first medical marijuana companies to take an agricultural approach to the production of medical marijuana. “This is an agricultural business first, which is why we are utilizing an agricultural facility and the latest technology for automated greenhouse agriculture” stated Fowler, “we have a large, secured, highly automated facility capable of providing a sustainable supply of a standardized medical product, something the medical community has told us is essential. One of the problems with smaller facilities is that they can run out of product, depending on the harvesting cycle. That can be a problem for patients who are only responsive to one strain. Supremes’ scale means that we can guarantee reliability and consistency in the supply chain.”

Fowler describes the biggest advantage Supreme gains from the greenhouse is the town of Kincardine itself. “The unforeseen benefit of this greenhouse facility in Kincardine had been the town itself,” stated Fowler, “We’ve got support from all levels of government, the local business community and the residents. Last Saturday we had a job fair, which was attended by over 600 locals, even though we only advertised twenty positions. That level of support is unprecedented in an industry where simply being left alone is a victory.”

Supreme Walmart

Fowler has been involved in the medical marijuana industry for over a decade. He’s likely the only businessman and corporate lawyer in Canada who also has extensive hands-on experience with the medical marijuana patient community and marketplace.

Fowler also intends to use his experience as a patient advocate to help Supreme attract patients who require medical marijuana to treat various ailments. “We are going to institute innovating pricing models,” stated Fowler, “designed to accommodate patients on a limited budget and mitigate the fact insurance providers do not yet cover medical marijuana.”

On November 17, 2014 Supreme closed a non-brokered private placement financing which, based on investor interest, was increased in size twice, generating $1.78 million in additional capital for the Company.

Supreme Pharmaceuticals is currently trading on the Canadian Securities Exchange at $.41 with a market cap of $31 million.

Financial Press Legal Disclaimer/Disclosure to go at end of each client article:

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.

Contact Information

Investor Relations

430–580 Hornby Street, Vancouver BC

V6C 3B6 Phone: (604) 674-2191

Email:info@supreme.ca

Website: www.supreme.com

 

 

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HOW TO BECOME A BILLIONAIRE DRUG TRAFFICKER – LEGALLY http://financialpress.com/2014/11/12/how-to-become-a-billionaire-drug-trafficker-legally/ http://financialpress.com/2014/11/12/how-to-become-a-billionaire-drug-trafficker-legally/#comments Wed, 12 Nov 2014 15:05:13 +0000 http://financialpress.com/?p=46028 Kaneh Bosm BioTechnology is pursuing near term revenues - 

ArcView Group Market Research, a San Francisco-based Cannabis investment research firm, forecasts a 64 percent surge in the legal US cannabis market to $2.34 billion, from initial estimates of $1.53 billion by year end 2014.  Furthermore, ArcView’s research indicates that the five-year US national marijuana market could grow to $10.2 billion.

When marijuana becomes completely legalized in the US it could be 10-20% the size of the alcohol market, translating into total revenues of $40-80 billion per year.

Eyeing such massive potential revenues the ‘Cannabis Dream Team’ at Kaneh Bosm BioTechnology (KBB-CSE) has structured 3 key verticals to earn a share of those revenues.  The executives at Kaneh Bosm are pursuing an automated Cannabis retail system, the BioCanna ADM, a massive greenhouse flagship production center, and a Cannabis production facility design and construction division, Kaneh Bosm EPC.

“We wanted to differentiate Kaneh Bosm in the Cannabis space by getting into positive cash flow ahead of other companies,” stated Kaneh Bosm President and Director Michael Martinz in an exclusive interview with Financial Press.

“Our research indicated that there is a strong desire for an automated retail system.  Our BioCanna ADM (Automatic Dispensing Machine), the automated retail kiosk system, may be a rapid pathway to revenue generation,” states Martinz, “We are looking to lease these units to retailers for around $1500 per month, plus software licensing and servicing fees.  Hypothetically, with 1000 kiosks in service, our gross monthly revenues will exceed $1.5 million.”

