The company said that the positive results from initial phase of drilling at A4 Dome support the Company’s strategy to define additional sources of ore within the T3 Expansion project.

MOD Resources (ASX/LSE:MOD) has reported additional promising intersections from its initial drilling phase at the large A4 Dome located within its T3 copper project in the Kalahari copper belt of Botswana.

The company said that the positive results from initial phase of drilling at A4 Dome support the Company’s strategy to define additional sources of ore within the T3 Expansion project which could increase production through the planned T3 processing plant. This is supported by an independent conceptual underground mining study at A4 Dome.

As highlighted in the press release:

  • 18 of 20 holes completed to date at >5km long A4 Dome all intersected copper
  • Good widths and grades in both vein-hosted and NPF contact type mineralization
  • Potential at A4 Dome extends far outside the target area drilled to date
  • Positive outcomes from preliminary conceptual underground mining study at A4 Dome

Click here to read the full MOD Resources (ASX/LSE:MOD) press release.

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copper pipes and wire
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Aside from copper, Mazumdar also spoke about financing, which he sees as the "big squeeze" facing the resource sector right now.

Joe Mazumdar: Copper is the Commodity of the Decade, Ways to Get Exposure youtu.be

Investors often focus on the commodities of the moment, but which have potential over the next decade?

Speaking to the Investing News Network at the recent Vancouver Resource Investment Conference (VRIC), Joe Mazumdar, editor of Exploration Insights, said copper is his pick.

"Some of it's battery metal exposure, it's construction," he said. "But also on the supply side, the lack of development projects and the higher permitting risk combined with more geopolitical risk in two of the major producers, Chile and Peru. They might have issues with production into a market (where) demand might grow."

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American west logo

Supplying High-Demand Minerals to Support Global Energy Transition



Overview

There’s no denying the transition to clean energy is already happening. We’ve seen the European Union commit to lowering its carbon footprint, US President Joe Biden sign an executive order “catalyzing” the shift to a clean energy economy, and the recent IPO of LG Energy Solution — which solidified the company as South Korea’s second most valuable company.

Supplying this exponentially growing global demand for the clean energy minerals needed to produce the components required to support this transition remains a significant challenge. Since 2010, the demand for these critical minerals has increased by 50 percent, with demand for both zinc and copper expected to double between 2021-2050. And yet, the majority of these minerals are produced in China, the Democratic Republic of Congo, South Africa, Russia, and Australia. If North America and Europe wish to meet their lofty goals, stable domestic production of clean energy metals like copper, lithium, cobalt is essential.

When it comes to mining, long-term success and stable operations require both the right location and favorable social and environmental factors. Nunavut and Utah are among many tier 1 mining jurisdictions that have robust opportunities for high-value mineral production. The mineral resource industry is Nunavut’s largest private sector contributor to its economy. As a result, its government has taken a pro-mining stance to help maintain its tier 1 status. Additionally, Utah enjoys a long history of mining that dates back to 1862, with thousands of active mines scattered across the state.

American West Metals (ASX:AW1) is an Australian company that focuses on the rapidly growing clean metal sector in tier 1 mining jurisdictions within North America. The company is working to support global clean energy initiatives by developing low footprint mines that can supply minerals needed for global electrification. The company’s portfolio of projects remains focused on producing copper and zinc products in Utah and Nunavut to support increasing global demand.

American West Projects

American West Metals features an all-star management team led by experienced leaders Michael Anderson, John Prineas, and Dave O’Neill, all whom have decades of combined expertise in global mine development, mineral exploration and corporate finance. The company is building the foundation for continued success in delivering economic benefits to all stakeholders and high-multiplier returns on shareholder investment. American West Metals currently has three high-value base metal projects geared toward supplying future resource needs: West Desert, Copper Warrior and Storm and Seal.

American West Metals recently started its diamond drilling efforts at West Desert under the management of an experienced in-country logistics and exploration team. Their Copper Warrior project is located close to the Lisbon Valley Copper Mine — Utah’s second largest copper mine. Meanwhile, the Storm and Seal projects have two styles of high-grade copper and zinc mineralization within the 4,145 square kilometer land package. Permits are in place and the projects are drill-ready with two drill rigs and a 35-person exploration camp on site.

