Write it in Chinese! FSLOOK: Feaseabilty Study written to secure financing from CHINA – we should do that!
“”
…..///…Just this year alone Minmetals was outbid by Barrick Gold Corp. (TSX: ABX, Stock Forum) and (NYSE: ABX, Stock Forum) to takeover copper miner Equinox. Jinchuan is making a bid for base metal producer Lundin Mining Corp. (TSX: T.LUN, Stock Forum). General Moly Inc. (AMEX: GMO, Stock Forum) has received major assistance to build North America’s largest molybdenum mine in Nevada. General Moly is currently writing its feasibility study in Chinese to secure the necessary financing.
The Chinese are very willing to partake in these world class assets and are not hiding that fact. This aggressive search for strategic metals may transfer into the rare earth sector (NYSE: REMX, Stock Forum) as well. Prices are continuing to soar and hybrid car manufacturers are looking for supply over the next 3-5 years as demand is rapidly advancing for the crucial heavy rare earths used in the fuel efficient engines. Manufacturers are trying to get all the ore they can and after this runs out I expect some off take deals to occur in late 2011 with some of these key rare earth assets in North America and Europe. Let us not forget that China made an unsuccessful bid for Lynas Corp. Ltd. (OTO: LYSCF, Stock Forum) not too long ago.
We expect China to now aggressively pursue these strategic metal mining companies as part of this little publicized arrangement between these two powerful nations which I have called the “Chinamese Twins” who are now conjoined intimately.
ABOUT THE AUTHOR
Jeb Handwerger
Handwerger is an independent analyst and newsletter writer who started to develop a passion for technical analysis at the age of 11. He has a Masters Degree in mathematics. https://goldstocktrades.com
https://www.stockhouse.com/community-news/2011/may/9/the-yuan,-the-u-s--dollar-and-commodities
Chuck