Mining Minerals & Metals Share Discussion Threads

[share_shark] 09/7/2009 08:34

As a family, we held well over I million shares. I only hold 100000 now, thank goodness.

As for finding another company BB,I should think that GEX, will be desperate to do just that(possibly half a dozen already in"the wings",so to speak>

Nice work if you can get it--i say again. From University,two degrees,perhaps a little work for en employer,then run your own company,under your own steam, holidays abroad,all paid for,with options and excellent income and no one(really) to answer to, ALL your working life, until retirement. I hope they are and they should be bloody ethical,that is what they are paid for.

[bongo bwana] 09/7/2009 07:02

SS - too perplexed by the current impasse to get my fingers into action. There can be little doubt that the risk profile of GEX has deteriorated with their shock announcement on Tuesday.

Have spoken to HMc and am awaiting develoments. There will be no rush to fall into the arms of any suitable suitor.

IMHO.

[spaceparallax] 08/7/2009 13:27

I suppose the only glimmer of light is that MacQ's holding is also worth much less now!

[haydock] 08/7/2009 10:42

With the glass half full it's a set back.

Half empty we are much better placed, cash in, resource in play & of an increasing value.
Also if the gold price moves up this autumn, the increased resource is the GEX oyster.
No more problems raising cash for mere paper going forward.

No real change to the story, pay your money, take your chance etc....

[1waving] 08/7/2009 10:21

haydock --- Yes we got the £1.25million in May so have cash:--


Glencar Mining plc

Placing

7 April 2009

Further to the announcement on 25 March 2009, Glencar Mining plc ("Glencar" or the "Company") is pleased to announce that Gold Fields Netherlands Services B.V., a 100% subsidiary of Gold Fields Limited ("Gold Fields") has completed the initial placement of 27,431,197 new ordinary shares ("Subscription Shares") at a share price of Stg£0.0455 per share for total proceeds of approximately Stg£1.25 million (the "Placing"). Further transactions outlined in the announcement of 25 March 2009 remain subject to the conditionality set out in that announcement. Further announcements in relation to these transactions will be made in due course.

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

We have cash for a while from that placing so that gives GEX time to sort the next move.


From what I have read it seems that Gold Fields baulked at the agreement and so they went back on the LOI deliberately. Whatever their reasons are, I suspect they still want Komana as it is the Keystone of the 5 Mali licenses. If they do come back I hope we are in a position to put up a single digit in their face.

If GEX can get a decent amount of cash for a strong drilling programme mainly at Komana but also at Solona for the coming season I would be very happy with that. Increasing the JORC resource and categories at Komana and developing an initial JORC at Solona would be a very good move.

[amt] 08/7/2009 10:01

Which ever way you look at it I get the impression that GEX doesnt have the great upside that I thought it had. If a deal fell through so easily then it cannot be that great. I hope this isnt going to be another Glencar of old. Infact I have just sold my holding at 3.8p for a 50% loss but rather get something than nothing. I cannot believe I got bitten twice by the same company that went bust a few years ago.

[haydock] 08/7/2009 08:55

One thought .
Did we definately get the extra shares away in May for the £I.25m?
If we did then we have secured the finance for paper deal we needed in these difficult times.That was the problem in the first place & it has been surmounted if the cash came in.

Cash for paper as CEY did last week is the best bet for tiny golds at the moment.

Additional thought.
GF. did some work, which we will have to pay for, but the results will be ours & along in the summer.Did they hammer away at speed? There could be a plus to come in this area as well.

It's a mixed bag at the moment up & down, but if the cash came in, then time is now on the boards side.

[willyworm2] 08/7/2009 08:42

From Minesite 30 June.

Volta Resources Is Starting To Get A Good Handle On The Geology Down On Its Burkina Faso Projects

last paragraph......

Kevin's chief operating officer Vic King, who used to be a deal-maker for Goldfields, has always quite liked the look of Glencar's Komana properties, so it's interesting to see Glencar shareholders kicking up a bit of a stink about the deal that Glencar boss Hugh McCullough has put together with Goldfields. If that one fell apart, you can bet that Volta would take another look at Komana, although by then Volta may already have struck another deal and have its hands full.

sadly only has a market cap of $7m

[willyworm2] 08/7/2009 08:22

From the Irish Independent

SHARES in mining company Glencar fell almost 14pc after it called a halt to talks with Gold Fields on a financing deal for a new mine in Mali.

The company had warned at its annual general meeting last week that the talks were in danger of collapse, but this danger materialised yesterday as the firm released a statement confirming the news.

Glencar said negotiations with Gold Fields Limited in relation to the proposed joint venture on its Komana Project in Mali have been terminated without agreement.

Since signing the initial letter of agreement on the deal, the company has been attempting to secure terms that it would have been able to recommend to its shareholders.

"Unfortunately, agreement could not be reached on certain material items in the terms and, consequently, discussions have terminated," according to the company statement.

One of the major stumbling blocks was the level of dilution which would have resulted from the proposed deal, which raised opposition from key shareholder Macquarie Bank.

Glencar will now continue to look at other options, including independent financing and possible mergers with other companies with complementary assets.

- Pat Boyle

[bongo bwana] 07/7/2009 20:15

GF are now the operators of the Sankarani license area and they retain their holding in GEX. It is Komana that is now out of their reach, however Im sure GF will be considering their options, too.

My understanding is that GF overplayed their hand and looking at it from another angle entirely its possible that GEX might be considered to have overplayed its hand. But Id prefer my company to manage downside risk and limit the possibility of been diluted to the currency of buttons rather than hop into bed for the first bag on Krugerands offered with implied conditions that HMc found unacceptable.

