Nyota Minerals Share Discussion Threads

[dusseldorf] 24/10/2013 08:14

It seems clear why Centamin want RC out on the 15th - he's clearly been working on this deal for some time and been leaky as to it's terms hence price trend and unfortunately appears Centamin have been made aware of the deal for some time hence EGM requisition as they probably see it as undervalued vs. what they invested for.

That said it seems NYO are limited to some exploration costs presumably to validate resource until project funding is secured. It also indicates the company is more likely to survive and we still retains further permits..

Mixed bag really, I don't see a reason to sell at this level and am even considering buying some more as all news is 'out' and has dropped 50%-60% since relist anyway.

[charlotteandcressida] 24/10/2013 07:59

Could the purchaser be Stratex international (STI), they are cash rich and already have operations in Ethiopia, they have been looking for acquisitions and are classed as a junior explorer...

[moreforus] 24/10/2013 07:59

jumbone...yes thats great jumbone although its gonna open down

[yorgi] 24/10/2013 07:59

Thoughts, well done RC NOT !

[jumbone] 24/10/2013 07:51

M4s:

I told you all.

Now here is the clarification, except the name

[moreforus] 24/10/2013 07:38

rns

thoughts?

Nyota Minerals Limited Update on Heads of Terms
Print
Alert
TIDMNYO

RNS Number : 2815R

Nyota Minerals Limited

24 October 2013

24 October 2013

Nyota Minerals Limited

('Nyota' or 'the Company')

UPDATE ON HEADS OF TERMS

Nyota Minerals Limited (ASX/AIM), the gold exploration and development company in East Africa, provides an update further to the announcement made on 17 October 2013, regarding the heads of terms ("Heads") that have been entered into with a potential new development partner ("Partner") for the sale of a majority stake in Nyota Minerals (Ethiopia) Limited ("Sale"), the Company's subsidiary which holds the Tulu Kapi Gold Project in Ethiopia ("Tulu Kapi") and proximal exploration licences in Ethiopia (the "Subsidiary").

Readers should note that there is no guarantee either of the Sale being completed or as to the structure or timing of the Sale and hence that significant elements of the Sale (detailed below) may be subject to change. The Sale remains subject to a number of conditions precedent, including completion of due diligence by the Partner on the Company and its assets, which may not be satisfied. Whilst the Company's shares are suspended on ASX, they continue to trade on AIM, as such, investors should not rely upon the following information in making an investment decision.

Counterparty to the Heads

The Partner, who has not been named at this stage for reasons of commercial confidence and to mitigate the risk of the Sale not proceeding by reason of them being named at this early stage, is a junior exploration and development company listed on a regulated stock market. The Partner will manage the work programme for the Tulu Kapi Gold Project; as submitted to the Ethiopian Ministry of Mines last week.

Structure of the Sale

The Heads envisages the Company selling 75% of the Subsidiary to the Partner, who will assume board and management control of that entity. The Company will maintain a 25% shareholding in the Subsidiary and will be required to contribute to the funding of the Subsidiary's exploration activities (in proportion to its pro rata shareholding), save that it will not start contributing to such funding until the Partner releases an updated Mineral Resource statement in respect to the Tuli Kapi Gold Project (which is expected to be issued within six months of the Sale completing).

Consideration for the Sale

Under the Heads, the Subsidiary has been valued at GBP6 million. Consideration for the 75% shareholding is expected to comprise GBP1 million in cash and the balance of GBP3.5 million in shares in the Partner at an agreed price. This valuation for the Subsidiary is a significant, but not the only, factor in the non-cash impairment charge envisaged in the announcement made on 30 September 2013.

Conditions for the Sale

The conditions precedent to the Sale include:

-- Usual financial, accounting, taxation, legal and commercial due diligence investigations by the Partner into the Subsidiary;

-- A fundraising by the Partner;
-- Confirmation from the Ethiopian Ministry of Mines that the new work programme is acceptable and that the Tulu Kapi exploration licence is in good standing;

-- Agreement with the Ethiopian Revenue and Customs Authority on amounts owing for VAT on foreign services in to Ethiopia, and

-- Any necessary shareholder approvals being received.
Further announcements will be made in due course.

For further information please visit www.nyotaminerals.com or contact:

[yorgi] 23/10/2013 11:47

Volume very low by recent standards but picking up now and with it the share price We need some more detail from the BOD and soon.

[courty2] 22/10/2013 22:29

Why the hell are cey selling at such a loss, nutters don't make sense.

[yorgi] 22/10/2013 21:53

Plenty of good speculation and theories but which one will end up proving to be the one !

Interesting tines till all is revealed that's for sure and it doesn't make sense to be selling right now the way I see it but nerves are being tested.

[spartikas] 22/10/2013 20:43

interesting stuff code677...

OreCorp would certainly benefit with an interest in TK, however it might be a bit too big for them to handle in terms of the cost to take this to production 100M+.

Midroc would be the ideal candidate for Nyota, deep pockets and support within Ethiopia to get good terms for the license.

