Uruguay Mineral (SEE LSE:OMI) Share Discussion Threads

[rivaldo] 09/11/2009 09:37

Excellent news today, all going to plan.

It appears from the chart that the re-rating is already well under way.

[atlantic1953] 09/11/2009 09:29

Management appear unloved and i guess the share will not be rerated until they deliver results.

[blowitall] 09/11/2009 09:13

Great news...and the share price at last moving in the right direction - lets hope for some real movement when this news is read by all.

[nelson01] 09/11/2009 08:36

At the rate gold is going up ugy will be on a pe of -1

[stevea171] 09/11/2009 08:18

Uruguay Mineral Exploration and Fortune Valley Announce Proposed Business Combination

Uruguay Mineral Exploration Inc. ("UME" or Company") (TSX VENTURE:UME) (LSE:UGY), and Fortune Valley Resources Inc. ("Fortune Valley") (TSX Venture Exchange: FVX) announce today that on November 8, 2009 they signed a definitive arrangement agreement (the "Arrangement Agreement") to combine their respective businesses (the "Transaction"). In connection with the Transaction, UME has agreed to acquire all of the issued and outstanding common shares of Fortune Valley. The Transaction will be structured as a Plan of Arrangement between UME, a wholly-owned subsidiary of UME and Fortune Valley. A copy of the Arrangement Agreement will be available on SEDAR www.sedar.com. The Arrangement Agreement replaces the letter of intent that was previously announced by the Company on October 5, 2009.

Compelling Business Combination

On completion of the Transaction, the combined companies will move towards both companies' strategic objective of creating a more significant Latin American focused gold producer with:

UME's gold production profile of at least 190,000 ounces over the four years to May 31, 2013 from open pit operations at the San Gregorio mine in Uruguay with the potential to significantly improve this profile and reduce cash costs with the development of the Arenal Deeps underground deposit.

Fortune Valley's optioned Pantanillo property in the Maricunga Belt in Chile from a subsidiary of Anglo American Plc. Historical drilling has identified a potential mineral deposit on this property as announced by Fortune Valley in a news release dated October 5, 2009. A planned exploration and development program targeting the definition of a NI43-101 compliant mineral resource is expected to commence within three months of closing of the Transaction with the objective of creating a second production asset for the group.

Further growth potential from the combined group's exploration portfolio in Chile and Uruguay including the Anillo project in Northern Chile which is along strike from the El Peñón mine operated by Yamana Gold Inc.

The combined group would have no debt and no hedging, with approximately $US 8 million of cash.

David Fowler, Chief Executive Officer of UME stated: "We are pleased to have signed this agreement with Fortune Valley and expect to complete the Transaction in December 2009. The Transaction combines UME's production profile with Fortune Valley's development and exploration projects and is expected to put the combined companies on a renewed growth path".

Highlights of the Transaction

The acquisition will be satisfied through the issue of common shares in UME at an exchange ratio of 0.4534 of a UME share and $C 0.001 for every one Fortune Valley share, representing a purchase price of approximately $C 0.23 per Fortune Valley share valuing Fortune Valley at approximately $C 8 million.

Following the Transaction, UME would have approximately 64.5 million common shares issued and outstanding, with former Fortune Valley shareholders holding UME common shares representing approximately 25% of the issued and outstanding common shares of UME. Fortune Valley would be a wholly owned subsidiary of UME.

The Transaction was unanimously approved by the boards of directors of UME and Fortune Valley. The current CEO of UME, Mr. David Fowler, will remain CEO of UME and the Board of UME will remain unchanged. The directors and officers of Fortune Valley will resign on closing of the Transaction and will be replaced by nominees of UME. Blackmont Capital Inc. has advised to the board of directors of Fortune Valley that, subject to final documentation, the proposed Transaction is fair, from a financial point of view, to Fortune Valley shareholders.

The Arrangement Agreement includes a commitment by Fortune Valley not to solicit or initiate discussions concerning alternative transactions. Fortune Valley has agreed to pay a break fee of US$ 300,000 in certain circumstances related to a superior proposal.

Closing

Completion of the Transaction is expected to occur before December 31, 2009, and is subject to customary conditions, including the receipt of regulatory and court approvals and the approval of the Transaction by Fortune Valley shareholders at a special meeting of shareholders called for such purpose to be held on or about December 11, 2009. UME shareholders are not required to vote on the transaction.

Certain Directors of Fortune Valley, holding approximately an aggregate of 30% of its outstanding common shares, have agreed to vote their shares in favour of the Transaction.

