Mining Minerals & Metals Share Discussion Threads

[seagreen] 25/3/2009 08:50

Why no oficial RNS on the ADVFN system? strange? What was the sourceof the other one?

Talked to one chartist who said he could see gold going back to US$750 again and then hittubg US$1,800 next year.....

Think I shall hold personaly.......carry on boys

[bongo bwana] 25/3/2009 08:43

From Davys this morning.


Glencar

GEX ID

Announces major financing by Gold Fields

Job Langbroek


Price 4c Target: 21.0c Issued: 18/06/07 Previous: 15.2c Issued: 05/08/05

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Glencar has concluded a deal with Gold Fields which has several elements. Gold Fields will invest £2.2m ($3.2m) at a price of 4.55p per share following which it will hold a 15% stake in Glencar. Gold Fields will also invest $32m in the Komana project to ultimately hold a 65% interest. Glencar can also request Gold Fields to lend to or project finance an ultimate development at Komana. Such an arrangement would involve Gold Fields obtaining an additional 5% in the project. Gold Fields can also elect not to provide such funding. Finally, Gold Fields will pay Glencar $1.25m per annum to assist in funding the Solona project, the second licence in the Sankarini project. Following this proposed $40m investment, Gold Fields will now be potentially involved in all of Glencar's Mali projects.
In late 2008, Glencar announced that it had established a gold resource of 1.25m ounces at a grade of 1.6g per tonne. The numbers suggest that Gold Fields is paying an equivalent of $51 per ounce, but also acquires a strong foothold in Mali, a West African address with very solid gold credentials. The see-through valuation for Glencar is 6.8p per share (based on existing data at Komana and the first refusal at Solona only).
A first glance suggests that Glencar has ceded some upside on the Komani project. However, given the market conditions that persist, it has managed to properly finance the project and at the same time ensure that its exploration programmes are financed. There is still considerable upside in the Komani project, in which Glencar will retain a 35% stake, and it has a full 100% stake in the Solona licence and also any new licence it may become involved in.
For Glencar shareholders, the fear of ongoing dilution has been removed and management is free to concentrate on building value. Komana is the third gold accumulation discovered by Glencar in West Africa. There is a good possibility that it will not be the last.

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[mad celt] 25/3/2009 08:20

MM play the punters for mugs every time

Any chance of an investigation into the suspicious flurry of trades the other day?

Thought not

[mad celt] 25/3/2009 08:14

Sells appearing

back below 5p shortly

[someuwin] 25/3/2009 08:02

Looks like excellent news!

[bongo bwana] 25/3/2009 07:57

Ladies and Gentlemen,

This is absolutely colossal and excellent news from GEX.

The future of the Komana mine is resolved and satisfactorily.

Now, onwards to Solona.

Oh! And Id expect the share price to keep track for a while - right up to the AGM anyway.

Would I be tempting fate if I predicted a real good attendance ?

[wispaman] 25/3/2009 07:40

great news.

certainly not going to catch mm's asleep as the have moved to bid 3 @ 4.5p, and only 1 @ 5p on the offer the other 3 @ 5.5 (only 4 mm's posting at the moment.

Lets hope for a 100% rise today.
lol to all wispa

[bongo bwana] 25/3/2009 07:19

A "gangbuster" RNS.

Komana JV and much more !

Didnt I tell ye that HMc wasnt twiddling his thumbs in D2 after my chat with him!

[tonudiki] 25/3/2009 07:18

It could be an interesting day for the share price :-)



Glencar Mining plc

Glencar Secures up to US$40 million Funding in a Conditional Deal
with Gold Fields

25 March 2009

Glencar Mining plc ("Glencar" or the "Company") is pleased to
announce that it has signed a Letter of Intent with a subsidiary of
Gold Fields Limited ("Gold Fields"), conditional on certain matters
detailed below, which involves inter alia the following:

* A Joint Venture agreement in relation to Glencar's Komana
licence involving exploration/feasibility study expenditures of up
to $32 million in return for an interest of up to 65% in the Komana
licence
* An equity investment in Glencar of US$3.2 million (Stg�2.2
million). Post investment, Gold Fields to hold 15% interest in
Glencar
* An annual exploration option fee of $1.25m payable to
Glencar over four years, totalling US$5 million

The successful conclusion of this deal will represent a major advance
for Glencar, securing as it will, substantial exploration investment
for the Komana project, the possibility of securing all future
funding for a mine development at Komana without need for further
funding by Glencar, while also providing Glencar with sufficient
finance to advance the exciting Solona project and other exploration
interests in the region.