American West

Drilling at West Desert. Source: Twitter

“The drilling is planned to test the West Desert resource in areas that already have some impressive zinc, copper and silver intercepts, and to confirm our assumptions that the continuity of these zones will support a range of development scenarios. The drilling will also confirm the amenability of the shallow mineralisation to open-pit mining, further adding to the development optionality at West Desert,” said American West Metals’ Managing Director, Dave O’Neill.

Company Highlights

  • American West Metals is a critical metal focused mineral exploration and mining company that offers investors exposure to high-value projects in tier 1 mineral districts in Nunavut and Utah.
  • The company has an experienced management team with decades of expertise in developing mines, mineral exploration and corporate finance.
  • The advanced stage West Desert zinc-copper-indium deposit in Utah contains an existing resource base of over 1Mt of zinc, 120Kt of copper and 1,500t of indium.
  • The Copper Warrior project is located near the second largest copper mine in Utah, with 173 mining claims covering 14 square kilometers.
  • American West Metals’ Storm and Seal projects contain two styles of high-grade copper and zinc mineralization, have all necessary permits in place, and are ready for exploration to begin on the 4,145 square kilometre land package.

Key Projects

West Desert

American West Desert

West Desert is 100 percent owned by American West Metals and is located approximately 160 kilometers southwest of Salt Lake City in west-central Utah. The project is within the prolific Sevier Orogenic Belt, which also hosts the world class Bingham copper deposit and Tintic Mineral District.

Project Highlights:

  • NI 43-101 Results: The West Desert deposit is a massive zinc-poly metallic skarn and carbonate replacement deposit (CRD) with over 59Mt Indicated and inferred resources, with a higher grade core of 16.5 million tonnes (Mt) at 6.3 percent zinc, 0.3 percent copper, 33g/t indium for 1.03 Mt zinc, 45Kt copper and 545t indium (NI 43-101, historical and foreign resource).
  • Existing Resource Foundation: West Desert has a strong existing resource foundation. Historical metallurgical test work exhibits clean concentrates and outstanding metal recoveries. The high-grade core may support a range of low footprint development scenarios.
  • Large Indium Resource: This asset has the largest known unmined indium resource in the world and American West Metals will become the first indium producer in the United States. Indium is a critical metal to the national security and economics of the United States as it’s used in decarbonization technology, semiconductor and the electronics industries. There are unusually high levels of this mineral found in the sphalerite at West Desert, and it has only been assayed in 35 percent of samples, giving huge growth potential..
  • CRD and Porphyry Mineralisation: Additional CRD mineralisation has been intersected about 1 kilometre east of the West Desert project, including 3 meters at 3.5 percent Cu, 7.65 percent Zinc (drill hole CC-43). There are numerous other high-grade intersections around the porphyry stock, which shows geological similarities to Bingham Canyon and other large porphyries in the region.
  • Exploration and Studies underway: Mining, environmental and hydrological studies are underway, infrastructure is in place and drilling will proceed in January 2022.

Copper Warrior

Copper Warrior

The Copper Warrior project is located along the Lisbon Valley Fault in the prolific Paradox Basin of southeast Utah and just 15 kilometers from the second largest copper mine in Utah — Lisbon Copper Mine. There is direct road access to the processing plant and the mine infrastructure. The project spans an area of 14 square kilometers and has 173 claims. This region has exceptional deposits of copper, vanadium, uranium and potash.

Project Highlights:

  • Stable Ownership: American West Metals has signed an option agreement to acquire all of Copper Warrior’s assets from Bronco Creek Exploration, a subsidiary of EMX Royalty Corp (TSXV:EMX).
  • Turnkey Project: This project is a turnkey asset allowing fast-tracked activities because of the well understood geology and simple processing and mining techniques
  • Ongoing Exploration: Outcroppings containing large volumes of copper, vein style and disseminated copper oxide and sulfides have been mapped across the Copper Warrior property. Sulfide and oxide mineralization in this region are typically amenable to easy low-cost leach processing. Low risk and low cost with Induced Polarization (IP) surveys and reverse circulation (RC) drilling set to go in the spring of 2022.

