Tuesday, January 4, 2011

[cpsinewswire] [CPSI NewsWire, Tuesday, January 4, 2011]

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, January 4, 2010




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Alamar Resources signs agreement with Stifel Nicolaus Weisel for potential A$10m capital raising and amends purchase agreement for MRC

January 4 (Proactive Investors) Alamar Resources (ASX: ALG) has amended the initial share purchase agreement for the Mongolian Resource Corporation, and has also signed a letter of engagement with Stifel Nicolaus Weisel for a potential A$10 million capital raising.

A minimum $10 million capital raising is now a condition precedent for the agreement to acquire the Mongolian based diversified resource company.

Stifel Nicolaus Weisel will conduct the proposed $10 million capital raising at $0.25 on a 'best endeavours basis.'

Consideration for the Alamar purchase of the Mongolian Resource Corporation is now:

- 55 million fully paid shares;
- 45 million performance shares; and
- 12.5 million options, exercisable at $0.25 expiring 2 years following settlement.

Alamar has also provided an additional $200,000 loan to Mongolian Resource Corporation.

The directors of Alamar said that the Mongolian Resource Corporation business provides an attractive opportunity to complement the current assets and strategies of the company.

To date, Alamar has entered into direct tenement acquisitions and joint ventures to explore for natural resources, with a focus on gold, copper and uranium.

Due diligence is ongoing.

Link to article



China Fund IDG capital partners becomes major shareholder in Leyshon, Leyshon readmitted to AIM

January 4 (Mineweb) Leyshon Resources Limited (AIM:LRL, ASX:LRL) (Company) advises that it has completed its readmission to the Alternative Investment Market (AIM) of the London Stock Exchange.

As previously advised, as part of its readmission to AIM, the Company has placed 30,435,130 new ordinary fully paid ordinary shares at A$0.23 and raised approximately A$7 million before costs.

The shares have been placed with a number of high profile institutional investors who are supportive of the Company's business plans. The placees include IDG-Accel China Growth Fund II L.P. and its affiliated entity (collectively, "IDG-Accel Funds"), as managed by IDG Capital Partners, which now becomes a major shareholder holding approximately 8% of the Company.

IDG Capital Partners is a China-focused investment firm with over US$2.5 billion capital under management. It is one of the earliest foreign investment funds to enter the Chinese market since 1992 and has successfully invested in the industry of consumer, services, TMT, education, healthcare, new energy and advanced manufacturing sectors, such as Ctrip, Home Inns, Baidu, Soufun, Tencent, Kingdee, Sohu, Andon, Minco Silver, Minco Gold, VANCL and Hanting and has successfully exited from over 50 investments through M&A and/or IPOs in US, Hong Kong and China.

As previously advised the Company is in active discussions for the acquisition of a large thermal coal project in eastern Xinjiang and in addition it is reviewing a number of thermal coal projects in Inner Mongolia. It is continuing the process of applying for exploration licences in south west Mongolia that have the potential to host coking coal.

Following the issue the Company will have cash of approximately A$54 million (including term deposit interest) and 246,525,724 ordinary fully paid shares on issue.

Link to article



North Asia Resources Mongolia Iron Ore Project to Start up in 2011

December 30 ( Iron ore project based in Mongolia has been testing, and will be put into operation in 2011, sad Mr. Xie Nanyang, Vice President of North Asia Resources (HKG:0061).

Its gold sand mine will be started up as of April or May 2011. Mongolian government will revoke the super profit tax in gold sector, and the company is expected to enjoy net cash flow. Mr. Xie highlighted that the company will still take iron ore as key business; iron ore trade takes up 80-90 percent of the company's sales income.

In the past year, the company has invested US$ 60 million in exploiting gold and iron ore mines, said Mr. Xie. Now the company has owned around 150 million tonnes of iron ore reserves in Mongolia.

The company ever announced to input another CNY 170 million to acquire two mines in central Mongolia which hold the reserves over 100 million tonnes. After the acquiring, the company will cost US$ 50 million in exploitation. At the moment, the cash is not a question.

Xie also disclosed that North Asia Resources has bought 20 hectares area from China Railway Corp. to establish the station to facilitate the iron ore transportation. Meanwhile, the company has got the China Railway Corp. Mongolia Branch. The line can load 10 million tonnes of iron ore annually.

As he unfold, Mongolian iron ore is 38 percent in Fe content on average, higher than China Mainland's 10-12 percent Fe contained iron ore. The operation of Mongolian ore can save a half cost, compared to Chinese iron ore.