Placement

Gold Fields has conditionally agreed to fund (i) an initial placement
of 27,431,197 new ordinary shares which represents 10% of the issued
and outstanding shares in Glencar at a share price of Stg�0.0455 per
share for total proceeds of approximately Stg�1.25 million (the
"Initial Placement") and (ii) a second placement of 20,976,786 new
ordinary shares at a share price of Stg�0.0455 per share for total
proceeds of Stg�0.95 million (the "Second Placement"). The Initial
Placement and the Second Placement will together raise Stg�2.2
million and result in the issue of new ordinary shares representing
15% of the enlarged issued share capital of Glencar.

The Initial Placement shall be made on conclusion of due diligence on
Glencar and is expected to be completed within 14 days of this
announcement utilising Glencar's existing authorities to issue new
ordinary shares.

The Second Placement shall be conditional upon Glencar obtaining the
requisite corporate approval from shareholders at a General Meeting
and other conditions set out below. Glencar expects that the General
Meeting will be scheduled in late May 2009.

Gold Fields will have no preferential rights over other shareholders
in Glencar.

Komana Joint Venture

Gold Fields and Glencar have conditionally agreed to enter into a
Joint Venture Agreement ("JVA") with respect to the Komana project on
the following terms and conditions:

1. Gold Fields will be entitled to earn, through a staged
earn-in arrangement, an undivided 60% effective interest in the
Komana project by incurring exploration expenditures totalling US$20
million over a four year period ("Earn-In Period") following
execution of an appropriate JVA. The earn-in will be staged so that
Gold Fields secures an initial 30% interest by funding US$10 million
and a further 30% interest after funding a further US$10 million.

2. Upon completion of the Earn-In Period, Gold Fields will have
the right, but not the obligation, to earn an additional undivided 5%
(together with the initial 60% referred to above) effective interest
in the Komana project by funding exploration and/or feasibility study
programs, subject to an additional expenditure commitment of US$12
million for such additional interest.

3. Gold Fields and Glencar will each have pre-emptive rights on
the sale of their respective interests in the Komana project.

4. Should it become necessary to spend additional funds to
complete a feasibility study subsequent to the Earn-In Period and the
period required to spend the additional capped US$12 million
expenditure by Gold Fields, Gold Fields and Glencar will fund any
further expenditures on a pro-rata basis, i.e. 65% Gold Fields and
35% Glencar.

5. Dilution will apply upon default of meeting expenditures.
Either party's participating interest will convert to a 1% net
smelter royalty if dilution results in their participating interest
falling below 10%.

6. If Glencar retains its participating interest throughout,
upon completion of a feasibility study Glencar would have the right
to elect either to participate in proportion to its interest or to
request Gold Fields, at Gold Field's election, to either arrange
project finance or provide a loan for Glencar's portion of equity
finance to develop the Komana project. However, Gold Fields may, at
its sole discretion, elect not to provide this financial assistance
and shall continue to hold 65% equity interest in the Komana project.
This loan provided by Gold Fields would bear interest at a premium of
5% to LIBOR and would be recoverable preferentially from the Komana
project cash flows, subject to the requirements of senior lenders.
If Gold Fields arranges such financing and/or provides such loan,
Gold Fields would be entitled to procure an additional 5% effective
interest in the Komana project. While it is Gold Fields intention to
provide the finance, if so requested by Glencar, should Gold Fields
elect not to provide such finance Glencar shall be given 120 days to
source alternative appropriate finance and during such period no
dilution of its interest shall occur. If subsequently such finance
is not forthcoming it is each party's intention to agree a less
onerous formula for Glencar's dilution in such circumstances.

7. Gold Fields would be the operator from the start of the
Earn-In Period onwards and Glencar would participate actively in
exploration initiatives and be represented on an exploration steering
committee.

All rights, title and interest in and to the Komana project are
currently held by Glencar Mali s.a.r.l. ("Glencar Mali"), which is a
95% owned subsidiary of Glencar and 5% owned by Petite Mine. Glencar
has the option to purchase Petite Mine's 5% interest in the Komana
project for US$1 million.

Solona Option

As part of the overall joint venture terms, Gold Fields will fund an
additional exploration option fee (the "Solona Option") of US$5
million in four equal annual instalments of US$1.25 million over the
Earn-In Period to assist Glencar in funding its exploration
initiatives on Glencar's Solona License ("Solona License") the first
such payment being made on signing the JVA and the remaining on each
anniversary thereafter. The Solona Option terms include Glencar (i)
expensing US$1.00 million of the first annual instalment of US$1.25
million received at Solona in the first year and (ii) expensing
US$0.50 million of the second annual instalment of US$1.25 million
received at Solona in the second year ((i) and (ii) together the "
Funding Expenditure"). In the event that Glencar does not expend the
Funding Expenditure in either the first year or the second year then
Gold Fields shall have the right, but not the obligation, to enter
into a joint venture agreement with Glencar to joint venture the
Solona License on similar terms (including the specific earn-in
terms) to those agreed to by the Parties in the Sankarani
shareholders agreement. Should Glencar fund the Funding Expenditure,
and subsequently decide to joint venture the Solona License, then
Gold Fields shall have a right of first refusal to enter into a joint
venture with Glencar over the Solona License at terms to be agreed
between the parties. Glencar may, if it so decides, continue to fund
and carry out all the exploration on the Solona License indefinitely,
and is not obliged to joint venture the property with any party.
Irrespective of whether or not Gold Fields joint ventures with
Glencar at Solona, it shall continue to be obliged to pay the balance
of the Solona Option over the Earn-In Period.

