Brinkley Mining Share Discussion Threads

[linney3] 26/10/2010 10:12

"Brinkley was informed on 25th Oct that Eurogold had purchased on 25th Oct...."

Pity they took 8 days to convey their agreemment on the terms for the offer on 8th September!

[chrismez] 25/10/2010 18:12

All of which might indicate that a fresh bidder is about to materialise Linney. Maybe the MM's are listening closely to the rumour mill and maybe you were right after all!

Cant see any reason at all for this to go to 1.45p if all you're going to get back in due course is 1.14p !

[linney3] 25/10/2010 17:16

Trades weighing heavily towards sells today yet the share price has grown and the MMs are willing to take whatever sells come their way.Plus has the spread at 1.2 - 1.45p.EUG traded up 11% overnight on 4 trades totalling 80k and spread shown at 24 - 26cent

[linney3] 22/10/2010 09:59

Your broker is totally wrong.If his assumption were fact I would have hired a private jet to take me to London on Wednesday and following the vote result I would have booked myself in to the Ritz indefinitly.

If his reading were correct I would be looking at having over 25 million EUG shares which trade at 21.5cent so effectively I would be a millionaire 5 times over in Aussie dollars

[chrismez] 22/10/2010 09:23

Linney - you may be right I suppose and in many ways I hope you are - just can't see it myself. Anyhow correct me if I am wrong about this cos my broker has informed me that for every BRM share I hold/held I will receive 11.9228 EUG shares. In other words if you hold a million BRM you are now the proud owner of 11,922,800 EUG's. Am I or rather my broker wrong about that?

[gluefactory] 21/10/2010 17:50

Well time will tell Chris if there is someone else interested in BRMs DRA holding.There is still time for a counter offer to surface IMO.

Our holding amount will be less in EUG.My 2.15million will be transferred into circa 180k EUG shares - and if we end up as EUG shareholders its fair to say that the EUG share price should show a significant increase bearing in mind Gunzburg will have performed a significant coup by buying DRA at 5cent which equates to one eight of Dragon to add to their paltry 4% interest in DRA.

As things stand we must hope for EUG shares to trade at 43cent for us to have fair value at todays prices - which means we are only at half value any day of the week

Hate when someone lawfully takes £40k out of my pocket and ends up a hero

[chrismez] 21/10/2010 17:33

Yesterday was a disaster for long suffering BRM holders. Sorry to say it Glue but the chances of a white knight trumping Eurogold's offer of 1.14p are probably close to zero.

In fact I would go so far as to say that there is a greater chance of the Fraud Squad arresting Gangsta Gunzy for the well known offence of Daylight Robbery.

How the f'.k can it be right that EUG pay 1.14p for shares that are worth at least 2.28p and in all likelihood a lot more than that.

This is where the Stock Markets and their rules divorce themselves from reality and 'permit' behaviour which in other spheres of society would be regarded as breaking the law.

I still trying to come to terms with the fact that if I am to recover my initial investment in BRM I will now have to hold bezillions of ASX:EUG shares in a foreign dealing account which will cost me a King's ransom each quarter in fees and admin expenses.

Our only hope now it seems to me, is that someone like Barrick or Goldcorp take out ASX:DRA - at least that will give us a chance to get out of our unwanted Aussie shares.

[tamboerskloof] 21/10/2010 13:47

September 2010 Quarterly Report
Dragon Mining Limited released the September 2010 quarterly report which highlights:

Gold production for the Dragon Mining Group of 20,336 (YTD: 56,658) ounces at an average cash cost of US$557 (YTD: US$600) per ounce.

The feasibility study for the Svartliden underground mine operation was completed and a decision to proceed is imminent, whilst studies evaluating the possibility of extending and deepening the eastern portion of the open pit have commenced.
Following the completion of an internal study the decision was taken to commence the decline for the underground development of the Kujankallio deposit at the Jokisivu Gold Mine, Finland. Mining of the Kujankallio open pit was completed in August.

An internal study is underway evaluating the development of the Kutema Deeps lode system at Orivesi down to the 1080m level. A staged development is being considered to initially deepen the mine to the 820m level, a development decision is expected in 2010.

Preparation for the recommencement of exploration at the Kuusamo Gold Project, Finland began and it is planned to undertake an aggressive drilling campaign over the next 12 months totalling 20,000 metres. The initial phase of drilling is anticipated to commence in November. Historical drill intercepts from the Juomasuo deposit include highlights of 19.20m @ 179.52 g/t gold, 3.70m @ 426.98 g/t gold, 19.60m @ 63.70 g/t gold, 4.12m @ 265.50 g/t gold, and 8.00m @ 48.85 g/t gold.