He continues, “If you walk into a traditional marijuana dispensary there’s an assortment of consumable goods – much like a deli counter.  Containers are being opened and closed all day long, the product dries out, and its scent and flavour begins to degrade.  Losses – neither of which are good for the business, or their customers”.

Kaneh Bosm has signed an agreement with Alps Innovations for the exclusive North and South American rights to the intelligent automated retail kiosk, the BioCanna ADM for the dispensing of Cannabis, and related accessories.

“Some consumers don’t like the fact that the product is handled by multiple people,” reports Martinz, “Certainly if you are taking medical marijuana, you may have a compromised or weakened immune system, so you clearly do not want exposure to any pathogens.  Further, proprietors of dispensaries are dealing with a largely cash-based business, which creates a vulnerability to theft.  The kiosk solves all those problems.  It accepts a variety of payments, it won’t steal or be late for work, it protects your inventory, and minimizes labour costs.  Additionally, where regulations permit, it may give you 24/7 functionality from your rental space.”

From a regulator’s prospective there is a strong value proposition as well.  The kiosk requires ID, thus ensuring purchasers are of the age of majority, and the system tracks purchases from a central server.  Customers will not be able to circumvent daily or monthly maximum purchase quotas.

Martinz continues, “The business metrics are very solid.  If a kiosk sells just one pound of Cannabis per day, that will generate about $1.6 million a year in sales at $10 per gram.”

On September 23, 2014 Kaneh Bosm announced that it signed a Letter of Intent (LOI) with the Penticton Indian Band (PIB) in British Columbia, Canada, for the development of a Joint Venture (JV) partnership to pursue a Licenced Producer (LP) designation under Health Canada’s Medical Marijuana Production Regulations (MMPR).  Kaneh Bosm and PIB via the JV plan a 3-phase approach to this production facility:

1. Construction of a 12,000 sq ft indoor medical Cannabis facility;

2. Construction of the first phase greenhouse, comprising  1 vegetative and 2 flowering bays totalling 48,000 sq ft; and

3. Completion of the greenhouse with 2 more flowering bays totalling 100,000 sq ft of production space in a state-of-the-art greenhouse.

The LOI identifies Kaneh Bosm as the exclusive partner to the Penticton Indian Band for the production of Cannabis and other biomedical and therapeutic plants. Penticton is located in the world renown viticulture region of the Okanagan Valley of British Columbia, and is climatically ideal for large scale greenhouse production.

“The joint venture agreement will be structured according to the financial and equity contributions of both parties.  PIB will contribute a 23 acre parcel to the joint venture,” stated Martinz, “There is already a large water reservoir on the site containing local ground water, which is nearly perfect in terms of ph and mineral content.  There is also 3 phase power about 200 meters from the site, and we’re going to ask PIB to bring power to the production facility as part of their contribution.”

“Canada’s Federal Government is promoting economic diversification amongst the First Nations communities,” continues Martinz, “Ventures outside of the typical resource extraction and casinos are being received very favourably.  According to Elaine Alec, our First Nations liaison adviser, this partnership checks all the boxes and we expecting that our LP application may be fast-tracked.”

“Once the completed 100,000 square foot greenhouse facility is in production, we anticipate generating approximately seven tons of cannabis per year from four crops,” stated Martinz, “Our fixed costs should be right around $1 a gram, which is very low, primarily due to the reduction in power consumption utilizing the sun’s photosynthetic power

The North American Cannabis sector, both medical and commercial, has seen an incredible influx of capital recently.  And that is a trend which is not likely to end any time soon.  Much of this capital has been dedicated towards the construction of production facility infrastructure.  This is a trend that Kaneh Bosm predicted as this sector grows out of its early stages.

“Much of this capital is being invested into the sector by those not intimately familiar with Cannabis cultivation,” suggests Martinz, “Egregious errors in facility design have been made.  Ultimately this will result in poor yields, high operational costs, and low quality product. “

Enter Kaneh Bosm’s EPC division, a full service engineering, procurement, and construction service, which strives to become the premier production infrastructure solution provider for Cannabis entrepreneurs.