Don't you think if it was OreCorp, Centamin could snap the deal off them with their might...how much can Orecorp cough up? Midroc would be a bigger threat to Centamin.

It's going to be interesting ans I recon we will know well before the meeting.......Jumbone would be interested to hear your thoughts on this topic?

[weegeordie] 22/10/2013 20:25

it seems that the 18.5m is a sell from the 18th.
Have a look at the other thread.

[weegeordie] 22/10/2013 20:16

sorry - yes, the 18.5m is from the 18th

[code677] 22/10/2013 20:13

According to my information, CEYs shareholding history is as follows

Jul 12th 2011: +7,000,000 @12.0 (£840,000) __7,000,000 (bought on-market)
Aug 10th 2011: +4,000,000 @9.0p (£360,000) _11,000,000 "
Aug 17th 2011: +3,000,000 @10.0 (£300,000) _14,000,000 "
Sep 20th 2011: +7,000,000 @8.5p (£595,000) _21,000,000 "
Oct 18th 2011: +2,000,000 @8.5p (£170,000) _23,000,000 "
Mar _7th 2012 +67,000,000 @6p (£4,020,000) _90,000,000 (bought in placing)
Feb 21st 2013 +81,000,000 @2p (£1,620,000) 171,000,000 (bought in placing)

Oct 17th 2013: -1,500,000 @1.52p (£22,800) 169,500,000 (19.3%)
Oct 18th 2013 -18,500,000 @1.07 (£197,950) 151,000,000 (17.2%)
Oct 22nd 2013: -6,700,000 @0.865 (£57,955) 144,300,000 (16.4%)

CEY's remaining holding is worth 0.2% of their market cap, so an irrelevance to them

[code677] 22/10/2013 19:28

To answer an earlier question the analyst firm I work for was where the OreCorp reference is from (not inside info, just an educated guess from my colleague who knows his onions). The mention from a broker of the party being 'a listed junior' may or may not be legit. Of course it could also be another AIM listed firm such as KEFI or STI.

The reason it's more likely to be OreCorp imho is the reference in the RNS that "The partner will design the work programme shortly for joint-submission to the Ministry" which makes no sense as signing heads of terms gives them no right to be in direct dealings with the Ministry. Only after a definitive agreement was signed then submitted by Nyota to the Ministry for transfer, then approved, would an acquirer be involved in submitting any work programme. So must be an existing license owner with a pre-existing relationship with the Ministry.

The fact that OreCorp own the adjacent licenses directly adjacent to Tulu Kapi and that the deposit is uneconomic it's own right, but may be viable as part of a 'satellite op' using potential deposits nearby, makes them the perfect fit, perhaps even the only fit.

In terms of funding the RNS states only that it is contingent on "the partner confirming it has funding sufficient for a work programme to maintain the licence" i.e. not that it needs funding to develop a mine.

The Chairman's line also suggested a party with some knowledge of the project: "We've secured an agreement in principle with a partner who shares our vision for Tulu Kapi"

[mrshaungcm] 22/10/2013 19:09

cey?
18-Oct-1315:09:231.07418,500,000Buy* 0.851.00198.69kO


22-Oct-1316:33:170.8656,700,000Sell* 0.851.0057.96kO

[rougepierre] 22/10/2013 19:07

That last trade was dated 18 October, so must have been CEY's sale...?

[weegeordie] 22/10/2013 18:21

More large trades - if it is CEY selling, I don't know why they are bothering since it is peanuts to them but, as I have said before, someone is buying them.
WG

[jumbone] 22/10/2013 17:09

Spartikas:

MIDROC is not a listed company,

The owner of it is Mohammed Hussein Ali Al-Amoudi

He is the 65 most richest man in the world with 13.5 BILLION USD according to Forbes.

He and his wife jointly own the MIDROC group of companies some 60 odd companies.in diverse sectors

MIDROC Gold is one among them,

They produce about 4500 KGs of gold annually from their mines.

They have been producing gold for a while now from both open pits and underground mines.

MIDROC is a an entirely different beast in comparison with OreCorp.

OreCorp is juat an exploration company but do have about 10.5 mill USD cash and have 3 projects in Ethiopia and 2 in Mauritania.

IMHO Orecorp has not much of benefit in investing in NYO.

In addition according to the Oct 17 RNS the deal will only go through if the other party has funds enough to invest and develop TK project.

From this perspective OreCorp does not have the necessary sufficient funds.


In my opinion it might not be OreCorp, but it could be MIDROC

[spartikas] 22/10/2013 16:12

jumbone what do you think the chances of this orecorp? as suggested by code677......a very small market cap to take on TK.

[weegeordie] 22/10/2013 14:49

code677 - do you think CEY are still selling?
WG

[enfranglais] 22/10/2013 14:47

code - don't speak in code m8 - if you 'understand', you have to say where (put up or shut up)!!
If they are the same m.cap, what use would the assets be - for this you need DEEP pockets (like CEY or MIDROC)!!!

[code677] 22/10/2013 14:38

Midroc suggestion sounds wide of the mark. I understand its a listed co. of similar size to Nyota, which for various reasons suggests someone like OreCorp.