IMPERIAL MINING GROUP, symbol IPG on TSXV at .07 cents a share is a newly created (2018) Québec‐based exploration and developer of base metal, gold and technology metals deposits. Imperial (IPG) was originally a private corporation and acquired assets of two Canadian exploration companies “Peak Mining” and “NQ Exploration.”                 

The market for the small capitalization early stage “junior” mining and exploration companies remains sluggish. However,  our analysis suggests that could change soon. Since 2015, some mining stocks have experienced substantial price appreciation generally due to events such as confirmation of discoveries and exploration results. We also note that many juniors (small cap mining and exploration companies) display few offerings of size on the stock market screens which can be indicative of price bottoms. In our opinion, a bull market in mining stocks and commodities is set for exceptional upside.

  The “Peak Mining Corporation” was a private company that rolled its’ Québec technology metals project (scandium-niobium-tantalum-rare earths) into Imperial Mining  in exchange for shares in Imperial Mining. At the same time, NQ Exploration also spun out its base metal and gold projects into the new Imperial Mining Group for shares of Imperial Mining. The bottom line is that Imperial Mining acquired some of the assets of two companies that it considered undervalued.

OVERALL… The Imperial Mining Group‘s focus is copper, zinc, gold and technology metals exploration with an initial priority on its Scandium project in northeast Quebec. We had been alerted two years ago as to the potential of Peak Mining’s scandium-niobium-tantalum-rare earth projects.  We recognize that Imperial Mining is an early stage junior exploration and developmental company which   requires time, patience and exploration results. We will follow its progress.

  SCANDIUM is a hardening element  that significantly increases the strength of aluminum and its resistance to corrosion. Scandium is currently used alloyed with aluminum for aerospace industry components and for sports equipment such as bicycle frames, iron golf shafts and baseball bats. Its use is expected to increase substantially on a much larger scale for major industrial uses as confirmation of a readily available long term adequate supply is confirmed.    

Despite its obvious advantages, the military, automotive and aerospace industries have been reluctant in the past to commit to scandium on what could eventually be an enormous scale.  Why? Because a long term availability of supply in North America could not be confirmed.  Simply stated, it has not been used on a large industrial level since there has been no confirmed availability of supply in North America. There is a strong possibility that is about to change.

And? At $2500 per kilo, Scandium was too expensive to compete with titanium as an alloy with aluminum. Today the cost is $1200 per kilo which in the final production of the aluminum alloy is cheaper as well as with the effective improvement in strength, corrosion resistance and lightness. 

KEY POINT! What we find of interest is the Crater Lake scandium project which we classify as an exceptionally undervalued asset situation.  The scandium project already has exploration results suggesting that the size of the deposit could be substantial.  Drilling in 2019 has been ongoing and quite successful.  

                     Explanations of some of the Advantages of Scandium

Weight  advantage explained…. using Scandium alloyed with aluminum  decreases the weight by 40% which increases fuel efficiency,

Strength advantaged explained… Scandium alloyed with aluminum increases the strength by 30% to 140%.

Flexibility advantage explained… the Scandium aluminum alloy increases the flexibility substantially in aluminum, this indicates that the possibility of breakage is far less.

Scandium’s  COST? The Cost per pound for Scandium is today $1140 per pound ($2.24280 per kilo). Most importantly, a very small percentage of scandium is required when it is alloyed with Aluminum. The total amount required in the scandium/aluminum alloy is less than one half of one percent (<0.5%). Therefore an adequate supply of scandium would be cost effective and functional . We expect that confirmation of an adequate supply with forthcoming exploration results very soon.           

STOCK OWNERSHIP   Imperial Mining’s insiders (officers and directors) ownership and recent purchases of Imperial’s shares are notable. Presently they own approximately 27.5% of outstanding shares. QUEBEC INSTITUTIONS own 23.7% of the outstanding shares with private investors holding approximately 52%. We noted recent purchases by the officers and directors which are at a very high level.

*We had noticed one recent insider sale of Imperial shares so we inquired. The total amount of the proceeds of that sale was used to pay for services for Imperial itself and not for any insiders’ personal profits. There have been no sales by officers and directors of their own personally held shares.   

  SUMMARY…Our opinion is that elements such as Scandium (and others as well) will be replacing conventional metals in the aerospace, automotive and defense industries. Its use is projected to increase substantially as verification of a constant adequate supply is confirmed. Moreover, there is a strong possibility that the Imperial Mining Group will be a participant in these and other industries.