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  • Supreme Pharmaceuticals Appoints Lawyer John Fowler As President And Director

    Supreme Pharmaceuticals (OTC PINK:SPRWF)(CSE:SL) said it has appointed John Fowler as the president of the company, while also electing him to the board of directors.

    Fowler, previously director of operations, began working in the medical marijuana sector over 10 years ago, pursuing a career in law to assist medical marijuana patients with legal issues ancilliary to medical marijuana use.

    The company said he most recently worked at a prominent Toronto law firm.

    Supreme also announced it has appointed Dr. Youbin Zheng, an associate professor and environmental horticulture chair at the University of Guelph, to its advisory board. According to Supreme, he has years of experience in horticulture research, especially in vegetable and ornamental plant production in greenhouses in Canada, England, Japan and China.

    The news follows Supreme's announcement last week that it is now ready for the final step prior to being approved for a production license at its Kincardine medical marijuana facility in Ontario, delivering on expectations laid out at the beginning of 2014.

    The company completed the security and infrastructure upgrades at the greenhouse facility, and is ready to participate in the Health Canada pre-license inspection, though no date had yet been set as of Friday last week.

    Supreme has been working steadily over the past year to develop Kincardine, and with strong support from the local community, it has been able to move quickly to implement its proposed plan since receiving the largest conditional pre-approval from Health Canada in January.

    The company is planning to produce up to 24 million grams of medical marijuana at the 342,000 square foot Kincardine facility, and has had to build up the facility to meet regulatory requirements.

    Dec 19 3:44 PM | Link | Comment!
  • Mawson West Gets Over US$19mln In Immediate Funds, More Coming

    Mawson West (TSE:MWE) has closed a major part of the significant financing and debt restructuring package announced earlier this month with Galena Private Equity Resources Fund, securing enough capital for the copper and silver miner to manage the ramp up of its Kapulo copper mine.

    The company said Galena has provided the company with an immediate US$19.3 million in financing, and after future financing efforts already committed to by Galena are completed, total proceeds raised will be about US$33.4 million.

    Galena's affiliate, Trafigura Pte Ltd., Mawson's current off-take partner and senior lender, has also provided additional financial assistance to the company through amendments to a prepayment facility and an extension to the term of its offtake agreement.

    The closing of these transactions follows Mawson West receiving permission from the TSX to rely on a financial hardship exemption in order to complete the deal.

    The company said the proceeds of the financing will be used to manage the "uninterrupted ramp up of the Kapulo copper mine through to positive cash flows and strengthen its balance sheet to manage its debt repayment requirements."

    Under the financing package, Galena has become Mawson West's largest shareholder with 41.67 million shares of the company via a C$5 million private placement.

    The private equity fund has also provided the company with US$10 million secured loan facility, repayable in September 2017, as well as a US$5 million unsecured bridge loan due February 2015. Galena has also agreed to purchase additional shares ofMawson West, for up to C$21.6 million.

    Meanwhile, Trafigura has amended the maturity date of Mawson West's prepayment facility by 9 months to June 2017, as well as deferred US$19 million in repayments and increased the flexibility of proceeds account structure to assist with cashflow.

    The intention is that both of Mawson West's projects in the Democractic Republic of Congo will be producing at "their full potential" and generating cash flow in 2015. The copper and silver producer, which is based in Perth, Australia, also owns the Dikulushi copper-silver mine in the DRC, which has been transitioning over the past year from an open pit operation to underground mining as a means to extend the mine life.

    The commissioning of the Kapulo copper mine in the DRC started last month, with production anticipated to start in the first quarter. Mawson West recently upgraded mineral reserves at the project, with 86 percent now in the proven category. The project is estimated to have an after-tax net present value of some US$156 million using a base case copper price of US$7,100 per tonne for the life of the mine. Life-of-mine cash costs are projected at US$1.92 per pound.

    Dec 19 3:41 PM | Link | Comment!
  • Cott Oil And Gas: Andrew Dimsey Speaks With Proactive Investors

    Cott Oil and Gas (ASX:CMT) is currently advancing the Pandora field (CMT:40%) as a floating liquefied natural gas project though it has not ruled out other development options.

    This follows completion of a Concept Study by Wison Offshore and Marine that provided it with a high degree of confidence that Pandora can be developed as a successful high margin FLNG or LNG project.

    Cott has already received strong interest from FLNG developers in a Build Own Operate (tolling) model for the project, which is located in a growing LNG hub for Asia.