“Success or failure in the Marijuana business begins and ends with a properly designed production facility,” reports Martinz earnestly.

Kaneh Bosm is trading at $0.16 with a market cap of $2.2 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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Sprott Report Highlights Gold Opportunity in Ecuador http://financialpress.com/2014/11/06/sprott-report-highlights-gold-opportunity-in-ecuador/ http://financialpress.com/2014/11/06/sprott-report-highlights-gold-opportunity-in-ecuador/#comments Thu, 06 Nov 2014 17:36:24 +0000 http://financialpress.com/?p=45994 Ecuador Gold and Copper Advances 10 Mil Oz. Deposit - 

A recent Sprott Global Resource Report, written by Senior Investment Executive Steve Todoruk, highlights the unique wealth-creation opportunity in Ecuador.

“The tiny country of Ecuador sits surrounded by Peru, Columbia, Chile, Brazil and Argentina, which have large mineral deposits,” stated the report, “It seems like Ecuador’s president has once again changed his tune, announcing a new overhaul of the country’s mining laws and taxes, this time to attract miners and exploration companies back into the country.”

“Our mining laws have been a total disaster,” admitted 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 new taxation regime will benefit companies like Ecuador Gold and Copper (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.

“The Sprott report confirms many of the points that we’ve been making,” stated Glenn Laing in an exclusive interview with Financial Press, “The rocks are very good in Ecuador and this mining belt is one of the last prospective frontiers left for large mineral deposits.  It is the political risk that has left the country virtually unexplored.”

“Ecuador has come a long way since the moratorium on exploration and mining in 2008,” continues Laing, “Fast forward six years, they’ve figured it out, as we predicted they would.  And because we’ve been there since 2010, we’ve got first mover advantage with a huge gold and copper discovery at our Santa Barbara deposit with over 8 million ounces.”

“If 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 the 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.”

Beaty recently acquired a controlling interest in Odin Mining which owns a gold property in Ecuador.  Lucas Lundin also announced that one of his companies, Fortress Minerals has made a deal with Kinross to buy the massive Fruta del Norte deposit for $240 million.

“Lundin and Beaty are expecting that Ecuador is about to become more mining-friendly,” stated the Sprott report, “If they’re right, we should keep an eye out for the ‘next Fruta del Norte’ as exploration dollars get deployed in one of the world’s most prospective – and underexplored – regions.”

EGX

When you have two influential mining investors Like Ross Beaty and Lucas Lundin moving into Ecuador, it is important because they have created significant wealth for early investors over the years.

“Gold has been pummelled, there’s no denying it,” confirms Laing, “Is it going to come back? Of course it is.  The question is: what is the best entry point?  The Sprott report illuminates the fact that the ‘smart money’ thinks that time is now, and the place to be is Ecuador.”

The Lundin’s explored for oil and gas in East Africa, when nobody was interested – and they had a huge success. The Lundin’s have a track record of moving early and correctly judging the direction of the political winds.

“EGX has been working in Ecuador for four years, and we’ve proved up over 10 million ounces of gold,” stated Laing, “It is a geologically proven monster deposit. International investors are starting to understand that the extraction industries in Ecuador are undergoing a wholesale change and the country is now open for business.”

Earlier this year, EGX completed a 22,500 meter drill program and announced an expanded resource estimate for the Santa Barbara South and North Zones.  The company’s indicated and inferred gold resources in Ecuador increased 26% to 8 million gold ounces indicated; 2.6 million gold ounces inferred with a miniscule cost of discovery at just over $2 per ounce.

EGX is currently completing a Preliminary Economic Assessment on the Santa Barbara Project which is expected be finished by the end of 2014.  At the same time, the company is moving forward with grass roots exploration looking for another monster deposit.