As at 30 September 2010, Dragon Mining held $22.5m in cash, $5.8m in net gold concentrate receivables and $4.0m of cash deposits lodged with Swedish authorities as rehabilitation bonds.

Gross cash inflow from operations for the quarter was $20.7m (YTD: $37.0m).

The Company became debt free by redeeming all outstanding convertible notes on issue and repaying the outstanding debt (1m euro) to Nordea Bank Finland Plc

[gluefactory] 20/10/2010 17:09

Well battle lost but war not yet over?

Would have been nice to know how the voting went as against a few lines of an RNS saying all resolutions were passed.

From memory,the company needs 90% and over to take effect.Basically,they have really only jumped the first hurdle and there is still time for another offer to come from any interested party - What other Australian mining company is watching this attempt to seize control of a major stake in Dragon for a pittance versus current and indeed forward value?

[linney3] 19/10/2010 18:03

Figure is 2.9p based on DRAs closing price overnight.

No I have decided not to go as the air fare would have been 400 euro and a flight arriving at 8.45 would have left me with a problem getting to the meeting place on time.My NO vote has been with them for the past ten days

Are you going yourself Chris?

[chrismez] 19/10/2010 17:52

Linney, at the various prices mentioned above what do you say the NAV is, if it is possible to calculate NAV with what is in essence an investment company. When you say close to 3p is that 2.75p or 2.9p or some other figure?

Be good to know the differential between 1.14p and the NAV at today's prices.

Also are you going along tomorrow?

Cheers, CM

[linney3] 19/10/2010 12:24

Tomorrow is D Day - Does PG get the deal of the century or not? Since the rns appeared on 8th September there have been no substantial buys so he has not been mopping up from the market - but then as he has the shares "valued" at 1.14 he would have been asked to pay a premium for large tranchs.

EUG currently have a sell price of 21.5cent which equates to 1.12p at today exchange rate for a BRM share on their exchange idea,and DRA are at the 16.5cent level.

Nothing anyone can do at this time to influence the voting - the closing date was yesterday.

If the NO vote swings in our favour,we should at least see a rise in the sp,as it has been held back whilst EUG try to rob us blind,but equally the assets of BRM stand at close to 3p and the market cap values us at 1.1p.

[chrismez] 15/10/2010 14:54

Well I see from recent correspondence received from my broker that Eurogold's pitiful offer for the remaining BRM shares is

(a) subject to shareholders approval at the General Meeting on 20 October 2010; and,

(b) subject to the sanction of the Court at a hearing listed for the same day.

Since I have some experience of matters of a legal nature, I am thinking I might pop along to the Court as well.

11.9228 Eurogold shares for every BRM share!

Jeepers on that basis I am going to be drowning under millions of Auusie shares!!!!

[vanbrussel] 15/10/2010 13:40

Once upon a time...which apparently means today in the Congo

The Congolese Atomic Energy Commission did a presentation in Ghana last July

Slide 15/17:
Uranium in the DRC ...TODAY
▪ In July 2007: Brinkley Mining Company (UK) agreed with the DRC for the production of uranium and for financial assistance to halt uranium smuggling.
▪
The deal established a joint venture between Brinkley and the Congo Atomic Energy Commission (CGEA) to develop the country's uranium sector.

▪ The joint venture concerned exploration and mining of uranium deposits of Shinkolobwe mine, Mindigi,Kalongwe and Kasompi.
▪
September 2008: Agreements were terminated

[chrismez] 11/10/2010 19:16

Linney you can add my vote to yours when / if you speak to Gangsta Gunzy.

Its an extremely weak argument to say that a line had to be drawn somewhere and I don't buy that for one minute.

Its purely coincidence then is it that over the period of 2 months or so they happened to draw the line when the share price of BRM was at its lowest for that period. Nope - sorry don't buy that for one minute.

Neither I suspect did RAB Capital - there's obviously something else in this shambles for RAB it seems to me. In some way or another they'll do alright out of it, while the little PI, as usual, takes it up the a'#e.

Cheers, CM

[linney3] 11/10/2010 12:17

The previous post refers.I mentioned that I had emailed PG,and I have just received a response from him via his Blackberry.The content of both communications are shown below.

Peter.I refer to the below and your subsequent acquisition notice dated 8th September.As you are no doubt aware your offer is flawed,and does not take into account the fact that Brinkley hold three times the amount of shares in Dragon as compared to Eurogold and that this asset has grown 70% since your offer(which was based on a 31st August valuation).I regard your offer as opportunist in the extreme and indeed you are leaving yourself open to a counter offer as Brinkleys shareholding in Dragon is substantial and way undervalued by yourself.

For this reason I will be voting my holding,which is in excess of 2million shares on the NO side

Yours Sincerely

xxxxx

xxxxx.Thank you for your email.