Link to article



Ivanhoe Energy Given “Neutral” Rating by Zacks Investment

January 2 (americanbankingnews) Equities research analysts at Zacks Investment Research reiterated a “neutral” rating on shares of Ivanhoe Energy Inc. (NASDAQ:IVAN, TSX:IE) in a research note to clients and investors on Thursday.

Ivanhoe Energy Inc. (Ivanhoe) is an independent heavy oil development and production company. The Company operates in four segments: Oil and Gas-Integrated, Oil and Gas-Conventional, Business and Technology Development and Corporate. The Company’s operations are carried out in Canada, China, Mongolia and Ecuador. On July 17, 2009, the Company completed the sale of its wholly owned subsidiary, Ivanhoe Energy (USA) Inc. In July 2009, the Company sold its United States oil and gas operations to Seneca South Midway LLC, a subsidiary of Seneca Resources Corporation. In November 2009, the Company completed the acquisition of PanAsian Petroleum Inc. (PPI), which provides it with the right to explore, develop and produce oil or gas within Block XVI in Mongolia’s Nyalga Basin.

Link to article



Vallar eyes coal acquisition in Mongolia

January 3 (FT) Vallar (LON:VAA), the London-listed cash shell founded by financier Nat Rothschild, is looking at acquisitions of coal assets in North America and Australia worth up to $1bn (£646m) as it seeks to bolster its aspirations to join the FTSE 100.

Vallar is set to be transformed this month under a complex deal that will see it become a vehicle for Indonesia’s powerful Bakrie and Roeslani families in order to list their interests in London.

The cash shell will acquire stakes in two Indonesian coal miners, Bumi Resources and Berau, for $3bn in cash and shares.

In the process, Vallar will be renamed Bumi plc and Mr Rothschild will be joined on the shareholder register by the Bakries and Recapital, one of Indonesia’s biggest private equity firms headed by Rosan Roeslani.

The company will be considering further acquisitions “not before the prospectus for Bumi Plc is released ... so by the end of January, beginning of February”, according to a person close to the company.

Vallar is currently looking at a coal mine in Mongolia as well as coal assets in Australia and North America, although the latter two regions are seen as more probable targets.

“[Vallar] is in the market for a $1bn business in a western economy so Australia and America is more likely [than Mongolia],” said the person.

Acquisitions in North American or Australia could see Vallar overtake Xstrata as the world’s largest producer of thermal coal.

Link to article



ILS Delivers CORS Infrastructure Supporting GIS Mapping in Mongolia

Ulaanbaatar, Mongolia – International Land Systems (ILS), Inc. has successfully delivered the Continually Operating Reference Stations (CORS), a key component to upgrade the Mongolian geospatial network and to map suburban areas. On December 2, 2010, the Ministry of Roads, Transportation, Construction and Urban Development and the Millennium Challenge Account – Mongolia presented the Delivery Ceremony of the CORS. ILS was contracted to implement the CORS as part of the Millennium Challenge Corporation (MCC)–funded Property Rights Project (PRP). 

The PRP seeks to increase the security and capitalization of land assets held by lower-income Mongolians. Project activities will improve the formal system for recognizing and transferring land rights, and issue fully marketable private land titles to ger (a circular collapsible tent used by nomads in Central Asia) area residents in Ulaanbaatar and 8 Regional Centers. 

Transformation from a traditionally nomadic culture to an urban one has presented several unique challenges to the Mongolian Government in terms of land registry and records. In the past 30 years, Ulaanbaatar’s population has nearly tripled in size. ILS Vice President of International Programs, Noel Taylor said, “By upgrading and modernizing their geodetic network and equipment, combined with digitizing from Quickbird satellite imagery, the Mongolian Government will more efficiently survey property boundaries for suburban gers, a critical requirement for granting land titles to Mongolian people. 

The CORS and RTK (real time kinetic) units will be used initially in performing cadastral surveys and capturing ground control points for the orthorectification of satellite imagery, which ILS is also using to map 75,000 property plots. Peri-urban plots, known in Mongolian as hashaa plots will then be privatized and registered through additional project activities. 

In addition, ILS provided six Trimble NetR8 GPS/GNSS units form the CORS infrastructure, while eight Trimble R5 GPS/GNSS base and rover bundles to provide the Mongolian Agency for Land Affairs, Construction, Geodesy and Cartography (ALACGaC) with much needed capacity for carrying out RTK surveys in regional centers. The CORS infrastructure has been established in the cities of Ulaanbaatar, Darkhan and Erdenet.