In addition EGX is moving towards production through a joint venture with the Chinese Guangshou Group on its Chinapintza deposit.  EGX retains a 30% interest in the planned 300 tonne-per-day gold operation while Guangshou funds the construction of the narrow vein, high grade deposit.

“We have the precious metals in the ground, we have an improving political environment and now we have big players moving into the area,” stated Laing, “It’s good for EGX and it’s good for Ecuador and it’s been a long time coming.”

EGX’s 8 million indicated ounces of gold are worth about $9.3 billion at today’s gold price.

EGX is currently trading at .04 with a market cap of $11.1 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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Canada Will Tax Marijuana Just Like Tylenol http://financialpress.com/2014/10/31/canada-will-tax-marijuana-just-like-tylenol/ http://financialpress.com/2014/10/31/canada-will-tax-marijuana-just-like-tylenol/#comments Fri, 31 Oct 2014 14:10:54 +0000 http://financialpress.com/?p=45965 Cannabis Investment Expert Joins Supreme Pharmaceuticals - 

Interview with Brayden R. Sutton, Executive Vice President:

Tax Court Justice Campbell Miller just ruled that marijuana will be subject to federal Goods & Services Tax (GST) like Tylenol, cough drops and other over-the-counter drugs. The ruling confirms the government’s intent to legalise, regulate and tax medical marijuana in Canada. This is an important ruling, given that recent legislative changes have created a nascent medical marijuana industry in Canada that could be valued at over $1 Billion dollars in just a few years.

The creation of this newly commercialized industry creates a great opportunity for savvy investors to be early entrants and gain substantial returns. However,there are currently dozens of publically traded companies applying for permits to grow marijuana. The challenge is to pick the winning horse. With a space this cluttered it is instructive to see where the experts are placing their bets.

Supreme Pharmaceuticals (SL-CSE) (SPRWF-OTC) has just landed one of those experts, Mr. Brayden R. Sutton, President and CEO of CannabisHealth.com. Mr. Sutton joins Supreme as one of the most prominent cannabis investment experts in Canada, with nearly a decade spent covering the field from operational and public markets perspectives. As Executive Vice President of Supreme, Mr. Sutton will oversee facility design, operations, marketing, financing and business development.

“Being an early mover in the cannabis space, I was sought after and extended offers from almost every cannabis-related company in Western Canada as they all tried to position themselves in the marketplace,” stated Sutton in an exclusive interview with Financial Press, “Some of the offers were very tempting but I was truly looking for a company that checked all the boxes – the one that is providing Health Canada precisely what they’re looking for in the MMPR, one that could provide good value to their patients as well as their shareholders, and one that I felt will be around 10 years from now. I’m not interested in being a small player in the space or making a quick buck in a new sector – I want to take Supreme, the best company in the space in my opinion, to the finish line; and really set it up to be the dominant, low-cost, high-quality producer here in Canada.”

“Supreme received its ready-to-build permit back in January of this year,” stated Sutton, “Our facility has been fully retro-fitted to exceed the requirements of the Health Canada. It’s large, it’s secure, it’s in the right area, and we have local political support – on all levels. From local MP’s, the Mayor, and the town itself. We truly couldn’t be in a better town than Kincardine, Ontario. The 16-acre property, which houses the 7-acre facility, is located on the Bruce Energy Centre and has been independently appraised with an “in-use” value of just under $22 million. We were fortunate enough to secure it for only $4.5m on very favourable terms. And frankly, we’ve yet to find a facility in Canada that is as more ideally suited to the MMPR as this one is, particularly when considering the local support, available skilled labour pool and heightened law enforcement presence due to our proximity to the Bruce Nuclear Power Plant. Our final phase of security is underway as we speak with Marcomm Systems Group and our Security Director, former OPP Drug Investigator Alan Roberton. We expect them to be complete by early November, at which point we will be ready to invite Health Canada to our facility for the inspection.