Storm and Seal

Storm and Seal

Storm and Seal, also known as the Nunavut projects, are in the lower Arctic Circle, close to the coast of Aston Bay on Somerset Island. This is northern Nunavut in the Polaris mineral district, with many exploration and mining projects close to the regional logistics hub Resolute Bay. The Storm and Seal project area extends 120 kilometers south from the north coast of Somerset Island and encompasses 4,145 square kilometers.

Project Highlights:

  • Signed Lease Agreement: The Nunavut projects are owned by Aston Bay Holdings (TSXV: BAY). American West Metals signed an agreement to earn 80 percent of the Storm and Seal project interest from Aston Bay. American West Metals has control of this very accessible project and its turnkey exploration projects.
  • High-Grade Copper: The Storm project is a structurally hosted high-grade copper discovery that has multiple, dense high-grade copper intersections across 15 square kilometers. Historical drill samples include 19m at 3.41percent copper from surface (ST97-02), 110m at 2.45 percent copper from surface (ST97-08), 56.3m at 3.07 percent copper from 12.2m (ST99-19) and 15m at 3.88 percent copper from 72.4m (ST99-47). There is also an unexplored sediment hosted copper system with many untested surface gossans that will add to the existing exploration endeavors.
American West

Drill core from the Storm Copper Project. Source: Twitter

  • Existing High-Grade Zinc-Silver Resources: Seal is adjacent to Storm and has an existing resource of 1Mt @ 10.24 percent zinc, 46.5 g/t silver for 103Kt of zinc and 1.5Moz silver (NI 43-101, historical and foreign resource). The deposit is open at depth and along strike. Historical intersections include;
    • 14.4m at 10.58 percent zinc, 28.7 g/t silver from 51.8m
    • 16m at 6.62 percent zinc,27.1 g/t silver from 76.6m
    • 22.3m at 23 percent zinc,5.1 g/t silver from 101.5m
    • 2.4m at 15.13 percent zinc, 91.9 g/t silver from 133.5m
    • Extensive zinc soil anomalies within the prospective stratigraphy render more drill ready targets.

Exploration-Ready: The Nunavut property and existing camp has easy access and is primed for exploration. All permits are in place and the property is drill ready with 2 drill rigs and a 35 person exploration camp on site.

Management Team

Dave O’Neill - Managing Director

Founder of American West and a major shareholder. A geologist with over 20 years experience in the resources sector gained in Australia and internationally. Dave has expertise in base metals and gold exploration as well as business development gained in senior roles with Anglogold, WMC, BHP and Western Areas. He has managed remote grass roots exploration to large resource delineation and mining projects in Australia, Europe, North America and Russia. Dave has a track record of successful exploration and was a leading team member for the discovery of the Succoth (Cu), Yappsu (Ni) and Cathedrals (Ni) deposits in Western Australia. Dave holds a BSc. (Honours in Geology) from the University of Technology, Sydney and is a Member of the Australasian Institute of Mining and Metallurgy.

John Prineas - Non-executive Chairman

Founder of American West and a major shareholder. John is also the founder and Executive Chairman of St George Mining Limited (ASX: SGQ), a successful explorer and emerging nickel company in Australia. Prior to starting St George in 2010, John spent 20 years in the banking and legal sectors, including the role of Country Head Australia for Dresdner Bank AG (now Commerzbank AG) with a focus on project and acquisition finance for resources and infrastructure projects. John has worked on funding arrangements and growth strategies for a range of mining companies, from global majors to junior explorers. John holds a Bachelor of Economics and Bachelor of Laws from the University of Sydney and is a Fellow of Financial Services Institute of Australasia. John is also a director of BMG Resources Limited (ASX: BMG).

