CN to acquire 350 boxcars to meet growing demand in forest products, metals business

CN announced it will acquire 350 premium boxcars to serve growing demand from industrial customers across its North American network.

“These additional boxcars, combined with our new locomotives, hundreds of new train crew members, and track expansion investments, will help give us the capacity and network resiliency we need for pulp, paper and metals customers,” said Doug MacDonald, vice president of bulk at CN.

The leased 50-foot, high-capacity plate F boxcars, equipped with 12-foot plug doors, are expected to be delivered beginning in late summer with all the cars in service by the end of 2018.

As part of CN’s $3.2 billion capital program in 2018, the company is investing in new trade-enabling infrastructure this spring and summer, building new track and yard capacity to handle increased traffic across CN’s West Coast to Chicago corridor more efficiently. After adding approximately 400 conductors to the field so far this year, CN continues to hire with a particular focus on crews in Western Canada.

CDIC welcomes new bail-in regulations to strengthen bank resolution framework

The publication of regulations to establish a federal bail-in regime for Canada’s largest banks will strengthen CDIC’s bank resolution toolkit and further contribute to financial stability.

The new bail-in regulations only apply to Canada’s domestic systemically important banks (D-SIBs). A D-SIB is a bank that could broadly impact the domestic economy should it fail.

The bail-in power is a tool that CDIC can use to convert some of a failing D-SIB’s debt into common shares in order to recapitalize the bank and allow it to remain open and operating. Bail-in legislation was introduced as part of Federal Budget 2016 and the regulations provide details for operationalizing this important resolution tool.

The regulations set out key features for the bail-in regime including which instruments are subject to the bail-in power, factors that CDIC must consider in exercising the bail-in power, and the requirements that D-SIBs must follow when issuing the bail-in debt:

  • Bank Recapitalization (Bail-in) Issuance Regulations
  • Bank Recapitalization (Bail-in) Conversion Regulations

“Bail-in is an important step in strengthening Canada’s bank resolution regime,” said CDIC President and CEO Michèle Bourque. “Deposits, including deposits in chequing accounts, savings accounts and term deposits, are not affected by the bail-in regime.”

The Government has also published new compensation regulations which set out an updated process for providing compensation to shareholders and creditors in the unlikely event that they have been made worse off as a result of CDIC’s resolution actions than they would have been if the bank had been liquidated or wound up.

Mountain Boy Minerals invited to present at Oilfields Minerals Conference, Texas

Vancouver, B.C. – Mountain Boy Minerals Ltd (“Mountain Boy”) is pleased to report that it recently attended the Kamloops Exploration Group (“KEG”) meeting and will be attending the Oilfields Minerals & Markets Forum (“OMMF”) in Houston, Texas. Mr. Lawrence Roulston and Mr. Rene Bernard, Directors of Mountain Boy, attended the KEG meeting and Mr. Roulston will be attending the OMMF conference from May 6th to 8th, 2018.

Due to the importance of new sources of the mineral barite to oilfield service companies, the OMMF organizers added a session on emerging barite sources and invited Mountain Boy to present the details of the barite found on its Surprise Creek project.

The Surprise Creek property covers an area of approximately 12 km of known VMS (“Volcanogenic Massive Sulphide”) style mineralization generally hosting copper, zinc and lead, with some gold and silver. Folding within the Surprise Creek claims has resulted in repeated sections of prospective VMS horizons. Anticlinal structures have resulted in the prospective VMS horizon being present along both the west and the east sides of the Surprise Creek claims. There are at least six separate VMS boulder trains or showings on the Surprise Creek property. The Company website at www.mountainboyminerals.ca shows the location of the VMS style of mineralization recent drill results.

Abundant barite is common on the Surprise Creek property. It is a common constituent of Kuroko style VMS systems, forming layers above the base metal-silver mineralization. To date only 4 short drill holes have tested the barite rich portion of the Ataman zone at the headwaters of Surprise Creek.

