The Mission Share Discussion Threads

[giant steps] 27/9/2007 11:39

Oh no, i'm about to agree! Exactly, settlement is not 100% cash.

[bbbb] 27/9/2007 11:36

but settlement is not 100% cash and that's it?

[simontemplar] 27/9/2007 11:32

GS, Of what consequence is it if PSGM is taken out of TMG's hands. I don't understand where you're coming from with this? Once Pamodzi has TMG that's it, it's Pamodzi who will benefit or not from PSGM!

[bbbb] 27/9/2007 11:23

It should never be forgotten that anglo's expertise and gold mining management skills were discontinued on sale of steyne, which would not have been for the
reason that what was left had potential worth retaining.

whilst there can be profit from continuing with mines beyond their peak, tight
proven management skills are needed, but it might be a delusion to think that
new faces in charge can automatically add value that wasn't there before.

what might work here is the empowerment that is its raison d'etre, but that could be its weakness if there's a feeling there's easy money to be made.
they need to get on with the sale.

[giant steps] 27/9/2007 11:10

Reminder

"

Free State foothold

A Johannesburg banker told Miningmx Pamodzi Gold recognised there was a chance to establish itself as 'the new Harmony'; a company able to manage marginal gold mines. So it's no coincidence President Steyn provided the company with "a foothold in the Free State", a province where Harmony had much success buying mines.

In addition to existing production, the President Steyn mine contained 1.9 million oz of proven and probable reserves, a 100,000 tonne/month processing plant, and five established underground mines.

The mine, which was unprofitable in Thistle Mining's hands, partly owing to the low rand gold price in the early part of the decade, also had two projects – Golden Triangle with some 1.04 million in situ gold, and Eldorado.

Click Here to subscribe to our daily newsletter
"Pamodzi Gold is in a good position to secure capital to develop President Steyn's Golden Triangle project and to further explore the Eldorado Reefs," Pamodzi Gold said in its announcement to the JSE.

President Steyn was once a major constituent in Freegold, a separately listed gold company during the Nineties, ultimately owned by Anglo American. In its heydey, Freegold was the largest single gold mining complex in the world.

"

[giant steps] 27/9/2007 10:50

Share price suspended for over three days.

If MC/Casten had called in their debts i think we would have
seen an announcement similar to March'07, i.e. written notice

[katsy] 26/9/2007 15:02

US now at 6.92rand, this means now that 300M rand is worth Approx $2m more than it did at time of RNS.

[giant steps] 26/9/2007 08:12

CGA share price 108-105

CGA Value for Thistle = 40.985m * A$1.08 * 0.865 = $38.29m

[bbbb] 26/9/2007 07:09

will they be taking up the agreed issue at 20p first, or just going for nearly
three times as many for the same money at about the recent 7p?

[tim00] 26/9/2007 06:36

Another big rise in CGA today. Of course another possibility is a share issue to MC/Casten to finance PSGM working capital. MC/Casten know its backed by CGA shares.

[giant steps] 25/9/2007 20:02

South Africa: Pamodzi Gold is Confident Despite Major Obstacles

18th Sept 2007

[eriktherock] 25/9/2007 17:25

Debt called-in maybe.

[giant steps] 25/9/2007 16:03

Neighbouring mine i believe, but need to check.

[bbbb] 25/9/2007 15:27

are psgm and orkney continguous giving working economy?

[giant steps] 25/9/2007 15:20

Reminders


Harmony Gold Mining Company Ltd Signs Deal with Padmodzi Gold
04 Sep 2007, 06:00 AM ET
Harmony Gold Mining Company Ltd announced that it has officially signed formal agreements with Pamodzi Gold Limited (Pamodzi Gold) for the sale to all rights, title and interest of Orkney shafts located near Orkney in the North West province. Pamodzi Gold has engaged Harmony in order to take management control of the Orkney operations under a contracting agreement by the 1 October prior to the all conditions precedent being met. Harmony has agreed in principle to this arrangement and both parties envisage signing a formal agreement within the next three weeks. The initial purchase consideration payable to Harmony by Pamodzi Gold for the Orkney shafts is equal to R550 million, and a secondary consideration









Recall, this project is the sister project to achieve stated objective:

Together, the PSGM and Orkney transactions would bring Pamodzi Gold's annual production up to 400 000 oz, the company said.

[giant steps] 25/9/2007 08:10

CGA share price 101-105

CGA Value for Thistle = 40.985m * A$1.01 * 0.865 = $35.81m

[tim00] 25/9/2007 07:12

don't think so, it exposes them to risk of CGA shares falling in value, and difficulties in selling 25% of a company. They'd only do this if they wanted the CGA shares as an investment. Anyway I think there should be news either today or tomorrow. NB: CGA shares up again.

[giant steps] 24/9/2007 21:20

Why don't the fund just take TMG and sell CGA next year ?

[bbbb] 24/9/2007 19:59

'permit rolled up interest' lol

insist on it, more like, with compounding.
rolling up is the problem - it removes any incentive to pay it from revenue.

if a business is put into the position of not needing to pay interest for its short term
finance from income, it might be being groomed for failure, just as a mortgage
payer encouraged to borrow repayments rather than making them from income
is allowing lenders to get in a position to take more control.

[giant steps] 24/9/2007 19:49

Why would Pamodzi pull out, the deal is excellent from their point of view.

MC/Casten to date have been very supportive with long term debt facilities
and permit rolled up interest. They simply don't want to put significantly
more money into the PSGM projects. Clarification of finances would certainly
give TMG a stronger hand in dealings with Pamodzi.

If MC/Casten has pulled the plug we will know soon enough.

[tim00] 24/9/2007 18:59

I read it this way. Either Pamodzi have pulled out or MC/Casten want to put TMG into liquidation to realise the CGA shares. But it certainly looks as if MC/Casten have stopped supporting PSGM. If TMG is no longer viable, I would guess MC/Casten can, as principal creditors, claim the CGA shares irrespective of lock in periods. My guess is that Pamodzi have not pulled out, if they had it would not make much sense to put TMG into liquidation so that a fire sale of PSGM would result. More likely that MC/Casten want to follow admc's suggested path, which looks sensible to me too. So I think this notice will result in an agreement to sell the CGA shares to MC/Casten, with some of the proceeds given back to PSGM until the sale to Pamodzi goes through. If TMG is in receivership, I guess this will circumvent the need for an AGM and shareholders' agreement to sell PSGM and the CGA shares.

[katsy] 24/9/2007 14:50

lol just noticed the top chart in the header. just about right

[bbbb] 24/9/2007 14:11

it might be time for minorities to make noises to regulatory authorities to
rule on cga transfer, whether transfer date overrides 'deemed' deal date...
unless the 'confusion' is intentional...

[giant steps] 24/9/2007 13:35

If MC/Casten could provide financing round to Spring 2008, we could break
from non-binding deal or at least agree better terms.

Interesting times ahead.