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June 24, 2019

7 @ 7:00

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1. Gold climbed as high as $1,411 overnight, its best level since August 2013as of 7:00 am Pacific, bullion is up another $7 an ounce at $1,406 after last week’s surge…exchange-traded-fund investors are moving back into Gold with Friday’s inflow the largest in close to 3 years, according to CommerzbankGold is currently being bought by both ETF investors and speculative financial investors,” the bank said…“The Gold ETFs tracked by Bloomberg registered an inflow of over 32 tonnes on Friday, which took place exclusively in the SPDR Gold Trust.  This was the largest inflow in nearly 3 years (and the biggest daily percentage gain since in the SPDR Gold Trust since September 2008).  ETF holdings have thus been increased by 95 tonnes since the beginning of the month.  The Gold price has risen by $100 during this time”Russia continues to add Gold to its reserves, buying another 200,000 ounces or 6 tonnes of Gold in May, according to the country’s central bank…this put the total of Russia’s total Gold holdings at 2,190 tonnes as of June 1, up by 0.3% from May…large speculators sharply hiked their bullish positioning in Gold futures for the 4th straight reporting week, according to data compiled by the Commodity Futures Trading Commission…Silver, in the early stages of what could turn out to be a monster move in 2019, is up slightly at $15.33Copper, Nickel and Zinc are all relatively unchanged at $2.68, $5.44 and $1.17, respectively…Crude Oil has added a nickel to $57.48 after a 9% jump last week…political tensions between the U.S. and Iran continue to simmer…President Trump has announced plans for further sanctions against the rogue regime after Iran’s downing of a U.S. drone last week…the U.S. Dollar Index, clearly in a downtrend, has retreated one-tenth of a point to 96.12

2. Bitcoin’s bull run continues, with the cryptocurrency climbing above $11,000 (U.S.) this morning, likely a combination of traders buying into their own fear-of-missing-out (FOMO) as well as institutions chasing the tail end announcement of Facebook’s Libra project…Bitcoin’s ride back accelerated in April, puzzling onlookers trying to pinpoint a reason for the surge…a study by Indexica, an alternative data provider, showed 3 main drivers: a more complex conversation surrounding Bitcoin, fewer concerns about fraud and a shift in the tense of how Bitcoin is talked about from the past to the future…the advent of Libra “is validating the crypto space and sending all the major digital coins higher,” said Edward Moya, chief market strategist at Oanda Corp. in New York…“Bitcoin volatility is likely to persist, with $12,000 and $15,000 as the next two critical resistance levels”

3. The pool of negative-yielding government bonds around the world hit a fresh record high of $13 trillion last week…a number of European countries’ intermediate government bond yields sagged to record lows…French and Swedish 10-year yields fell below 0% for the first time ever…close to 100% of all debt issued by the Swiss government, from 1-month to 20-year maturities, now carries a negative yield…that’s closely followed by Sweden (91% of all debt), Germany (88%), Finland (84%) and the Netherlands (84%) – no wonder Gold has been soaring…

4Gold’s most recent move through $1,400 an ounce could attract more buyers than the metal’s previous key $1,300 level, Scotiabank says“There’s an extraordinary amount of $1,400 strike (vol) owners.  Overall, there is a growing ‘FOMO risk’, where Gold could attract more buyers at $1,400 than $1,300, reaffirming the belief of some well-known investors that if $1,400 breaks, $1,700 (somewhat of a stretch) will happen ‘very quickly’,” commented Scotiabank commodity strategist Nicky Shiels…

