DEEP Earth Energy Corp. and Prairie Lithium Announce Agreement
DEEP Earth Energy Corp. (DEEP) and Prairie Lithium Corp. (Prairie Lithium) announced that the two companies have agreed to exchange subsurface mineral permits and establish “an Area of Mutual Interest (AMI)” in the Williston Sedimentary Basin located in southeast Saskatchewan. The exchange covers 110,227 hectares of land that increases resource development capacity for both companies.
“We are pleased to move forward with this historic, strategic partnership,” said DEEP CEO Kirsten Marcia. “Drawing on obvious synergies, the mineral exchange and collaboration between our two Saskatchewan-based companies is a testament to our made-in-Saskatchewan ability to work together for multiple economic wins. We are creating more great jobs and promoting new regional economic developments in rural Saskatchewan.”
Beyond the exchange, DEEP and Prairie Lithium have agreed to share well data and testing opportunities. As well, DEEP and Prairie Lithium are exploring the potential for lithium within the AMI.
“This agreement highlights a win-win deal, as both of us were able to increase our acreage substantially for vital resources that matter to our projects,” said Zach Maurer, Prairie Lithium president and CEO.
Flair Adds Routes for Regina and Saskatoon
Edmonton-based Flair Airlines announced on October 28, 2021 that the low-cost air carrier will added twice weekly non-stop service between Winnipeg and Regina and Winnipeg and Saskatoon. The news comes on the heels of the company’s fleet expansion to 16 aircraft.
“Low fare travel has arrived for the Prairies and we are excited to connect more families and travelers in Manitoba and Saskatchewan,” said Stephen Jones, President and CEO, Flair Airlines. “Connecting Regina and Saskatoon to Winnipeg with sustainably low fares is an important step in Flair’s growth and we know our customers will love the service.”
The new routes will begin in April 2022, with first flights commencing April 14 in Regina and April 16 in Saskatoon.
“Skyxe is thrilled with the continued expansion of our relationship with Flair Airlines. Winnipeg is a key domestic market for Saskatoon which will benefit from increased air service opportunities for our guests. The addition of Flair’s low cost air service option will provide residents of Saskatchewan the ability to visit friends and family in Winnipeg conveniently and more frequently,” said Stephen Maybury, Skyxe Saskatoon Airport president and CEO.
In addition to the Winnipeg routes, Flair will also offer twice-weekly flights between Regina and Edmonton starting April 14, 2022 and Saskatoon and Edmonton on April 16, 2022. As well, the Regina-Vancouver flight resumes March 28, 2022.
“We are thrilled to see Flair Airlines introduce this new route between Regina and Winnipeg. Travelers in southern Saskatchewan want connections between these two cities. This is a fantastic addition from Flair to build on the other amazing Canadian cities they are already serving out of YQR,” said James Bogusz, Regina Airport Authority president and CEO.
Royal Helium Starts Drilling
Saskatoon’s Royal Helium Ltd. will begin drilling its first helium well in its Ogema block on November 1, 2021. The Ogema-1 well is located 80 km west of Weyburn and is the first helium-specific drilling program to be conducted in southeast Saskatchewan.
“Our initial well at the Ogema project represents the culmination of years of geological and geophysical review. We are excited to begin drilling in SE Saskatchewan, where we will be applying some of the novel geological information from our Nazare discovery in SW Saskatchewan to the eastern portion of the province,” said Steve Halabura, Royal Helium vice-president, exploration. “For Climax, we are working closely with our third-party consultants and the data from Climax-4 and because of its size, are now looking beyond conventional completion toward a multiple vertical and horizontal well development program for Climax Nazare.”
Q3 Earnings for Crescent Point, Whitecap Resources and Cameco
Crescent Point Energy Corp. (Crescent Point) announced its Q3 2021 results on October 28. The company reported net income of $77.5 million for the three month period ended September 30, 2021, and saw $180 million in excess cash flow, with $580 million year-to-date. Highlights also included the start of its Kaybob Duvernay drilling program, with completions expected in fourth quarter 2021. Crescent Point said the company will “remain focused on low-risk, high-return development in its major operating areas of Saskatchewan and North Dakota.” As well, Crescent Point “recently expanded the economic boundaries of its Viewfield and Shaunavon resource plays through a successful 2021 step-out drilling program.”
“Our third quarter and year-to-date results continue to demonstrate the success of our operational, financial and strategic execution,” said Craig Bryksa, Crescent Point president and CEO. “We are focused on continually enhancing the business and shareholder returns through our key pillars of balance sheet strength and sustainability. Our recently increased dividend also demonstrates our commitment to returning capital to shareholders, with a goal to increase such returns over time.”
