Mining: NovaGold sheds Rock Creek
NovaGold Resources Inc. (TSX:NG) announced it has sold its Rock Creek property in Alaska to Bering Straits Native Corp. The project, in reclamation, clears approximately US$14 million in anticipated closure expenditures. NovaGold has been restructuring to focus on its Donlin gold project in Alaska, which it jointly owns with Barrick Gold Corp. (TSX:ABX). NovaGold previously spun off its Ambler copper project as NovaCopper (TSX:NCU) and put its interest in the Galore Creek copper-gold project, a joint venture with Teck Resources Ltd. (TSX:TCK), up for sale.
Mining: BCAMTA closing doors
The BC Aboriginal Mine Training Association (BC AMTA) was expected to close its doors June 15 after failing to find necessary funding to support its operations. Over the last two and half years, the organization has placed more than 300 aboriginal men and women in B.C. mining sector jobs.
“Everything is on track to close down,” said BCAMTA executive director Laurie Sterritt at press time.
Sterritt and her finance manager will continue to secure new funding from the provincial and federal government to restart the program through to the end of July.
Forestry: Log export prices felled from highs
Sawlog prices for hemlock on the B.C. coast dropped 17% in the first quarter compared with last year owing to the slowdown in Chinese lumber and log demand, says the Wood Resource quarterly.
Prior to the recent slide, there was an almost 50% increase in hemlock sawlog prices between 2009 and 2011.
The global sawlog price index fell 9%. David Elstone, an analyst with ERA Forest Products Research, said the dip in prices is a sign the market is stabilizing after seeing “phenomenal export levels” last year.
Fisheries : Guistra puts hooks into sablefish
Saltspring Island’s Sablefish Canada Inc. has completed a large equity and convertible debt financing with Vancouver-based Fiore Capital Corp. and Vancity Credit Union.
Although financial terms were not announced, the equity amount was substantive enough that Fiore, led by mining and movie magnate Frank Guistra, will be a significant shareholder.
The company aims to increase its farm inventory to 700,000 sablefish in 2012 and reach an annual production of more than one million fish over the next five years.
Paper: Catalyst Paper seeks second vote
Catalyst Paper amended its restructuring plan with hopes it can curry enough support among secured note holders to ask for court-ordered creditor vote. The revisions include new compromises to certain extended health benefits for former salaried employees of Catalyst, as well as modifications to its salaried pension plan. The company estimates it would save approximately $7 million annually if the modifications were implemented. The previous plan was rejected May 23 by creditors by a 3% margin.