The barite in itself is significant as the Company has demonstrated that a high quality product can be achieved through floatation with significant base and precious metal recovery in tests completed by SGS Canada Inc dated September 28, 2017. Barite is used by the oil and gas industry as a weighing agent in drilling muds and there is a large production shortage in North America. With increased oil and gas prices drilling activities have increased and demand and prices for barite are rising. With the deep water port of Stewart, B.C. within half an hour of trucking from the deposit, Mountain Boy could compete on the international markets. Barite is currently selling from US$120 to US$180 per ton depending on the location, and would add considerable value to the economic potential of a silver/base metal operation at Surprise Creek. The world barite market is estimated to steadily increase from US $2.2 billion in 2016 to US$4.1 billion by 2024 according to Global Market Insights, Inc. of Delaware, USA.

 

Avcorp announces appointment of new Chief Executive Officer

Avcorp Industries Inc.  announces that effective April 19, 2018, Peter George has decided to resign his role as CEO of Avcorp Group.

The Board has appointed Amandeep Kaler, currently the General Manager of Avcorp’s Delta operations, as the new CEO of Avcorp Group.

Peter George will remain on the Board as a non-executive member and will now chair the executive committee to support the transition with Amandeep Kaler and to remain focused on customers and strategy.

Amandeep’s appointment is an exciting milestone in the succession planning at Avcorp. Amandeep is a recognized leader in the aerospace industry. As General Manager of Avcorp’s Delta operations, Amandeep had full P&L responsibility. During his tenure as General Manager Avcorp Delta has achieved excellent delivery and quality performance with all its customers. His 18 years of organizational experience across all disciplines uniquely positions him to lead Avcorp into its next phase of growth.

The company’s Board of Directors wishes to thank Peter George for his contribution to the company and his inspiring leadership. Since joining the Avcorp leadership team in October of 2014 as CEO, Peter swiftly aligned Avcorp’s vision and strategy. In so doing, Peter was instrumental in growing contractual backlog for Avcorp. He also led the acquisition of the Company’s new Composites aerospace business in Gardena, California.

CONQUEST INCREASES LAND POSITION AT GOLDEN ROSE PROPERTY, EMERALD LAKE, ONTARIO

Conquest Resources Limited is pleased to report that the Company has substantially increased its land position at Emerald Lake by claiming 3,200 hectares of prospective land in the vicinity of its Golden Rose mine property, located approximately 65 km northeast of Sudbury, Ontario.

Conquest now controls 3,980 hectares in six exploration blocks at Emerald Lake underlain by south Abitibi greenstone geology that is considered highly prospective for gold mineralization, representing an increase in Conquest’s land position associated with the project of more than 500 percent.

“Conquest’s plan to expand its land position beyond its recently acquired property was put into action at a very low cost to the Company by claiming mineral rights to areas near the former Golden Rose mine site that are underlain by Archean basement stratigraphy similar to that of the core Golden Rose claims which exhibit encouraging mineralization, geology and geophysics,” commented Benjamin Batson, President and Chief Executive Officer of Conquest.

At the opening of the online Ontario Mining Lands Administration System (“MLAS”) on April 10, 2018, Conquest claimed five (5) blocks of land which cover extensions of the banded iron formation stratigraphy that is host to the former Golden Rose gold mine at Emerald Lake with geology favorable for gold mineralization. Portions of these new blocks have historical mapping coverage, geophysics and known mineralization characterized by sulphide occurrences in outcrops and drill holes. The new blocks are accessible by road, trail and by boat from the Golden Rose mine site.

“We have learned a great deal about the geology and mineralization at the Golden Rose mine site and feel that there is excellent potential across the whole of the belt for gold mineralization. The addition of the new claim blocks enhances that opportunity,” added Mr. Batson. “Conquest’s technical team is excited to get boots on the ground as soon as the snow has melted and we look forward to updating our shareholders through our website and media channels on our progress as the spring exploration season unfolds.”

WINTER/SPRING EXPLORATION PROGRAM AT THE GOLDEN ROSE PROPERTY
During March 2018, Conquest completed a high-resolution, property-scale, airborne geophysical survey on the Golden Rose property. The survey was flown under contract to Geotech Limited (“Geotech”). The final survey results, which are expected to be available at the end of April, will include inversion interpretation techniques used to model three-dimensional solids of the property.

With the addition of Geotech’s variable time domain electromagnetic (“VTEM”) data, zones of conductance can be interpreted from the VTEM data that can be layered into the magnetic and bedrock geology models for use in drill hole targeting for gold mineralization across the strike of the two prospective banded iron formations which transect the width of the Conquest’s Golden Rose property.

