OTCPK:NGMBF - Post by User
Comment by
HHAPPYon Apr 01, 2010 8:45am
378 Views
Post# 16947794
RE: Interesting article from West Law Business
RE: Interesting article from West Law BusinessThe article couldn't have been more flattering re NAG !!
!
"Outright acquisition is always an option, as seen in the May2009 purchase of coal leases by Canadian-based North American Gem from LonesomePines Leasing. On its face, this deal looks to be a Canadian coal companytaking advantage of a weak U.S.economy to expand into the U.S.market. In truth, driving this transaction is the transformation of Blue Gemcoal reserves to silicate metals
Spot market prices are drawing smart money to theopportunity because prices are expected to increase with the rising demand forsilicate metals, among other things. The limited supply and great demandcreates the ability for North American Group to set a profitable price for BlueGem coal on the spot market. The coal leases North American Gem acquiredestablish Canadian-based NAG as a coal producer with the ability to enter intolong-term supply contracts, such as the one recently entered into between TennesseeValley Authority and Alliance Resource Partners.
While all of this upside is promising, the parties have not forgotten theimpact of impending regulation. Part of the North American Gem transactioninvolved commitments to incorporate environmental controls that keep thecompanies compliant with increased regulatory burdens."