The start of the Chinese buyout on TSX? TNR.v, CZX.v, MAI.to, Los Azules, Copper, Lithium, Rare Metals

Remember the saying, "Ze Germans are coming"?

Seems like these days it's more like "The Chinese are comin"!

One of our favorite copper project - Los Azules - so far in 2009 has attracted Mr. Goldcorp, Rob McEewan, and now seems like indirectly has drawn the attention of the major copper producer from People's Republic of China.

Take a read at the latest press release from TNR:TSX, does it sound like just one TSX small time miner investing a few hundred thousand dollars in another one?

CZX:TSX - has an excellent property but it has fallen drastically from its lofty $1+/share mark that it saw most of 2008. To add fuel to the fire, changing its name from Mantle Resources to Canada Zinc Corp has isolated the Vancouver firm further as a one-commodity junior...

Zinc prices continue to decline

LONDON — Sliding zinc prices are taking their toll on mining companies, but the market will not turn around anytime soon, industry analysts say.

Mine closings and production cuts have occurred as energy, labor and equipment costs rise while zinc prices drop.

And the pain will continue. The question is whether weak demand and global oversupply will keep prices falling into 2010, or whether the market will turn around next year.

"We would need very, very, very significant production losses to bring the market back to balance" in 2009, said Giles Lloyd of CRU Group, an industry consulting firm. "Some producers are now realizing that they were being a bit hopeful thinking that the market could turn in 2010."

Zinc, mainly used to galvanize steel, is one of the worst performers in the metals field this year. In August it dropped to its lowest level since November 2005; it now trades at around $1,745 a metric ton, down almost 25 percent so far this year.

It is no wonder that prices have dropped.

Zinc stockpiles at the London Metal Exchange have jumped 80 percent this year to 160,000 tons, and a Reuters survey of analysts showed an expected surplus of about 281,250 tons this year, growing to 328,758 tons in 2009.

However, some market watchers still expect a shift to a deficit in 2010 as producers cut spending and smaller companies, which typically operate zinc-lead mines, struggle to find financing for new projects and to gain environmental approvals.

"The market will turn around quite considerably in 2010," said Gayle Berry, an analyst at Barclays Capital. "The concentrate market is going to move into deficit due to closure of mines." She added that some smaller mines would reach poorer grades of ore.

Berry expects prices to average $2,073 a ton this year, $1,900 in 2009 and to jump to $3,100 in 2010.

A Reuters poll in July found that zinc prices in the spot market were forecast to average $2,133 a metric ton in 2008 and fall to $2,000 in 2009. On Tuesday, cash zinc was trading at $1,762 a ton, and it has averaged $2,155 so far this year.

Weaker demand will also slow the recovery of zinc prices.

Lloyd, of CRU, said there were indications that demand in China, the world's biggest consumer of the metal, was beginning to slow markedly, and that the debate centered on whether internal demand would slow as export markets for China also weakened.

Consumption is also falling in Europe, the next-biggest consuming region, as economies there slow down.

European refined zinc demand fell 7.8 percent in the first half of 2008 from a year earlier, according to the International Lead and Zinc Study Group. Demand in Japan and the United States was little changed.

Still, Michael Jansen, an analyst at JPMorgan Chase, said: "The only way you are going to end up with a surplus post-2010 is if you assume a lot of mines are going to open and demand is going to fall through the floor."

Looks like CZX and its shareholders made an excellent decisino to invest in an undervalued junior that has gone up 500% already from its lows of January. Here at Mining 101 we recommended a buy of TNR and CZX back from its lows - while summer doldrums will likely dent the current price a bit with brokers and investors on vacation - longterm picture is still very favorable for both quality juniors.

TNR Raises $1 Million Nonbroker PP - CZX and Chinese Investments!

posted on Jul 07, 09 01:28AM

TNR GOLD ANNOUNCES STRATEGIC INVESTMENT BY CANADA ZINC METALS WITH PARTICIPATION IN $1 MILLION PRIVATE PLACEMENT

TNR Gold Corp. and Canada Zinc Metals Corp. confirm a strategic initial investment by Canada Zinc Metals in TNR as part of a private placement for up to five million units, priced at 20 cents per unit, to raise up to $1-million. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share of the company at a price of 30 cents for a period of 12 months from the date of closing.

