More than three weeks since my last message.  It’s been a busy time packing, planning, building and travelling.  But now I’m safely back at home in Arizona and will travel no more, at least not for a long while.

The two old friends I mentioned are Copper Canyon Resources (CPY) and Eagle Plains Resources (EPL).  Some of my friends and relatives who are following this may wonder what’s up with these two stocks.  Copper Canyon, as you know was spun off from Eagle Plains in 2006 and Eagle Plains shareholders received one share of CPY for each share of EPL they owned.

Copper Canyon’s sole asset is a huge deposit copper, gold and silver in Northern British Columbia. This property lies directly adjacent to a similar deposit called Galore Creek, now owned jointly by Nova Gold Resources (NG) and Teck Resources Corp.(TCKb) but operated by Nova Gold.

So, here’s the deal.  In order to build a mine Nova Gold needs Copper Canyon.  And in order to sell their shares Copper Canyon share holders have no other suitors than Nova Gold.  During the past few years the prices of copper, gold and silver have not been enough to justify the huge expenses required to build a mine. 

But now things have changed.  Prices are up and things are starting to happen. Copper Canyon’s share price closed at 48 cents today, a two year high.  It is likely that Nova Gold will make an offer for CPY shares around 50 cents.  This may seem like a fair price considering where it has been over the past few years.  It isn’t.  We don’t know if an offer is imminent and what form it will take, all cash,  cash and NG shares or all shares. Whatever the offer is going to be it must reflect a price of at least $1.00 per CPY share.  We’ll just have to wait and see what happens between now and year end.  Share prices have been and will continue to be very volatile. Up and down like cat on a trampoline.

I will cover some exiting news about EPL in few days.

Cheers,  Ted L.