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Highbank Resources has been granted a Notice of Work permit for its Swamp Point North aggregate project, bringing it one step closer to capitalizing on the expansion of British Columbia’s north coast.
Highbank Resources (TSXV:HBK) has been granted a Notice of Work permit for its Swamp Point North aggregate project, bringing it one step closer to capitalizing on the expansion of British Columbia’s north coast.
What sets Highbank Resources apart from other companies in the junior resource sector is its deposit. Highbank isn’t sitting on millions of ounces of gold or silver, nor is it looking to feed the high-tech market with rare earths. It is, however, looking to supply a much-needed resource to an undersupplied market: aggregate rock.
Sure, aggregate rock isn’t as attractive as gold, but it is essential for building, and that’s exactly what’s in the pipeline for Northern BC. With over 10 proposals for liquefied natural gas (LNG) projects, as well as the expansion of the Port of Prince Rupert on the horizon, a stable, secure supply of construction materials will be essential for the development of the region.
How Highbank plays into those plans is simple. The company owns a 100-percent interest in the Swamp Point North aggregate project, which has a NI 43-101 compliant resource of 72 million tons of measured and indicated aggregate rock. Beyond that, the deposit is conveniently sitting on the edge of the Portland Canal, providing the company with year-round access to tidal waters. Further, Swamp Point North is seated just shy of 80 miles from the Port of Prince Rupert and is the largest and closest source of aggregate rock, giving the company a distinct economic advantage over other aggregate producers.
In a company statement, CEO Victor Bryant commented that the latest approval “allows Highbank to bid/tender on providing aggregate to the numerous [LNG] projects proposed for the West Coast and nearby Port of Prince Rupert expansion.”
A press release from Highbank also notes that the Ministry of Energy and Mines has reviewed the information provided by the company and is ready to issue a new Mines Act permit. However, before the final mining permit can be delivered to Highbank, the company must receive a logging permit, as well as permits from the coast guard and fisheries department. Once the permits — which have already been verbally approved — have been granted, the company will be able to file the remainder of the application fee and start preparing the site for production.
Highbank will also need to secure additional financing, which it expects will be done via a debt financing or a debt-equity combination. Speaking to Resource Investing News (RIN), Bryant said he hopes to see the first portion of the financing completed in the near future. “It is our intention is to be in production by late summer,” he commented.
Once in production, the company will be focusing its attention on supplying the Port of Prince Rupert and the surrounding LNG area. “There is going to be more than enough business for us for at least the next five to 10 years,” Bryant told RIN.
So far, the market has responded positively to Highbank’s news. The company’s share price was up 17.86 percent, at $0.165, midway through the day.
Securities Disclosure: I, Vivien Diniz, hold no investment interest in any of the companies mentioned.
Editorial Disclosure: Highbank Resources is an advertising client of the Investing News Network. This article is not part of the company’s advertising campaign.