Brinkley Mining Share Discussion Threads

[capt bligh] 05/10/2010 09:06

their website! or "dra asx" into google

[chrismez] 04/10/2010 17:42

Capt Bligh - where do we find this piece of DRA news? Any chance you can cut and paste it on here? Many thanks. CM

[capt bligh] 04/10/2010 09:28

0.8m @ 3,888.82 g/t gold, 1.4m @ 1,125.10 g/t gold and 2.38m @ 444.86 g/t gold.

[capt bligh] 04/10/2010 08:59

Have you guys read the dra nws about the bonanza grades in Finland... this was featured as historic information, but the company has revealed to a poster in Aus that actually (and scarcely believably) they have only just discovered the information, hence the notice now these grades are literally stupendous well worth a read...

Outraged over this offer... but worried G might pull it off perhaps some Eurogold stock if he does.

[corrientes] 02/10/2010 18:25

Got my package this morning. Voting 'NO' to the crooks.

[chrismez] 02/10/2010 03:49

20 October chaps - see you there Linney - should be a fesity meeting - wouldn't surprise me if allegations of daylight robbery aka Fraud are banded around!

[linney3] 01/10/2010 09:15

Dragon announced overnight that it is now debt free having bought back all outstanding convertable notes/early redemption of a loan facility and has a healthy 24million cash in the bank.

Additionally,DRA have expressed a desire to expand through acquisition,and maybe just maybe BRMs land banks will be of interest.


Notes: BRM 12.68% interest in DRA(Excluding Eurogolds shareholding) equates to £9,760,000 at the close price of 17cent.This coupled with £900k in the bank gives BRM a total value of £10,660,000 or 3p a share.The valuation is purely on assets that can be easily valued and excludes the land banks which the old BRM management paid a pretty penny for in their hayday

[linney3] 28/9/2010 09:19

Dragon hit 20cent overnight on over 25million shares traded,settling back at a close of 16.5cent.Eurogold shot up to 27cent on under 500k shares traded.DRA plans to recommence drilling in Finland.This activity occuring when the Aussie market was down and mining shares wer badly affected.

Needless to say,BRM has not budged.

On EUGs valuation of BRMs asset valuation at end of August,they have grown 65% on DRAs overnight close including the 35% reduction - basically BRM shares have a total value of 3p and with the 35% deduction 2p a share.This figure excludes value that can be achieved from BRMs land banks.

Without labouring the point BRMs investment in DRA is valued at 5cent a share by Gunzburg and he is sitting pretty knowing that his offer expires at year end and not a lot anyone can do with the share price until then.

The hope I hold is that DRA will become a takeover target and the BRM holding in that company will attain full value and a premium paid.

Alternatively,if the DRA share price were to surge it must be reflected in BRM pricing level even while Eurogold have a takeover offer in place

[linney3] 17/9/2010 09:25

Dragon have issue a news item - Commencing underground development aimed a paving the way for mining longevity.DRA share price has closed at 14.5c having touched 15c.EUG share price has also risen past 2 days to 24c.

Gunzburg must know that he has little chance of pulling off a stroke with BRM shareholders,and as the month end approaches DRA share price can only increase

[linney3] 16/9/2010 16:42

Over 5 million shares traded today - aprox 50/50.buys at 1p implies EUR are desperatly adding whenever possible.

With the share price declining past few days,my guess is nobody is taking their offer seriously

Less than two weeks and we will have the Dragon mining report.Should ignite the DRA share price


Tick up to 1.15 offer at the end of play from 1.05p

[corrientes] 09/9/2010 16:15

Good - with a bit of luck, this daylight robbery will not succeed. I'm definitely voting 'NO'

[linney3] 09/9/2010 13:36

They are effectively buying DRA shares at a price of AU$7cent,and getting £800k in cash from BRMs bank account.

There is no schedule as to close out on the acquisition,and with the DRA report due in less than 3 weeks my assumption is they will fail to get the required backing from shareholders.

The spread of 1 - 1.2 means that any sellers will be bought by EUR to strengthen their position but acquiring or getting a lien on 89 million extra shares will be an impossiblity imo

Would not be suprised to see the bid/offer increase over the next week if DRA continues its upward movement

[chrismez] 09/9/2010 13:09

Eurogold has a 4% stake in DRA.

BRM has a 12.5% stake in DRA (in other words Eurogold have been using BRM to buy more DRA).

If Eurogold wanted to buy more DRA to increase its own stake in DRA it would have to pay today's price for DRA which is about 14 cents.

Far cheaper therefore for Eurogold to buy out BRM at 1.14p because in so doing they get lots more DRA which was purchased when the price of DRA was much lower.

