Landmark North American salt mining project and highly profitable Armchair Trader pick Atlas Salt TSXV:SALT has opened a new era in the company’s development with the appointment of new CEO Rick LaBelle.
LaBelle is known in Canada as a seasoned and serially successful mining entrepreneur both in developing mines and selling them to successful bidders. He brings a stellar track record in operational expertise and private equity success to the Atlas Salt CEO position – at a transformational moment in the company’s history.
Why we think Atlas Salt still makes sense
A number of investors we spoke to in conjunction with Atlas Salt told us that they has been waiting intently for an appointment of a new CEO, which they considered essential for the company to be progressed forward to the next stage of its evolution.
Atlas Salt owns 100% of the Great Atlantic salt deposit strategically located in western Newfoundland in the middle of the robust eastern North America road salt market. The project features a large homogeneous high-grade resource located immediately next to a deep-water port.
Of equal importance in our view, Atlas is also the largest shareholder in Triple Point Resources as it pursues development of the Fischell’s Brook Salt Dome approximately 15 kilometers south of Great Atlantic in the heart of an emerging Clean Energy Hub. Atlas Salt is currently the only way public market investors can get access to the highly interesting Triple Point project. It brings investors the double whammy of a salt mining venture, arguably the best in eastern North America, with the added bonus of the massive potential of hydrogen storage.
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LaBelle brings 40 years’ experience in the mining sector (private equity and public markets), including 27 at the executive leadership level to the Atlas board. He’s delivered over $5 billion (CDN) in mining consumables and services sales coupled with value creation through a series of game changing M&A transactions by effectively executing key strategic initiatives;
He has partnered with the world’s leading private equity firms and originated, negotiated and transformed some of the largest M&A deals in mine services, drilling services, commercial explosives, mining consumables and ground control/support.
LaBelle was CEO of Norcast Wear Solutions (2009-2012) which was the world’s leading mill line producer, taken private for $87 million (U.S.) and sold within a 3-year period under his leadership for $190 million (U.S.).
“Legacy of accomplishment”
LaBelle is a significant owner of Boart Longyear and was Group General Manager of Drilling Services for Canadian and International business units (held by Anglo American until 2005) where he was responsible for the management of operations, including the acquisition and integration of several companies in Canada, Brazil, Central America, Russia and Africa.
“It’s a privilege and a rare opportunity in the mining sector to be involved with such a top tier asset as Great Atlantic with the potential to produce profitability for generations, creating a legacy of accomplishment,” LaBelle said.
He explained that he was going to assemble a world class team to advance the Tier 1 asset, which will very soon be anchored by an independent Feasibility Study. LaBelle has an established record of unlocking shareholder value, which will be a key part of his strategy with Atlas Salt.
Rowland Howe, Atlas President, was very bullish on the news of LaBelle’s appointment:
“In my three decades in the salt sector, I’ve never seen an opportunity as exciting as this. Rick is the perfect fit and I’m thrilled to be able to work alongside him and the team he’s going to build. He’s a fourth-generation underground miner who has been involved in one way or another with just about every underground mine in Canada. The skills he learned in private equity, and the network he built, can be leveraged very effectively in the salt sector which has so much private equity involvement. He’s a gifted strategist and deal maker.”