5. Socialist Bernie Sanders has a new crazy plan, consistent with the new direction of the Democratic Party…he’s now proposing a tax on financial transactions, including a 0.5% tax on stock transactions and a 0.1% tax on bonds to erase the country’s $1.6 trillion outstanding student loan tab…the Presidential candidate’s legislation would release all 45 million Americans from their student debt…outstanding education debt in the U.S. has eclipsed credit card and auto debt…the average college graduate leaves school $30,000 in the red today, up from $10,000 in the 1990’s, and 28% of student loan borrowers are in delinquency or default…Sanders’ plan would also make 2 and 4-year public colleges and universities tuition-and-debt-free…“This is truly a revolutionary proposal,” Sanders told The Washington Post“In a generation hard hit by the Wall Street crash of 2008, it forgives all student debt and ends the absurdity of sentencing an entire generation to a lifetime of debt for the ‘crime’ of getting a college education”

6. Wall Street, ignoring Crazy Bernie, has pushed the Dow up another 39 points through the first 30 minutes of trading…equity markets have welcomed the announcement that a full-blown standalone U.S.-China ‘bilateral’ meeting will be held on the margins of the annual G20 Summit in Japan starting this Friday…the Dow (through last Friday) is up about 7.7% in June…if the gains hold, it will be the Dow’s best monthly performance since October 2015 and its best June since 1938…in Toronto, the TSX is off 15 points in early trading…the Gold Index, which pushed above important resistance at 211 last week, is aiming for its 10th straight winning session…nearest resistance is in the high 220’s…the Venture is flat at 593…the Venture has slipped 1.4% this month, though that’s a much better performance than the Canadian Marijuana Index which was down 9% for the month entering today…Canopy Growth’s (WEED, TSX; CGC, NYSE) weaker than expected 4th quarter financials were mostly due to challenges scaling up at its largest greenhouse facilities in B.C. and Quebec – roadblocks that cost it $24 million in operating expenses for facilities not yet cultivating, cultivating but not yet harvesting, or facilities that had under-utilized capacity…between January 1 and the end of March this year, Canopy sold 9,326 kilograms of cannabis to domestic and international markets, about 800 kilograms less than what it sold the previous quarter, which reflected just 10 weeks of post-legalization recreational sales…it generated $82.3 million in gross revenue from weed sales, with $68.9 million coming from the recreational market, a slight decline from $71.6 million in the previous quarter…Canopy brought in $94.1 million in net revenue in its 4th fiscal quarter, up slightly from the previous 3 months…about a quarter of the company’s overall gross revenue came from other streams besides cannabis, including sales from medical cannabis device manufacturer Storz and Bickel that Canopy acquired earlier this year…WEED is trying to hold support at its still-rising 300-day SMA at about $51

7. Robert Friedland’s Ivanhoe Mines (IVN, TSX) reported this morning that with the onset of the dry season in the Congo (DRC), construction of the new highway directly linking the company’s Kamoa-Kakula Copper Project to the Kolwezi airport, located southeast of the city of Kolwezi, is progressing rapidly…The new 34-km, east-west road is approximately 25% complete and is expected to be fully operational by the end of 2019…when complete, the road will significantly improve Kamoa-Kakula’s transportation corridor that is being used to bring in mining equipment and construction materials, and that will be used to transport copper concentrates…the new road also will improve the safety and commuting time for employees between Kamoa-Kakula and Kolwezi and Lubumbashi, as well as for mine visitors arriving at the Kolwezi airport…the new road will provide Kamoa-Kakula with a direct, high-quality connection to the national road between Kolwezi and Lubumbashi, and to a proposed, new south-bound provincial road that will connect to Lumwana, Zambia and the Zambian rail system, via a planned new border crossing…this proposed heavy-haul route to Zambia would significantly streamline truck freight to and from Kamoa-Kakula…Ivanhoe is above $4 a share for the first time since the start of 2018

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June 23, 2019

Sunday Sizzler Report! (Part 1)

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The Week In Review And A Look Ahead!

How the Venture’s current 6% gain for 2019 will turn into a big double digit win for the year…

Below, on the road to success in the Eskay Camp

Highway 37, adjacent to the Eskay Camp and near the turnoff to the turnoff to the Eskay mine road.

