EDITOR: | June 24th, 2013 | 4 Comments

Rare Earths & Critical Minerals Week-in-Review: Mkango +16%, Quest +12.74% & Stans +8.82%

| June 24, 2013 | 4 Comments
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REE Leaders Index fell by -9.33% (Monday AM 377, Friday PM 342) while the Rare Earths & Critical Minerals membership index fell by -4.95%. Mkango Resources was the biggest gainer. Some of the other stocks that witnessed positive trend were Orbite Aluminae, Quest Rare Minerals and Stans Energy.

Mkango Resources (TSXV: MKA) went up by 16% closing the week at 14.5 cents. Mkango Resources has strong management and the ability to progress through to the prefeasibilty stage, as well as positive resource upside so it is a pleasure to draw your attention to MKA.

Arafura Resources (ASX: ARU) explains how they cut a billion dollars in operating cost from an REE project. In a news release about a formal termination of the Contract for Sale and Purchase of Land in Whyalla, the decision to terminate follows the Company’s recently announced cost savings initiatives aimed at improving the economics of the Nolans Rare Earths Project. Under the revised scope of the Project and following comprehensive investigative work by the Company, it is evident that the Whyalla site is no longer required to facilitate the needs of the Project. Furthermore, the Company believes it is highly unlikely that any benefit could be retained by continuing with the purchase agreement. Arafura is targeting capital savings of about A$400mm and material savings in operating costs by relocating intermediate chemical processing closer to the Nolans Bore Mine site in the Northern Territory, and potentially by locating rare earths separation alongside established infrastructure at a suitable chemical precinct.

Northern Minerals (ASX: NTU) secured a further $4 million in interim funding from an entity controlled by its major shareholder Mr. Yue, Australian Conglin International Investment  Group (ACIIG), for the extensive work program underway at its Browns Range Heavy Rare Earth Project to  continue uninterrupted. The additional interim funding is required due to Northern Minerals decision to extend its fundraising timetable by seeking shareholder approval in regards to the current Rights Issue to raise approximately $26.5mm. A meeting of Northern Minerals shareholders will be held on 28 June 2013 to vote on the proposed underwriting of the rights issue by ACIIG.

Medallion Resources Ltd (TSX-V: MDL; OTCQX: MLLOF)  signed a memorandum of understanding (the “MOU”) with Takamul Investment Company (“Takamul”), a subsidiary of government-owned Oman Oil Company, to conduct studies investigating the viability of constructing and operating a monazite-based, rare-earth extraction facility in the Omani industrial city of Duqm. A Duqm-based facility is fully aligned with Medallion’s production strategy, which is to exploit available supplies of the mineral by-product monazite from heavy-mineral-sand mines in the Indian Ocean basin in order to extract and produce significant quantities of rare-earth products. Medallion’s partnership with Takamul, a leader in developing sustainable projects in the mineral, metal and petrochemical industries in the Middle East, moves the company significantly closer to the development of a large-scale, rare-earth processing facility. Alessandro Bruno wrote an excellent summary of this impressive  news with Partnership with Takamul moves Medallion ‘significantly closer’ to the development of a large-scale, rare-earth processing facility.

Orbite Aluminae Inc. (TSX:ORT)(OTCQX:EORBF) went up by 2.74% in the Canadian market closing the week at $0.75 and +5.69% in the US market closing the week at $0.76. The stock was one of the most actively traded stocks on the TSX . This upswing was triggered by the news that the company has announced an off take agreement with Glencore International AG (“Glencore“), a subsidiary of Glencore Xstrata Plc (“Glencore Xstrata“), for the purchase of smelter-grade alumina from the Corporation’s proposed smelter-grade alumina (SGA) plant in Quebec, Canada. The Agreement provides for the purchase by Glencore of 100% of the smelter-grade alumina, from the Corporation’s first proposed SGA plant in Quebec, Canada, for an initial term of 10 years from the commencement of commercial production. The Agreement also foresees that Orbite and Glencore will undertake negotiations relating to Glencore’s potential financial participation in the ownership and operation of the Corporation’s proposed SGA plant in Quebec. The Parties have not set any timetable for the commencement or conclusion of these negotiations.

Here are this week’s numbers:2013-6-24-REE


Tracy Weslosky

Editor:

Tracy Weslosky is the CEO of InvestorIntel Corp., a company that publishes InvestorIntel.com. A leading source for investors, entrepreneurs and industry leaders alike, InvestorIntel is ... <Read more about Tracy Weslosky>


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Comments

  • Veritas Bob

    Same comment as last week: It really doesn’t make sense to base week in review performance on the change from Monday open to Friday close. it should be on a Friday close to Friday close basis.

    June 24, 2013 - 4:22 PM

  • Dan

    Any backup to supposed REE price increases over the past week? I have read a couple articles alluding to FOB prices going up over 10%.

    June 26, 2013 - 12:07 PM

    • JohnH

      Dan, can you provide links to those articles? 10% sounds like a lot and I would love to read up on that. Thanks!

      June 26, 2013 - 2:27 PM

  • Dan

    John, one of the articles is listed right on investorintel.com’s front page under News and Media titled “Rare earth prices up amid illegal mining crackdown”. I just didnt notice it before I posted my comment.

    June 26, 2013 - 2:41 PM

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