(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.”
Read more: Miners ‘Lifeblood' Looks Poised to Flow Back Following Pot Craze
--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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