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The Calandra Report: Greenland bucks for True North (V.TGX) gems

Thom Calandra Thom Calandra, www.thomcalandra.com
5 Comments| May 30, 2014

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NEW YORK -- This just in -- but not from the company that will benefit from the Greenland bucks.

?It's a fresh loan for the developer of a Greenland ruby mine. The report?
? does NOT appear to be widely disseminated.

?True North Gems Inc. (TSX: V.TGX, Stock Forum) is the recipient of a $1 million subordinated loan, a Danish language newspaper, Sermitsiaq AG, reports.

The Bank of Greenland agreed to lend True North Gems $1 million. It is not clear if that is USA or Canada dollars. I am waiting to hear back from True North's Nick Houghton, CEO.

The money will be used for True North's ruby ?mine in Aappaluttoq, near Qeqertarsuatsiaat.

The Canadian mining company finally, after years of effort and cash expenditures, received an exploitation license for rubies in March of this year.

Mr. Houghton, a British gemologist, has said for years that the mine will use entirely local labor.

Director of True North Gems Greenland Olsvig Bent Jensen is quoted in the article, which likely will appear in the newspaper's English language version: https://sermitsiaq.ag/english.

The Bank of Greenland is quoted: "We are not experts in mining, and we do not invest directly in projects, but this True North mine is a serious and important project for the community, as we believe it is worth supporting." That is from the CEO of the bank, Martin Kviesgaard.

An investor conference in Copenhagen takes place next week. The Ministry of Industry, Resources and Labor is the sponsor. Mr. Houghton hopes to attract more investors.

True North Gems' exploitation license runs for 30 years -- with a possible extension.

True North Gems is the subject of TCR research. I own it in a lengthy and thus far money-losing relationship?.

?Hopefully, I won't have to own it for 30 more years.?

CEO Houghton has yet to? disseminate this lending news, it appears.
Greenland Bank gives loans to mining project

?Thanks to TCR family member Anthony Marchese of Texas Rare Earth Resources Corp. (OTO: TRER, Stock Forum) for this timely heads-up.?

I will be adding to my large and lengthy stake in True North Gems
?today | Friday. It also trades as TGNMF in USA.


?ABITIBI ROYALTIES: ?The royalty holder at joint venture CHL Malartic in Quebec filed an injunction against its partner, Osisko Mining Corp. (TSX: T.OSK, Stock Forum). Abitibi (TSX: V.RZZ, Stock Forum) says it is enforcing its contractual rights with Osisko Mining, which is holding its annual gathering for shareholders today. This follows our TCR distribution of material showing what appears to be an Osisko flowchart with no mention of the Abitibi Royalties joint venture at CHL Malartic.

Abitibi Royalties and Golden Valley Mines owner Glenn Mullan tells us from Quebec, Canada, Friday, that the legal action is not a comment on Osisko's plans to merge with Agnico-Eagle and Yamana Gold. "This protects our shareholders. Today was a Quebec deadline for filing the injunction."

Abitibi Royalties has a pact with Osisko that involves a net smelter return and a 30 percent carried interest on properties near to Quebec's Malartic, which is Canada's largest producer of gold. If it comes to fruition, commercial estimates of Abitibi Royalties' interest run as high as $80 million in royalties and shared profit, or carried interest, in the area.

Privately, I am told that Osisko executives, led by Sean Roosen, have given Abitibi Royalties "almost zero clarity" on the looming net-smelter return royalty and accompanying joint venture.

Please see our TCR coverage. And here. I own RZZ and GZZ shares. Golden Valley owns 60 percent of Abitibi Royalties. I have visited the project. I have followed the Osisko-Abitibi Royalties partnership from Day One three years ago, and have owned RZZ, and GZZ, for that long as well.?

-- Thom Calandra

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