Conquest is also preparing for the Spring/Summer Exploration season by relogging historical drill core from some of the 450 holes previously drilled on the property and by completing a compilation of historical mining and exploration information at the Golden Rose property and the surrounding area. The results of these exploration and compilation activities are being interpreted in preparation for an initial phase of drilling planned to commence this summer.

CannaRoyalty to Acquire 100% of California Licensed Producer FloraCal® Farms, an Ultra-Premium Craft Cannabis Company

CannaRoyalty Corp. (CSE: CRZ) (OTCQX: CNNRF) (“CannaRoyalty” or the “Company”), a leading North American cannabis products and brands company, announced that it has entered into a binding term sheet to acquire 100% of FloraCal® Farms (“FloraCal”), a licensed ultra-premium craft cannabis producer located in Sonoma County, California for total purchase considerations of US$1 million in cash and 3,508,772 CannaRoyalty shares on close, as well as up to an additional US$3 million in cash and 3,508,772 shares to be paid over 3 years, based on completion of certain milestones (the “Transaction”). FloraCal adds branded premium cannabis flower and pre-roll products to CannaRoyalty’s diverse portfolio. FloraCal is building its Sonoma County facility in three Phases and has been designed to comply with cGMP* (Current Good Manufacturing Process) standards. Phase I is licensed and in commercial production, with 15,000 square feet of purpose-built indoor growing in a 64,200 square foot facility. Phase II has been licensed and will increase the facility size to 42,200 square feet and targeted annual production of 3,700 kg, with construction expected to commence in Q2 2018 and be completed by Q1 2019. Phase III is under option and would allow further expansion to the full facility size of 64,200 square feet facility with targeted annual production of 5,500 kg. FloraCal has a temporary medium indoor cultivation license from the state of California, as well a Type 6 non-volatile manufacturing permit in Sonoma County.

Highlights of the Transaction

  • Strong financial performance: FloraCal’s small batch ultra-premium flower commands a premium price averaging over US$17.00 per gram. FloraCal generated US$6.4 million in Revenue1 in fiscal 2017 and US$3.2 million of EBITDA.
  • Differentiated premium flower brand fills gap in branded product portfolio: CannaRoyalty is now positioned to offer premium branded cannabis products in every major product category: flower, pre-rolls, vapes, and edibles, through its state-wide California distribution
  • Premium Brand: FloraCal is a broadly recognized premium brand in the state of California. The Transaction gives CannaRoyalty rights to commercialize the brand globally.
  • Unique strains: FloraCal possesses a unique and rare genetics collection, currently encompassing seven ultra-high-quality cannabis flowers. CannaRoyalty also has the rights to licenses these strains globally.

“FloraCal is truly unique. The rare combination of product consistency, premium pricing, authentic brand, and resoundingly positive feedback from our dispensary partners and California consumers, positions it well to be a future global cannabis brand. We see its success in the discerning California market as evidence that branded flower that is truly differentiated occupies an important place in the cannabis industry,” said Marc Lustig, CEO of CannaRoyalty. “Husband and wife team Drew and Karen started this company 3 years ago with a focus on producing small-batch, ultra-premium flower for sophisticated consumers. Through standardization of their production techniques, they have maintained this focus and positioning, even through significant growth. Their unique library of strains not available from other cultivators, combined with their attention to detail and commitment to consistent quality complements our overall portfolio strategy of acquiring top cannabis consumer brands in California that we will seek to deploy globally. We welcome Karen, Drew and their qualified team to CannaRoyalty and look forward to what we will achieve together.”

“We are ecstatic to be a part of CannaRoyalty and benefit alongside shareholders as the CannaRoyalty reputation as California’s best-in-class cannabis product manufacturer and distributor continues to grow,” said Drew Duval, CEO of FloraCal. “We think FloraCal has the opportunity to grow in CannaRoyalty’s ecosystem to a size we couldn’t achieve on our own.”

