Equitas Resources: Good Timing
Time is Gold-en, Cash is King
– Momentum Public Relations –
In the exploration and development process for precious minerals, time is often a more valuable commodity than gold, nickel, copper or platinum. Time can present a challenge to junior mining plays. Particularly, when a company runs out of time and capital. Equitas Resources Corp (EQT–TSXV) has demonstrated that they have a solid grasp on this reality.
Equitas recently announced its intention to merge with a private company, Alta Floresta Gold. On March 7, 2016, formal due diligence was successfully completed. Alta Floresta has a 60 percent interest in Alta Floresta Gold Mineracão Ltd, a company that holds six gold properties, and four production licenses. The operation spans more than 184,000 hectares of land in the Mato Grosso, Brazil. Of these properties, the Cajueiro Project is already in production.
The goal of the merger is to provide the company with liquidity to fund ongoing activities while, at the same time, creating value for shareholders. Specifically, the transaction will put EQT in a stronger position to support the rigorous exploration and development of its 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned highly prospective Garland venture in the Voisey’s Bay area of Labrador.
Investor fatigue was beginning to set in for Equitas as its shares declined to C$0.05 in recent weeks after trading in the range of C$0.12 to C$0.19 in the fourth quarter of 2015. Shares in Equitas are poised to trade at higher levels given the stability that the recent transaction will provide.
Of equal long-term importance, the cash that will come from a lower cost gold operation, like the Cajueiro Project, will enable EQT to withstand a resource sector bear market in the future. However, it appears that the five-year bear market for gold and precious metals is ending as bullion has increased from the recent lows and is sustaining price levels around USD$1250 per ounce. Trending upwards after a number of years of declining prices and trading in the USD$1050 to USD$1100 range.
The lengthy process of exploration, geologic assessment, review of resource potential, financing and commercial ramp up can be challenging. If less than ideal circumstances prevail, or if the market for gold or other metals is soft at a critical time, a company can find itself in a situation with sunk costs and no path forward. Many potentially lucrative mining ventures can run out of cash before they fully conclude on the viability of a resource discovery or are able to move from minerals in the ground to full operational viability.
Equitas Resources has resourcefully given themselves an advantage many ventures don’t have. Upon regulatory approval of the acquisition, Equitas plans to construct a gravity plant to expand the current production activities at Cajueiro gold which should produce almost immediate positive cash flow.
The combination of a skilled senior management team at Alta Floresta Gold with the considerable technical and management expertise at Equitas should serve to boost efforts to discover and commercialize their nickel deposit in Labrador. Ultimately, the transaction stands to make Equitas a stronger company with quality gold and nickel assets as well as recurring cash flow.
The newly merged combination of Equitas and Alta Floresta Gold represents an excellent opportunity for investors to hold a smaller scale, low cost, gold production operation while maintaining the large potential payoff that the Voisey’s Bay Garland project holds. To note the obvious, gold producers generate cash, meaning future expansion can be managed in non-dilutive manners.
A transaction like this one is a practical application of the principle that time is money. A producing gold mine generates cash. Cash buys time and time is needed to prove resource and increase shareholder value.
- Published in Blog, Equitas Resources, Mining
Relevium Technologies Enters Into Exclusive Supply Agreement
Relevium Technologies Enters Into Exclusive Supply Agreement
– Momentum Public Relations –
Press Release: April 4, 2016
Relevium Technologies Inc. (TSX VENTURE: RLV) (FRANKFURT: 6BX) is pleased to provide an update on its corporate strategy, which is primarily focused on the acquisition of products or companies within three major verticals in the health and wellness sector: Pain Relief, Recovery and Performance.
Relevium is pleased to announce that it has executed an Exclusive Supply Agreement of its patented magnetic technology with Back-A-Line Inc., a California-based leader in back pain solutions. Relevium will provide its latest patented magnetic field technology for insertion in the company’s Dynamic Back Support system, which combined, will help improve healing and pain management for back related injuries. Back-A-Line sells its Dynamic Back Support across many industries, including air transport, food and grocery, health care, trucking, and manufacturing as well as public sector unions and the US Army.
“We are very excited about this initial cooperation between Relevium and Back-A-Line Inc., and we believe that the combination of their unique patented design and our technology will prove to be a great source of relief to those suffering from back pain” stated Bill Landtbom, CEO of Back-A-Line Inc. He stated further: “This unique combined wearable was devised specifically for chronic back pain, a market of approximately 20M adults in the US alone. In our opinion, no other device and “conservative” protocol can provide the same effective alternative to pharmaceuticals and surgery”.
“We are pleased with this initial partnership and we believe that the passion, dedication and product offering of Back-A-Line is an ideal fit for our technology. The combination of their Dynamic Belt Support product with our patented technology will provide their customers with a unique and effective solution for dealing with back pain and overall wellbeing”, stated Leena Lakdawala, CEO of Relevium Technologies.
The company remains actively engaged in identifying ecommerce assets within its three active verticals and is currently reviewing several candidates that fit well with the Company’s strategy. Additionally, the Company is exploring the opportunity to provide services in this sector.
About Relevium Technologies Inc.