Like I said this not about shareholder value at all, this is about a smash and grab raid by Eurogold to pick up more DRA on the cheap.

And my guess is they're doing this before DRA releases the Sept statement on mine longevity because EUG knows that DRA are on the verge of making a significant statement which will send the shares to 20c.

Best get in now therefore and pick up the DRA stake cheaply.

[chrismez] 09/9/2010 12:42

Good post Linney - interesting figures.

Do you get the feeling that Eurogold are going to let BRM's London listing fall away. At one point I thought they might reverse into BRM and take up the listing which Eurogold used to have on AIM but doesn't anymore?

Looks to me as if EUG are proposing to gobble up BRM at half price (summer sale) and run off back to OZ with them, which then begs the question what are they gonna do with the land package BRM still has.

[linney3] 09/9/2010 10:31

aka Gluefactory - The proposed acquisition would give BRM shareholders exactly 40% of the enlarged Eurogold stock.

An interesting point on the calculations - DRA stock was at 10cent on 31st August - the calculation date,and now trades at 14cent ie.40% above the valuation.Remember BRM has a 12.68% interest in DRA,and EUG only a 4% stake.

BRM therefore have over a threefold greater interest in the rising asset that is DRA shares.

Any major holder of BRM stock will see the differential in price offered and reject the acquisition offer IMO.

For the record based on Eurogolds 35% discount to asset value the 14cent valuation would put BRM shares on a value of 1.6p and not 1.14p as EUG would like us to think.As Chrismez said they chose the price 8 days before making an offer proposal.If the DRA price had not shot up 40% my guess is they would not have made an offer at this time

[linney3] 08/9/2010 20:26

Linney aka Gluefactory = The market cap of EUG is currently $11.51 million.


I wonder what equity holding BRM will achieve in the enlarged company if it does go ahead?

[tamboerskloof] 08/9/2010 20:25

Phew at long last after months of averaging down I am at last out with a 15% profit, good luck to you all, I'm fully re-invested in DRX and BP.

[samtom2] 08/9/2010 18:54

Good luck to you too. I am happy with my return but if you feel there is more to be had here then I hope you are rewarded. I guess after one which went the wrong way, I just don't want to tie the funds up again in a stock I can't readily trade.

[gluefactory] 08/9/2010 18:02

Best of luck samtom - Eurogold investors will be happy to take on board a 12.69% interest in Dragon and £ 850K cash at a 50% reduction as compensation for the dilution if the deal gets the go ahead which I would hazard will not happen.

Eurogold price has strenghtened past week,no doubt on the DRA involvement,and I would say the share price will rise again tonight on the possibility of a bargain acquisition.

[samtom2] 08/9/2010 17:50

I sold my two blocks this afternoon. I bought in at 0.80 and got 1.08 this afternoon. 35% profit is fine. I don't like these takeovers, especially when they are trading in foreign markets. I just checked and Lloyds don't trade ASX. I had it with PDF who were bought by IGE who only trade on the Oslo Bors which don't settle in CREST. Nightmare. And whilst IGE bought PDF at a 70% premium to the share price level at the time, the IGE shares are worth about 60% now. Eurogolds stock gets diluted with BRM's investors and so the price will undoubtedly drop as Eurogold investors get the hump with dilution and BRM investors sell soon after they are converted.

[gluefactory] 08/9/2010 17:28

Remember Eurogold hava a $5million plus interest loan redemption from Tamani due by 30th September so they will have a fair bank balance then.My guess is that this is an initial probe and an improvement will be made when they find they have not got the support they require,or more hopefully when a competing bid arrives - we all know EUG are pitching in at 50% to real value and so will others with substantial holdings.Remember DRA is increasing in value and hopefully will carry on that way particularly with the mining longevity report looking favourable and due to be published coincidently at month end.

[capt bligh] 08/9/2010 17:18

Eug present nav 30cents as per recent release this puchase will despite dilution add significantly to that also gives you a$ exposure... so not entirely dreadful but rather have BRM wound up how do you make such a move?

[chrismez] 08/9/2010 17:11

Linney - I agree about the directors of Brinkley and Eurogold - how nice that Gunzy as a director of both companies, can find the time to agree with himself!

[chrismez] 08/9/2010 17:08

This from the RNS back in late July at the time of the Interim results.

"Outlook

The Board is considering how best to provide value to shareholders from the
Company's existing investments and hopes to be in a position to make a further
announcement in due course."

What they've done obviously is wait until the share price hit its lowest point (which happened a few days ago) and have then taken that low share price as the base for their calculations.

Why didn't they take the share price say back in Aug or July when it wasn't quite so low?