Supreme’s Southern Ontario greenhouse is state-of-the-art, high tech facilityutilizing advanced agricultural automation methods and applying them to the production of medical marijuana. It’s a 342,000 square foot greenhouse, whichis the size of six NFL football fields. In addition, it is perfectly designed for medical marijuana production: it is built out of mould resistant tempered glass and steel, has sealed concrete flooring and is a “low top” design which reduces the facility’s heating and cooling requirements.

 

           SL2           SL3

 

“We’ve employed Thaddeus Conrad, who is one of Canada’s leading producers of medical marijuana. Mr. Conrad is a leading breeder of innovative medical marijuana varieties, varieties which have earned him the title of North America’s most awarded marijuana breeder. As a result of this, Mr. Conrad is incredibly well-known under the name “Med-Man Brand” stated Sutton, It is an honour to have him exclusively, as he brings with him decades of practical experience as well as a large and loyal patient following for early patient acquisition out of the gate. He is now collaborating with our team of greenhouse technicians, which includes one of Canada’s top agricultural experts who is a researcher at a well-known local University. At Supreme we have three elements: in our greenhouse we acquired the ideal facility, in Mr. Conrad we retained the best medical marijuana cultivator and breeder in the country and in our agricultural team we have some of the leading experts in pharmaceutical agricultural production. By doing this, we feel we will truly have the best value in the marketplace to offer our clients top-quality medicine, consistently, at a very affordable price.”

Sutton stresses that Supreme’s facility is far from a “grow-op” – it’s a high-tech pharmaceutical-grade greenhouse that is ideally suited for medical marijuana production. Health Canada has stated numerous times that it wants a regulated, standardized, automated production system that will turn out a consistent, and most importantly, safe product that meets their very stringent quality assurance measure, and we intend to give them just that. Supreme’s facility provides that; a large volume producer, with a design and operational plan designed for standardization and safety and sufficient economies of scale to implement robust quality control and quality assurance procedures. Supreme also benefits from favourable energy rates, due to the proximity of the local power plant, and most importantly the sun, which will provide up to 60% of the energy needed to produce high-quality medical marijuana.

Supreme is quickly checking off items required to be implemented prior to inspection: the razor-wire topped security fence is in place, the level-9 vault has been installed, the growing areas have been constructed and extensive electronic security and surveillance systems are being implemented right now. Once the final security systems are in place and the production areas are finalized, Supreme will be ready for its inspection by Health Canada. Mr. Sutton states that Supreme anticipates being ready for the inspection by mid November.

“What is unique about our greenhouse is that there is a large concrete structure in the center which houses the vault and high security processing areas. The greenhouse itself provides 4 quadrants of actual growing area, 340k sq ft in total, with our controlled rooms being 3,520 sq. ft. each. Even the flow of the building is ideal, in terms of the steps required from the trimming of the plant, to the shipping of it out the door. Employee and product flow has been meticulously designed to increase efficiency and reduce the risk of contamination. There will be an assembly line of sorts, where the production staff will be sealed off from the rest of the operation, allowing them to move the product down the line, while not interfering with anyone who is hands on inside of the actual grow space.”

Supreme Pharma has just raised $2.6M from a recent financing and currently undertaking an additional raise. And is more than capitalized to go right into production and start fulfilling patient orders.

Through economy of scale, Sutton anticipates drastically reducing the market price of cannabis.

“Our goal is to use the extensive medical marijuana expertise our management team has to shake up the marketplace. We will achieve this by using a gradient pricing model, which allows us to target multiple market segments while maintain transparency and credibility with our patients and doctors. We will sell the majority of our products for around $5.00 per gram. From there, premium parts of each crop will be given the “royal treatment” and sold for upwards of $8.00 per gram, to those who can afford it. On the other end of the spectrum, smaller buds and shake will be sold for $2 and $1 respectively.   Its all good medicine, but you have to be honest with the doctors and patients about what you are providing. The low cost options are also essential because a large proportion of our patients are very cost-sensitive, and currently expend a great deal of their monthly income on their medicine. The low cost model also improves our ability to pressure insurance providers to provide benefits for medical marijuana.”

