Sunday, December 19, 2010

[cpsinewswire] [CPSI NewsWire, Thursday-Sunday, December 16-19, 2010]

CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at or +976-99996779.

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Close: Mongolia Related ASX Listed Companies, December 17, 2010  




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ASX Announcements

-       Xanadu Mines (ASX:XAM) - Xanadu Mines Limited – Prospectus, December 17

-       Aspire Mining (ASX:AKM) – Results of Annual General Meeting, Approval of placement to Southgobi Resources,  December 15

-       Leyshon Resources (ASX:LRL)

o    Response to ASX Query, December 17

o    Change of Director’s Interest x2, December 16



Ivanhoe aims to raise $1.2 bln in rights offering

* 100 rights can be used to buy 15 common shares

* Shares priced at C$13.93 on TSX, $13.88 on NYSE

* Stock up 1.76 percent at C$24.89 on TSX (Adds details on rights plan; in U.S. dollars unless noted)

TORONTO, Dec 17 (Reuters) - Ivanhoe Mines (IVN.TO) said on Friday it would raise up $1.2 billion in a rights offering to fund the development of the first phase of its massive Oyu Tolgoi copper and gold project in southern Mongolia.

The rights offering is structured so that Ivanhoe shareholders will receive one transferable right for each share of common stock they hold as of Dec. 31.

Every 100 rights can be used to purchase 15 common shares. The shares will be priced at C$13.93 on the Toronto Stock Exchange and $13.88 on the New York Stock Exchange.

Ivanhoe said the price represents a 44 percent and 43 percent discount respectively on the average closing price on the TSX and NYSE over the five trading days to Dec. 16.

The company said it expects to issue 85 million common shares through the offering, or about 15 percent of its current outstanding shares.

Shareholders who do not want to use their rights will have the option to sell them, with all rights expiring on Jan. 26.

Rio Tinto (RIO.L) (RIO.AX) is the largest shareholder in the Ivanhoe, which is led by mining financier and colorful dealmaker Robert Friedland.

Rio recently increased its stake to 40.5 percent, with a payment of $300 million in a partial exercise of Ivanhoe series B warrants, along with the purchase of shares from Friedland.

Rio is expected to increase its interest in Vancouver-based Ivanhoe to 42.3 percent through a previously announced deal to buy Citibank's shares.

Friedland owns 15.3 percent of the company, but could increase his stake through the rights offering.

Oyu Tolgoi is one of the world's biggest untapped copper-gold deposits. Development was delayed for years due to complicated royalty negotiations between Ivanhoe and the Mongolian government. [ID:nSP495396]

The project is 34 percent owned by Mongolia and 66 percent owned by Ivanhoe.

The company's shares were up 1.76 percent at C$24.89 on Friday afternoon on the Toronto Stock Exchange. 

Link to article

Related articles:

Ivanhoe Mines Files Final Prospectus for Strategic Rights Offering Open to All Shareholders on a Dilution-Free, Equal Participation BasisMarketwire, December 17



Prophecy Files Prefeasibility Study for the Ulaan Ovoo Coal Mine in Mongolia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 16, 2010) - Prophecy Resource Corp. ("Prophecy" or the "Company") (TSX VENTURE:PCY)(OTCQX:PRPCF)(FRANKFURT:1P2) reports the Company has received an updated prefeasibility study on the Ulaan Ovoo deposit in northern Mongolia. The Report is authored by Brian Saul, P.Eng., and Steve Krajewski, Ed. D., P.G. of Wardrop Engineering Inc., a Tetra Tech Company, both independent Qualified Persons. The focus of this study was for the development of low ash coal reserves in the form of a starter pit. Considerable work has been completed on the starter pit design, identification of market opportunities and transportation costs since the Pre Feasibility Study was issued by Minarco in May 2009. The study is filed and available on SEDAR.

Reserve and Throughput:

The recommendation is for the coal deposit to be mined by open pit methods. A mining contractor is to mine 250,000 tonnes (t) of product coal in 2010, 1.1 million (M) t of product coal in 2011 and 2 million tonnes per year thereafter.

The estimated reserve is shown in the table below:

Estimated Reserve Tonnages

Coal Reserve Statement Description


Low Ash Product Coal (kt)


Waste (kt)


Waste (kBCM)


Total (kt)


Stripping Ratio (BCM:t)


Ash Content (%)


Calorific Value (kcal/kg)


Moisture (%)


Mine Life (years)


Process Rate (kt/annum)


All coal quality values are stated on an "as received" basis. The total Mineral Reserve Estimate is 20.7 M proven t (Mt) of Product (Low Ash) Coal. Mineral Reserve estimate considers only the first phase of the project development of the Mineral resources contained in the Ulaan Ovoo project. Opportunity may exist for extension of additional low ash reserves to the south with an expanded pit and a higher throughput rate.

Operating costs

Operating costs per tonne of ore mined are estimated at $US10.23. The break down of the costs is as follows.

