Shares of True North Gems ($TGX:CA) (TGNMF) could rise later this week after a gathering of investors in Denmark.
Nick Houghton's Greenland developer of a ruby deposit, with stockpiled gems ready for processing and sale, is set for production.
The shares just had a nice bump.
This is another example of a company that could disrupt established channels for the reds.
Mr. Houghton, CEO, is an at-market buyer of his own company's shares -- a rare occurrence against a landscape of private placements and promotional shares in the resources business.
Rubies of gemstone quality are rare. Some say rarer than diamonds.
True North's ruby and pink sapphire mining operation at Aappaluttoq in Greenland just received a government approval. Nick Houghton says nearly everyone at the mine, which has been in the works for about a decade, will be local.
Nick is a trained gemologist from northern England. Oy.
I was adding to my stake last week, after a Danish newspaper's early report of mine financing for True North Gems.
This company has everything when it comes to colorful: besides the reds, and the pink sapphires, on the colorful end of the spectrum are a rabbi's distress selling of True North shares earlier this (northern hemisphere) spring -- millions and millions of shares.
I guess that's why the call these things special situations. An Australian rabbi or something like that who lives in Singapore and has 11 kids, maybe 12, was selling.
Here is Nick's letter to shareholders about the matter: http://www.
It just might be that carbon is in again. Or will be.
I l-o-v-e this 1916 description of diamonds and rubies, the king and queen of gems, in Brooklyn, N.Y., author Helen Bartlett Bridgman's book, GEMS.
Our coverage at TCR -- The Calandra Report -- of these carbon copy companies over the years includes:
John Lee's Prophecy Coal in Mongolia, Eric Desaulniers' Nouveau Monde Mining ($NOU:CA) in Quebec, Stellar-Diamonds in Sierra Leone and True North Gems in Greenland. I own all except graphite developer Nouveau Monde.
Prophecy Coal (PCY:CA) is working with a Mongolia government agency in its efforts to crack open the Russia border at Zeltura, next to its producing coal mine, and start improving the road into Mother-R, Mr. Lee tells me today.
Allow me to add: I never have made money in gems, let alone coal, during 30-plus-years of buying them physically and purchasing their associated equities. I am, you can ask the folks here at home, so motivated to make a bundle in gems -- give me diamonds, rubies, olombian emeralds, hey I'll take Cambodian zircon even -- that we agreed to name a daughter Gem(ma). This is true.
-- My entire portfolio of publicly held companies, by ticker, is listed for Stockhouse members (free) under tcalandra at the portfolio function. The function does not include position size nor level of suffering with possible shingles attacks.
My latest purchases include True North Gems and American Sands Energy (AMSE) .
I am in Los Angeles for the LDMicro gathering of 100 or so micro-cap and small-cap companies on Wednesday.
-- Thom Calandra
*$110 yearly: Does Not Recur
**$110: Will Recur Yearly
New! TCR Blips
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer