I am happy for you guyswith the big win over last night close? what is next now? put money in copper and gold again? or maybe lithium or phosphate, or both?
In May of 2009, Glen Eagle had agreed to pay $35 million for a 45% stake of El Valle project of Kinbauri resources. The deal was a definitive deal but was followed by buying orvana (ORV.to) to Kinbauri resources. Orvana doubted the ability of GER to raise the money at that point of time when the stock was worth only 10-20 cents. Glen eagle then had confirmed the financing available to them (
Glen Eagle Resources Inc.: Confirmation - FundingMONTREAL, QUEBEC--(Marketwire - Aug. 4, 2009) - Glen Eagle resources Inc. (TSX VENTURE:GER) ("Glen Eagle Resources" or the "Company") announces that it has received confirmation that the deposit in the amount of USD$115,000,000 held on June 18, 2009 is still in place at Kuwait Finance House to finance future mining acquisitions of the Company.) Let's stop here for a second! When have you ever seen a junior company securing a line of credit of this magnitude from a legitimate government? How did Glen Eagle managed to arrange for this big loan even before they had a mine of any kind?, what is Hossam Shatta (an Egyptian lawyer who lives overseas and is a member of the board of directors) role in Glen Eagle? Well I have no answer for these questions other than I think GlenEagle has strong connections with other entities and banks around the globe, that was the reason, besides the low float, why I had invested in GlenEagle back in November of 2009. Glen Eagle had decided to take ORV to arbitration, which was settled out of court in summer of 2010 for a total consideration of $1 million to GER.
GER then started drilling at their newly acquired Authier lithium property, which is currently sitting at 4 million tons of Lithium with an updated resources to be announced in early fall, with an expectation of a 7 million tons of 1.05% Li2O. While this project is not as big as other huge ones in S.America and Australia, it offers an advantage of being in close proximity to Canada Lithium (20 km ) which is in the process of commissioning their new mine to produce a battery grade Li2CO3 by the end of this year. Canada lithium has all the funding in place and they offer no surprises like what other companies had done in the past. Whether or not CLQ will be buying the future production of GER from Authier's, GER close proximity should give a boost to the project's valuability in the future, especially if the resources hit the suggested 7-8million tons.
Hundreds of Kilometers away lies their Phosphate property of Lac Lisette that was acquired in early 2011, GER had followed the tactics of buying a property close to an advanced one of D'Arianne Lac Paul 500 million ton deposit. GER started with a magnetic mapping of the area which had looked very similar, yet bigger than the one of D'Arianne's, hopes were up and drilling was expedited, the area was so big that they had to drill a hole every 250 meters on a 1000m length which was less than half of the total strike length, GER had released some promising numbers but were a little disappointing, most holes returned 3-4%, the area was abandoned for the winter, Lac Lisette needs more work and a lot ore money to define the area and look for some rich pockets, something GER did not have the time and the money for.>
Glen Eagle had decided while waiting for the Lac Lisette results to acquire another promising area of Moose lake. Moose lake had offered many advantages over Lac Lisette; it is a flat and treeless area that had so many showings on surface, the property can be accessed all year long, is sitting on a highway and only 100km away from a major city with a deep sea port, rails...etc. GER had decided to go to the area and drill part of it, initially they got 70 Meters of 4.7% Phosphate, then started getting higher grades and started to define much bigger boundaries than was originally thought, with many holes are still pending. GER decided to drill 18 holes of 100 meters each so they can have a better look at the property, once that is done, I am expecting deeper holes to follow.>
Many rumours suggest that DAN will get bought out by a major, whether it will happen or not is a mystery, many investors were disappointed by the high CAPEX when DAN released its PFS late last year, big money is going towards building roads, rails, power lines...etc. Should GER prove a big discovery at the Moose Lake, this will offer a cheaper CAPEX alternative with GER being a lot closer to major cities than DAN.>
Would the CEO Jean-Charles be happier than anyone with his big stake in the company, along with some key investors who own about 13 million shares of the float, this remain to be seen, but we might see a big discovery on the Moose lake from what some people might suggestI am so happy for everyone here, that was a big win for everyone, it is the time now to move to another play, what is hot right now, what is not!, looks like the only commodity moving higher now is lithium and maybe phosphate in the year to come....