Mining Minerals & Metals Share Discussion Threads

[serpicouk] 27/7/2009 21:00

GF hoovering up all the stock - will be interesting to see how much they can acquire in the open market over the next few weeks. Wonder if we're seeing some cross trades from the smaller institution holders as well?

If another major wants in they better get a move on before GF get an unassailable lead.

The dodgy drill results are disappointing in so much that SRK picked up on a similar issue quite a while back. You would imagine that the board would have actioned a revision of ground procedures to prevent re-occurrence. Another failing on their part, especially as they rewarded the field manager with a load of shares so recently. Doubt very much that it has any material impact and agree that GF put it in to garner some scare sells. I would expect no less from this canny operator...certainly run rings around our company.

[1waving] 27/7/2009 20:32

Gold looking ready to break upwards but the bullion banks still managing to keep a lid on it --- at the moment ---- but the buying has been persistent and is keeping price around the $950s and just squeezing out new highs.

[share_shark] 27/7/2009 18:22

Gold M&A talk turns to West Africa
Posted: July 27, 2009, 11:30 AM by Peter Koven
Mining, gold, Perseus Mining, Keegan Resources, West Africa, Adamus Resources
Takeover talk in West Africa's gold sector picked up last week after industry giant Gold Fields Ltd. struck a deal to buy junior explorer Glencar Mining PLC for £28-million ($50-million).

In a note to clients, Clarus Securities noted that the deal is another indication that gold M&A activity is alive and well, particularly for advanced explorers and near-term producers. With that in mind, Clarus highlighted three advanced gold explorers in West Africa (all in Ghana) in its coverage universe that could be attractive targets as well. Each of them trades at an adjusted-market-cap-per-ounce multiple of less than $30.


Adamus Resources Ltd.: Has a current global resource of two million ounces, and its Southern Ashanti project is expected to go into production next year. It is rated a "speculative buy" with a target of 95¢ a share.

Perseus Mining Ltd.: The company's Ayanfuri project is expected to start production in July 2011, and Perseus could reach 326,000 ounces a year by 2013 when output begins from its Tengrela project in Ivory Coast. It is a "speculative buy" with a A$1.50-a-share target.

Keegan Resources Inc.: The company has a land package of 1,000 square kilometres on two major gold belts in Ghana, and Clarus wrote that it should be able to "rapidly grow" its resource base towards five million ounces over the next 12 months. Its flagship Esaase deposit still remains open along strike and depth as well. Keegan is also rated "speculative buy," with a target of $3.10 a share

[stenick] 27/7/2009 17:15

Sorry Willy your right, so they have about 20% with the directors + todays dealings have up it again,see what happens tomorrow.
One ting I don't understand is how GF can reduce the % holding they need to 50+%, is this normal???

[willyworm2] 27/7/2009 16:57

Stenick, don't know if they need to issue an RNS given they have disclosed it to the Irish Stock Exchange - news above???

[stenick] 27/7/2009 16:46

Willy, we should get an RNS on GF's larger holding then??

[dvsfm] 27/7/2009 15:55

Can I presume those buying at 9p now think another bid is on the way?. As far as I can see unless the deal fall through buying at 9p will only cost you the trading expenses, so not a lot to lose but much to gain if a rival offer were to appear

[1waving] 27/7/2009 14:12

Interesting ---- nowhere near Friday's volume today though.
Difficult to say where the buys and sells are going today -- although buys seem to be slightly more than sells.

[willyworm2] 27/7/2009 14:01

Gold Fields now up to 16.2% ownership as a result of buying on Friday.

[1waving] 27/7/2009 13:45

Not a done deal at all.

Friday was a first move --- see what comes on the back of that.
Would think that Macquarie are busy at present, and a few mining companies also.



HMc is constrained in what he can say due to takeover rules but have emailed him with one question outside of the GF offer so he should be able to answer. Will post if and when a reply comes.

[netsurfer] 27/7/2009 13:40

so, that's it then. done deal.never mind that most shareholders are losing out.

[bozicle] 27/7/2009 11:51

10% and you can call your own EGM, vote to disband the board ! I did it once when we had a corrupt bunch running our development for their own interest. This is somewhat larger than our block of 250 apartments tho :-)

This always happens. This is the 3rd Company I have owned shares in that has been bought out on the cheap. Usually with the consent of a gutless board who are given sweeteners.

Investing in companies is pretty much a gamble on the board, you never know what their up to until it's too late or you get lucky.

[wispaman] 27/7/2009 11:01

1waving, if only we could have that egm.

maybe pi share holders willing to stay the distance, should send Macquarie a letter giving them a controlling vote over their shares.

wispa

[share_shark] 27/7/2009 10:55

Agree 100% I Waving.

