How to Survive Mining Slump? One Gold Company Is Turning to Hemp
How to Survive Mining Slump? One Gold Company Is Turning to Hemp
(Bloomberg) -- Growing hemp could be the solution for one junior gold miner with unused land and not enough money.
The board of California Gold Mining Inc. has decided to propagate high-CBD industrial hemp seed on a portion of its property in the town of Fremont. Like most of its peers, the junior exploration mining company has struggled to grow. Its cash holdings were less than C$173,000 ($129,000) as of Nov. 30, according to a filing.
“Given the prolonged down-trend in the junior mining sector, and scarcity of public capital for exploration-stage mineral resource companies, the Company has been contemplating monetization of the property with a view towards generating positive cash-flow,” Vishal Gupta, California Gold’s chief executive, said in a statement on Thursday.
A greenhouse for hemp seeds will be constructed on a portion of the property that is not currently used for its gold exploration business. Gupta said the company, which is based in Toronto, sees “tremendous growth potential lying ahead.”
--With assistance from Kristine Owram.
To contact the reporter on this story: Aoyon Ashraf in Toronto at aashraf7@bloomberg.net
To contact the editors responsible for this story: Brad Olesen at bolesen3@bloomberg.net, Catherine Larkin
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