The Mission Share Discussion Threads

[giant steps] 24/10/2007 21:31

Reminder re sale of PSGM (assuming CGA transfer has completed)

Debt will be further reduced from $20.8m by $14m (40%) to $6.8m,
and thistle will COLLECT interest from Pamodzi on $21m. Thistle
then have the potential upside from convertible option.


"
The Purchase Consideration is to be satisfied through the payment on completion
of ZAR 100 million (One Hundred Million South African Rands) in cash
(conditional on a placement of shares of Pamodzi) and ZAR 150 million (One
Hundred and Fifty Million South African Rands) to be paid in convertible
interest bearing debt securities (the 'Pamodzi SPV Securities') issued by a
special purpose vehicle wholly owned by Pamodzi Resources Limited (the 'SPV')
which will acquire a specified number of ordinary shares in Pamodzi (the '
Pamodzi Gold Shares') for an amount of ZAR 150 million (One Hundred and Fifty
Million South African Rands).

[giant steps] 24/10/2007 21:08

tim -> what are your thoughts ?

[giant steps] 24/10/2007 19:19

we have the announcement, and bbbb will want to work the sum of the parts !

let me try and assist.

if the cga transfer completes ($37.8m + $4.5m = $42.3m) then
outstanding debt based at 1st October 2007 will be $20.8m

the transfer is expected to be completed by October 30, 2007

our remaining asset is PSGM and this is for sale, non binding agreement $35.7m

on balance this would give $14.9m, plus $2m PSGM rehab fund

s/p should relist with a healthy uplift imo.

( restoration of trading subject to conclusion of legally binding agreement )

[bbbb] 24/10/2007 15:35

are we entitled to news anyway without a quote?

looks like we can safely assume here that control means
stuff minorities.

[katsy] 24/10/2007 15:29

If TMG have given are only worth while asset to MC/C then surely they should tell us? I see no news at 3pm.

[bbbb] 24/10/2007 11:50

'The SAs have not shined in the bull market in gold since 2002-3. These shares have been in a bear market since that time. I'd say things will change in favour of SAs over the next 6 to 18 months.'

There have been changes in employment law, mining law, environmental costs and compulsory bee involvement in addition to more simplistic rising costs in rsa
compared with other gold boom times.

none of those changes adds to the bullish case.

else why did large mining groups divest some mines and reorganise their holdings?

[dogberry202000] 24/10/2007 11:41

I think that TMG will not be in a position to release news until the sale of PGM has gone through in November. We'll then see what TMG is worth.

CGA doubling has not done TMG any harm and the undercapitalised PGM is being sold for cash and shares in Pamodzi. The share price of the latter is on the ground, at present, so as GS says, that's where the gearing is.

We may yet have real value here. Yes, the debt needs to be settled and the interest was high. Yet it seems value has been released and the debt monetised.
The higher gold price will also be a factor. The SAs have not shined in the bull market in gold since 2002-3. These shares have been in a bear market since that time. I'd say things will change in favour of SAs over the next 6 to 18 months.

[giant steps] 24/10/2007 11:39

st - i note "You are left with the booby prize, if any! "

Are you no longer a shareholder ?

[giant steps] 24/10/2007 11:26

st - we need to see the numbers as you well know, 100% gain in CGA investment
cannot be ignored and MC/casten subscribing for more shares at this level
indicates a fair price for transfer. Pamodzi shares will be our gearing factor.

again, some on here have deluded themselves into thinking Japanese
like financing should have been offered from MC/Casten, LOL !

[bbbb] 24/10/2007 11:24

st: quite.

'sum of the parts' nonsense needs to be replaced with arts of subtraction
of composite variables subject to compounding, present and future value
discount and overlaid with approriate currency conversion at certain
times.

not an easy feat for maths and forex experts, hence an ideal scene set for
uninformed ramblings!