Sutton is also very focused on patient acquisition, “The part of the business that many companies are struggling to find an effective way. We are very happy to say that we have roughly 500 patients on stand-by, with many more contacting us daily”. Mr. Sutton reports these patients come from existing relationships held by Supreme’s management team, as well as many individuals living or working near the facility, “and that has all been organic so far, as we’ve not yet had to pay one dime for patients. I have some long-standing relationships with cannabis-friendly physicians, and our hope is to be able to work closely with them, to better educate the public in what is very much going to be an industry driven part of Canada’s Health Care.” This is a benefit for Supreme, as this early patient acquisition is achieved without expending capital to acquire initial patients. In addition, Mr. Sutton reports that Supreme has had strong interest from a number of potential producers to provide marijuana on a wholesale basis. “This is the perfect market opportunity for Supreme, where we can supply others with wholesale marijuana and increase our revenues faster than we can acquire our own patients. Also, when you consider that less of an expense is required to sell wholesale medical marijuana as compared to retailing to individual patients, the profitability of our wholesale division is on par with the retail side.”

“We are in the final stages of completing of the requirements for our Southern Ontario growing facility,” stated Sutton, “I have a decade of experience in this field that tells me when something is going to work. Supreme Pharmaceuticals is that something. In my opinion, it is a question of ‘when’ not ‘if’ it becomes one of the dominant providers in this exciting new sector.”

Supreme Pharmaceuticals is currently trading at $.47 with a market cap of $28 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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Smart Money Flows Into Copper http://financialpress.com/2014/10/15/smart-money-flows-into-copper/ http://financialpress.com/2014/10/15/smart-money-flows-into-copper/#comments Wed, 15 Oct 2014 14:30:28 +0000 http://financialpress.com/?p=45906 Doubleview Capital Drills 30 Kilometer Copper-Gold Trend–

By Financial Press

The smart money is flowing into copper. Lundin Mining (LUN-TSX) just agreed to pay $1.8 billion to buy the Candelaria copper mine in Chile. Mining legend Frank Giustra recently purchased 19.9% of Catalyst Copper (CCY-TSX.V). Last month, Mexican metal tycoon Germán Mota-Velasco spent $25 million of his own money buying up shares of Southern Copper(SCCO-NYSE).

As it builds on a fresh discovery in a prolific region of British Columbia, Doubleview Capital Corp. (DBV-TSX.V) is well positioned to attract international copper investors placing bets on the growing copper-supply deficit. Interest in Doubleview’s rapidly emerging Hat Cu-Au porphyry deposit in northwest B.C.’s Sheslay district can be expected to intensify as the company prepares to commence another round of drilling.

“The Hat Copper district is under-explored,” stated Doubleview President and CEO Farshad Shirvani in an exclusive interview with Financial Press. “It’s one of five or six major potential discovery areas in Canada. We’re on a minimum 30 kilometer long NW-SE trend that still has countless undrilled targets. And the drilling that has been done has shown an extremely high success ratio.”

Doubleview’s latest hole, HAT-022, intersected the strongest mineralization encountered at the property including a 118.4-metre interval grading 0.80% copper equivalent. Shirvani believes that there is a potential for higher grades and additional length within the Sheslay “red stock” and the zone identified earlier this year.

“The Hat Copper Project is our lead asset,” confirms Shirvani. “This is where we are focussing the bulk of our energy. There was a lot of work done by majors in the past, though no drilling, and we inherited millions of dollars of data at virtually no cost. IP and magnetic surveys revealed numerous anomalies and the initial drilling is certainly confirming that we have a very good shot at proving up a large deposit in a mining-friendly district.”

Shirvani points out that the copper values at the Hat are increasing with depth. Before the end of October the company intends to move the rig to the east of Hole 22 and commence an aggressive new drill program.