Transaction Summary

The total Transaction is for up to 7,017,544 CannaRoyalty shares and up to US$4 million. On Closing, FloraCal will receive US$1 million in cash and 3,508,772 in CannaRoyalty shares. The reminder of the Transaction consideration is to be paid over three years, on completion of certain milestones, as follows: (i) 584,795 CannaRoyalty shares to be issued on completion of phase II expansion to the entire 42,200 sq. ft. of the facility; (ii) up to 2,923,977 CannaRoyalty shares to be issued 175 days after completion of the phase II expansion, with the total amount of shares issued to be adjusted based on FloraCal’s ability to achieve set production thresholds; and (iii) US$3 million in cash to be issued in equal parts in Q1/Q2 2019, Q1/Q2 2020, and Q1/Q2 2021, all subject to adjustments, based on FloraCal’s ability to maintain its controllable costs under set thresholds. Closing is expected to occur in Q2 2018 and is subject to conditions including due diligence and regulatory approval.

INDUSTRIES LASSONDE ANNOUNCES CHANGE IN MANAGEMENT OF US SUBSIDIARY LASSONDE PAPPAS AND COMPANY, INC.

Lassonde Industries Inc. (TSX: LAS.A) (“Lassonde”)  announced the departure of Mr. Mark McNeil, President and Chief Executive Officer of Lassonde Pappas and Company, Inc. since November 2013. The latter has informed the Company that he wants to pursue other opportunities and will leave office in the coming weeks.

“We would like to thank Mr. McNeil for his contribution to the growth of the Company and wish him the best of success in his future endeavors,” commented the President and Chief Operating Officer of Lassonde Industries Inc. and Chairman of the Board of Lassonde Pappas and Company, Inc., Mr. Jean Gattuso.

As part of this departure, the Company decided to review the organizational structure of the management of its US subsidiary. The current Chief Operating Officer of Lassonde Pappas and Company, Inc., Mr. Seth French, will be appointed President and will assume additional responsibilities under the direction of Mr. Jean Gattuso. Mr. French has been employed by this US subsidiary for 10 years, having held various management positions while Mr. Gattuso has been employed by the Company for more than 30 years.

“We are privileged to have in our ranks a replacement of the caliber of Mr. French. Through his leadership and knowledge of the operations of our US subsidiary, we are confident that he will help ensure the smooth performance of our US operations, “said Mr. Gattuso.

Copper Mountain Completes Acquisition of Altona Mining Limited

Copper Mountain Mining Corporation (TSX: CMMC, ASX: C6C) (“Copper Mountain” or the “Company”) is pleased to announce the closing of its acquisition of Altona Mining Limited (“Altona”). As part of the acquisition, the Company issued 0.0974 of a Copper Mountain share for each Altona ordinary share, resulting in a total of 53,538,984 Copper Mountain common shares being issued, of which 44,368,605 will trade as CHESS Depository Instruments on the Australian Stock Exchange under the symbol C6C.

As a result of the acquisition, Copper Mountain has now added to the Copper Mountain Group 100% of Altona’s assets which include $30 million in cash, a permitted development project in Queensland, Australia and a large mineral land tenure position in a highly prospective area in Queensland, Australia, a mining friendly jurisdiction.

In conjunction with this transaction, the Company has added Alistair Cowden to the Board of Directors.

Alistair Cowden has an honours degree in Geology from Edinburgh University and a PhD in Geology from the University of London. Alistair has spent more than 35 years as a mining executive, director and geologist in the mining industry in Australia, Africa, Asia and Europe. He has founded eight public companies including Altona Mining, of which Alistair was Managing Director, which owned the Eva Copper project prior to its acquisition by Copper Mountain. He has been part of the discovery, financing and development of many mines including the Kanowna Belle and Sunrise Dam gold mines in Western Australia, the Hartley Platinum mine in Zimbabwe, the Kylylahti copper-gold mine in Finland, the Nimbus silver mine in Western Australia and Eva Copper in Queensland. Alistair has extensive experience across all aspects of the mining industry including mergers and acquisitions and financing. He is a member of the Australasian Institute of Mining and Metallurgy, The Australian Institute of Geoscientists and the Australian Institute of Company Directors. Alistair as Managing Director accepted the Diggers and Dealers Junior Explorer of the Year for Archaean Gold in 1995 and received the Queensland Explorer of the Year for Altona in 2012.

Jim O’Rourke, President & Chief Executive Officer of Copper Mountain, commented: “we welcome Alister to the Board. Alister and his team have done an outstanding job in assembling an exceptional mineral land package in a prolific mineral belt that we believe will provide long-term value to all shareholders.”