Wednesday, January 31, 2007
Strathmore Plans to Spin Off Its Canadian Assets
10:48 EST Wednesday, January 31, 2007
KELOWNA, BRITISH COLUMBIA--(CCNMatthews - Jan. 31, 2007) - Strathmore Minerals Corp. (TSX VENTURE:STM) ("Strathmore") is pleased to announce that it is proposing to reorganize its mineral property assets with a view to maximizing shareholder value. In particular, Strathmore proposes to transfer all of its Canadian mineral properties and a portion of its cash into a new exploration company pursuant to a plan of arrangement. Strathmore would continue to hold the U.S. and Peruvian assets. Immediately following such arrangement, Strathmore's shareholders, other than any dissenting shareholders, would be issued shares in the new exploration company so that collectively, they would own all of the new company's shares which would be listed on the TSX Venture Exchange.
The reorganization is designed to improve the identification and valuation of specific Strathmore properties, to enhance Strathmore's ability to divest specific properties through simpler corporate ownership, to enter into strategic joint venture agreements, and to enable Strathmore to separately finance and develop its various assets, selectively reducing stock dilution.
The proposed reorganization is subject to shareholder approval by resolution approved by not less than 66 2/3 % of the votes cast and Strathmore expects to present the matter to shareholders at a special meeting. The reorganization is also subject to approval by the British Columbia Supreme Court, negotiation of definitive agreements, acceptance by the TSX Venture Exchange and other regulatory approvals. Further particulars will be announced in due course.
Strathmore is a Canadian based resource company specializing in the strategic acquisition, exploration and development of uranium properties. Strathmore's common shares are listed on the TSX Venture Exchange under the symbol "STM".
STRATHMORE MINERALS CORP. is a Canadian based resource company specializing in the strategic acquisition, exploration and development of uranium properties. Headquartered in Kelowna, British Columbia, the Company also has U.S. based Development Offices in Riverton, Wyoming and Santa Fe, New Mexico. STRATHMORE MINERALS CORP Common Shares are listed on the TSX Venture Exchange under the symbol "STM".
This news release contains forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. For instance, the proposed plan of arrangement to reorganize Strathmore may be unsuccessful for unforeseen reasons such as an inability to obtain the necessary shareholder, regulatory or other approvals. In addition, any reorganization may be on terms that are different from those currently envisioned by the company.
This press release shall not constitute an offer of securities for sale in the United States or Canada or the solicitation of an offer to buy securities in the United States or Canada, nor shall there be any sale of the securities in any jurisdiction or state in which such offer, solicitation or sale would be unlawful.
ON BEHALF OF THE BOARD
Dev Randhawa, Chairman & CEO
FOR FURTHER INFORMATION PLEASE CONTACT:
Strathmore Minerals Corp.
Sunday, January 28, 2007
Clive Maund, 01/08/07, 321Gold, "Bottom Pickers Beware"
"Gold is looking technically stronger than it has done for the past 16 months. It would have escaped the notice of many that it broke out last week from a little-known technical pattern known as 3-arc Fan Correction. This pattern was not detected earlier because it is rather rare, and instead attempts were made to define the action in gold since last May as some kind of triangle, which could, of course, be bearish. However, a 3-arc Fan was clearly identified in the Streettracks chart last week on www.clivemaund.com, prompting a re-examination of the gold chart, whereupon it became evident that a similar pattern exists in gold. This is very important, because it largely sweeps away lingering doubts about where gold is headed. This is because these patterns are very bullish, and seldom break down."
Clive Maund, 01/28/07, SafeHaven, "Sectorwide buy alert"
Saturday, January 27, 2007
I began buying Amarillo Gold in January of 2004 when it was first recommended by Claude Cormier and added to my position on Friday. I believe that the consolidation occuring since the stock has moved to the new price level is close to completion. While the charts do not yet indicate that a turn is in progress, my sense is that there has been enough time to digest the previous move and the stock is ready for the fundamental news which is now anticipated (drill results from Lavras do Sul).
So, I think it's worthwhile to contemplate what might be in store for Amarillo. Their main deposit at Mara Rosa puts a fundamental floor under the stock. They have 700K+ ounces of gold with a high probability that the deposit will be expanded. Recent exploration of the Mara Rosa area lead to the staking of adjacent property and the identification of additional resources on the existing property.
The Lavras do Sul property was drilled previously by Rio Tinto and yielded mineralized cores of over 100M in length at 1 gram/tonne. Current drilling by Amarillo intends to confirm the historical drill results and start moving the property into 43-101 standards. Based on what I have heard from industry professionals, there is a high probability that Amarillo's current drilling will confirm previous results. Rio Tinto was seeking 5-10MM ounces of gold. It appears that Lavras do Sul may contain up to 3MM ounces. So, less than what Rio was seeking, but still respectable. When the drill program was announced, it was stated that initial results were expected in January.
The company has also made some personnel changes recently. Robert Landis was appointed as Chairman of the Board of Directors. Mr. Landis is a Boston-based investor that has served as a Director for several gold companies and is a consultant to GATA. His essays are available at The Golden Sextant.
