By: Tomas Ronolski - AllPennyStocks.com News

Tuesday, April 19, 2016

After a weak start to the year, copper prices have bounced back in recent weeks, driven by improving economic data from China. China, the world’s second largest economy, has been a key driver of demand for raw materials such as copper and iron ore. Since 2012 though, China has been transitioning its economy from export and investment-led growth to consumption-led growth. This shift, although beneficial in the long term, has slowed down the Chinese economy and raised concerns of a hard lending. The slowdown in China in turn has hurt demand for commodities. Chinese policymakers, concerned about the economy crashing, have implemented fresh measures to stimulate the economy. These measures have boosted the Chinese economy in recent weeks and this is also having a positive impact on commodities such as copper and iron ore.

In fact, copper is one of the few commodities whose demand and supply fundamentals have been improving since last year. The copper market could go into a deficit as early as 2018, according to some estimates. China’s stimulus measures are further improving the outlook for the red metal. The demand is returning at a time when several miners have cut back on supply.

The improving outlook for the copper market augurs well for Vancouver, Canada-based Midnight Sun Mining Corp. (TSX-Venture:MMA). The company focuses on the acquisition, exploration and evaluation of mineral properties. MMA holds an option agreement to earn an interest in the Solwezi Permits adjacent to the Kansanshi Mine, an African copper mine, on the prolific Zambia-Congo Copper Belt.

MMA shares rose in trading today. At last check, the stock was trading 4.55% higher at $0.115 on volume of 25,000, which is significantly above the daily average volume of 14,773.

MMA shares are gaining momentum after the company announced that a major mining group has shown interest in exploring its optioned Solwezi copper-cobalt property. The company said that the major mining group will be conducting due diligence studies and exploration over the next quarter. MMA noted that no obligation is created between itself and the major mining group as a result of this due diligence and exploration work.

Bob Sibthorpe, President & CEO at Midnight Sun Mining, said that the interest shown by this major mining entity further underlines MMA’s excitement and positive outlook on the high potential zones that have been confirmed in the Solwezi area. Sibthorpe added that the company expects the data derived from this due diligence work to be of considerable value to it and help to guide the next phase of work on the property.

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