Michael Anderson - Non-executive Director

Dr Michael Anderson has extensive technical experience as well as substantial business development experience built up over a 30-year career. Michael is currently the Managing Director of Firefinch Limited (ASX: FFX) which has major gold and lithium projects in Mali, Africa. Previously, as a Director at Taurus Funds Management in Australia, he managed the fund’s investment in precious and base metals projects in a number of continents. Prior to that, Michael was the Managing Director of Exco Resources in Australia where he led the development of the White Dam Gold Mine and the advancement of resource development, feasibility studies and approvals for the Cloncurry Copper Project ahead of its sale to Xstrata. Dr Anderson holds a BSc. (1st Class Honours in Mining Geology) and a PhD in Mining Geology, both from the Royal School of Mines, Imperial College, University of London.

Rocky Pray - VP Operations

Rocky Pray has more than 30 years of engineering and project development focused on mining projects across several jurisdictions in the USA and abroad, including 12 years with Newmont Mining where he served as Project Study Director, Project Manager, and Consulting Mine Engineer. Rocky has a successful track record directing teams to safely build new mines, and expand existing mines on schedule and under budget. Rocky is a senior mining professional with expertise in pre-feasibility and feasibility studies, Federal and State permitting, environmental management mine operations, project engineering and construction. He is registered with the US Society of Mining Engineers and holds a Bachelor of Science degree (Geological Engineer) from the South Dakota School of Mines and Technology.

Related Articles Around the Web
AW1:AU
miner inside the access tunnel of an underground gold-copper mine
Jose Luis Stephens / Shutterstock

Copper supply is expected to increase this year, but will it be able to keep up in the long term? Experts are forecasting a major shortage in the years ahead.

Copper prices have been on the rise since last year, reaching a fresh all-time high in early March at US$10,674 per tonne, partially on the back of concerns over low inventory levels.

In the short term, demand may rise in 2022, but still come in lower than supply. Top consumer China’s growth seems to be taking a pause, and supply for the red metal is forecast to increase, supported by a recovery in mine output, expansions and new projects expected to come online later this year.

Looking longer term, the picture gets tighter — almost half of global copper supply is used in construction, but demand from sectors like electric vehicles and energy storage has increased investor interest in the base metal.

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Copper hit a record high in 2021, boosting copper companies even into 2022. Here are the best copper stocks on the ASX so far this year.

The copper price hit a record high in 2021, and analysts expect prices for the red metal to remain high. This strong copper market has been a boon for ASX copper stocks.

Copper prices rallied to above US$10,700 per tonne during the second quarter of last year on higher demand as the economy began opening back up following strict COVID-19 restrictions.

Although the copper outlook is tainted by a slowing real estate sector in China, demand for electric vehicles and renewable energy is expected to boost copper use in China and globally in 2022.


Several Australian copper stocks are performing well in this copper price environment.

Here the Investing News Network looks at the best ASX copper stocks of 2022 by year-to-date share price performance. The best ASX copper stocks list below was generated on February 9, 2022, using TradingView’s stock screener, and all copper stocks listed had market caps above AU$30 million at that time.

1. Alara Resources

Year-to-date gain: 233.33 percent; current share price: AU$0.08

First on this list of best ASX copper stocks is base and precious metals explorer and developer Alara Resources (ASX:AUQ). The company has projects in the Middle East, including the Al Washi-hi Majaza copper-gold project in Oman and the Khnaiguiyah zinc-copper project in Saudi Arabia.

Alara owns a 51 percent equity interest in Al Washi-hi Majaza, where initial mining activities, including pre-stripping of waste, began in early February. Ore mining is expected to start at the asset in the June quarter, with consistent ore recovery following toward the end of the year.

2. Critical Resources

Year-to-date gain: 189.47 percent; current share price: AU$0.11

Base metals-focused Critical Resources (ASX:CRR) has properties in Oman and Australia. The company's Sohar copper project in Oman has a JORC resource of 819,000 tonnes at 3.4 percent copper, equivalent to 28,000 tonnes of copper metal, and zinc and other base metals were historically mined at its Halls Peak project in New South Wales. Aside from those assets, Critical Resources holds lithium projects in Canada.

In early February, Critical Resources reported zinc, copper, lead and silver assay results from two extensional holes completed at Halls Peak's Gibsons prospect.

