Diversified specialty and critical metal company American Manganese, Inc. (AMY.TSXV), (AMYZF) has reported the results of its 2011 General Meeting. The meeting was a success as shareholders reelected Larry W. Reaugh, Andris Kikauka, Edward Lee, Paul Hildebrand and Anthony Santelli as directors. Larry Reaugh also serves as President and Chief Executive Officer.
Every ordinary resolution placed before the meeting was passed. The shareholders approved the proposed amendments to the company's stock option plan. The shareholders also appointed MNP, LLC as auditors of the Company. Finally, shareholders passed a resolution confirming the Shareholders' Rights Plan with respect to the Shareholder's Rights Plan Agreement made between the Company and Computershare Investor Services Inc., as rights agent, dated December 2, 2010.
2012 Potentially a Big Year in Metals Market
News of the annual general meeting comes as American Manganese finds itself in an intriguing position. Dr. Michael Berry and Chris Berry, co-authors of Morning Notes, highlighted the way the market for rare earth metals was wide open for North American producers during an interview with The Critical Metal Report. Michael and Chris call attention to what they view as mismanagement of critical metals resources by the American government, leading to the current situation where the country is almost entirely dependent on foreign sources for these strategic metals.
While manganese is not a rare earth metal, it is the fourth most traded metal in the world, with 30 billion pounds a year on the move. The crucial metal is necessary in the production of steel. However, despite the crucial importance of the metal, there are no major sources for all-important electrolytic manganese outside of China. In the interview, Chris Berry details how this situation has created an opportunity for American Manganese and its Artillery Peak deposit in Arizona.
"American Manganese is aiming to institute a patent-pending process that it developed with Kemetco Research Inc. where it will produce electrolytic manganese for about $0.70/lb. Electrolytic manganese sells on world markets right now from between $1.80 and $1.50, which creates about a $1 margin. Given that China produces roughly 98% of world Electrolytic Manganese Metal [EMM] supply and costs of production appear to be increasing there, American Manganese is well positioned to compete in this market."
With the global market for electrolytic manganese wide open, American Manganese appears well positioned to move into the space with strength.
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