Central African Gold Share Discussion Threads

[sehnah] 17/6/2010 13:42

Comedy i have 600k in here whats your views on the share price its holding really well 3p looks reachable very soon

[comedy] 17/6/2010 13:31

burger someone of us have already written the money off...so taking back what we put in year later when something big is happening is a waste of time...rather just let it ride...the mm's dont have the shares they sold and roll on t20 or whatever they are going to have to prodcue the shares...plus usually find 2 to 3 days the true value outs..so next week will see if it cracks 3p...at moment they can poop their pants looking for stock...because they will hold it where we are currently to get the "minute "traders to sell...here 25k not huge exposure so happy to see how this one plays out.:) ps do you have any here???

[zac_mo] 17/6/2010 12:55

burger - keep those views to your self yourll be eating your words very soon il be in touch .

[burgerbarwomen] 17/6/2010 12:34

well if that's what you really think will happen then you basically deserve to lose your money in this...sorry to be rude.

[zac_mo] 17/6/2010 12:25

burger i dis-agree theres more upside here to come L2 is looking promising..

offers will be made at 3p

[burgerbarwomen] 17/6/2010 12:23

anyone who thinks there is any upside here is a muppet

the shares were bought at about 0.30p

they have nearly 90%

if they do offer, it will be 0.3p

you will have no choice

take the 1p on offer

THINK before pressing the buy button

all my humble opinion

[zac_mo] 17/6/2010 12:09

mm not showing the 600k buy NO word of lie
there playing it clever the 600K buy defo gone though

Can see this picking up very soon to hit passed 3 IMHO

Some thing big cooking another 60k buy

[machupichu] 17/6/2010 12:05

zak

cant see that 600k on level 2

[zac_mo] 17/6/2010 12:00

huge buy of 600k gone though this will tick up to 2.5 very quickly directors buy rumours have it

[staddles] 17/6/2010 11:30

Having bought at 1.89p I am hoping at least to wipe my face. Will hold to th bitter end, will be interesting for my education to see how things pan out.

(no gold mining pun intended)

[daytraders] 17/6/2010 11:29

comedy, yeh i agree, gl to you, you deserve it, i was one of them that bought 350,000+ last year or was it the year before just before suspension at 1.4p sold out after they came back at a big loss at 0.75p, i just wanted out, all who held done well.

[raginghippo] 17/6/2010 11:18

im still here...as usual !

[comedy] 17/6/2010 11:04

well seems like i must be 1 of the few still here from last year???? waiting for mm's to play their dip games...thouhg think that 500k sold this morning they are going to find it hard to fill...??>>:)

[comedy] 17/6/2010 11:03

lol there you go...have a feeling we are going to be number 1 on the chart today...:)

[comedy] 17/6/2010 11:02

daytrader expecting they habve moved on us means we will get action re company prospects...so those of us who have now got breakeven..why sell??? expect the mm's will take 3 days to get this up to right price if not longer...the news will be filtering out at moment. happy to hold and wait..

[comedy] 17/6/2010 11:00

alexix1 lol mate the only ones holding have sat through the massive down cycle...so why sell now when seems like a hunter is on our trail...and very little in free float...expecting this to crack 2p on way to 3p as the mm's will have to keep chasing those shares they sold at 500k this morning that they probably didnt have..:)

[daytraders] 17/6/2010 11:00

they got over 30% of shares to make a offer, well over 89% so the company is theres now anyway, so they dont need to make any offer, they already putting 2 directors on the board.

[comedy] 17/6/2010 10:59

well seems like the mm's dont have any stock??? happy to wait for end game now...hardly break the bank for 25k.

[alexis1] 17/6/2010 10:59

LONG WAY TO GO HERE...TALK OF A TAKE OVER AT 5P OVER ON lse.....Happy days

[comedy] 17/6/2010 10:57

still got 25k...maybe i will be able to buy a round of icecreams??:)

[daytraders] 17/6/2010 10:53

well i got out ages ago at big loss here, so well done guys, but i find it strange that the 3 biggest shareholders sold there can shares at like 0.29p per share, like 300% cheaper than share price now, dont understand why these at this price tbh, but gl all.

The Acquisition resulted in an effective price of Cdn$0.0044 or ₤0.0029 (based on Cdn$1.5026/₤ 1.00) for each ordinary share of CAG.

[kajshares] 17/6/2010 04:41

Great find Rob as usual.

I anticipate that the co wil be taken over by ND in the very near term as (I think) only 13% of shares not held by the big 3. They could offer 2p to get rid of PIs.

Your views?

[robson1974] 16/6/2010 23:37

looks like New Dawn are buying CAG's Zim gold ops for about $7m in what looks like a fire sale

TORONTO (miningweekly.com) – TSX-listed New Dawn Mining has bough around 89% of Central African Gold from the company's three biggest shareholders.