There can be no assurance that the Transaction will be approved by Fortune Valley shareholders or that any transaction will be completed as a result of the execution of the Arrangement Agreement.

[explorer88] 09/11/2009 08:06

Excellent news for UGY

[qpwoei102938] 09/11/2009 07:54

Uncertainty gone.

Lets get this show back on the road.

[protean] 09/11/2009 07:44

09/11 07:39 - Uruguay Mineral Explore: Merges With Fortune Valley Resources

LONDON (Dow Jones)--Uruguay Mineral Exploration Inc. (UGY.LN), and Fortune Valley Resources Inc. (FVX) said Monday that they have signed a definitive arrangement agreement to combine their respective businesses whereby UME has agreed to acquire all of the issued and outstanding common shares of Fortune Valley. The deal values Fortune Valley at C$8 million.

MAIN FACTS:

-The Transaction will be structured as a Plan of Arrangement between UME, a wholly-owned subsidiary of UME and Fortune Valley.

-On completion of the Transaction, the combined companies will move towards both companies' strategic objective of creating a more significant Latin American focused gold producer

-UME's gold production profile of at least 190,000 ounces over the four years to May 31, 2013 from open pit operations at the San Gregorio mine in Uruguay with the potential to significantly improve this profile and reduce cash costs with the development of the Arenal Deeps underground deposit.

-Further growth potential from the combined group's exploration portfolio in Chile and Uruguay including the Anillo project in Northern Chile which is along strike from the El Penon mine operated by Yamana Gold Inc. (YRI.T)

-The combined group would have no debt and no hedging, with $8 million of cash.

-The current chief executive of UME, David Fowler, will remain CEO of UME and the Board of UME will remain unchanged.

-The directors and officers of Fortune Valley will resign on closing of the Transaction and will be replaced by nominees of UME.

-By London Bureau, Dow Jones Newswires; Contact Ian Walker; [phone]; [e-mail]
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: You can use this link on the day this article is published and the following day.


(END) Dow Jones Newswires

November 09, 2009 02:39 ET (07:39 GMT)

[snurkle1] 06/11/2009 15:42

Looks like it isn't GMT

[robson1974] 06/11/2009 15:01

in the last month or so since this has been in 'purdah' the price of gold has gone up 10% but their cashflow should be up 33%

[skidaddle] 06/11/2009 14:51

Eyup looks like we just nudged $1100.

Come on management sort this out one way or the other!

[skidaddle] 06/11/2009 14:43

No idea.

What I want to know is what time zone are they working on? GMT, Montivideo or some Canadian one.

[snurkle1] 06/11/2009 14:41

Where's it heading if they do sign and where do we drop to if they don't?

[skidaddle] 06/11/2009 13:27

Well this one's going to the wire!

[skidaddle] 06/11/2009 09:32

If I had seen your post then I would have nodded sagely in agreement.

Gold bugs have a right to be smug IMHO.

[thx1138] 06/11/2009 09:28

I'd go back and try and find the post where I predicted it would be $1200 in early 2010, but A. I can't be bothered and B. You'd just call me a smug git :-)

[skidaddle] 06/11/2009 09:24

Gold over $1095.

[skidaddle] 06/11/2009 09:22

"Let's hope this time they execute after missing previous deadlines. Completing the due-diligence on a multi-national acquisition is not a trivial matter so I can forgive two extensions. Three will look like carelessness."

Or that they either still don't know what they are doing or have found something that one of the partys don't like. In which case step away.

Ooh look I'm the 3000th post and I didn't know it until now.

[qpwoei102938] 06/11/2009 08:31

ihnc, I am forward looking. I'm holding these for the future potential, not for previous failures.

Anyone who bought at the top and held all the way down, averaging down in the process is a berk imo.

If you bought in the last 6 months like me, then this is a great opportunity.




Oh, and I was burnt on these a little higher up the chart last year! Like a darts player adjusting himself for the second arrow, I just come in from a slightly different angle.

[robson1974] 06/11/2009 08:24

Let's hope this time they execute after missing previous deadlines. Completing the due-diligence on a multi-national acquisition is not a trivial matter so I can forgive two extensions. Three will look like carelessness.

[skidaddle] 06/11/2009 08:19

"Due diligence is still being undertaken by both parties and the parties expect to sign the agreement on or before November 6, 2009."

[ihavenoclue] 05/11/2009 13:12

Skid .. so all the management changed ? NO ...

You lot are deluding yourselves ... be here a few months .. which I am sure most of you won't be ... and you will see how sums of production does not equal good market cap.