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How the Hong Kong protests led to the downfall of a renowned Canadian jeweller

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The company that mines Alberta’s official gemstone is on the verge of collapse after pro-democracy protests and the pandemic have combined to wipe out its biggest markets.

Ammolite is a rare iridescent gem found almost exclusively in Alberta, and Korite International, headquartered in Calgary, now produces about 90 per cent of the world’s supply. It was recently a rising star in the world of precious stones, with demand surging in 2017. But the company’s fortunes began to crumble when the unrest began in Hong Kong. The COVID-19 pandemic exacerbated its mounting financial losses, and Korite obtained creditor protection on June 30.

Ammolite is regarded as a Canadian national treasure, meaning the federal government must approve all applications to export it.

Ammolite comes from the shells of fossilized sea creatures called ammonites. It can be found in several places around the globe, but those found in a southern Alberta river basin are unique because of a thick layer of colour and iridescence, which are ideal for manufacturing gems.

“All the colours are on top of each other, the same as a rainbow — and it’s all natural. So that makes it one of the rarest gemstones in the world,” Rene Trudel, Korite’s operation field manager, told CBC News in 2017.

“In this sediment, the preservation is incredible … you cannot find anywhere else the full spectrum [of colours].”

 

Rainbow-hued ammolite, a rare gem found only in a southern Alberta river basin, studs a piece of shale held by so-called spotters who watch for its shine as the shale is excavated. The ring on the left shows an example of the processed gemstone. (Sarah Lawrynuik/CBC)

 

In 2015, a group of Calgary investors, including former company president Jay Maull, took over Korite with ambitious plans to grow the business, scaling up mining operations and partnering with a distributor in Asia as they tried to raise the gem’s profile.

When they took over, the Korite mine, located south of Lethbridge, was expanded from less than one hectare to more than three hectares as the company said it was scrambling to keep up with surging demand. Executives had also reached a deal with a Chinese distributor to boost sales of ammolite jewelry in that country.

China has a unique interest in ammolite because Feng Shui experts are said to believe the gems can enhance health, wealth and wisdom.

In efforts to boost its domestic profile, the company signed a deal to sponsor the Calgary Stampede Royalty and was the official jewelry licensee for Canada 150, the year-long celebration in 2017 that marked the 150th anniversary of Confederation.

 

This 11-inch ammolite piece has a value of about $500,000. The fossils have been buried for the past 71 million years. The combination of heat and pressure turned the squid-like mollusc called an ammonite into the rainbow-coloured ammolite gem. (VPD)

 

The financial hardships began last year. A large portion of the company’s sales in Asia were at trade shows in Hong Kong, but those events were cancelled amid ongoing massive and sometimes violent protests, resulting in the loss of over $2.4 million in anticipated sales, according to insolvency documents filed by the company.

“Hong Kong people appreciate precious gems — the rarer, the better,” said Gordon Houlden, a former diplomat who has worked in Beijing and Hong Kong and is now director of the China Institute at the University of Alberta. He was in Hong Kong last year when Korite was at an exhibition showcasing its product to Chinese buyers.

“The demonstrations created an unusual situation: Transport was disrupted, occasional disruptions to the airport. I thought overall it was manageable, but it was having an effect on the local economy,” he said. COVID-19 has been far more challenging for Canadian companies who operate in Asia because of the travel restrictions, he said.

Korite was unable to recover this year as the situation in Hong Kong persists and revenues elsewhere in the world began to dry up amid the pandemic.

 

The first ammolite mine became operational in 1983, and four others have been dug since. (Sarah Lawrynuik/CBC)

 

The company also sells ammonite in places like tourist shops in Banff, on cruise ships and in Caribbean holiday ports. Those business lines were all hit hard as the COVID-19 pandemic forced the near total shutdown of the travel industry.

Three years ago, Korite had 280 employees worldwide. According to documents, the company currently has 12 staff members and an additional 31 employees who have been temporarily laid-off because of the pandemic.