Relevium is a TSXV listed company focused on growth through the acquisition of businesses, products and/or technologies within the scope of the expanding health and wellness sector, specifically under three important verticals: Pain Relief, Recovery and Performance. Relevium Technologies Inc. currently holds patented intellectual property for application of static magnetic fields on direct-to-consumer devices, which aid in decreasing pain, improving recovery time and enhancing overall physical performance.
On Behalf of the Board of Directors
RELEVIUM TECHNOLOGIES INC.
“Leena Lakdawala“
CEO and Director
Learn more by clicking here: www.releviumtechnologies.com
- Published in Bio technology, Life Sciences, News Home, Nutraceutical, Relevium Technologies, Technology, Uncategorized
Turn Out the Lights on Vancouver’s Real Estate Party
Turn Out the Lights – The Party is Ending
– Momentum Public Relations –
Willie Nelson wrote the lyrics to the famous song; “turn out the lights, the party’s over. They say that all good things must end. Call it tonight; the party’s over and tomorrow starts the same old thing again.”
Many of us have had the experience of being in bar or nightclub at closing time. Typically, to encourage a quick and orderly exit of patrons, the staff will turn down the music and turn on the lights. With the absence of music and the presence of lights, the environment of the bar or club is much less compelling. Any imperfections are noticeable in the glare of florescent lights. The place and the people look far less attractive. The message is clear; it is time to move on.
An over-heated real estate market is a bit like a bar at closing time. As the lights come up, and the music fades, reality begins to seep into the collective consciousness. Things that seemed shiny and attractive quickly lose their luster. The fundamentals didn’t change at all. Better illumination just makes the facts clear.
In examining the current state of Vancouver real estate, it is hard to avoid drawing a “party’s over parallel”. Sure, when the lights are low, and the music is pounding it is easy to be caught up in the dance. Reality can be suspended for a period of time in a blur of lights and music and libations. Real estate values are equally subject to distortion, however, in the long term, they are not immune from the fundamental principles of business. To suggest otherwise is to ignore the lessons of history.
HOW DID THE MARKET GET TO THIS POINT?
Most of the factors that have contributed to the current real estate bubble in Vancouver have been well documented. Three of the most notable contributors include:
• An influx of offshore investors, most frequently associated with Asian money in search of asset diversification in a lower risk environment
• A “scarcity mentality”; investors rushing to purchase assets due to the profound belief that they will be unable to afford them later due to price escalation
• Inexpensive borrowing costs and low capital requirements
Vancouver’s attractive location, relatively moderate climate and natural beauty compounded by a limited supply of land and housing have caused the convergence of supply and demand over the past ten years to be less than optimal.
WHAT WILL HAPPEN NEXT?
We are already seeing the leading edge of some significant indicators that tell us that the party is over. The lights may not have come on yet, but the music has been turned down. The factors that were responsible for the run up in prices are precisely the same factors that are likely to carry prices in the opposite direction. Here are the new realities that we see emerging in 2016:
• There is a reduction in the number of offshore investors: Much of the new wealth in Asia has been diminished by reversals in the Chinese economy, and many wealthy individuals have considerably less equity and cash. Additionally, with the run up in values in Vancouver, a shrewd investor will be seeking out undervalued assets. When the advertised selling price of a home is more than 15 percent higher than a comparable home on the same street it begs the question; why? Likewise, when real estate values in any city are significantly elevated compared with similar properties in nearby cities investors tend to migrate to opportunities that offer a better value. Vancouver’s real estate market is priced at a premium compared to places like Seattle and San Francisco. Investors who may prefer Canadian assets are waiting to see if the top of the market has been reached, and the inevitable bursting of the bubble will bring pricing back into line.
• The “scarcity mentality” has reached its apex: The conventional wisdom that Vancouver real estate prices would continue to rise without a pause has given way to the expectation that 2016 will be a year of price softness. It isn’t a question of “if” – it is a question of “when” and “how much”. Consequently, buyers are beginning to migrate to the sidelines which will create a market imbalance with sellers outnumbering buyers. Demographics are also playing a role in the equation. An increasing number of baby boomers are looking to monetize the investment in their homes, but there is a shortage of Gen X and millennials who can purchase properties in Greater Vancouver if it means carrying mortgages of over a million dollars.
• Lenders are more cautious: Governments and banks have taken steps to tighten up regulations and the supply of money for higher priced real estate. The capital requirements have been increased for homes over a million dollars, and lending evaluations have become more rigorous to discourage speculation. Most first-line lenders are looking very carefully at affordability. If a prospective purchaser will be spending greater than 35 percent of their disposable income on principal, interest and taxes they can expect a rough ride from lenders. With personal debt levels for Canadian households now close to $1.64 per $1.00 of disposable income, applicants for larger mortgages can expect very close scrutiny of their borrowing ratio.
Vancouver’s real estate bubble is likely to burst in 2016. When the bubble bursts, how big will the mess be? Obviously, nobody knows the answer to that question. However, the attraction of the city, its accessibility and the limited supply of real estate will ensure that a downturn will be temporary. Once the inevitable correction has taken hold, the music will start to play, and the real estate party in Vancouver will begin again.