The EUG offer may appear opportunistic today given the movement in price of Dragon but the ratio was arrived at by applying a formula that simply applied the mid prices of all the stocks that EUG has in its portfolio and BRM in its and weighing them accordingly.
A line had to be drawn in the sand at some point in time.

RAB Capital would not have given their agreement as the largest independant shareholder were this formula flawed.
I would be more than happy to call you to discuss if you wish.
Please let me know.
Regards Peter Gunsburg
(his phone number appears - I do not regard it appropriate to show it here)
Sent from my Blackberry(R)from Optus

-------------------------------------------------------------------------------

My personal view is that Eurogold are finding it hard to get their numbers - maybe that is true or maybe I am just hoping

[linney3] 08/10/2010 18:54

Some more interesting facts to mull over:

Eurogolds total investment to date in Brinkley is exactly £2.5million.For this figure they have a 42% interest in Brinkley PLC.

Brinkleys total assets(Dragon shares = £9.76million and £867k) = £10.63million)

Eurogold hope to acquire the total ISC of Brinkley for an all share consideration of Eurogold valueing the transaction at just over £4million.
In return BRM shareholders will get a 28% shareholding in the enlarged Eurogold company. - a company I might add where an illiquid situation exists.

Therefore,for Eurogolds £2.5million investment they hope to acquire the remaining 58% for £2.32million in Eurogold shares(This figure excludes their own 42% stake at 1.14p which equates to £1.68million.

So effectively,Eurogold will take control of Brinkleys share and cash assets of £10.63million for £4.83million which includes their "paper loss" on BRM share purchases at 1.85p for their initial 103.5million and their top up of 39.5million at 1.45p - and overnight they will have made Eurogold an immediate profit of £5.8million.

Not for me and I have emailed PG and made him aware that a NO vote will be forthcoming from myself.

I hate the idea that someone can have the neck to try get one over investors,and I can only assume that the RAB Special Situations holding has been influenced by PGs previous stockbroking experience and perhaps a friend in RAB.

I for one,have seen my investment in BRM show an at worst value of one half penny,and finally when things are looking up,an Aussie investor trys to take my value away.

However it is going to be an uphill struggle to wrest the 25% he requires to see this over the line - and a battle I hope he fails to achieve

[chrismez] 06/10/2010 17:50

Quite right Linney.

Half of what we're entitled to and if Dra is sitting on much more gold than they ever in their wildest dreams thought possible, then the Dra share price is likely to rise over the next few weeks and then we will be getting much less than half of what of what we're entitled to.

[linney3] 06/10/2010 17:45

My shares are held in a Nominee Account and I have been in touch with my broker. He is forwarding my attendance card for the AGM.I was going to pre book flights to London for the day but I note that the Court may not actually take place on that day - They state that they can rearrange with acceptable notice.My guess is that if they are facing defeat that is what they will do.
Either way my broker will register my shares with the NO camp.My holding equates to .6 of 1%.

No improvement will be made at this time.We will all have to play a waiting game and hope they do not achieve the 75% required figure.As I have previously posted,who in their right mind would take a little over half of what they are entitled to get in the new expanded company.

[chrismez] 06/10/2010 16:39

Phoned Barclays today and have registered my "NO" vote.

Now if Gunzy was to make a sensible offer of circa 2p I might think again. Just so you know Mr Gunzy - I don't like being robbed at the best of times but certainly not in broad daylight!

Improve your offer or we might have to start referring to you as Gangsta Gunzy!

[tomandgerry] 05/10/2010 20:48

Hi Glue,

It's been a while, tho I keep an eye on this BB and knew you were still around. I just hold 64k shares so my votes are of no consequence but I had wondered about proxy arrangements. I got an email from ODL, who hold the electronic shares, telling me " Please see details attached of an acquisition of all Brinkley Mining shares, to be done by means of a Scheme of Arrangement. Your portfolio will be updated upon receipt of the new shares." When I replied that I had understood that there was to be a vote, the responded "At this stage, it is proposed only – still to be approved at the Company Meeting". They seemed to assume that it would be a foregone conclusion.

I agree with you about the shafting, tho my outrage is more moral than personal as my stake is so small. You had quite a substantial holding, as I recall, so I wish you the best of luck with it.

Tom



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[linney3] 05/10/2010 20:24

Hi Tom.Are your shares held by your broker? Mine are with NCB and I have been trying to get a handle on how I can vote by proxy - Have you any views on how this will play out especially s there appears to be a general shafting being tried!


Linney aka Gluefactory

[tomandgerry] 05/10/2010 20:05

Any news/feedback?? My holding is quite small but I retain my interest in this long saga.

Tom