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June 22, 2019

Daniel’s Den

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June 21, 2019

7 @ 7:00

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1. Gold climbed as high as $1,411 overnight, its best level since August 2013as of 7:00 am Pacific, bullion has retreated to $1,396 but is still up $8 an ounce after yesterday’s breakout move…Gold is hitting record highs in multiple currencies with the exception of course of the U.S. dollar…Silver is off 8 cents at $15.30…breakout point on our short-term chart was $15.23 which needs to hold…Copper is up a penny at $2.70 while Nickel and Zinc are each off slightly at $5.47 and $1.15, respectively…Crude Oil has added 19 cents to $57.35 after yesterday’s surge following the shooting down a U.S. drone in the Strait of Hormuz by Iran…President Trump, anxious to keep Oil prices at bay, said this morning he was in “no hurry” to attack Iran, 1 day after he abruptly called off missile strikes against the country…in a series of tweets, the President wrote that he called off the strike 10 minutes before it was scheduled to happen because he believed the attack would have been disproportionate to the downing of a surveillance drone…the U.S. Dollar Index has backed off another one-tenth of a point to 96.52…slightly disappointing preliminary sentiment data from the manufacturing and service sectors was just released…IHS Markit said its flash U.S. manufacturing Purchasing Managers Index for June declined to a reading of 50.1, down from 50.5 in May…economists were expecting to see a reading of 50.5…at the same time, the firm’s service sector PMI reading dropped to 50.7, down from May’s reading of 50.9 but relatively in line with expectations…according to the report, sentiment within the manufacturing sector is at its lowest point in 117 months…“IHS Markit Flash U.S. Composite PMI Output Index indicated the slowest expansion in overall business activity since May 2016,” the report said…

2Gold is enjoying its best week in 3 years as the world’s major central banks all sounded dovish tones, with holdings in exchange-traded funds on the rise…dovish commentary from the Federal Reserve, European Central Bank and Bank of Japan, coupled with rising geopolitical tensions in the Middle East, have contributed to the upside momentum…meanwhile, greenback weakness is providing additional support to the precious metal…global exchange-traded-fund holdings of Gold are up nearly 3% for the month to 72.65 million ounces, climbing back toward the January peak of 73.3 million…it’s reasonable to expect continued inflows into Gold and Gold-backed ETFs in the run-up to the July FOMC meeting…the current Gold rally has the potential to go far, according to TD Securities, which has adjusted its latest portfolio target level to $1,485 from $1,360, with a stop-loss at $1,330“Given that we think this rally will have some legs, we opt to adjust our target to $1,485/oz & stop to $1,330/oz rather than taking profits,” stated TD Securities‘ head of global strategy Bart Melek and commodity strategist Daniel Ghali in the bank’s latest post…the update comes after TD Securities entered the long trade at $1,298, targeting $1,360, citing concerns surrounding the global economy…

3Bitcoin has jumped 31% in 2 weeks, trading at its best levels since May of last year, and looks set to rise above $10,000 (U.S.)…the leading cryptocurrency by market value rose above $9,740 on Bitstamp earlier today, retracing more than 40% of the drop from the record high of $19,666 reached in December 2017 to the low of $3,122 last December…it’s worth noting that Bitcoin’s latest leg higher is accompanied by a rally in Gold prices…the yellow metal has climbed by as much as $90 an ounce over the past 10 days…

4. Canada’s Senate passed into law 2 controversial natural resource bills last night, just 1 day after it quietly passed a 3rd bill that reinforced a ban on offshore Oil drilling in the Canadian Arctic, quashing any future Oil and gas development in the region…Bill C-48, which would legally enforce a moratorium on Oil tankers in northern B.C., is now set to receive royal assent after it was accepted at 3rd reading in the Senate late Thursday…Bill C-69, an extremely toxic piece of legislation which would overhaul the environmental review process for major resource projects, also passed a 3rd reading…their passage enshrines the bills in Canadian law, ending more than a year of fierce opposition from the resource industry and key provinces…international investors get the message – Trudeau, despite his approval of the Trans Mountain pipeline expansion, continues to diminish Canada’s Oil and gas sector at the same time as the Trump administration has the U.S. Oil and gas sector firing on all cylinders…is it any wonder then that U.S. economic growth is far outpacing Canada’s?…Canadian voters will deliver their verdict in October…