What really annoys me is the value of POQ's renumeration and also the fact that he did not buy shares in Glencar but bought 500000shares(I hope that amount is correct) in PVR,the company of which he is FD!FD there,in PVR,so why did he not apply,his so called miraculous skills to this fiasco?.

[1waving] 27/7/2009 10:49

Somehow, Gold Fields have put the GEX directors between a rock and a hard place and may have added a sweetener for them. There has been some severe machinations behind the scenes --- don't forget this move is Strategic for Gold Fields and they will do whatever it takes, lawfulness and ethics will not come into it.

As for the GEX directors, can understand them going with a bid ------------

BUT HOW THE HELL CAN THEY AGREE WITH 9p

Any pretending they are looking out for shareholder value is absolutely shattered there.

AND NOT ONE DIRECTOR HAD THE BALLS TO STEP OUT OF LINE AND STATE THE PRICE IS TOO LOW.

That really is disgraceful.

Maybe an EGM to sack the board and put a team up with at least a bit of nous and balls !!!!!!!!!!!

[1waving] 27/7/2009 09:38

s-s - not sure which part you refer to as a stab in the air but the Gold Fields walking away/reneging on the Letter of Intent for the Komana JV is for real.

The Gold Fields misinformation and deception is pretty obvious in downplaying all the assets/discoveries and not giving full information - and highlighting that story of a couple of holes may be contaminated.

It is notable that in the offer document the Glencar board say that those the Gold Fields two holes are not likely to have any material impact anyway.

Gold Fields have been lining up GEX for a good while --- The Komana JV/ Letter of Intent was just a tool along the way to put them on the spot and line them up for a cheap take-out !!!

Gold Fields want those 5 licenses in Mali --- and will do what it takes -- any story of them walking away because of their spin on the results of two holes is the media being used --- They will not walk away from Glencar.

[1waving] 27/7/2009 09:11

The Gold Fields drilling is deliberate disinformation put quite simply.

The intent is to deliberately deceive GEX shareholders.

The few drill holes done by Gold Fields in a miniscule area are a total red herring put there to distract from the many gold discoveries on the 5 Mali Licenses.

There are gold strikes at Bokoro/Fie, Fingouana, Sanioumale East, Sanioumale West, Sindo, Komana East, Komana West, Gonka, Soloba, Soloba West, Kama, Kabaya South, Niechilela, Faliko, Badogo Malikili, and many more targets to be drilled such as the Bada extension on which exploration has already started. This list is not exhaustive.

Gold Fields are not releasing full information, particularly over the 3 licenses in the existing jount venture agreement.

Gold Fields deliberately baulked at what was in the Letter of Intent for the intended Komana JV at a late stage as part of their strategy to put Glencar in a poor position in order to line them up for a derisory bid.

How many millions of ounces of gold on the 5 Mali licenses to come from all the strikes. Gold Fields certainly do not want to give their estimates away, or give information away that would indicate how badly they want those license areas.

How much are Gold Fields hiding ??

[willyworm2] 27/7/2009 08:35

Form Minesite.com....

Amongst the smaller companies, M&A was once again the dominant theme. The highest riser was Glencar (AIM: GEX) which went up by 94.3 percent to end the week at 8.5p after Goldfields announced that it was making an all-cash offer for the company, priced at 9p per share. Goldfields clearly wants the deal to go through quickly and without fuss, hence the substantial premium. It already owns 9.1 per cent of the stock and has secured agreements from the directors. However, the announcement goes on to reveal that the directors own only 2.3 percent of Glencar's stock between them, which seems to be an unusually low proportion. Goldfields has been trying to gain control of Glencar's Komona gold project in Mali for some while, but was recently frustrated in its attempts to agree a joint venture, not least because it was unclear whether Glencar would be able to raise funds in order to maintain its interest.

Ominously, it now appears that Goldfields has encountered a problem during its due diligence programme at Komona. It drilled diamond cored holes next to three of Glencar's RC holes and found that the results in two of the holes were significantly different - possibly indicating a sample contamination problem. No further details were made available, though Glencar claims that the new results would not have a material impact on the previously announced resource of 1.25 million ounces of gold. The remaining question is: what are the current intentions of Macquarie? Macquarie owns 6.9 per cent of the stock and as recently as a month ago was proposing to make changes to Glencar's board as it was unhappy with the joint venture deal that was then being discussed with Goldfields.

[share_shark] 27/7/2009 08:21

Have a word with Deka on the MML thread. He has given some corking tips.

[ukgeorge] 27/7/2009 08:19

OT
wheres a good home for any profits from here? i would like another gold play and preferably a junior.