Since early March, Korite has not recorded any new sales in the retail and cruise sectors, according to the documents, with a loss of over $6.1 million in anticipated sales.

At the end of April, the company had liabilities of $16.4 million and listed assets of about $20 million, including more than $6 million in property, equipment and mineral rights.

As with so many companies right now, the financial outlook for Korite is difficult to assess as Hong Kong remains volatile for an indefinite period and the global tourism sector is expected to take several years to recover. Even as some retail shops have reopened, there have not yet been any new orders for jewelry.

The company can’t sustain itself and must restructure its balance sheet and operating costs, according to documents.

Calls and emails requesting interviews with company officials were not returned.

The process is underway to find investors or sell either the company or assets, according to court documents, to help pay creditors.

Source:- CBC.ca

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Two youths arrested after emergency alert issued in New Brunswick

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MONCTON, N.B. – New Brunswick RCMP say two youths have been arrested after an emergency alert was issued Monday evening about someone carrying a gun in the province’s southeast.

Caledonia Region Mounties say they were first called out to Main Street in the community of Salisbury around 7 p.m. on reports of a shooting.

A 48-year-old man was found at the scene suffering from gunshot wounds and he was rushed to hospital with non-life-threatening injuries.

Police say in the interest of public safety, they issued an Alert Ready message at 8:15 p.m. for someone driving a silver Ford F-150 pickup truck and reportedly carrying a firearm with dangerous intent in the Salisbury and Moncton area.

Two youths were arrested without incident later in the evening in Salisbury, and the alert was cancelled just after midnight Tuesday.

Police are still looking for the silver pickup truck, covered in mud, with possible Nova Scotia licence plate HDC 958. They now confirm the truck was stolen from Central Blissville.

This report by The Canadian Press was first published Sept. 16, 2024.

The Canadian Press. All rights reserved.

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World Junior Girls Golf Championship coming to Toronto-area golf course

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MISSISSAUGA, Ont. – Golf Canada has set an impressive stretch goal of having 30 professional golfers at the highest levels of the sport by 2032.

The World Junior Girls Golf Championship is a huge part of that target.

Credit Valley Golf and Country Club will host the international tournament from Sept. 30 to Oct. 5, with 24 teams representing 23 nations — Canada gets two squads — competing. Lindsay McGrath, a 17-year-old golfer from Oakville, Ont., said she’s excited to be representing Canada and continue to develop her game.

“I’m really grateful to be here,” said McGrath on Monday after a news conference in Credit Valley’s clubhouse in Mississauga, Ont. “It’s just such an awesome feeling being here and representing our country, wearing all the logos and being on Team Canada.

“I’ve always wanted to play in this tournament, so it’s really special to me.”

McGrath will be joined by Nobelle Park of Oakville, Ont., and Eileen Park of Red Deer, Alta., on Team Canada 2. All three earned their places through a qualifying tournament last month.

“I love my teammates so much,” said McGrath. “I know Nobelle and Eileen very well. I’m just so excited to be with them. We have such a great relationship.”

Shauna Liu of Maple, Ont., Calgary’s Aphrodite Deng and Clairey Lin make up Team Canada 2. Liu earned her exemption following her win at the 2024 Canadian Junior Girls Championship while Deng earned her exemption as being the low eligible Canadian on the world amateur golf ranking as of Aug. 7.

Deng was No. 175 at the time, she has since improved to No. 171 and is Canada’s lowest-ranked player.

“I think it’s a really great opportunity,” said Liu. “We don’t really get that many opportunities to play with people from across the world, so it’s really great to meet new people and play with them.

“It’s great to see maybe how they play and take parts from their game that we might also implement our own games.”

Golf Canada founded the World Junior Girls Golf Championship in 2014 to fill a void in women’s international competition and help grow its own homegrown talent. The hosts won for the first time last year when Vancouver’s Anna Huang, Toronto’s Vanessa Borovilos and Vancouver’s Vanessa Zhang won team gold and Huang earned individual silver.