5. The Dow is up slightly through the first 30 minutes of trading…the index is within shouting distance of a new record closing high…word that Vice President Mike Pence would postpone a China policy address amid “positive signs” on trade is music to Wall Street’s ears this morning…in Toronto, the TSX is off 45 points…the Gold Index, which pushed above important resistance at 211 yesterday, is aiming for its 9th straight winning session…the Venture is 2 points lower at 591 thanks to weakness in the cannabis space…Garibaldi Resources (GGI, TSX-V) has hit a fresh 2019 high, up 13 cents at $1.40, as the drills turn at Nickel Mountain…Pure Gold Mining (PGM, TSX-V) has arranged a bought deal financing for gross proceeds of $32.5 million (59.1 million units @ a price of 55 cents per unit)…

6Canopy Growth (WEED, TSX) is under pressure in early trading after the world’s biggest cannabis company reported a steeper-than-expected loss and weak gross margins…the Smiths Falls, Ontario-based company reported adjusted gross margin of 16% for the fiscal 4th quarter ended March 31…that was well below the consensus analyst estimate of 24% and a decline from 22% in the prior quarter…its loss before interest, taxes, depreciation and amortization was $98 million, much wider than the expected $64 million loss…the results included a beat on top-line results, but a significant miss on gross margin and adjusted earnings expectations…”The 4th quarter wraps up a historic year with major steps taken in Canada to build-out our national platform while scaling all of our processes to bring cannabis to market,” stated President and CEO Bruce Linton…”With more product formats coming to the Canadian market later in the year, we are working hard to ensure that we are ready to hit the ground running with products, formats and brands that Canadians trust”…technically, key nearest resistance is $57 while support is strong around the rising 300-day SMA  at $51

7. Aurora Cannabis (ACB, TSX) is also weak in early trading after releasing its plans for the highly anticipated expansion of the consumer cannabis market into vapes, concentrates and edibles…the company is also preparing to launch a national public awareness campaign this fall, educating consumers, provinces and retailers about the safe usage and consumption of these new derivative products…through a combination of new and enhanced facilities, Aurora intends to produce new, high-quality products across the country in a variety of product categories…Aurora is the world’s leading producer of high-quality cannabis and we’re ready to introduce high-value product additions to this improved, federally legal market,” stated CEO Terry Booth…“From the beginning, we’ve invested in industry-leading production and distribution technology, and in consumer research to drive products to market that consumers will desire.  These things, together with the dynamic partnerships we’ve entered into on the accessory and technology fronts, position us well for this new market launch in December as per Health Canada’s recent regulatory amendments”

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June 20, 2019

Sizzler Report (Part 2) As Gold Tops $1,400

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Daniel’s Den

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7 @ 7:00

Visit the BMR comments throughout the day for updates and helpful information!

1. Gold has broken out to a new 5-year high in dramatic fashionas of 7:00 am Pacific, bullion is up $21 an ounce at $1,381 after climbing as high as $1,387…markets have reacted well to yesterday’s Fed statement and Jerome Powell news conference…the Fed said it stands ready to battle growing global and domestic economic risks as it takes stock of intensifying trade tensions and growing concerns about inflation (or lack thereof)…Silver is finally catching fire, up 21 cents at $15.34 as it attempts confirmation of a major breakout above a resistance band on the short-term chart between $15 and $15.23…Copper has jumped 5 cents to $2.70 while Nickel has shot up 11 cents to $5.51…Zinc is slightly higher at $1.18…Crude Oil has surged $2.35 a barrel to 56.11 as U.S.-Iran tensions escalate following the shooting down of a U.S. drone by the world’s leading state sponsor of terror…President Trump just tweeted, “Iran has made a big mistake”…the U.S. Dollar Index has fallen half a point to 96.68

