The deal is a swap of overpriced exploration rights. The idea is that Canadian investors would not know the problems social and environmental problems with the Finnish exploration rights. The Australian investors would not realize the problems with the uranium exploration in far North on the Inuit lands.
1. True value of the Finnish exploration gold rights
There is no hope for the Finnish gold projects especially in the Häme and Tampere regions. Finland is not (any longer) a developing country, where the environment could be destroyed forever for a mineral speculation.i) The resistance is hard even legally against the permits. There would not be any guarantee, that the key permit applications would be accepted in the appeal courts. NewPeak has not disclosed any information about the appeals. The people are experienced about problems of gold mining because of the closing mines in the regions. The projects are not in a wilderness but in living suburban and countryside regions.
ii) The Finnish mining law changed 1.6.2023. Land plan of municipality would be needed for a mine. For the exploration permission of 50% of land area owners would be needed after 10 years of exploration.
iii) Furthermore, the acceptance of all land owners is required to takeover lands, if the mineral to be mined is not required as a raw material for the Finnish society. The head of Finnish mining industry and former senior inspector of mines, Pekka Suomela, has stated that gold is not such a raw material.
iv) There are great natural values including EU protected species within major tenements, Natura 2000 and even national park Torronsuo are close to the Häme tenements
v) Mining law requires that all harm would be prevented or compensated, considering effects to property values, it would get expensive in the populated countryside
vi) The Extractive waste directive of EU requires that long term effects of mining would be properly studied and damages to surface and ground waters and to soil should be not be caused even for longer times after mine closure. The mineralizations includes harmful minerals such as arsenopyrite with high arsene contents. There is an obvious need to evaluate the presence of quartz and asbestos minerals.
vii) The Water Framework directive requires, that water quality would not be impaired, and good state is required. The water quality is controlled by environmental quality standards and biologic variables of ecologic state. This means that beside harmful elements like heavy metals and arsene, also sulfate and various salt ions, and chemicals like xanthates should be controlled.
NewPeak suggest that they sold Finnish gold for 1.5 million CAD + 150 000 AUD. It would appear to be too good to be true. None capable of due diligence would not pay for the hopeless projects. The buyer Ms Emma Fairhurst appears not to be not at all interested in the risks of the projects when information was offered from Finland.
NewPeak says 150 000 AUD has been already paid.
There are milestone payments of 500 000 CAD and 1 million CAD as shares of listed companies.
Ms Fairhurst has invested in numerous Canadian penny stocks. The values of companies may be 100 000 CAD based on money spent for early phase exploration, but share prices have fluctuated even to 1.5 million CAD by a pumping motion without any news about progress.
One of the companies is Golcap Resources with early phase exploration expenditure of 125 000 CAD and no resources, but capitalization of about 1.4 million CAD by current price with huge increase without any news. Beside 14 million shares there are 11 million warranties most of which can be used under current market value. Year ago before pumping motion the share price was at lowest 0.02 CAD, which would give market value of at least 100 000-200 000 CAD.
https://thecse.com/listings/golcap-resources-corp/
Pumping activity of Golcap share price
Getting 1 million by selling shares of such company would be extremely difficult.
Getting 1 million by selling shares of such company would be extremely difficult. If Issuing new shares would dilute the theoretic value based on the share price of the Canadian company. If the investors would realize that there is no value with the Finnish projects, value of the shares could be close zero.
NewPeak would possibly get 600 000-1 500 000 CAD + 150 000 AUD estimated as 870 000 CAD, if Canadian company can rise/borrow money for milestone payments of 500 000 CAD and the shares of the listed company could be sold in part.
There is major issue, if authorities would accept the share issue as the deal appears to be connected with another deal where an insider is getting major payments (Fairhurst selling the Canadian rights)
2. Fairhurst Canadian rights would be overpaid in return of Finnish rights
Fairhurst would be getting 800 000-1300 000 CAD for the greenfield explorations rights. Immediately 500 000+ 300 000 CAD after 500 000 CAD would be used during 30 months and there is possibility to get 500 000 CAD for 1 % royalty. And Fairhurst would get 1 % royalty which could only be bought by market price.
No prospecting data was represented, just nearology with an early phase mining project.
There is no information about risks. The reference project Torngat is very careful not to mention the common uranium, thorium and radioactivity problems with their project, though these are obvious from the data. NewPeak -Fairhurst project is advertising uranium. The only mineralization information represented is rocks yellow of uranium.
The project is on Inuit lands with rights recognized by Supreme court. There is nothing mentioned about consultation. There are 3 inuit nations in the region: NunatuKavummiut, Nunavik and Nunatsiavut. Greenland Inuits stopped uranium containing REE project of Greenland Minerals (now ETM). Canadian Inuits are famous for protecting their lands, also against uranium exploration and stopping AREVA.
Emma Fairhurst is likely to get 800 000 CAD + royalty position on results of 500 000 CAD exploration, if NewPeak would able to finance the payments of 500 000 CAD and 300 000 CAD. She tries to sell the 1 % royalty for 500 000 CAD.
It is notable that Fairhurst would get the money from the swap by selling by apparently overpriced Canadian rights, while Canadian listed company wouldnot get any compensation for taking the practically worthless Finnish rights.
Inuit nations:
Nunatsiavut https://en.wikipedia.org/wiki/Nunatsiavut
Nunavik https://en.wikipedia.org/wiki/Nunavik
NunatuKavummiut https://en.wikipedia.org/wiki/NunatuKavummiutOffice of the United Nations High Commissioner for Human Rights, about Greenland uranium project
https://www.ohchr.org/en/ohchr_homepage?gad_source=1&gclid=CjwKCAjwrcKxBhBMEiwAIVF8rORZk63wOhrFA0cyoICGQ7yEdGFTKr1fv1K4qr3A7bJcLKGjI9iuphoCBFkQAvD_BwE
Uranium resistance by Inuits:
https://canadiandimension.com/articles/view/the-indigenous-fight-to-stop-uranium-mining-in-canadas-north
https://news.umanitoba.ca/i-will-live-for-both-of-us-a-history-of-colonialism-uranium-mining-and-inuit-resistance/
