Topic: How To Invest

Hello Pat: What do you think of Advanced Exploration with its new Chinese backing? Thank you.

Article Excerpt

Advanced Exploration, $0.70, symbol AXI on Toronto (Shares outstanding: 96.3 million; Market cap: $67.4 million; www.advanced-exploration.com), is focused on developing its Roche Bay iron-ore project on the coast of the Melville Peninsula in Nunavut. Roche Bay is located near a natural deepwater harbor. The project could hold as much as 357 million tonnes of iron ore grading 65% iron. Advanced moved up from $0.22 at the end of September after Chinese state-owned company XinXing Pipes agreed to make a $1-billion long-term investment to develop the Roche Bay project. In the short term, XinXing has committed $5.3 million for a 19% stake in Advanced. XinXing will also earn 50% of a joint venture that has been formed to develop Roche Bay by providing $20 million to complete a feasibility study, and a further $30 million when the study is finished. As well, another Chinese firm, Shandong Fulun Steel Company, has invested in $2.8 million in Advanced by purchasing shares at $0.40 each. As…