Aurex Energy Corp V.AURX.H

2016-01-14 20:00 CT - Market Summary

[locogringo]

Michael Burns and James Engdahl's Star Minerals Group Ltd. (SUV: $0.01) has a new and improved deal to acquire a majority interest in the Hoidas Lake rare earth project in Northern Saskatchewan. Star will pay $25,000 in cash and issue five million shares to a private Canadian company by the end of July, in exchange for a 60-per-cent interest in the project. Star will have to carry its minority partner through feasibility, but it can boost its interest to 90 per cent if the unnamed co-venturer does not pay its share from there.

Star's original deal to acquire Hoidas was with Mr. Engdahl's former employer, the now insolvent Great Western Minerals Group Ltd. (GWG: $0.005). That arrangement required Star to complete a prefeasibility study to earn a 25-per-cent interest and a feasibility study to reach 51 per cent. Hoidas Lake is an advanced project with a modest resource, holding 2.56 million tonnes measured and indicated at 2.43 per cent total rare earth oxides and another 287,000 inferred at 2.14 per cent.

Mr. Burns, Star's youthful president and CEO, says Hoidas Lake "remained a key goal of the company set by both the previous and current management." (Mr. Engdahl, former CEO and now chairman, represents the past, while Mr. Burns, who arrived in September, represents the present.) The present also got a bit bigger, with the perhaps coincidental appointment of Scott Newman and James Rogers. They are each president of their own private companies but there is no word if Mr. Newman's Axiom Exploration or Mr. Rogers's Longford Exploration had anything to do with the Hoidas deal.

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