New Dawn also bought the convertible and non-convertible debt owed by CAG to the sellers, which amounted to some $7,08-million, through deeds of assignment.

New Dawn operates two gold mines in Zimbabwe and has indicated it was looking for more development and producing assets in the country.

CAG has gold mining assets in Zimbabwe and its shares are quoted on the LSE's Aim market. The company acquired a number of operations and exploration projects in the Southern African nation when it bought an 87,4% stake in Falcon Gold and a 100% interest in Olympus Gold Mines in early 2007.

The acquisition will increase New Dawn's gold resource base and mining capacity in Zimbabwe to support a consolidated annual production rate of 50 000 to 60 000 oz of gold within the next 18 to 24 months, the firm said.

Beyond that, the company will target an increase to 100 000 oz/y of gold in four to five years, with the eventual goal of reaching a consolidated production rate of between 200 000 oz/y and 250 000 oz/y of gold/

"The completion of the acquisition is consistent with New Dawn's stated business objective to become a mid-tier gold producer and the 'in-country consolidator' of gold mining assets in Zimbabwe," the firm commented.

To complete the acquisition and deeds of assignment transactions, New Dawn issued a total of 8,87-million shares, plus four-year warrants that, if exercised, would increase its share count by another 2,22-million.

The sellers acquired a 23,3% interest in New Dawn, excluding the warrants.

To meet TSX rules, the firm said it obtained written consents from its three biggest shareholders for the deal. Together, the three own 61,7% of New Dawn's issued and outstanding shares.

New Dawn said it plans to seek representation and control of CAG's board of directors, after which it will launch a strategic review of the firm's assets and operations.

It will look into CAG's short- and long-term working capital requirements to fund the development and operation of the company's assets, and could address funding needs throuhg a combination of internal cash flow and new debt and/or equity.

[robson1974] 07/6/2010 18:05

Going Concern

For the reasons given below, the Directors consider it appropriate to prepare the financial statements on the going concern basis, notwithstanding the circumstances described below.

The Group sustained a loss in the year to 31 December 2009 of £9.5 million (2008: £26.5 million) and the Group had net current assets of £0.6 million (2008: £20.1 million net current liabilities). The Group's operating assets now consist entirely of five gold mines and extensive claim holdings in Zimbabwe; two of these mines are operating at a low level, but are remain loss making, with the rest being on care and maintenance. The mines require significant development and capital investment in order to become operational and cash generative. While the situation in Zimbabwe remains challenging, the Directors are now cautiously optimistic about the recovery prospects for the mining sector, as a result of the formation of a government of national unity, substitution of the US Dollar for the Zimbabwe Dollar, and the Monetary Policy Statement issued in February 2009.

The Group has limited cash and debt facilities, which will only be sufficient to allow the Group to trade as a going concern, that is, for at least 12 months from the date of approval of these financial statements, if significant cost reductions are achieved. The Group's overall viability is dependent upon it being able to raise new funding in order to enhance the value of the Zimbabwean assets. In terms of strengthening its current liquidity position, the Directors have taken the following actions:

· Operating costs have been reduced, and which management expects to reduce these even further.

· Concluded the disposal of its Malian assets, receiving US$3.4 million (£2.3 million) in March 2010. A final instalment of US$1.0 million (£0.6 million) is contingent on reserves determination prior to March 2012.

· Deferring repayment of shareholder loans totalling US$4.6 million (£2.9 million) at year end and convertible loan notes totalling US$1.25 million (£0.7 million) at year end, until April 2012.

· Shareholder loans totalling £0.6 million (US$1.0 million) raised subsequent to year end have been deferred to April 2012.

Consequently, the Group has no significant debt repayment obligations before April 2012.

At 30 May 2010, the Group's holds £1.2 million cash, which at current spending would be consumed by the end of November 2010. If significant cost savings cannot be achieved, and the Company were to run out of cash, the Company would request further funding from its shareholders. If the support of the shareholders is not forthcoming then the business would have a cash shortfall and would face being wound up.

The Directors are currently seeking financial and other arrangements to take forward the development of the Zimbabwean assets onto a commercial and profitable production basis. As reported in December 2009, the new arrangement may be through a joint arrangement, new equity invested in the Company, exchanging some or all of the Zimbabwean assets for an equity stake in any acquiring company or through outright acquisition of the Company itself. Accordingly, the Directors are of the view that there is a realistic alternative to an outright sale of the assets themselves, and a consequent cessation of trading by the Group. Although discussions with interested parties have advanced since December, there can be no certainty that a suitable arrangement will be effected.