Metal Tiger Share Discussion Threads

[philio] 21/1/2019 07:15

Street TalkTerms out for MOD Resources raising, adviser appointedBy Sarah Thompson and Anthony Macdonald21 Jan 2019 — 1:34 PM

In-play copper junior MOD Resources has kicked off a $15.2 million equity raising via Perth-based broker Ashanti Capital.The company is seeking to raise $10 million in a placement of new shares at 30¢ each and another $5.2 million in an underwritten rights issue at 24¢, according to a term sheet sent to potential investors.

Ashanti Capital was lead manager and underwriter, the term sheet said, and Canaccord has been appointed co-manager.The fact MOD Resources is in play - and AustralianSuper's interest - is expected to see its raising strongly bid.

Funds raised were to advance plans at its T3 Copper Project, including completing a feasibility study, purchasing land and designing a processing plant.Fund manager sources said heavyweight investor AustralianSuper was believed to have lent its significant balance sheet to both the placement and rights issue.

Of course the raising comes as MOD has attracted strategic interest from listed copper play Sandfire Resources, as Street Talk revealed on Monday morning, and confirmed by Sandfire Resources in an announcement to the market.The fact MOD Resources is in play - and AustralianSuper's interest - is expected to see its raising strongly bid.It is understood MOD has also appointed Perth-based banker Tim Day's Sternship Advisers with respect to the approach and to help consider other strategic opportunities, such as private equity funding, discussions with large miners and potential off-takers.MOD is understood to have been in the sights of at least one private equity tyrekicker prior to Sandfire's approach.Boutique Sternship's appointment comes after it advised Silver Lake on the Doray Minerals and, interestingly, advised Talisman with respect to its transaction with Sandfire.

[the deacon] 21/1/2019 00:04

Unlikely they'll just opt for an Australian raise. That was the point in a UK listing afterall.

[paleje] 20/1/2019 23:54

Yes MTR insured up to a point against dilution. MOD halt only applies oz not here.

[owenga] 20/1/2019 23:29

They can also exercise their free options if more shares are issued by MOD to maintain its 12.5% holding.

[owenga] 20/1/2019 23:27

Or exercise them if there is a bid for MOD!

[paleje] 20/1/2019 23:25

Well done Philio, interesting and should stir things up a bit.

[the deacon] 20/1/2019 23:21

MOD trading halt pending a capital raise

[geoffsh] 20/1/2019 21:46

' a potential combination of the two companies '

That looks altogether a LOT more interesting than a low ball TO bid.

[philio] 20/1/2019 21:41

ASX announcement

Sandfire Resources NL (“SandfireR21;) notes media reports overnight referring to an approach by Sandfire to MOD Resources Ltd (“MOD”) in connection with a potential takeover offer by Sandfire for MOD.
Sandfire confirms that it has written to MOD to express its interest in exploring a potential combination of the two companies. Any such transaction would be conditional upon satisfactory completion of due diligence, the recommendation of the MOD board and execution of binding documentation, among other things.
Given the preliminary, indicative and non-binding nature of the approach, there can be no assurance at this stage whether a transaction will eventuate.

[philio] 20/1/2019 20:55

MTR cannot exceed the holdings they have, that's why they were given zero cost options in the last deal. They can excercise those options to maintain their % holding in MOD

[dekle] 20/1/2019 19:15

I am a bit worried MTR will be looking for more funds to maintain their holding % in the investments they have like MOD if there are placings.

[paleje] 20/1/2019 19:05

No chat on Hotcopper about it as of now. They're usually on the ball esp when it's Aussie cos involved. Doesn't mean it's untrue but I'm not paying to read it.

There was an Arden report on copper and of last week however and MOD featured amongst others with a 52p target. That was as is, excluding any further finds.

MOD, GGP, THR all capable of improving our share price in the coming weeks/ months imo plus unlisted investments and Thailand.

[philio] 20/1/2019 18:55

Street Talk can reveal Sandfire has quietly approached MOD's board with a takeover offer valuing the exploration junior well north of its $55 million market capitalisation.

