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Junior Miners Still Looking At Medical Marijuana

By Alex Létourneau of Kitco News
Wednesday May 28, 2014 11:45 AM

(Kitco News) - With the mining sector proving to be ruthless in the junior mining space as a lack of capital in the industry continues, junior miners turned their heads to new opportunities, including the lucrative medical marijuana industry.

March saw several penny stocks jump as juniors essentially told the market they were looking at possibilities with medical marijuana.

The move was generally hiring consultants to explore the possibility in the field. However, in Canada, mining companies would have to go through the same steps as anyone to receive one of the few medical marijuana producers’ licenses. Only 12 have been handed out to date.

In a statement to Kitco News, Department of Health Canada said “to become a licensed producer, all applicants must meet all of the requirements of the new Marihuana for Medical Purposes Regulation, including obtaining the proper personal security clearances, meeting the physical security requirements for the cultivation and storage areas, and submitting a completed licensed producer application."  

Supreme Pharmaceuticals (TSX:CL), formerly metals mining company Supreme Resources, has applied to Health Canada for a “Marihuana for Medical Purposes Regulations” (MMRP) license.

The company recently completed the acquisition of a greenhouse complex for medical marijuana production on May 23, and said they will be able to begin production upon receipt of an MMRP license.

Satori Resources Inc. (TSXV:BUD) recently completed a strategic alliance with Jourdan Resources Inc. (TSXV:JOR) involving the Picnic Phosphate property in Quebec, which is focused on phosphate minerals for specialized agriculture and fertilizer.

Where this involves medical marijuana is that the companies will be sourcing their product to licensed marijuana growers to test the phosphate products in a growth capacity growing marijuana in legal forums.

Jennifer Boyle, president and chief executive officer of Satori, told Kitco News that the deal with Jourdan adds another dynamic to a gold exploration company that is looking for other avenues to generate shareholder value while the junior mining space suffers.

“The deal with Jourdan certainly allows me to work in both fields without crossing a line as far as the TSX goes,” Boyle said. “The fertilizer business is an actual legitimate business and if we can make headway in that direction, then we are looking at it.

“What I like about the Jourdan deal is that it allows me to hold on to that medical marijuana flag, as well as staying on the side of mining,” she added.

Satori has the historic Tartan Lake Gold Mine project, located on the Flin Flon Greenstone Belt, in Manitoba, as its flagship asset.

Boyle said that she’s open to joint ventures and financings, but given the survival mode of many companies in this current mining environment, she has time to look for a proper deal given the claim fees are paid off for some time.

Asked about why she decided to take the step towards the medical marijuana industry, she said it was her ticker, BUD, which is slang for marijuana.

“A couple of people in the (medical marijuana) space sorted of latched on to the ticker and sort of thought I was a medical marijuana company,” she said. “Having seen the volume and having looked up the industry, we are definitely looking to investigate whether or not a full jump is worth it.”

Also, Satori is a particular strain of marijuana.


By Alex Létourneau of Kitco News aletourneau@kitco.com
Follow Alex Letourneau @alex_letourneau




Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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