Financial Analysis

A financial evaluation of the Ulaan Ovoo Project was based on a post-tax financial model. For the 10.7 year mine life the following pre-tax financial parameters were calculated:

·         25.5% Internal Rate of Return (IRR).

·         4.5 Years payback on US $ 85.9 M capital.

·         US $ 71.0 M Net Present Value (NPV) at 10% discount value.

Conclusion and Opportunity

The financial evaluation indicates that the project is economically viable given the coal pricing assumption of US $40 per product tonne sold at the Russia/Mongolia border port of Naushki. The following actions are recommended as part of a feasibility study:

·         Sign coal contracts with end users or agents.

·         Continue with additional coal marketing studies to determine alternate opportunities.

·         Complete detailed engineering to prepare specifications for mobile equipment and site infrastructure

·         Determine if the operation is to be owner operated or contract operated for life-of- mine

The mineral reserve estimate considers only the first phase of the project development of the mineral resources contained in the Ulaan Ovoo project. Opportunity exists for extension of additional low ash reserves to the south with an expanded pit and a higher throughput rate.

A new study is required to expand coal marketing opportunities into the eastern seaboard of Russia due to proximity of the project to the Trans-Siberian railway. This will determine if there is opportunity to increase coal demand, thereby reduce unit mining costs with higher mining throughput rates. The Company intends to commission such feasibility study in fiscal 2011.

Link to article



Prophecy Announces Increase in Offering to $42 Million

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 16, 2010) - Prophecy Resource Corp. ("Prophecy" or the "Company") (TSX VENTURE:PCY)(OTCQX:PRPCF)(FRANKFURT:1P2) is pleased to announce that due to strong investor demand for its recently announced equity offering of common shares (the "Offering"), as announced on December 2, 2010 and December 3, 2010, the Company has increased the size of the Offering by $12,053,000.

The Offering, which is being co-led by Jacob Securities Inc. and Renaissance Capital (Hong Kong) Ltd. will now include the issuance of an additional 14,180,000 common shares at a price of $0.85 per common share, for a total of 49,475,000 common shares being issued for aggregate gross proceeds of $42,053,750.

Link to article




Dec 16, 2010 ( --  Vancouver, B.C.: Meritus Minerals Ltd. (MML) (TSX-V: MER) (the 'Company") announces that it expects to commence a winter drilling program at its Toordogiin Shil Project on the Gutain Davaa Property in Mongolia in the next few days.

The program will consist of approximately 20 holes and a minimum of about 2000 metres and may be extended depending on results.

Since completing the initial program in the middle of November, staff have been on field break and the company's and the contractor's camp facilities have been upgraded to deal with the winter conditions. All necessary equipment has been transported to site and site preparation for the first holes of this program is underway. Receipt of assays from the last six holes in the previous program are not expected to be available before the end of the year.

Link to article



Mongolian fluorspar prices fall amid foot-and-mouth outbreak

December 15 (Industrial Minerals) Domestic fluorspar prices in Mongolia are down, due to a low uptake of material in the country because of an outbreak of foot-and-mouth disease in one of the main fluorspar mining areas. All the affected producers can do is sell on site or without any packaging to the Russian or Chinese borders. Looking longer term, other Mongolian metallurgical grade fluorspar (metspar) producers are looking to invest in chemical grade (acidspar) production to improve profit margins.There are four acidspar operations in Mongolia, three operated... (subscription needed)

Link to article



Russia to retrieve control over uranium

December 16 ( Russia and Mongolia signed an agreement establishing a joint venture for uranium mining "Dornod Uranium." The reserves of the fields are estimated at 22 thousand tons. The controlling stake in the future joint venture will be owned by the Mongolian side, and a subsidiary "Atomredmedzoloto" of Argun Mining and Chemical Association will act as the operator of the project.

The Russian government agreed on the development of joint projects with the Mongolian side last year. OAO Russian Railways (RZD) has become the managing company of the Ulan Bator railway with 50% of shares. It was a joint venture between OAO Russian Railways, and two Mongolian state companies - Erdenet IPF and MIZ - to improve rail infrastructure.

At the recent meeting of Prime Ministers of Russia and Mongolia, the parties have agreed to increase the authorized capital of Russian-Mongolian joint-stock company Ulaanbaatar Railway by $250 million in equal shares. VTB is also able to provide a loan for the purchase of Russian locomotives.

"Aeroflot has agreed with the Mongolian airline MIAT on joint operation of airlines. MIAT has suspended flights of its aircrafts on the route Moscow - Ulan Bator - Moscow, and the Russian company will increase flight frequency from three to five times a week."

Russia has been trying to get back to Mongolian uranium mines since 2007. In 2009, the country voiced its intention to establish a joint venture to develop uranium deposits launched by Soviet specialists. In particular, Russia was interested in Dornod deposit. However, the development license belonged to the Central Asian Uranium Company (TSAUK), and the company was monitored by the Canadian company Khan Resources (58% of shares).

In turn, Russia is ready to write off 97.8% of the Mongolian debt, which is $172 million, and issue a new loan of $125 million.