I did speak to Hugh this afternoon - the phones were in meltdown there.

Not that HMc said this but Id expect that there will be much more made known to us possibly through a circular to share holders and through the minesite BB.

[bongo bwana] 07/7/2009 19:42

Serp - That contribution is another interesting perception of recent events and many thanks.

It is mu understanding that todays event had zip to do with the Macquarie strategem.

Im not sure that anyone sees todays event as another HMc master stroke though. My interpretation of events is that GEX's efforts to max the protection of shareholder value and the management of downside risks which they understood were antegral part of the draft agreement was not the understanding of GF's negotiators at their most recent meeting.

While this indeed is a worrying time for all invoved with GEX I am sanguine (at best) because GEX has a number of otions avaiable to it. It is the owner of the Komana and Solona licenses and thats a pretty decent deck of cards to be the holder of right now when HMc has rival company's offering mergers and other deals (including independent financing).

This is a very interesting time to be in GEX and Im glad to be here.

[stenick] 07/7/2009 19:36

Serpico,It could be that GF pulled out, but that leaves the question of the placing, could it be they wanted an initial stake and now want more,dreaming I know.I will be interested what they say when you tackle them.Hope you let us know.

[serpicouk] 07/7/2009 19:00

I can't believe everyone is reading this as another master stroke from HmC that will result in significant value for shareholders.

My take on things:

Last week HmC stood in front of me (and the other shareholders) and defended his Board in response to MacQ's attempt to oust two directors. His main thrust of attack was to proclaimed 'who would you trust?'...MacQ, who were part of the problem in relation to the banking crisis; or a Board that had deftly manoeuvred in a bear market to secure full funding from a leading major on excellent terms for its shareholders.

What surprised me at the time was this fantastic deal for shareholders suddenly couldn't be passed at the AGM because it was important to ratify it with all shareholders at an EGM.

The following week we find out that GEX have pulled out for undisclosed reasons. I'm quite sure the MacQ incident was not a contributing factor.

This seems like a worrying timetable of events. If the Board were planning on pulling out prior to the AGM then it was very dishonest to use the GF deal to defend their recent performance. What would have been the outcome had they stood up and said they had failed to significantly progress Komana and failed to achieve financing over the last year?

Did they informally agree terms of funding with MacQ and then pull out in the same way? Might explain why MacQ seem annoyed with the directors.

How do GF see us now? As a valued partner or as a target to acquired for the least possible sum and with no regard for GEX shareholders?

If the GF deal was so important the Board wanted all the shareholders to vote at an EGM then why do the board feel they can pull out without consultation and without even giving a reason?

All previous debt:equity solution were very unfavourable to shareholders. Why do we think this has now changed?

Everyone now seems to be pinning their expectations on the belief that HmC has cunningly sparked a bidding war for GEX that will see us all rich. Unfortnately, there's no evidence to support this. And I don't see any bidding wars for junior gold explorers else where.

I'm amazed that over the past year most still have unquestioning faith in the Board. They tell us nothing for month after month, then out of the blue they come up with this GF deal that's apparently a minor miracle, then months later they tell us its not really that good. In the mean time drilling is progressing at a snails pass. All whilst picking up there 6 figure salaries.

regardless of whether this all works out for the best I am still not impressed with how GEX have conducted themselves...when I calm down I'll see what GEX have to say for themselves.

[haydock] 07/7/2009 12:54

Agreed it could be bid time, Hugh did say at the AGM that Macq had wasted much valuable time when the board could have been getting things signed up.
It was clearly reaching a tricky stage at that point.
Contested bid anybody? MacQ & G.F??

[stenick] 07/7/2009 12:49

I suppose rather than giving Glencar 30% profit,GF would buy Glencar.Anyone Know the potential profits of an up and running Komana mine.I know there are a lot of varibles but a good 'case scenerio'would do.Thanks. It would give me an idea of what GF would offer.

[1waving] 07/7/2009 12:38

There is a case for Gold Fields trying to take Glencar over or buy out all 5 Mali licenses.

Komana is the link between 4 of the license areas and is the most advanced with a JORC of 1.25m oz.

Komana has demonstrated it is the most prospective containing about 25km of the main Sankarani shear zone and the series of strikes at Komana West in a parallel smaller shear zone.

GF would take full control of the 3 licenses that are in the current JV and acquire a big block of 4 adjacent licenses making it economically more viable.

GF have also stated their intention to become major players in Mali.



Think that there could be some very interesting manoeuvres on the way !!!!!!

[stenick] 07/7/2009 12:32

A lot of people did not like the deal, so they should be happy now, so they won,t be selling or if they did sell they might just jump back in, win/win.

[bongo bwana] 07/7/2009 12:28

There will be NO shortage of talk and chatter about this one.

Not a bad time to be a GEX holder!

[haydock] 07/7/2009 12:15

The ball is back with Hugh, & it's a golden ball now.

The Macq fuss will have highlighted the value of what was in play.
If he can raise the cash & now he should be able to, with the publicity, he can really push on with the drilling next season & add value.
Time, cash flow permitting will be on our side, then there are the other offers that may now come in.

GEX is holding an asett that will only look more tasty to the market by the month.
Goldfields tried to cherry pick one of the daed & alive of aim, left it too late & became too greedy?
Thats one view.
Gex should be up & running now, certainly duwe to be talked about.Minesite???

[bongo bwana] 07/7/2009 12:07

Strategically, GF must be considering its options.

Looking at my notes I was puzzled that HMc indicated that GEX had a good relationship with GF rather than an excellent relationship. No wonder he was uneasy at the AGM.