2. The Federal Reserve may be on its way to delivering a half-point interest rate cut next month even though economic conditions don’t seem to warrant such an aggressive move, according to Goldman Sachs’ economists…in a substantial revision to its prior forecasts that the central bank would stand pat, Goldman now sees a likelihood of 2 rate cuts this year (they’ve caught up with most everyone else’s views)…prior to this week’s FOMC meeting, the bank had indicated that “the hurdle for mid-cycle easing is rather high”…however, a reading of yesterday’s post-meeting statement combined with remarks Fed Chairman Jerome Powell made at his news conference and a realignment of individual members’ forecasting “dots” has shifted Goldman’s outlook considerably…7 of 17 committee members indicated they see a 50 basis point cut in the funds rate by the end of the year, falling just short of being the consensus call, which now remains at no cuts but is expected to change…“The results of this week’s meeting suggest that many FOMC participants are increasingly influenced by the expectations embedded in bond market pricing and other outside influences,” Jan Hatzius, Goldman’s chief economist, said in a research note…“The FOMC might well deliver a 50 [basis point] cut for fear of disappointing the market, even if the economic data do not paint a particularly worrisome picture”…importantly, the Fed is clearly losing its fear of inflation pressures at this stage of the economic cycle, increasing the incentive to lower rates…

3. Oil pushes higher as Iran heightens conflict in the Strait of Hormuz: U.S. military officials returned fire – verbally – hours after Iran blasted a Navy high-altitude drone out of the sky over the Strait of Hormuz, with U.S. Central Command leaders this morning slamming the “unprovoked” strike and Tehran’s subsequent “false” justifications for it…the downing of the drone, via surface-to-air missile, is only the most recent Iranian provocation in the region, coming on the heels of a disputed attack on a pair of Oil tankers in the Gulf of Oman last week…evidence suggests Iran was behind the tanker attacks…today, Iran claimed the U.S. drone was over Iranian airspace when it was shot down but American officials stated unequivocally the incident occurred in international airspace…U.S. Central Command said in a statement that a U.S. Navy Broad Area Maritime Surveillance ISR aircraft, known as a BAMS-D, was shot down at approximately 7:35 p.m. ET last night…

4. Crystal Lake Mining (CLM, TSX-V) has become the largest landholder in the Eskay Camp, expanding its Newmont Lake Project by 115 sq. km to 551 sq. km through staking…the newly-defined Chachi Corridor, prospective for high-grade Gold and Copper-Gold porphyry, has been extended with the addition of “Chachi East”, a 17.5 sq. km package straddling the northeast boundary of the Newmont Lake Project…meanwhile, on the western side of the project, Crystal Lake has also staked the 74 sq. km “Ridge West” block which represents the possible southwesterly extension of the Burgundy Ridge drilling discovery announced in early March…a large new gossan zone is exposed on the Ridge West block within Stikine volcanics…amazing that this ground could be available just for staking but in 2016, Garibaldi Resources (GGI, TSX-V) grabbed the E&L and what’s now the Nickel Mountain trend for a song, a move that would later make fortunes for investors…Maurizio “Mars” Napoli, Crystal Lake’s VP Exploration, commented: “We have managed to gain control of the potential extensions of two large and prospective corridors on the Newmont Lake Property.  Vectoring of soil anomalies into Chachi East and the numerous mineral occurrences on Ridge West add to an already impressive land package at the Newmont Lake Project”…exploration is ramping up throughout the Newmont Lake Project in advance of a major drill program commencing next month…