3. Cannindah Resources

Year-to-date gain: 82.35 percent; current share price: AU$0.31

With a focus on copper and gold, Cannindah Resources (ASX:CAE) is reviewing strategies for its New South Wales-based Mount Cannindah project, which holds a large porphyry-style copper-molybdenum-gold mineralised system. The company is also looking to move forward with exploration at its Piccadilly gold project in Queensland.

In late January, Cannindah Resources shared results from a vertical hole in the northern part of Mount Cannindah. Results include 81 metres at 0.3 percent copper, 0.6 grams per tonne gold and 22.5 grams per tonne silver.

4. Celsius Resources

Year-to-date gain: 50 percent; current share price: AU$0.03

Exploration and development company Celsius Resources (ASX:CLA) has a portfolio of copper and gold assets located in the Philippines, Namibia and Australia.

At its Maalinao-Caigutan-Biyog copper-gold project in the Philippines, the company completed a positive scoping study in December 2021 showing a 25 year mine life, a payback period of 2.7 years and a pre-tax internal rate of return of 35 percent. Drilling is also underway at Celsius’ other Philippines property, the Sagay copper-gold project.

5. Bougainville Copper

Year-to-date gain: 29.51 percent; current share price: AU$0.395

Bougainville Copper (ASX:BOC) states that its main goal is to work with communities in Papua New Guinea and the country's government to resume copper, gold and silver mining and exploration at the Panguna mine.

Panguna has been inactive since 1989, and while it was important to the nation's economy it has also been a source of controversy. There hasn't been any news from the company so far in 2022.

Don’t forget to follow us @INN_Australia for real-time updates!

Securities Disclosure: I, Melissa Pistilli, currently hold no direct investment interest in any company mentioned in this article.

Copper Mountain Mining Corporation  is pleased to announce positive results from 48 drill holes, totaling 7,936 metres, drilled on the C6, C1 and C2 targets at its Cameron Copper Project as part of ongoing exploration at the property.  The drill program encountered intercepts of high-grade mineralization, within long, low-grade mineralized envelopes, with lateral continuity between intercepts of up to 1 kilometre. …

Copper Mountain Mining Corporation (TSX: CMMC) (ASX: C6C) (the “Company” or “Copper Mountain”) is pleased to announce positive results from 48 drill holes, totaling 7,936 metres, drilled on the C6, C1 and C2 targets at its Cameron Copper Project (“Cameron”), as part of ongoing exploration at the property. The drill program encountered intercepts of high-grade mineralization, within long, low-grade mineralized envelopes, with lateral continuity between intercepts of up to 1 kilometre. The Company plans to carry out further drilling that will also include new undrilled targets with significant copper-gold anomalies in surface soil and rock samples. Cameron is situated 40 kilometres south of the Company’s Eva Copper Project (“Eva”), located in the Mount Isa region of Queensland, Australia near Cloncurry. See Appendix 1 for a regional location map. View PDF

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American West Metals
American West Metals
American West Metals

American West Metals Limited (American West or the Company) (ASX: AW1) is pleased to announce that drill hole WD22-19 - the first exploration drill hole completed by American West - has delivered a discovery that may potentially represent a significant extension of the known mineralisation at the West Desert Project in Utah (West Desert or the Project).


  • Exploration diamond drill hole – WD22-19 – has intersected wide intervals of magnetite skarn mineralisation 250m south west of the existing resource envelope for the West Desert Deposit
  • The drill hole was designed to test a strong magnetic anomaly that has the same geophysical signature as the West Desert Deposit
  • Geological logging of WD22-19 and portable XRF results indicate broad intervals with elevated zinc, copper and silver punctuated by zones of high-grade zinc and copper
  • The geology and geochemistry of WD22-19 indicate the drill hole is on the edge of a strong mineral system
  • Results for the outstanding drill holes are pending and expected in the coming weeks

WD22-19 was designed to test a large magnetitic anomaly which is centered approximately 250m south-west of the existing West Desert Deposit. The magnetic anomaly has the same geophysical signature as the West Desert Deposit and is interpreted to be a potential faulted extension of the Deposit. The magnetic anomaly has never previously been drilled.

The drill hole has intersected multiple zones of strong and massive magnetite skarn mineralisation enriched in zinc, copper and silver.

