In the global resource space, one man’s misfortune is often another man’s opportunity.
And so it was this week when Lukas Lundin company
Fortress Minerals Corp. (
TSX: V.FST,
Stock Forum) said it expects to raise the $230 million its needs (and perhaps another $20 million more) to acquire the Fruta del Norte gold project in Ecuador.
Fortress is acquiring the asset from
Kinross Gold Corp. (
TSX: T.K,
Stock Forum) which scooped the project via a US$1.2 billion takeover of Aurelian Resources in 2008, but later ran into local opposition, leading to abandonment in 2013 and a US$720 million writedown.
Pending completion of the acquisition, Fortress is set to change its name to Lundin Gold, making Fruta del Norte the company’s principle asset, and the Lundin family’s first major foray into gold. How it expects to succeed where Kinross failed isn’t exactly clear.
But in a press release, Lukas Lundin said Fortress plans to move quickly to advance the project. “The value created will not only greatly benefit our shareholders, but also the Government and people of Ecuador who are our most import partners in this project.’’
To get a sense of where this will go, one only has to consider that the Lundin Family has a long track record of success in going into regions where others fear to tread, grabbing prized assets and then either developing the projects themselves or selling out to the highest bidder.
The strategy has proven to be effective in the Democratic Republic of Congo, Argentina, and will probably work again in Ecuador. So stay tuned for further developments.
Meanwhile, here are some of the other stories that thrilled, shocked and even appalled Stockhouse readers this week:
Canadian financiers Ned Goodman and Robert McEwen demonstrated an astute sense of timing last week by participating in financing deals that raised $1.5 million for exploration at
Visible Gold Mines Inc.’s (
TSX: V.VGD,
Stock Forum) project in Quebec.
The decision looked like a savvy move after early results from the company’s 167 EXTENSION project near Chibougamau, Quebec, drove its stock price as high as 13.5 cents on Tuesday.
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Stockhouse medical marijuana expert Chris Parry reports on the change at the top at
Supreme Pharmaceuticals (
CNQ: C.SL,
Stock Forum) and what it all means for the dot.bong player. Parry notes that CEO David Stadnyk has elected to step down and hand over the reigns to the company’s executive vice-president Brayden Sutton.
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Technology scribe Gaalen Engen takes a look at how
Aeterna Zentaris Inc. (
TSX: T.AEZ,
Stock Forum) has suffered a major setback in the commercialization of Macrilen, a novel orally-active ghrelin agonist used to evaluated adult growth deficiency. Aeterna’s stock price took a dive after the company said the U.S. Food and Drug Administration (NDA) had determined that the new drug application for Macrilen cannot be approved in its present form.
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Stockhouse client companies in the news
EnerDynamic Hybrid Technologies (
TSX: V.EHT,
Stock Forum) strengthened its position in the African market when the company announced Thursday that its subsidiary, EnerDynamic Luxembourg RL, has struck a deal with West Africa-based SOPAM S.A. to form new entity Maple Leaf Energy S.A., one that will be held equally by both companies.
Maple Leaf Energy’s line of products is to include micro wind, solar and battery back-up systems made for various power outlets.
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Canada Strategic Metals Inc. (
TSX: V.CJC,
Stock Forum) and partner
Lomiko Metals Inc. (
TSX: V.LMR,
Stock Forum) released an update Tuesday on drilling activity at the La Loutre Crystalline Flake Graphite Property in Quebec.
In a joint press release, the companies said 14 diamond drill holes have been drilled to date. All of them intersected graphite mineralization.
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In an Q&A interview with Stockhouse,
Aveda Transportation and Energy Services (
TSX: V.AVE,
Stock Forum) CEO Kevin Roycraft explained how the Calgary firm has quickly become a leading provider to energy and petroleum companies in the U.S. Aveda’s ability to move drill rigs from one location to another more quickly than the competition has been embraced by the E&Ps, a development that Roycraft attributes to a big emphasis on safety.
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