Circle Property Share Discussion Threads

[addas99] 30/3/2006 09:45

We're days away from an update from Hinoba and probably more encouraging news.
I think we're seeing good management of newsflow here and expect very little downturn despite, I agree, a disappointingly low placement price.

[wassapper] 30/3/2006 09:45

On the news that major uncertainty has been removed and the company has resolved the major issue of equity dilution, the reaction of some has been hugely negative. Perhaps we can see now why some of the big sales have been going through as some will have taken the opportunity to sell high and buy into the placing. The warrants also offer us the opportunity of further cash inthe future. If we do the sums, we should be able to work out how much the company will need to borrow and establish how quickly the loan can be repaid from cashflow.

The dilution had to come sometime. You moan about the price, however, the price would have been lower when discussions started and this is the DRC. There is still a big risk premium which is demanded. I am looking at a placement at present which is at almost a 50% discount to current share price

The deal wih Forrest was always a very good one. Now we have some payback. With the price of copper as it is and unlikely to go much below $2.00/lb in my view we still have a cracking deal.

[reefseeker] 30/3/2006 09:42

I've just trimmed my overweight postion by about 20%, the 20k and 17k sales were mine. They were snapped up at almost 80p so there seems to be a large buyer in the background.

I still am a big believer in the story but just think after this news and the recent runup there may be a better home for some of my cash (probably SIA with their imminent newsflow, and SLW over on AMEX because of the silver market fundamentals).

Ho hum, that bit of action certainly gave my day a kick start ..... !

[bigbobjoylove] 30/3/2006 09:28

out my 20000 at 80.5,prob back in though,low placing price :-( nice profit from 70 though.

[mjcrockett] 30/3/2006 09:26

I was most disappointed with the placing price and have sold some of my holding. However, Kinsenda does sound very promising and the company believes it can raise the balance of funds via bank debt - so there could still be good profit from these levels.

I would not have thought there would be any short-term upside following the placing without further news and the danger is that the shares could drift towards the placing price. However, the price has been remarkably resilliant during the hour or so since the announcement with Winterfloods seemingly quite happy to absorb sells.

MJ

[reefseeker] 30/3/2006 09:06

Hmmmm, this was a bit of a surprise, to me at least. The combined effects of the private placement and the issue of shares to Forrest means there will be 30% more shares plus warrants.

Sounds like severe dilution by any measure.

Thoughts?

[mjcrockett] 30/3/2006 08:47

News out of a private placing at 55p + warrants AND paying off debt at 55p per share.

MJ



COPPER RESOURCES CORPORATION

US$7.7 MILLION PRIVATE PLACEMENT OF UNITS

PROCEEDS TO BE USED FOR RESTART OF KINSENDA 5.3%-GRADE COPPER MINE IN KATANGA
PROVINCE OF CONGO

LONDON, United Kingdom - 30 March 2006, Copper Resources Corporation (AIM:
CRC.L) ("CRC") is pleased to announce that it has placed 8,000,000 new Units
with investors at a price per Unit of 55 pence (US$0.97) for total proceeds of
£4.4 million (US$7.7 million). Each Unit consists of one common share plus
one-half of one warrant exercisable over a two-year period at a strike price of
75 pence. Two half-warrants are required to convert into one common share. The
common shares being issued will be admitted to the London AIM exchange on or
about 4 April 2006. Following their issuance, CRC will have 54,994,335 shares
issued and outstanding.

Proceeds of the private placement will be used for the planned restart of the
Kinsenda copper mine located in the Democratic Republic of Congo DRC). CRC
holds a 75% interest in the project through its subsidiary, Minière de Musoshi
et Kin-senda SARL (MMK). CRC intends to raise the balance of funds required for
the restart project by way of project debt to MMK and has initiated discussions
with interested banks. In order to prepare MMK for project financing CRC has
agreed with the Forrest Group (see below) that US$5.28 million of the latter's
loan outstanding to MMK will be eliminated and, since conversion into MMK
shares would seri-ously dilute CRC, the Forrest Group will instead, parallel to
the terms of the private place-ment, be issued an equivalent number of new CRC
shares at 55 pence plus, with each share, one-half of one warrant exercisable
over a two-year period at a strike price of 75 pence, with two half-warrants
required to convert into one common share. Once the procedures for
extinguishing US$5.28 million of the loan are completed CRC will issue
5,499,857 new shares to the Forrest Group, whose shareholding will remain at
the current 40%, and CRC will have 60,494,192 shares issued and outstanding.

