Highwood Resources spins off Thor Lake subsidiary

Highwood Resources (HWD-T) intends to establish a wholly owned specialty materials business named Rare Metal Alloys, which will concentrate on commercial development of the Thor Lake beryllium project, southeast of Yellowknife, N.W.T.

Beryllium and some of its compounds and alloys can withstand extreme heat, remain stable over a wide range of temperatures and serve as an excellent thermal conductor. The metal is used in telecommunications, medical and manufacturing applications. Highwood says demand for it is expected to grow and diversify significantly.

The newly formed Alberta-based company is part of a strategic alliance and commercialization agreement with the metallurgical technologies division of Dynatec (DY-T). Its offices will be at Dynatec’s metallurgical technologies division in Fort Saskatchewan, Alta.

A $400,000 prefeasibility study is under way at Thor Lake. Funded by Highwood, it is expected to wrap up in the third quarter. The company expects that the subsequent feasibility and permitting phase will cost $3.5 million. Once financing is secure, commercial development is expected to take two to four years.

Dynatec holds approximately 35% of the issued shares of Highwood.