[simontemplar] 24/10/2007 11:05

GS. Are you more inclined to congratulate MC/Casten rather than see a return on your own investment? In case you haven't noticed, the variable with the potential to considerably appreciate has been taken from you by those whom you are congratulating. You are left with the booby prize, if any!

[katsy] 24/10/2007 10:08

It's vever clear what the existing level of debt is to MC/C as this seems to be an ever increasing figure regardless how many payoffs are made. But if they get the CGA sahes for $35m + the PSGM buy off for another $35m will that cover there debt?

If the debt isn't covered? Then where does that leave TMG with no assets plus a debt!

Even if the debt is coverd that still leaves TMG with no assets. I know will weill still have some interest left in Pomdozi but how much?

[giant steps] 24/10/2007 09:58

well done mc/casten for retaining some of the masbate prize,
they took a huge risk lending to thistle, a just reward imo

minorities wait to see how it all washes out

[giant steps] 24/10/2007 09:23

tim, looks like all deals to complete in november, bodes well

[tim00] 24/10/2007 09:14

GS, at current exchange rates PSGM is worth $37 mn.

[bbbb] 24/10/2007 09:04

'the deferred purchase consideration of US$5m that was owing to Thistle has
been terminated and CGA's subsidiary Central Asia Gold Limited ("CAGL") has
agreed to pay to the Shareholders a reduced amount of US$4.5m, providing a
cost saving of US$0.5m, and the repayment date has been deferred to 31
December 2008 (with interest accruing at 12%'

I see 'the Shareholders' are defined as mc/casten, who will now be collecting
a traditional 12% interest to 31december instead of US$0.5m cash consideration
in addition to US$4.5m (instead of US$5m)

so by taking part of the masbate proceeds deferred as interest, mc/c presumably reduce the offset to tmg 'debt' owing to them by US$0.5m?

[giant steps] 24/10/2007 07:50

tim ->

Toowong sale above $35m (say) + $35m for PSGM + deferred $4.5m (12/2008)

sum of the positives to significantly outweigh negatives, very interesting, imo

[giant steps] 24/10/2007 07:29

Selected extracts for those with impaired link opening facilities

"
CGA has consented to the transfer of the shareholding in Toowong to the two major shareholders and creditors of Thistle Mining Inc., i.e., MC Resources
Limited and Casten Holdings Limited ("the Shareholders") and release of all
securities over the shareholding in CGA;
"

"
the deferred purchase consideration of US$5m that was owing to Thistle has
been terminated and CGA's subsidiary Central Asia Gold Limited ("CAGL") has
agreed to pay to the Shareholders a reduced amount of US$4.5m, providing a
cost saving of US$0.5m, and the repayment date has been deferred to 31
December 2008 (with interest accruing at 12%);
"

"
given the success of the project following acquisition, CGA and CAGL have
provided releases to allparties involved in the sale of the Masbate Project for any
existing or future claims in connection with the acquisition of the interests in the
asset by CGA and CAGL and any related escrow provisions
"

[tim00] 24/10/2007 06:32

interesting news from CGA overnight. TMG should be making an RNS today. CGA shares have been sold to MC/Casten, with CGA approval. The fact that the transaction has only just been signed off raises hope that the transfer will have been conducted at a reasonable price.

[katsy] 22/10/2007 11:34

Why did CGA shares shoot up like that? Lets hope it all adds to the bottom line of TMG and all its shareholders and not just MC/Casten!

[giant steps] 22/10/2007 08:13

05OCT2007 : CGA investment = 40.985m * A$1.045 * 0.89 = $38.11m

08OCT2007 : CGA investment = 40.985m * A$1.100 * 0.89 = $40.12m

10OCT2007 : CGA investment = 40.985m * A$1.140 * 0.89 = $41.58m

11OCT2007 : CGA investment = 40.985m * A$1.200 * 0.89 = $43.77m

22OCT2007 : CGA investment = 40.985m * A$1.300 * 0.89 = $47.41m