I also noticed that the web page now identifies Sarah Vaughn-Jackson as the companys Communications Manager. If you Google around, you will find that Ms. Vaughn-Jackson provides similar services for Aquiline Resources and Laramide Resources. What Amarillo, Aquiline and Laramide all have in common is that they are creatures of the Iron Bark group. This group includes guys like Marc Henderson and Martin Walter who have spun out a number of companies in the mining exploration sector. The two I have mentioned are particularly successful examples. So this is another reason why I think Amarillo has a good chance of being a multi-bagger. There are people backing the company who have a track record of doing just that.
Here are some family photos:
The new Chesapeake Gold will have about $40MM in cash, a huge portfolio of properties, two active joint venture projects (Christopher James Gold/La Cucaracha and Pinnacle Mines/La Calavera), the largest undeveloped gold project in Mexico (Metates, at 10MM+ ounces) and a project close to Reno that is attracting interest (Talapoosa).
Notice the resemblance to the XAU daily chart. Bizarre!
First up was Nova Uranium. They announced disappointing results from their Mont Laurier property in Quebec. This is the second time that the company has come up short of expectations and the market responded accordingly. I took the opportunity to incur a loss and reduce my exposure to exploration spec plays by one position.
Next up was Universal Uranium. These guys finally announced long-awaited results from their drilling program in Lisbon Valley, Utah. Apparently, the assays were not worth detailing as they were not included with the release. They simply referred to 50PPM of uranium at the bottom of the holes. Universal has a respectable property position and an active work program in the Central Mineral Belt in Labrador, property in Colorado that has been JV'ed and a property in Arizona, so I will continue to hold this position.
Luckily, Strathmore has been more than compensating for these two. Because of position-sizing with the more "conservative" (i.e. companies with defined resources) plays given heavier-weighting, the advance in Strathmore has overshadowed the drawdowns from the others. The price and volume action were very encouraging towards the end of the week, with Strathmore hitting price levels it has not seen since 1998. The stock is moving towards overbought on the daily chart but still has room to run on the weekly and monthly charts. I have targets in mind for taking profits on my trading shares.
Saturday, January 20, 2007
-theinvestar: Currently Strathmore is planning to build a mill near Grants,
David Miller: The real issue is getting the permit. We believe it will take 6 years to obtain an NRC and all related permits. With that, last fall we purchased a section of land in the center of the Grants Mineral Belt. Its on a paved highway, infrastructure is in place, and it even has a heavy gauge railroad nearby that comes out of one of the coal mines in the same region, so we’ve positioned it to take advantage of infrastructure and the location in the center of the Grants Mineral Belt. Right now utilities have their uranium supplies for the next 2 or 3 years. It’s that period from 2012 and beyond when new power plants around the world are going to need their initial feeds and then are going to start consuming more and more uranium. 2012 and beyond is when the consumption of uranium is going to start growing dramatically. The mill should receive a license and can be constructed when the big shortages are going to occur.
-theinvestar: What projects are your most advanced, and when are you expecting to open your first mine?
David Miller: Our most advanced is probably Roca Honda in
-theinvestar: When you look at Strathmore, what part of the company would you say sets you apart from other uranium companies?
David Miller: The acquisition of the Kerr McGee properties in
Thursday, January 18, 2007
I started researching the sector after I read a couple of articles on 321Gold and other sites that really opened my eyes. Ralph Kettell wrote a piece on uranium and looked at Strathmore specifically. I realized that if all these articles were correct, then the timing to get into Strathmore after it had finished a major pullback was optimal and I got positioned accordingly.
Here is an excerpt from a recent interview, by Tom Jeffries of Market Matters Radio with Kevin Bambrough of Sprott Asset Management. Sprott is one of the top natural resources oriented funds in Canada.
KB: Well I think, for a few of the key uranium stocks that are out there that you know, people will be able to read that we’ve recommended many times over the last few years, I think they’re going to have another run. I think that the uranium price is poised to start moving higher again. It hasn’t really paused much, but just over the Christmas break, I’m just seeing that more and more people seem to be committed to the fact that uranium is definitely going to go to a hundred dollars this year. And once people see it start ticking up again I think there’ll be a rush back into these stocks because they’ll be viewed to be quite cheap. And probably the best of the bunch for this year is, I think, is going to be Strathmore Minerals.
TJ: Tell everybody the symbol, refresh our memory, what does that trade under Strathmore?
KB: It’s S…T…M, as in Mary.
TJ: Is that on the Venture or in
KB: That’s Venture.
TJ: Okay, Strathmore, what’s it trading at now and what kind of growth are you at Sprott thinking this could do for us in the next couple of quarters?
KB: Well, I’m just putting it down as sort of my top uranium pick. It’s really hard to say where things are going to go but there’s many stocks out there that are trading at, you know, five, ten and producers trading at twenty dollars a pound in resources and most of the analysts out there seem to be showing Strathmore around a buck a pound.
KB: We think they have some very high quality pounds and some great opportunities to do joint ventures and move things forward, we think this is going to be their year, after being in a relative holding pattern for a couple of years. The stock hasn’t really moved much and the other ones have and I think that this is going to be a big year for Strathmore.
Monday, January 15, 2007
Aurelian was an exceptional performer in 2006, actually doing what most explorers only dream about, namely, finding the mother lode. But even Aurelian wasn't immune to a sector correction and the chart shows a 30% pullback in the fall of 2006. The 25 week EMA has been tested a few times and continues to hold. The metals are possibly turning here, if that move continues, then another leg up for Aurelian seems probable. This should be supported by fundamentals with a total of five rigs now drilling continuously.