The discovery of further mineralisation over 250m to the west of the West Desert Deposit has confirmed the outstanding growth and exploration potential across the Company’s Project tenure.

Dave O’Neill, Managing Director of American West Metals commented:

“We are extremely excited by the results of the first exploration drill hole to be completed by AW1 at West Desert.

“WD22-19 has discovered a thick sequence of magnetite skarn mineralisation over 250m south west of the known West Desert Deposit.

“The visual observations and portable XRF results indicate broad zones of zinc, copper, silver and molybdenum mineralisation, and confirms that our interpretations about the geophysical targets - including potential West Desert look alikes - are correct.

“This has huge implications for the exploration upside and potential to extend the known West Desert Deposit, with a number of large magnetic and gravity features in the pipeline for drill testing.

“As exploration continues at the West Desert Project, investors can look forward to further news flow in the coming weeks and beyond as we continue to receive assay results from the completed drilling.”



Click here for the full ASX Release

This article includes content from American West Metals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
AW1:AU
various commodities atop a laptop
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“As we've seen in Ukraine, war has supercharged a number of these commodity prices,” John Forwood told RIU Resources Round-Up attendees.

Investment strategies for weathering and benefiting from current market trends were a hot topic at Sydney's recent RIU Resources Round-Up, held in early May.

Current opportunities and potential future ones were highlighted in the keynote address offered by John Forwood, chief investment officer at Lowell Resources Funds Management.

Quoting a February report from the head of commodity research at Goldman Sachs (NYSE:GS), Forwood explained to attendees that we have reached a “molecule crisis” in the commodity space and are essentially “out of everything.”


This deficit has only been compounded by the war in Ukraine, which has further weakened supply fundamentals and chains.

“When the (war in) Ukraine started, about a month later the commodities index (represented by Bloomberg commodities index) had its highest one-week spike on record, and that's a record going back over 60 years,” Forwood said. “As we've seen in Ukraine, war has supercharged a number of these commodity prices.”

However, according to the CIO, there is still a considerable amount of upward growth potential.

“In terms of where we are in terms of that commodity basket, we're way behind where we were in 2008, pre the (global financial crisis) and after the mining boom of the 2000s,” he told the crowd.

“And we're way behind where the Dow Jones and equities in general have got to,” Forwood added. “So, we think that there's potential for the commodity sector to be just getting started.”

There are also several other factors that are adding tailwinds to the broad sector, according to Forwood, who cited inflation — which is at 5 percent in Australia and 7-8 percent in the US and UK — as a significant contributor.

Looking at the longer-term fundamentals that have gotten us here, Forwood pointed to lack of investment capital as a main driver.

“I think the big one, the long term one, is under investment,” he said, noting that the early 2000s mining boom led to a lot of investment, which we aren’t seeing today.

“But over the last seven or eight years, we've seen a real dearth of capital going back into the sector. And in fact, we've also seen a dearth of M&A — something that we've been looking out for and it's just not happening.”

In fact, as one of the slides Forwood presented laid out, investment from the resource industry back into itself reached a 19 year low late last year.

Despite the lack of large investment, Australia’s junior resource index was up 16 percent at the end of April compared to the broader market and the Dow Jones Index, which had slipped 9 percent.

“So that may represent a rotation from other sectors into the resources sector. And if that is the start of what's happening, that could be very, very significant for resource company prices,” he said, explaining the resource sector is actually very small on a global scale.

“And if you see significant global money flowing into that sector, you know, it's almost the sky's the limit,” Forwood added.

Gold and volatility

While speaking about several commodities, the CIO for Lowell Resource Funds Management took time to highlight how gold could also be positioned for an upward trend, because “commodities do best when inflation is rising, and interest rates are rising.”

He then displayed a chart that indicated gold was the top performer among US stocks and the US greenback during the first six months following the commencement of a Fed rate hike period.

Real interest rates, which are hovering around 0 percent, are likely to have no effect on gold's price because, according to the Forwood, rates would have to be 3 percent or higher to impact gold.

He did warn that stagflation could add more wind to the yellow metal’s sails moving forward.