“These latest results confirm our belief that the Hat Property is an important new discovery,” stated Shirvani. “We have ample reasons to expect fresh breakthroughs as work continues. Mineralization remains open in all directions at the Lisle Zone (Anomaly “B”) where the vast majority of our holes have been drilled so far.”

DBVShirvani has recently recruited legendary geologist Patrick McAndless to the Doubleview team. The former V.P of Exploration for Imperial Metals, McAndless has over four decades in the mining industry primarily exploring for base and precious metal deposits.

“We now have seven geologists working on the Hat Project,” states Shirvani. “Pat and his team have a track record of developing similar deposits in the same region. To investors who know the local history of copper-gold porphyry exploration, the McAndless name is important. The strength of our technical team is now the equivalent to a senior mining company.”

In January of this year, Doubleview reported two discovery holes that sparked a staking rush in the area and breathed new life into the junior exploration sector in B.C. Shirvani believes this is only the beginning of much more excitement for this district which has certain infrastructure advantages not seen in other remote areas of the province.

“With each round of drilling the grades are getting better, our understanding of this system is improving, and we are building tonnage,” stated Shirvani. “Our team of geologists is unanimous in their belief that this could become a very important new deposit in northwest B.C.”

The latest 7 holes show a continuity of mineralization within the Lisle Zone. Geological, geophysical and geochemical testing have revealed highly prospective additional targets, within this zone and well beyond it, that have yet to be drill-tested.

“Just over a year ago, this was a grassroots project,” stated Shirvani. “In this challenging market, we’ve been able to execute a series of successful drill programs. We have confirmed high gold values and increasing copper values. These are still the early stages. Given the progression of this, we have every reason to believe the Hat has world class potential in a district where multiple new discoveries could be made.”

The International Copper Study Group has predicted that there will be a 466,000 tonne copper supply deficit in 2014. Copper analysts at Morgan Stanley recently stated, “We remain comfortable with our forecast for deficit conditions this year and next, as well as progressively higher prices.”

Doubleview Capital is currently trading at .17 with a market cap of $9.5 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.

For further information please contact:

Doubleview Capital Corp.

Suite 310, 675 West Hastings Street

Vancouver, BC V6B 1N2

Farshad Shirvani

President & CEO

T: (604) 678-9587

E: corporate@doubleview.ca

 

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Elon Musk’s $2 Billion Tweet http://financialpress.com/2014/10/09/elon-musks-2-billion-twee/ http://financialpress.com/2014/10/09/elon-musks-2-billion-twee/#comments Thu, 09 Oct 2014 14:43:11 +0000 http://financialpress.com/?p=45898 Fortune Minerals’ Cobalt Mine could Feed Tesla Battery Demand; $25 Million Financing Completed to Acquire Producing Silver Mine -

By Financial Press -

The electric car company Tesla (TSLA-NASDAQ) gained about $2 billion in market capitalization after Elon Musk’s October 1 tweet that it “was time to unveil the D and something else”.

Automobile industry pundits are speculating that Tesla may reveal a new driverless technology for the Model S on Thursday evening. Musk recently told CNN that he anticipated Tesla being “90% autonomous” in 2015.

Tesla’s $5-billion lithium-ion battery Gigafactory in Nevada – is expected to increase global cobalt demand significantly, directly benefiting Fortune Minerals (FT-TSX) (FTMDF- OTCQX) which has a North American reserve of 82 million pounds of cobalt, 102 million pounds of bismuth and 1.1 million ounces of gold at its vertically integrated NICO project.

“NICO is a shovel ready project strategically positioned to meet the rising demand for cobalt from leading innovators like Tesla,” confirmed Fortune Minerals President Robin Goad in an exclusive interview with Financial Press, “We have Environmental Assessment Approvals for the mine and mill in the Northwest Territories, and also for the refinery in Saskatoon.”

