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China and Japan almost ready to cut U.S. dollar out of their direct trade
Direct Yen-Yuan Forex Deal to Start in June
From Yomiuri Shimbum, Tokyo
Sunday, May 27, 2012
http://www.yomiuri.co.jp/dy/business/T120526002702.htm
Japan and China will likely initiate a foreign exchange system in which the yen and the yuan can be directly exchanged starting in June at the earliest, sources have said.
The Japanese and Chinese governments have entered the final phase of negotiations to establish foreign exchange markets in Tokyo and Shanghai and will likely reach an official agreement soon.
Currently the two countries' currencies are exchanged via the U.S. dollar and thus foreign exchange commissions are relatively high.
If the direct exchange system is realized, transaction commissions can be cut and the exchange procedure will be simpler. Some economists expect it will expand trade between Japan and China and make trade processing smoother.
... Dispatch continues below ...
Prophecy Platinum (TSXV: NKL) and Ursa Major Minerals
Sign Combination Agreement
Company Press Release
Friday, March 2, 2012
VANCOUVER, British Columbia, Canada -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) and Ursa Major Minerals Inc. have signed a binding letter of agreement for a business combination through a proposed all-share transaction. In doing so Prophecy and Ursa have acted at arm's length and the transaction has been negotiated at arm's length.
Prophecy will issue one common share in exchange for every 25 outstanding common shares of Ursa. Ursa options and warrants will be exchanged for options and warrants of Prophecy on an agreed schedule.
Prophecy's offer represents a value of about $0.15 per each common share of Ursa based on Prophecy's share price of $3.70 as at March 1, representing a premium of 130 percent to Ursa's March 1 closing price of $0.065.
Prophecy is to subscribe for $1 million common shares of Ursa by way of private placement financing at $0.06 per share, subject to regulatory approval. Upon placement completion, John Lee and Greg Hall, current Prophecy directors, will be appointed to Ursa's board.
Prophecy thus will become a mid-tier resource company with a robust and diversified pipeline of platinum nickel projects, including:
-- The fully permitted open-pit Shakespeare PGM-Ni-Cu mine close to Sudbury, Ontario, infrastructure with near-term production capabilities.
-- The flagship Wellgreen (Yukon) PGM-Ni-Cu project with more than 10 million ounces of Pt-Pd-Au inferred resource. Drilling is under way and a preliminary economic assessment study is pending.
-- Manitoba's Lynn Lake Ni-Cu project with more than 262 million pounds Ni and 138 million pounds Cu measured and indicated.
For the complete announcement, please visit Prophecy Platinum's Internet site here:
http://www.prophecyplat.com/news_2012_mar02_prophecy_platinum_ursa_major...
The two governments agreed to establish the system in December last year when a Japan-China summit meeting was held in Beijing.
Since February, working-level panels from each country have been discussing the issue.
Currently, a system for exchanging the yen and the yuan is possible, but exchange markets are not well developed. Financial institutions have also not established respective systems for the exchange.
Unlike exchange deals for the yen and dollar, China does not employ a floating exchange rate in which a currency's value is determined by the market. Exchange rates between the yuan and U.S. dollar fluctuate within a limited range that the People's Bank of China announces every morning.
With the new bilateral exchange system, it is possible that the exchange rate between the two currencies will be decided freely by market forces.
If the exchange rate fluctuates wildly, however, some economists believe that the Chinese authorities will stabilize it with market intervention.
In fiscal 2011, Japan's exports to China amounted to 12.48 trillion yen, accounting for 19 percent of the nation's total exports.
Imports from China were 14.78 trillion yen, accounting for 21 percent of total domestic import value.
If the Japanese and Chinese currencies are traded directly, foreign exchange commissions from U.S. dollar transactions will disappear.
This will reduce the costs of trade and the two countries will be able to avoid exchange rate fluctuation risks associated with the U.S. dollar.
Companies doing business with China will experience significant cost reductions and bilateral trade will become easier.
From the Chinese side, an increase in the volume of exchange deals with Japan will result in increased circulation of the yuan outside China.
China likely aims to strengthen its currency's international influence, economists said.
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Sona Discovers Potential High-Grade Gold Mineralization
at Blackdome in British Columbia -- 13.6g over 1.5 Meters
From a Company Press Release
November 22, 2011
VANCOUVER, British Columbia -- With its latest surface diamond drilling program at its 100-percent-owned, formerly producing Blackdome gold mine in southern British Columbia, Sona Resources Corp. has discovered a potentially high-grade gold-mineralized area, with one hole intersecting 13.6 grams of gold in 1.5 meters of core drilling.
"We intersected a promising new mineralized zone, and we feel optimistic about the assay results," says Sona's president and CEO, John P. Thompson. "We have undertaken an aggressive exploration program that has tested a number of target zones. Our discovery of this new gold-bearing structure is significant, and it represents a positive development for the company."
Sona aims to bring its permitted Blackdome mill back into production over the next year and a half, at a rate of 200 tonnes per day, with feed from the formerly producing Blackdome mine and the nearby Elizabeth gold deposit property. A positive preliminary economic assessment by Micon International Ltd., based on a gold price of $950 per ounce over eight years, has estimated a cash cost of $208 per tonne milled, or $686 per gold ounce recovered.
For the company's complete press release, please visit:
http://www.sonaresources.com/_resources/news/SONA_NR18_2011-opt.pdf
