Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
A dispute between investment banker Euro Pacific Canada Inc. and Midlands Minerals Corp. (CVE:MEX) is drawing in two of the biggest names in the gold investing industry.
The Globe and Mail is reporting that Euro Pacific Canada is seeking damages of $10 million from Midlands over a breach of contract — an amount that is actually larger than the tiny explorer’s market cap of $7.21 million based on today’s counter.
On one side of the dispute is Eric Sprott’s firm Sprott Asset Management which holds about 24% of Midland’s stock, while on the other side, gold investment guru Peter Schiff is affiliated with Euro Pacific (Schiff has served as president of Euro Pacific Canada since 2000 according to the company’s website), says The Globe:
The claim comes in the wake of a financing that Midlands did to raise $7.3-million earlier this summer, a deal led by another firm, Bayfront Capital. Midlands said that Euro Pacific is alleging breach of a contract that gave Euro Pacific a right of first refusal.
Toronto-based Midlands is exploring for diamonds and gold in Ghana and Tanzania.
