The reason for the sp drop??
posted on
Sep 09, 2009 12:53PM
Great Western Minerals Group Ltd. is a Saskatchewan-based junior exploration company. GWMG is engaged in the acquisition, exploration, and development of rare earth mineral properties in North America.
Read through this from Canacord and then read the last pararaph again. We may have our reason for the sp drop today. I would not be surprised if these guys are buying and lying! Don Avalon Rare Metals* (AVL : TSX : $3.85) Net Change: 0.37, % Change: 10.63%, Volume: 2,729,787 Star light…star bright...Avalon jumped yesterday as the company appointed the former National Chief of the Assembly of First Nations Phil Fontaine to its Board of Directors. Fontaine completed a third term as National Chief of the Assembly of First Nations (AFN) in July, 2009, deciding at that time not to seek a fourth term and instead pursue a new career in business. Fontaine has actively worked to facilitate change for the First Nations people and has been a vocal advocate for more First Nations - Industry partnerships as a means of alleviating chronic poverty in remote northern communities. Fontaine commented, "Avalon is a rising star in the exploration industry. There is tremendous potential to explore Canada's natural resources in a respectful and responsible manner. I will assist the company in increasing its value to shareholders by fostering positive relationships with Indigenous peoples and identifying mutually beneficial opportunities." Fontaine has been granted 175,000 incentive stock options exercisable at a price of $2.80 per share for a period of five years from the date of grant of the options. Notably, Fontaine also recently accepted a position to act as a Special Advisor to the Royal Bank (RY). This news comes on the back of potentially negatives news for rare earth metals which have been on a tear lately. According to reports made by Metal-Pages and other news media, the Chinese government may be backtracking in its quest to limit the export of rare earths minerals. At an industry conference, China's deputy director of Ministry of Industry and Information Technology, stated China has no intentions of hoarding rare-earth minerals and values foreign investment in the industry. China accounts for about 93% of the production of rare earth elements and according to the China Daily, reserves of rare earth have diminished from 88% of the world's total a decade ago to 52% in 2008, while exports soared 10 times high. This news is expected to take some of the momentum out of "rare earth" stocks.