Whitecap Resources Inc. also reported its Q3 results on October 28. Whitecap reported a net income of $1.5 billion that “includes an after-tax impairment reversal of $1.4 billion due to increases in forward benchmark commodity prices.” The company saw “record quarterly funds flow of $294 million ($0.46 per share) resulted in discretionary funds flow of $128 million after capital investments of 135 million and dividends paid to shareholders of $31 million.” Whitecap also stated that they expect the current strength in oil and natural gas prices to remain throughout Q4 2021 and into 2022.
A day later on October 29, Cameco Corp. reported its Q3 results ending September 30, 2021. The company saw a Q3 net loss of $72 million (Q3 adjusted net loss of $54 million). As well, Cameco has reduced its forecast for fuel services. The company has placed more than 20 million pounds of U3O8 under long-term contracts, and declared an annual dividend of $0.08 per common share payable on December 15, 2021. Cameco’s balance sheet as of September 30 had $1.4 billion in cash and short-term investments and $1.0 billion in long-term debt.
“Our third quarter results were as expected and reflect the continued execution of our strategy and the proactive decisions to suspend production to protect the health and safety of our workers, their families and their communities,” said Tim Gitzel, Cameco president and CEO. “With McArthur River and Key Lake in care and maintenance, we are not at the regular tier-one run rate of our business. However, we are positioning to capture long-term value: to respond to the growing need for uranium to generate safe, clean, reliable, and affordable electricity.”
GFG Resources Inc. Completes Acquisition
On October 25, Saskatoon’s GFG Resources Inc. announced that it has completed its obligations to acquire 100 per cent interest in the Monclerg Gold Project near Timmins, Ont.
“This acquisition fits our strategy of exploring in top tier jurisdictions, leverages our skill set and local Timmins team, lowers our exploration risk and encompasses a system with scale and numerous advanced drill targets”, said Brian Skanderbeg, GFG president and CEO. “Before year-end, we plan to complete a resampling program of historic core, drone geophysics and approximately 3,000 metres of drilling from our current cash on hand. With the combination of our Timmins exploration programs and the on-going advancements at our Rattlesnake Hills Gold Project with our partners Group 11 Technologies, we anticipate an exciting and catalyst-rich news flow for the remainder of this year and 2022.”
Economic Development Regina Launches Strategy
Economic Development Regina (EDR) announced its Agriculture and Food Innovation Strategy for Regina on October 25. The EDR strategy is designed to build Regina as a place to start, grow, scale and attract agribusiness. Led by an appointed board of local agriculture and food leaders, the strategy has set objectives to further build the agriculture industry in the greater Regina area (GRA).
“Ag and food represent an important multi-sectoral opportunity for the GRA economy,” said Kyle Jeworski, Steering Committee co-chair. “The strategy is founded on our region’s traditional strength and highly respected global reputation in primary agriculture and envisions an economically and environmentally sustainable ag and food cluster for the GRA.”
Regina has seen several investment announcements in recent months, including canola crushing plant projects for both Viterra and Cargill, the launch of a Agtech Accelerator and Agtech venture capital fund by Conexus Credit Union, and non-wood pulp facility by Red Leaf Pulp.
“Our vision to be an agriculture and food hub for the world is ambitious–and achievable,” said John Lee, President and CEO of Economic Development Regina. “We already have the ingredients to make it happen and now it’s time to bring the vision to life.”
Brandt Completes Cervus Acquisition
Late on Friday October 22, 2021 Brandt Tractor Ltd. (Brandt) announced the company had completed its acquisition of Cervus Equipment Corp. The transaction has made Brandt the largest equipment dealer in Canada, adding 64 locations to the company’s existing dealership network and making it the largest John Deere dealership in the world.
“The addition of Cervus’ branch network is a big win for customers in all of the affected markets,” said Brandt owner and CEO Shaun Semple. “We’ve got a lot to offer and we’re ready to roll up our sleeves and earn the loyalty of our new customers through a combination of premium products and services and a consistent, high-quality customer support experience.”
The Cervus acquisition, with locations in Canada, Australia and New Zealand, means Brandt owns and operates 120 full-service equipment dealerships and employs over 5,100 people.
Ceres Global Ag Fiscal Q1 Results Coming
Ceres Global Ag Corp. will report its fiscal Q1 results on at 9 am ET November 12, 2021 with Robert Day, Ceres’ president and CEO and Jay Bierley, Ceres’ CFO.
Next Week: Q3 Earnings for ISC on November 3.
Get the week’s top business stories every Friday free with the IW Business Bulletin.
Have a story for the IW Business Bulletin? Email us at info@industrywestmagazine.com
Braving the Elements: Mining Industry Diversification Rises in Saskatchewan
Flyover Country: The State of Air Travel in Saskatchewan
