by Greg Klein | March 10, 2016
Electra Stone TSXV:ELT moved closer to its goal of establishing a Chinese base for British Columbia nephrite jade products with a letter of intent announced March 10. The arrangement would have LYG Anlan Company Ltd, a Chinese jade and construction material manufacturer, design and build jade and other products for Electra. The output would be marketed through LYG’s network and new channels developed by Electra.
The agreement would also bring Kim Chen to Electra’s advisory board. Chen is a principal with J.L. Arts and Crafts, which makes over 150,000 products a year, mostly from B.C. jade. He started his first carving and manufacturing company in the 1960s and later mined B.C. jade and semi-precious carving stones under his own company, Kim Mining.
“We are privileged and excited to have Mr. Chen as part of the Electra Stone team,” said Tony Hu, VP of investor relations and marketing. “With over 50 years of knowledge and experience, Mr. Chen provides critical expertise and insight into the global jade and other semi-finished products market, an essential component of Electra’s successful development in China moving forward.”
Electra holds six jade prospects totalling 5,850 hectares in northern B.C. Four of them underwent an initial prospecting program last autumn that confirmed nephrite jade on two properties.
As part of its plan to develop a vertically integrated operation, the company has bought and shipped 36 tonnes of B.C. jade to China, making its first sale of 1.8 tonnes in November. In January Electra announced a contract to buy another 250 tonnes of jade.
In addition the company quarries chalky geyserite, also known as alumina silica, from its PEM100 operation on Vancouver Island and sells it to a cement manufacturer. Last year’s production and sales came to 65,540 tonnes, a 13% year-over-year increase. In February Electra announced a drill program to determine the potential for a new high-grade silica product.
In January the company closed a $501,060 private placement.