Medallists who have gone on to win on the LPGA Tour include Brooke Henderson of Smiths Falls, Ont., who was fourth in the individual competition at the inaugural tournament. She was on Canada’s bronze-medal team in 2014 with Selena Costabile of Thornhill, Ont., and Calgary’s Jaclyn Lee.

Other notable competitors who went on to become LPGA Tour winners include Angel Yin and Megan Khang of the United States, as well as Yuka Saso of the Philippines, Sweden’s Linn Grant and Atthaya Thitikul of Thailand.

“It’s not if, it’s when they’re going to be on the LPGA Tour,” said Garrett Ball, Golf Canada’s chief operating officer, of how Canada’s golfers in the World Junior Girls Championship can be part of the organization’s goal to have 30 pros in the LPGA and PGA Tours by 2032.

“Events like this, like the She Plays Golf festival that we launched two years ago, and then the CPKC Women’s Open exemptions that we utilize to bring in our national team athletes and get the experience has been important in that pathway.”

The individual winner of the World Junior Girls Golf Championship will earn a berth in next year’s CPKC Women’s Open at nearby Mississaugua Golf and Country Club.

Both clubs, as well as former RBC Canadian Open host site Glen Abbey Golf Club, were devastated by heavy rains through June and July as the Greater Toronto Area had its wettest summer in recorded history.

Jason Hanna, the chief operating officer of Credit Valley Golf and Country Club, said that he has seen the Credit River flood so badly that it affected the course’s playability a handful of times over his nearly two decades with the club.

Staff and members alike came together to clean up the course after the flooding was over, with hundreds of people coming together to make the club playable again.

“You had to show up, bring your own rake, bring your own shovel, bring your own gloves, and then we’d take them down to the golf course, assign them to areas where they would work, and then we would do a big barbecue down at the halfway house,” said Hanna. “We got guys, like, 80 years old, putting in eight-hour days down there, working away.”

This report by The Canadian Press was first published Sept. 16, 2024.

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Purple place: Mets unveil the new Grimace seat at Citi Field

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NEW YORK (AP) — Fenway Park has the Ted Williams seat. And now Citi Field has the Grimace seat.

The kid-friendly McDonald’s character made another appearance at the ballpark Monday, when the New York Mets unveiled a commemorative purple seat in section 302 to honor “his special connection to Mets fans.”

Wearing his pear-shaped purple costume and a baseball glove on backwards, Grimace threw out a funny-looking first pitch — as best he could with those furry fingers and short arms — before New York beat the Miami Marlins at Citi Field on June 12.

That victory began a seven-game winning streak, and Grimace the Mets’ good-luck charm soon went viral, taking on a life of its own online.

New York is 53-31 since June 12, the best record in the majors during that span. The Mets were tied with rival Atlanta for the last National League playoff spot as they opened their final homestand of the season Monday night against Washington.

The new Grimace seat in the second deck in right field — located in row 6, seat 12 to signify 6/12 on the calendar — was brought into the Shannon Forde press conference room Monday afternoon. The character posed next to the chair and with fans who strolled into the room.

The seat is available for purchase for each of the Mets’ remaining home games.

“It’s been great to see how our fanbase created the Grimace phenomenon following his first pitch in June and in the months since,” Mets senior vice president of partnerships Brenden Mallette said in a news release. “As we explored how to further capture the magic of this moment and celebrate our new celebrity fan, installing a commemorative seat ahead of fan appreciation weekend felt like the perfect way to give something back to the fans in a fun and unique way.”

Up in Boston, the famous Ted Williams seat is painted bright red among rows of green chairs deep in the right-field stands at Fenway Park to mark where a reported 502-foot homer hit by the Hall of Fame slugger landed in June 1946.

So, does this catapult Grimace into Splendid Splinter territory?

“I don’t know if we put him on the same level,” Mets executive vice president and chief marketing officer Andy Goldberg said with a grin.

“It’s just been a fun year, and at the same time, we’ve been playing great ball. Ever since the end of May, we have been crushing it,” he explained. “So I think that added to the mystique.”

___

AP MLB:

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