    PROACTIVE INVESTORS: Welcome Andrew.

    What progress has Cott Oil and Gas made in securing partners - including parties interested in a build, own and operate model - to develop the Pandora Gas Field?

    Andrew Dimsey: It's too early to be locking in a midstream partner for Pandora but this hasn't stopped us from exploring potential partnerships with FLNG developers and developing a detailed understanding of the build-own-operate model as it would apply to Pandora.

    We have a clear understanding of what needs to be done to complete appraisal of the project and to justify investment by midstream partners into the development and, eventually, finance of a project-specific solution.

    Oil prices have fallen considerably, what impact - if any - does this have on a proposed liquefied natural gas project?

    Andrew Dimsey: It certainly has an impact on the viability of high cost LNG projects and we have already seen investment decisions on a number of proposed projects, especially in North America, being deferred.

    LNG aspirants with significant exposure to oil have come under significant pressure over the last few months with many seeing their share prices halved. This puts pressure on capital budgets across the board and it is likely that many projects will not be developed as quickly as anticipated if at all.

    Although long-term LNG contracts are typically linked to oil prices, the fuels are not interchangeable and the supply and demand relationship is independent. Lower oil prices are not going to significantly impact ongoing demand for LNG which appears robust. However, it will impact the number of projects that are economically viable and hence the future supply of LNG.

    LNG projects have long lead times and the economics for LNG later this decade and into the 2020s remains robust with Oil Search forecasting prices of US$12-14 mmBtu - well above the break-even price for Pandora.

    Floating LNG appears to be gaining greater acceptance with BHP Billiton supporting its use for the Scarborough Gas Field. Is this something that Cott Oil and Gas is starting to experience as well?

    Andrew Dimsey: The view from many FLNG developers is that, despite the high profile of mega-projects such as Prelude and Scarborough, the primary market for FLNG will be in unlocking smaller, stranded gas fields. Most are now focussing on the development of FLNG vessels with capacities of between 0.5 - 2 mtpa for projects as small as 500bcf.

    The first two FLNG vessels will commence operations in Colombia and Malaysia in the next 12-18 months and this will generate further acceptance of FLNG as a technology.

    Knowledge is increasing and the cost of constructing vessels appears to be decreasing. We are even seeing shipyards, such as Keppel, adding liquefaction capacity to LNG carriers creating a low cost option for simpler projects.

    In the same vein, has interest in the company grown following the start-up of the PNG LNG project earlier this year?

    Andrew Dimsey: The commencement of PNG LNG project has substantially reduced the country-risk for investing in PNG. The next focus for its proponents is to secure sufficient gas to underpin the development of Trains 3, 4 and even 5 so markets will be watching for the success of the Elk/Antelope appraisal and Hides Deep.

    In the event that these do not meet expectations, additional feedstock will have to be sourced from elsewhere to extract the benefits from the expansion.

    Each onshore LNG train requires around 5 TCF of gas and the cost of exploring for gas onshore and transporting it to Port Moresby is considerably higher than for offshore gas.

    Field development costs for the Pandora gas field are modest as the reservoir only requires three shallow production wells to deliver sufficient gas for 1 mtpa LNG making it one of the commercially attractive projects for FLNG.

    Can you outline some of the key catalysts for 2015?

    Andrew Dimsey: 2015 is likely to be a pivotal year within the PNG energy sector with the results of arbitration between InterOil and Oil Search determining whether Elk/Antelope is developed by Total as a separate project or incorporated into PNG LNG.

    Other developments will include the completion of the Elk/Antelope resource appraisal and of development plans for Western Province gas, including P'nyang and Ketu/Elevala.

    Cott expects to get independent confirmation that the gas resource within PRL38 is sufficient for a stand-alone FLNG project giving potential midstream partners confidence to develop their plans. Cott also expects to finalise the optimal process for the removal and disposal of acid gas.

    2015 is likely to see a fair amount of re-organisation and consolidation at both asset and corporate levels throughout the country. Progress has been slow in some joint ventures as parties seek to minimise expenditure in the face of a challenging environment. This is likely to be resolved by the entry of new partners or mergers and acquisition.

    Finally, the commencement of operations at the Exmar/Pacific Rubiales Caribbean FLNG project will deliver proof of concept for floating LNG and validate the build-own-operate model preferred by most developers. This will substantially reduce the capital cost burden for the smaller owners of commercial gas fields.

    PROACTIVE INVESTORS: Thank-you Andrew.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

    Dec 18 7:47 PM | Link | Comment!
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