The recently prepared independent Feasibility Study concluded that operations
at Kinsenda can be restarted within 18 months at an estimated capital cost of
US$38 million. The projected financial return to CRC is highly favourable with
an estimated IRR of 67% and NPV of US$143 million, at an assumed long term
copper price of US$1.25/lb and a discount rate of 10%. The high financial rate
of return reflects the extremely high grade of Kinsenda's reserves (5.3%
copper) coupled with the project's low capital costs. The Feasibility Study
assumes an annual treatment of 1.2 million tonnes of ore, resulting in
production of 54,000 tonnes per annum of contained copper in the form of a
rich, 45% concentrate at an average total cash operating cost of US$0.68/lb.
The Feasibility Study was prepared by Mineral Engineering Technical Services
Pty Ltd (METS), a Perth-based (Australia) mining engineering consultancy firm
that is not a shareholder in CRC or any associated party. It has been prepared
on a professional basis using qualified and experienced engineers working in
accordance with CRC's scope of work. METS's studies are recognized and accepted
by financial institutions working in the resource sector.

The Kinsenda and Musoshi deposits were mined from 1968-1983 by a Japanese
min-ing consortium, then by Canadian management on behalf of the Zairian
government from 1983-1987, and subsequently by Gecamines, a Congolese state
mining com-pany. Kinsenda and Musoshi are both currently flooded and require
dewatering prior to restarting operations. A third property, at Lubembe, is a
green field exploration play with high pot-ential.

The remaining 25% of MMK not owned by CRC is held 20% by SODIMICO, a state
company, and 5% by the Forrest Group, the largest private business in Katanga
and one of the lar-gest in the DRC with div-ers-ified operations including
mining, engineering, con-struc-tion, and cement. Operating successfully in the
DRC since 1922, the Forrest Group has extensive operational and management
experience in the country that will support and facilitate CRC's effort in
developing the properties.

The Kinsenda deposit has 15 million tonnes of ore containing 840,000 tonnes
(1.9 billion pounds) of copper, which will permit 13 years of operations at
full capacity based on the currently known resource. However, the mine is open
at depth and additional drilling is expected to yield more proven resources
that will extend the life of the mine considerably.

Mitchell Alland, CRC Executive Vice Chairman stated: "This private placement
financing will permit CRC to continue its dewatering and restart of the
Kinsenda mine. The project is extremely at-tractive to CRC not only because of
its high return but also because it transforms us into an imminent copper
producer, and provides the basis for further expansion of our DRC production
from our other high-grade deposits at Musoshi and Lubembe. We can look forward
to CRC becoming a significant producer in the Congo that will increasingly
contribute to the country's economy and to that of Katanga Province."

[stemis] 30/3/2006 08:15

Yes, the sudden reversal of the drop from 88 to 65 looks very promising. Kicking myself for not picking up a few more at 65 of course (fell in to the old PI trap of worrying that the fall must mean there is something not quite right).

[hawks11] 30/3/2006 07:56

Copied from Vatattack post on BLT thread 30 Mar'06 - 07:41 - 913 of 913


SYDNEY (AFX) - Share prices closed at fresh record highs as investor
sentiment continued to follow strong metal prices and add resources stocks to
portfolios, dealers said.
They said index leading resources BHP Billiton and Rio Tinto were boosted by
copper prices reaching all-time highs overnight on speculative demand.

[nikesh2] 29/3/2006 17:51

will we see a chart breakout this week?

[simon54] 29/3/2006 16:40

I must say, I do like a BB that has no comment on a 6.5% rise! Nice to be amongst such cool heads ;-)

[wassapper] 29/3/2006 12:57

very nice progress.

[mad4it] 29/3/2006 12:35

Madasafish - 29 Mar'06 - 12:25 - 104 of 106

Indeed. Extended, vertical rises tend to create boom and bust scenarios for the price. Occasional retracements are essential to maintain a healthy uptrend.

[bigbobjoylove] 29/3/2006 12:33

blimey,they'll buy 100000 off you at near middle.

[madasafish] 29/3/2006 12:25

I like shares that stop and pause, creating support levels. Vertical rises = vertical falls as there is no support...

[mad4it] 29/3/2006 12:14

The last time we were at these levels the share price was already very overbought, this time it's not. Therefore, from a purely technical viewpoint, there's still headroom for further rises before the share becomes overbought again.

[nikesh2] 29/3/2006 11:42

just after i posted up again!lol

[nikesh2] 29/3/2006 11:41

seller has gone, otherwise would be selling into the strength
level 2 looking good for further rises
if news came chart breakout would draw substantial investors and also let them understand the true value of the company,

[bigbobjoylove] 29/3/2006 09:40

looks very good for a breakout,if seller cleared then this could really go northwards a bit sharpish.NAV is ming boggling given persistent rise in copper price.

[madasafish] 29/3/2006 09:37

ticking up nicely

[nikesh2] 28/3/2006 10:36

can only buy 5k online at 80p

[pinhead3] 27/3/2006 19:34

Price of copper hit another record high today $5,304 per tonne or $2.41/lb.
The price only needs to rise another 3.7% to be double the price used in the Kinsenda project calculation.

[nikesh2] 27/3/2006 16:32

all i can say is be ready for a very blue day tommorow!!!!!!!!

[bigbobjoylove] 27/3/2006 16:09

wish this seller would hurry up and be cleared out.

[rossstar2] 26/3/2006 19:30

look very cheap for a growth stock