5. The Dow has soared 222 points through the first 30 minutes of trading…the Dow and NASDAQ are just short of new all-time highs but the S&P 500 officially hit a new all-time high at the open…in Toronto, the TSX has added 85 points while the Venture has jumped 5 points to 590 as of 7:00 am Pacific…a new Venture uptrend appears to be in the works after 585 support was successfully tested…Garibaldi, up 7 cents at $1.20, is now trading above its 200-day moving average (SMA) for the first since last September as a major technical breakout coincides with bullish fundamentals on the ground at Nickel Mountain…the 25-year GGI chart, which correctly predicted the move to $5 in 2017 by the early summer of that year, is lined up in such a way that suggests a hole better than EL-1714 is on the way…north of the Eskay Camp, drilling has started at GT Gold’s (GTT, TSX-V) Saddle North discovery with the stock now attempting another breakout through a key resistance band between 90 cents and $12 inexpensive juniors with strong exposure to high-grade Silver that are ready to bust out from 2019 lows are Dolly Varden (DV, TSX-V) and Canada Cobalt (CCW, TSX-V)…Dolly Varden has announced the start of a 10,000-m drill program at its Dolly Varden Property near Stewart where geologists will be advancing targets north of existing NI-43101 resources…Canada Cobalt, meanwhile, will soon be following up on Phase 1 high-grade Silver intercepts and potential new Silver shoots on the first level of the Castle mine where drilling returned a spectacular 385.2 ounces per ton Ag and 3.8 g/t Au over half a meter within a broader zone that also included 76.4 ounces per ton Ag over a core length of 5.51 m starting at just 1.46 m…in addition, CCW is engaged in final discussions with the Ministry of Northern Development and Mines in order to initiate a low cost but potentially very profitable tailings program at Castle that would recover high-grade Silver from nearby historic stamp mill tailings…

6. Ero Copper (ETO, TSX) has reported the highest-grade-meter intercept drilled to date by the company on its Vale do Curaca Property at its Vermelhos mine in Brazil, intersecting 28.1 m grading 12.6% Copper including 18 m @ 15.6% Copper…meanwhile, initial drilling beneath the main orebodies at Vermelhos encountered high-grade mineralization approximately 70 m below the Toboggan orebody, intersecting 13.4 m (core length) grading 5.9% Copper including 8.4 m grading 7% Copper from 306.3 m downhole…26 drill rigs are now operating throughout the Curaca Valley, including 13 within the Vermelhos district and 13 within the Pilar district…3 of these drill rigs are testing high-priority regional exploration targets located within these districts…in addition, a truck-mounted drill rig, which will focus on expediting regional exploration drilling, has just arrived on site and will be mobilized in the coming weeks…there are seven drill rigs operating at the NX Gold mine…David Strang, President and CEO, commented:  “The latest results from our ongoing exploration programs continue to highlight significant opportunities for expansion of the known mineral resources around our operating mines.  In particular, we are impressed by the drill results at the Vermelhos mine where we continue to see very high grades over significant widths.  We are excited by the new high-grade mineralization encountered approximately 70 m below the Toboggan orebody, but cautious to draw any definitive conclusions from this single intercept until we have further evaluated the surrounding area with two newly mobilized underground drill rigs”

7Chemesis International (CSI, CSE) announced this morning that it has received its hemp cultivation and processing licences in the state of Michigan…with these licences, the company will begin its initial planting process in the coming weeks…the licences are a significant step forward in Chemesis’s long-term goals of establishing itself as a major cannabis multi-state operator…the company will also continue to evaluate assets and apply for licensing in the previously announced states such as Wisconsin, Illinois and Missouri…in receiving these licences, Chemesis now has U.S. operations in California, Arizona, Michigan and Puerto Rico…the company’s long-term growth strategy involves continuing to expand into other states with favorable regulations and assets that complement Chemesis’s current operations and capabilities…Michigan is projected to be in the top 5 of largest medical cannabis markets in the United States…the total legal market is expected to be $755.7 million (U.S.) by 2020, with a CAGR (compound annual growth rate) of 7%…

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