“We think there's a decent chance of (stagflation) occurring, so what should you buy?” he posited. “If you think that stagflation is on its way, well, the answer is also gold.”

Forwood concluded his address by encouraging attendees to invest in the junior resource space.

“Finally, at the Lowell Fund, we like to invest in junior explorers,” he said.

“Because they're the ones who make the discoveries, and discoveries is where you can really add the most value.”

Don’t forget to follow us @INN_Australia for real-time news updates!

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

physical coin representing bitcoin

A Canadian fund provider is debuting a version of its popular bitcoin ETF in Australia. Is now the best time for this launch?

Australian investors are getting a new way to invest in the volatile bitcoin space thanks to a deal between an asset management company and a Canadian fund provider.

On May 12, Canadian fund maker Purpose Investments launched a version of its bitcoin exchange-traded fund (ETF) in the Australian market by way of a partnership with Cosmos Asset Management, which is owned in part by the Australian division of Mawson Infrastructure Group (NASDAQ:MIGI).

The fund, called the Cosmos-Purpose Bitcoin Access ETF (CXA:CBTC), is listed on the Cboe Australia exchange, and holds units of the Toronto-based Purpose Bitcoin ETF (TSX:BTCC).


“We have brought together a team of global experts to offer Australian investors access to a truly high-quality product,” Dan Annan, Cosmos Asset Management CEO, said in a statement to investors.

ETF maker pursues rising international interest in cryptocurrencies

In an interview with the Investing News Network (INN), Vlad Tasevski, chief operating officer and head of product at Purpose Investments, said the firm has been actively pursuing ways to offer its crypto funds internationally.

The executive said there has been widespread interest in BTCC since its launch back in February of last year.

As the firm began evaluating how to approach this demand, the company considered setting up shop in the Australian market, Tasevski said. However, eventually the Canadian fund provider went with the partnership route.

Tasevski called Australia “the next logical jurisdiction" for the firm as it expands with its crypto funds.

When asked what makes Australia so attractive for the expansion of BTCC, the executive said it has a similar market structure to Canada, and credited securities regulators in the nation for being more comfortable with cryptocurrency listings than other jurisdictions.

Purpose has strong long-term outlook for digital assets

Although crypto assets are facing a serious ongoing downturn in value that has created significant losses, Tasevski told INN that Purpose Investments is undeterred in its long-term crypto outlook.

“The amount of capital and the amount of people involved in the space has never been higher,” Tasevski said.

The executive said he views his company's offerings as very flexible for investors. “We'll be here for (investors) to actually give them the ability to very easily access it whenever they feel it is appropriate for them,” he said.

Tasevski added that he views the current downturn for bitcoin as “one of the best entry opportunities in the last year and a half.”

​As bitcoin struggles, ETF firm celebrates structural victory

Purpose Investments has suggested to investors that accessing the bitcoin market through its funds is a safer route than going it alone, especially given the current period of remarkable losses.

According to Tasevski, the firm's products offer liquidity to investors and provide a measured approach for people who want exposure in this segment.

“We have been very clear that this is a volatile asset class,” he told INN. “And investors should kind of understand the level of volatility that they will be taking on.”

The investment executive said the infrastructure security provided by the rules ETFs must follow has been a boon as the crypto space faces major volatility.

Even so, BTCC has been rocked in 2022 based on the performance of bitcoin. Over a year-to-date period, the fund had gone down in value by over 35 percent as of the closing bell in Canada on May 11. In the past month alone, BTCC has dropped in value by over 20 percent.

Som Seif, founder and CEO of Purpose Investments, recently said crypto is a “core component” for the firm “when solving problems for (its) customers.”

​Investor takeaway

Digital assets have never been more easily available as tools for all types of investors.

While many experts remain confident in the long-term outlook for bitcoin and other cryptocurrencies, the considerable volatility prevailing in the market can make the space difficult for newcomers to stomach.

So far in 2022, bitcoin losses have highlighted the lack of stability in digital coins — but of course, as some have argued, these big moves can also provide entry points and opportunities for savvy investors.

Don’t forget to follow us @INN_Australia for real-time updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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