Strategy
Emerging Metals continues to conduct its own studies and test work to determine the viability of winning principally germanium, but also zinc and gallium, from the Tsumeb Slag Stockpiles. The Company is also pursuing investment opportunities in metals and bulk commodities where there is an anticipated imbalance in supply and demand. The investment metals that the Company plans to target exposure to include all metals other than base metals (such as copper and lead, but excluding for these purposes zinc) and bulk commodities metals (such as iron, potassium and aluminum) in addition to minor metals. The Company’s exposure to investment metals will be achieved by the purchasing of physical quantities of such commodities for the trading portfolio (“Trading Portfolio”), the acquisition of additional complementary investment metals projects, and the acquisition of strategic minority stakes in publicly traded companies with a focus on investment metals. The Company may also acquire positions in securities or any other interest (including but not limited to loan capital and other convertible instruments) (“IM Securities”) in the ordinary course of its business and as an alternative to holding cash reserves on a day-to-day basis. The Company may acquire, hold, store, market and trade physical quantities of investment metals (that would comprise the Trading Portfolio) as well as acquire, hold, market and trade the IM Securities it holds from time-to-time. The Directors believe that current market conditions will provide good opportunities for a positive return from the Trading Portfolio and the IM Securities where prices of the investment metals to which the Company has exposure increase. The Directors intend to undertake the initial assessments internally with additional independent technical advice as required from time to time on a case by case basis. The acquisition and disposal of investment metals to and from the Trading Portfolio will be carried out through established metals traders engaged from time to time. Additional opportunities which the Directors believe have the potential to enhance shareholder value will be considered. In evaluating possible additional opportunities, the Directors will take in to account the goal of achieving a diversified exposure to different investment metals as well as the market outlook for individual elements. These opportunities may include interests (in whole or in part) in (without limit) exploration permits and licences, mining projects under development, operating mines, smelters, slag stockpiles, refineries, and associated activities. Such investments may be structured as direct licence rights, equity interests in companies (whether quoted or unquoted), partnerships, convertible instruments, options, debt or other loan structures, joint ventures or other financial instruments as the Directors deem appropriate. The Directors collectively have extensive experience in the acquisition, development, operation and exploration of mining projects as well as the trading of publicly quoted securities and other interests and they intend to undertake the initial assessments internally with additional independent expert advice as required. The Directors believe that their collective experience in the areas of mining, acquisitions, accounting and corporate and financial management together with the opinion of expert consultants in the evaluation and exploitation of investment metals opportunities will enable the Company to achieve its objectives. The Directors intend to take an active role in the management and development of the Tsumeb Slag Stockpiles Project and where practicable in any future projects. For more information, please see Emerging Metals’ EGM Circular.
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