MOD wants little to do with Sandfire or its non-binding and conditional bid at this stage. Investor sources said it thinks the offer undervalues the company, and it would have a much brighter future should it be able to develop its strategic Botswana prospects on its own.

But MOD does appear willing to use the corporate interest to its own advantage.

Street Talk understands MOD is seeking to raise $15 million to restock its dwindling bank account and ensure it has the financial strength to stand on its own two feet should corporate interest heat up.

Stockbroker Ashanti Capital was approaching fund managers over the weekend, sources said, seeking to stitch up the equity deal. The raising is expected to be done via a placement and rights issue and – if nothing else – ensure MOD has funds to defend itself. [Interestingly, it is the same broker that raised for Adriatic Metals when Sandfire came knocking in a big way late last year.]

It is understood MOD's raising makes mention of the Sandfire offer – which is a handy carrot for MOD as it tries to lure in new and existing investors. And the raising is at 30¢ a share, which is less than the 37¢ a share put forward by Sandfire and its boss, Karl Simich.

The question is whether Sandfire returns – or can even get its hands on stock as part of the equity raising. Sources said MOD was willing to engage with Sandfire if the predator was willing to sit down and try and land on an agreed price. But it didn't like the look of 37¢.

What both parties would be able to agree on is that MOD is sitting on a strategic asset. It is exploring on the last copper belt in Botswana – seen as a relatively safe jurisdiction – that is not owned by one of the majors.

The deal would be expected to be accretive for Sandfire and comes as the miner searches for ways to extend its mine life, which currently only has about three years to run.

[dekle] 20/1/2019 17:07

Wish I could read the article

[teraferma] 20/1/2019 16:56

https://www.afr.com/street-talk/sandfire-puts-copper-play-mod-up-in-lights-mod-responds-with-raising-20190120-h1a9ke

[mikesurtees] 18/1/2019 17:57

It has been announced that Sprott would be investing heavily into
exploration mining sector, many believe this is a hint of further investment in MTR / MOD…..Copper is a Hot metal
The talk on the boards here and in Aus...is that the potential is massive and at the price now....is liken to the first rung of a 10 rung ladder. I am hoping for a further
drop in share price [ as I suspect RR and Sprott are too ] so as to load up more. In Capetown the word is buy......in London
Both MOD and MTR are fantastic opportunities….all that is needed is patiaence

[dekle] 18/1/2019 16:03

Will it need to raise any funds to invest in GGP to maintain the % holding?

[dekle] 18/1/2019 15:34

GGP price is up about a 3rd in the past week. Is MTR buying more pushing the price up?

[burtond1] 10/1/2019 10:32

https://twitter.com/tmsreach/status/1083288071578238976?s=21

[jamdan1] 10/1/2019 09:01

Could be a great investment in Ggp..

[paleje] 07/1/2019 15:19

Article in todays IC by Simon Thompson saying Fed's new stance will lower the dollar and cause sharp upward price movements for energy and commodity stocks incl precious metals.



Aside from that, press over the weekend suggested US/China trade talks are more rather than less likely to swing in America's favour simply because Xi is under enormous pressure to keep his country's massive economy (and his position) safe.

If the stars align and both the above turn out to be right sentiment will improve and MOD will be raising money in a much friendlier environment especially after their BFS upgrade and true value will show through with an obvious knock on here.

Several other factors could also influence the share price directly. Lots of small caps are seeing strong double digit rises after being trashed pre Christmas and when they move it can be very fast. This will be no different imo.

[laptop15] 04/1/2019 12:26

How come the share price is so much lower than the placing in August? Any ideas guys??

[paleje] 04/1/2019 10:33

Perfect cos that's the biggie for majors' capex plans:)

Out of interest zinc is high up the capex list too see 7478 of 7488 link.

2019 M&A activity expected to increase and explorers more attention (Rick Rule).

[the deacon] 04/1/2019 09:48

The only meaningful exposure is in copper