"We have agreed to cancel the debt at 97.8%, the remaining 3.8 million dollars will be repaid as a lump sum. This will open a new page in our credit and financial relations," RIA Novosti quoted Kudrin.

Also, Russia will give Mongolia 375 million rubles for the vaccination of livestock to increase the import of meat and milk to the Russian market, said Prime Minister Putin.

Link to article

Related article:

Rosatom to strengthen its positionsThe Voice of Russia, December 16



CPC vows to enhance friendship with Mongolian People's Party

BEIJING, Dec. 17 (Xinhua) -- A senior official of the Communist Party of China (CPC) on Friday vowed to enhance the party's friendship and cooperation with the Mongolian People's Party (MPP).

The CPC will further enhance exchanges and cooperation with the MPP, and strengthen mutual understanding and friendship, so as to consolidate the political foundation of the China-Mongolia relations, said He Guoqiang, member of the Standing Committee of the Political Bureau of the CPC Central Committee.

He made the remarks when meeting with a MPP delegation led by U. Khurelsukh, the party's secretary-general.

Link to article




December 17, Ulaanbaatar, Mongolia, /MONTSAME/ A partnership and cooperation agreement between Mongolia and the European Union will be initialed December 20 in Ulaanbaatar. For this purpose, a delegation is to arrive headed by Mr. Franz Jessen, a head of the European Commission's unit for Mongolia.

The bilateral agreement involves many issues of the collaboration in the spheres of economics, financial service, tax, industrial policy, small- and middle-sized production, sciences, technology, energy, transportation, agriculture. Other reflected are the sectors of rural development, health, social insurance and statistics. 

It is expected that the agreement will improve legal environment for forwarding the bilateral relations and cooperation, bring the ties into a newer step and partnership level.

During the ceremony of initialing, talks will run on granting Mongolia a status of the market economy country. 

Link to article




Shares fall as Santa rally stalls

December 17 (AAP) Close Australian shares snapped a six-day winning streak today, weighed down by the big miners after an overnight drop in metals prices.

At the close, the benchmark S&P/ASX200 index was down 20.9 points, or 0.4 per cent, at 4763.1. But the index still managed to rise 0.4 per cent for the week to notch its third straight weekly gain as investors took comfort from reassuring US economic data and gains in top banks after the government's planned reforms to boost competition was softer-than-expected.

The broader All Ordinaries index fell 15.8 points, or 0.3 per cent, to 4853. Among the sectors, materials and energy shares both fell 0.6 per cent, while financials shed 0.5 per cent.

- A$ is flat at 98.99 US cents
Asian shares rise for first time in three days
Gold climbs to $US1376 an ounce
Oil rises above $US88 a barrel
- Dow futures are flat at 11,423

Stocks opened marginally weaker after a mixed lead from the offshore session when Wall Street closed firmer but commodities prices eased and stayed in red figures for the rest of the day.

Mining giant BHP Billiton fell 35 cents to $45.03, while rival Rio Tinto was $1.35, or 1.6  per cent, weaker at $85.65.

"After six sessions of gains investors used the fall in metal prices to pull back," Juliette Saly, a market analyst at Commonwealth Securities said. 

Traders expect trade to be thin next week given the approaching holidays and see global events influencing markets.

The most traded stock by volume was ING Industrial Fund, with 64.61 million securities changing hands for $33.09 million. The company finished 1.5 cents lower at 50.5 cents.

Preliminary national turnover was 2.53 billion securities worth $4.95 billion, with 593 stocks up, 520 down and 391 unchanged.

Link to article



<Mogi & Friends Fund A/C>


Mogi & Friends Fund is a tiny fund of A$21.8K I created with a few friends to put my own (and a few friends’) money where my mouth (just mine) is.

Haranga stayed flat at 54c on Friday but hit an all-time high of 58.5c. Previous high was 56c, set on its opening day Dec. 9. My other 2 stocks are faring not as well but still pretty decent. I’m expecting good things from these two. One has an analyst report valuing the company at way more than its current market price. The other is also I believe a good stock to hold.



·         I personally and through my “Mogi & Friends Fund” hold 75,000 HAR shares in aggregate.

·         Jason Peterson, CPS Securities Director, holds shares (approx. 6,500,000) and options (1,000,000) in HAR.

·         CPS holds 500,000 options in HAR for corporate advice provided to HAR – Jason Peterson is a 33% shareholder in CPS.

·         CPS and CPSI directors and employees hold shares in HAR and may buy and sell these shares as and when they see fit.

·         Jason Peterson is a non-executive director of HAR but not involved in the day to day running of HAR.

·         CPS has received an IPO management fee of $250,000 and a 5% fee for any funds placed to its clients under the prospectus.

·         HAR has paid for Jason Peterson’s travel and accommodation expenses to and in Mongolia – this must be disclosed as a soft dollar commission.

·         Please refer to the prospectus for further disclosures.



"Mogi" Munkhdul Badral

Executive Director

CPS International LLC

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Mobile: +976-99996779



Suite 906, Central Tower

Sukhbaatar District, Ulaanbaatar



CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at or +976-99996779.


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