Mining: Juniors a big buy: M&A study
Thanks in part to junior resource companies, Canada regained its ranking as the top destination for deals, according to Q1 figures from Ernst & Young’s Mergers, acquisitions and capital raising report. Canada was the No. 1 target destination by total deal value in Q1 2012, with the majority of deals being small domestic transactions targeting junior explorers and mineral properties.
Global mining and metals deal volume and value decreased by 34% and 20%, respectively, year over year.
Transportation: Westport onside with off-road
Westport Innovations Inc. (TSX:WPT) has signed an agreement to develop its natural gas engine technology for the high-horsepower, off-road equipment of Caterpillar Inc. (NYSE: CAT). The partnership will initially focus on mining trucks and locomotives. The announcement comes at a time when higher prices for conventional fuels are increasing both the cost estimates for proposed mine builds and expenditures for existing mining operations.
Caterpillar will fund the development program. Financial details were not disclosed.
Mining: Forbes West shows love for Labrador
Alderon Iron Ore Corp. (TSX:ADV), one of Forbes West’s group of companies led by chairman and CEO Mark Morabito, said its Kamistiatusset iron project (Kami) will generate $1.6 billion in income and $2.0 billion in tax revenue for Newfoundland and Labrador.
Kami, located near Labrador City, is one of three Labrador plays from Forbes West: Ridgemont Iron Ore Corp. (RDG:TSX.V) recently closed its acquisition of IronOne Inc., providing an opportunity to earn a 100% interest in the nearby Lac Viron iron project.
Clean tech: Xebec sale offers QuestAir refresher
Quebec-based Xebec Adsorption Inc. (TSX: XBC), a provider of biogas upgrading and hydrogen purification technology for the clean-energy market, announced it has received a $2.05 million purchase order for its H-3200 hydrogen purification unit from Deok-Yang Company Ltd., South Korea’s leading hydrogen supplier. The H-3200 was first developed by Burnaby-based QuestAir Technologies, which Xebec acquired in mid-2009. A Burnaby sales office and technology centre remain.