Canada Zinc Metals is focused primarily on developing its flagship Akie property, a significant zinc-lead deposit in northeastern British Columbia, Canada, containing a National Instrument 43-101-compliant inferred resource of 23.6 million tonnes grading 7.6 per cent zinc, 1.5 per cent lead and 13.0 grams per tonne silver. As evidence of the quality of the properties owned by Canada Zinc Metals, a large Chinese mining group, Tongling Nonferrous Metals Group Holdings Co. Ltd., has recently invested $4.9-million in Canada Zinc Metals for a 13-per-cent equity position.

Tongling, a state-owned enterprise based in Anhui province, is one of China's largest copper smelting companies and ranked in the top 100 large-scale industry enterprises in China. Tongling's principal activities are exploration, mining, ore processing, smelting and refining, and products processing of copper, lead, zinc, gold, silver, and other non-ferrous and rare metals. China has over half of the world's deposits of rare earths, over 80 per cent of worldwide production, and has recently shown significant interest in becoming majority shareholder of various rare earth miners such as Lynus Corp. and Arafura Resources. TNR's non-executive chairman, Kirill Klip, will be taking a significant portion of the financing along with other insiders and management.

TNR president and executive chairman, Gary Schellenberg, states: "We are encouraged by the support in this current financing by insiders, management, and welcome the strategic investment from Canada Zinc Metals and all its stakeholders. It is clear that our recent aggressive acquisition plan of lithium and rare metal properties around the world, along with continuing developments on our copper-gold properties in Argentina, is attracting significant attention in the mining and investment world."

Peeyush Varshney, chairman and chief executive officer of Canada Zinc Metals, commented: "This strategic investment into TNR and its proposed spinoff subsidiary, International Lithium Corp., will give our shareholders diversification into the growing opportunities that rare metal industries are offering. Furthermore, the investment gives us an interest in TNR's stake in the significant Los Azules copper project in Argentina."

A finder's fee of 7 per cent on a portion of the proceeds raised is payable in cash, in units, or a combination of both, at the election of the finder. Any units issued in lieu of cash will be on the same terms as the units of the offering. All securities issued pursuant to this financing are subject to a four-month hold period from the date of closing. The offering is subject to TSX Venture Exchange approval and any regulatory approvals.

Proceeds of the private placement will be used to finance the evaluation of TNR's lithium and rare metal properties, implement the proposed spinoff of International Lithium, and for general corporate purposes.

Luckily - this new investment may have a shot of breathing some new life CZX not to mention needed excitement! TNR Gold is a dynamic group that has been making newspaper and interview headlines with their lithium projects.

Taken from http://www.tnrgoldcorp.com/s/Media.asp

CBC Interviews TNR Gold on Lithium in Northwest Territory
http://www.internationallithium.com/i/pdf/CBC-TNRinterview.pdf

Vancouver Sun Article - TNR Gold Corp (International Lithium Spin-off)
June 4, 2009
http://www.vancouversun.com/Business/Trading+rises+unemployment+falls/1663973/story.html

Resource World - Lithium Exploration
June 9, 2009
http://www.internationallithium.com/Z-files/ResourceWorld-2009-Jun-Lithium.pdf

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More info about Tongling:

http://www.tnmg.com.cn/english/

Tongling Nonferrous Metals Group Holdings Co.,Ltd. is located in the Tongling City of Anhui Province, where is one of the cradles of China's Bronze Culture and entitled with the name "China's Ancient Bronze Capital", Tongling Nonferrous Metals Group Holdings Co.,Ltd. enjoys favorable geographical position that closes to both Yangtze River and sea, and has convenient transportation.

As one of China's earliest copper production bases, Tongling Nonferrous Metals Group Holdings Co.,Ltd. has put into production in June 1952. After development of half century, now this incorporation becomes an extra large scale complex that engages mainly in copper mining, mineral processing, smelting & refining and copper products processing, and also involves in trade, scientific research and design, machine building, construction & installation, shaft & drift construction and tourism industry.This incorporation is one of the 300 enterprises that being given special support by the nation and one of the large scale enterprises being given preferential support by Anhui Provincial government.