A bulk concentrate will be produced at the mine for shipment to the refinery the Company plans to construct in Saskatchewan where it will be further processed to battery grade cobalt sulphate, bismuth metal and chemicals and gold. Cobalt and Bismuth are both critical metals required to service a growing world economy, and particularly for new technologies.

Currently 61% of global cobalt mine supply comes from the politically unstable Congo, and 42% of refinery production comes from China. About 80% of bismuth supply is also from China and there are concerns about supply from policy risk.

“Up to 60% of a lithium-ion battery is cobalt by weight,” stated Goad, “Generally, the more cobalt, the better the battery. Cell phones, laptops, iPads – all of these devices require batteries containing cobalt cathodes. Tesla’s Model S uses the Nickel Cobalt Aluminum cathode chemistry for its batteries containing approximately 10% cobalt.

Tesla’s first Gigafactory is expected to produce more lithium-ion batteries than the entire world did in 2013. In fact, NICO would only be able to service a portion of Tesla’s total anticipated demand at the currently projected production rate.”

Under NAFTA, Fortune’s cobalt project also has significant cost advantages over Chinese refinery production. Unlike China, the company is exempt from import duties and transportation costs to the North American market will be lower. Tesla has stated publically that it is looking to secure a North American supply chain for its Gigafactory.

The NICO project contains about 12% of the global reserves of bismuth – a critical ingredient in the automotive, electronics and plumbing sectors.

“Bismuth is replacing lead in solders and brasses, used in the electronics and the plumbing industries,” stated Goad, “But the largest use is in automobiles. It is one of the very few metals that expands when it cools, and it is therefore used in anti-corrosion coatings, castings, pearlescent paints and windshield frit – the little black dots that surround your windshield to protect the seal from changing temperatures and sunlight.”

Fortune plans to do the preliminary processing (crushing, grinding, bulk floatation) in the Northwest Territories, and then ship the concentrate via truck and the Canadian National Railway to Saskatchewan for processing – where the cost of electricity is 5.7 cents per kilowatt/hour, versus 25 cents per kilowatt/hour in the Northwest Territories, and close to reagent sources and a skilled pool of engineers and metallurgists.

Notably, Fortune is already a producing mining company after raising US$25 million financing from a production prepay facility on October 1, 2014 to complete the purchase of the Revenue Silver Mine in southwest Colorado, U.S.A.. A second tranche of US$10 million is expected to close on October 16, 2014.

“The Revenue Silver Mine is a high-grade narrow vein deposit,” confirmed Goad “In fact, it’s one of the highest grade silver deposits in North America. Approximately 80% of mine revenue is derived from silver, the rest is from gold, lead and zinc.”

The Revenue Silver Mine is located near Ouray, about 490 kilometres southwest of Denver. Underground narrow vein mines require a specialized skill-set which Fortune has access to in the local community. The mine operated between 1876 and 1912, producing approximately 15 million ounces of silver. Because of the high grade deposit, and the stable labour environment, the mine can operate profitably in the current weak metal markets.

“We have an innovative financing structure,” stated Goad, “The Lascaux Resource Capital Fund is advancing a total of US$35 million which will be paid back with interest from the mine’s metal production. This structure has minimized share dilution in an otherwise weak capital market.”

In order to keep the mine footprint small, the mill has been constructed in an underground excavation. Fortune is investing additional capital in the mine to improve safety and operational efficiencies as it ramps up to the 400 short ton per day production rate.

If the Revenue Silver Mine is the Fortune’s present, the vertically integrated NICO gold-cobalt-bismuth-copper project, and the Company’s 80% owned Arctos anthracite metallurgical coal project in B.C. are the future organic development projects to grow the business.

Fortune Minerals is currently trading at .22 with a market capitalisation of $41.85 million.

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Contact:

Fortune Minerals Ltd
148 Fullarton Street
Suite 1600
London, ON N6A 5P3

Robin Goad, President, or Troy Nazarewicz, Investor Relations Manager
Phone: 519-858-8188
Fax: 519-858-8155
Website: http://www.fortuneminerals.com

 

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