Conditions Precedent

The proposals, other than the Initial Placement, in the Letter of
Intent are made subject to the following conditions precedent:

1. Approvals of the Government of Mali (if applicable);
2. Regulatory approvals;
3. Petite Mine agreeing to be bound by the terms and conditions
expressed in this letter;
4. South African Reserve Bank approval (if applicable);
5. Approval by the Executive Committee of Gold Fields Limited;
6. Satisfactory completion by Gold Fields of due diligence;
7. Negotiation and execution of the definitive JVA.

Should both parties agree to start the agreed exploration programmes
earlier than the 30 May 2009 and before the JVA is finalised, Gold
Fields will consider sole funding the exploration programmes as an
interim measure. In the event that the JVA is not concluded and the
terms of the Letter of Intent lapse, then Glencar shall reimburse the
payments made to it by Gold Fields.

Drilling Programme

It is expected that, upon completion of the JVA, an intensive
drilling campaign will be commenced with the objective of completing
substantial infill drilling, testing the Komana East and West
deposits along strike and at depth, and also testing other
exploration targets along the main Sankarani shear zone within the
Komana licence.

Glencar's Chairman, Sean Finlay said;

"We have for some time now realised that the Komana project requires
substantial additional exploration expenditure to demonstrate its
full potential. We are confident that the Letter of Intent signed
with Gold Fields will progress to the completion of a joint venture
agreement on the Komana project. We believe that the agreement with
Gold Fields will provide certainty to the shareholders of Glencar
that the necessary exploration expenditure will be spent on the
Komana project with limited additional equity dilution to the Glencar
shareholders. Furthermore, Glencar will have sufficient funds to
explore further its exciting Solona project and our other exploration
interests in West Africa for the foreseeable future. The proposed
joint venture builds on our well established relationship with Gold
Fields and represents a strong vote of confidence by Gold Fields in
the Glencar management, the Komana project in particular and Mali as
a country in which to develop mineral resources."

For further information, please contact:


Glencar Mining plc
Hugh McCullough, Managing Director
Tel: [phone]
e-mail:
[e-mail]



Davy Corporate Finance
Hugh McCutcheon, Head of Corporate Finance
Brian Corr, Associate Director
Tel: [phone]



Bishopsgate Communications
Nick Rome/Michael Kinirons
Tel: [phone]
e-mail:
[e-mail]

---END OF MESSAGE---

[bongo bwana] 24/3/2009 16:50

We're the Argyle offshoot of the McBwana's who are, Im assured not even distantly related to the Right Honourable I. Amin.

I havent wore a kilt to the GEX AGM yet but if SS were to appear y'never know!

[bongo bwana] 24/3/2009 15:58

One might speculate that Ur a cute hooor (shrewd investor) in the best Irish traditions but I couldnt possibly comment.

[robbi123] 24/3/2009 15:25

Apology accepted BB! Lucky guess I suppose....

[bongo bwana] 24/3/2009 15:08

Apologies Amigo

[robbi123] 24/3/2009 14:53

robbi123 - 23 Mar'09 - 07:07 - 4336 of 4383 edit


Lets hope so Oracle, I have a feeling we may have a mini rally again here, hopefully this time we can hold onto our gains:)


Oracle - bartender was merely copying his punter, as you can see :)

[spaceparallax] 24/3/2009 14:47

Is that Bartender or Barsteward!

[bongo bwana] 24/3/2009 14:45

Who is our "Bartender" friend?

[spaceparallax] 24/3/2009 14:37

it would be great to close above the recent ceiling.

[spaceparallax] 24/3/2009 14:22

Sp really seems to have come to life following the long dormant period.

[deka1] 24/3/2009 13:31

nice rise, on top of the 10% yesterday, someone forcast 5p yesterday, perhaps they will be right

[bongo bwana] 24/3/2009 12:45

HMc has indicated an intention to stick to the routine established in recent years so Id expect that the Annual Report will be available not before mid April and am inclined to agree with 1W.

Will anyone here be at the AGM?

[1waving] 24/3/2009 12:36

30th May last year so expecting end of May again for results.

[robbi123] 24/3/2009 12:12

BB- Are Final results due in May?