The Minister of Roads, Transportation, Construction and Urban Development - Battulga. Kh,  Resident Country Director of Millennium Challenge Corporation (MCC) - Robert Reid, and MCA-Mongolia Property Rights Project Director - D. Odonchimeg attended the event. 

Link to article




January 3, Ulaanbaatar, Mongolia, /MONTSAME/ The government of Mongolia has established a trilateral memorandum with Mongolia's Trade Unions (MTU) and Mongolia's Union of Employers (MUE). Aimed at creating a mechanism for tackling conflicts in the mining sector, the memorandum has been inked by Ch.Khurelbaatar, a head of the Cabinet Secretariat, S.Ganbaatar, a chairman of the MTU, and Kh.Ganbaatar, president of the MUE. An initiative to establish the trilateral memorandum belongs to MTU and MUE.

In accordance with the memorandum, researches will be conducted on drawing up a training program for locality's people, businessmen and state officials, promoting citizens' participation and relations in gaining benefits from the mining revenue, consulting at national and local levels, arranging opportunities, and tackling conflicts in the mining sector. 

The MTU's chairman S.Ganbaatar has expressed a hope that the memorandum will strengthen capability of tackling conflicts on national and rural levels in exploitation of mineral resources.

Mentioning that investments in this sector will play a main role in Mongolia's socio-economic development, Ch.Khurelbaatar has underlined that the memorandum will become an important document in solving any conflicts, complaints and matters on exploitation of the mining resources. Besides, related international experiences are to be studied and summarized. 

Link to article

Related article:

Mongolian trilateral agreement aimed at easing mining-stakeholder conflictsMineweb, January 4



The Biggest Tests for Mongolia Lie Ahead

January 3 (WSJ: HEARD ON THE STREET) For many countries, the global financial crisis and its aftermath is the stiffest test they are likely to face for years. For Mongolia, however, the recession, banking crisis and International Monetary Fund package that set the tone for 2008-2009 are likely to pale in comparison with the challenge of managing the next decade. As the country finally unlocks its stockpiles of copper, gold and coal, it will have to cope with unprecedented economic pressures.

Mongolia's enormous Oyu Tolgoi copper and gold complex is expected to start production in late 2012. As a result, the IMF forecasts 2013 gross-domestic-product growth of 28%, the fastest in the world, up from forecast increases of 7%-8% in 2011 and 2012. Foreign direct investment both in the mining industry and in infrastructure is expected to be many multiples of GDP of just $5 billion.

Coping with those flows will be a challenge. The appreciation in the Mongolian togrog against the U.S. dollar is raising fears of Dutch disease, whereby the country becomes ever more dependent on natural resources as money floods in, making other sectors less competitive. The infrastructure needs are colossal: In a country the size of Western Europe, there are fewer paved roads than in Luxembourg, according to Renaissance Capital.

For investors, getting exposure is a challenge. The Mongolian stock market has a market capitalization of about $1 billion, and trades only one hour a day. But the bond market may offer an entry route in 2011. Mongolia plans to tap the bond market, likely for $500 million. Given the enthusiasm for emerging markets and Mongolia's unique opportunities, that could be one of the hottest deals of the year.

Link to article



Welcome to Minegolia

How the land of Genghis Khan became a new Gold Rush San Francisco on the steppe.

January 3 (Foreign Policy) For the first time in as long as anyone can seem to remember, there have been traffic jams in Ulan Bator -- a place previously known mainly either as the answer to a trivia question (Which capital city has the coldest average temperature?) or as a historical curiosity: Asia's Timbuktu, the fabled homeland of Genghis Khan. Until recently, the Mongolian capital had more horses than cars.

No longer. Mongolia is in the middle of an epic gold rush -- think San Francisco in 1849 -- but it's copper and coal that have enticed businessmen, investment bankers, and miners from London, Dallas, and Toronto by the planeload. Today, Ulan Bator is abuzz with talk of options and percentages, yields and initial public offerings. Not since the 13th century, when Genghis Khan consolidated the nomadic tribes of these remote steppes and established an empire that eventually spanned from Eastern Europe to Vietnam, has Mongolia seen so much action. The country's stock exchange (though still the world's smallest) rose 125 percent last year, and the IMF forecasts double-digit GDP growth rates for years to come. Others aren't nearly so pessimistic: Renaissance Capital -- an investment bank that specializes in emerging markets, one of many that have recently set up shop in Mongolia -- notes that overall economic output could quadruple by 2013.

"Mongolia is about to boom. Of that, there is no longer any doubt," says John P. Finigan, the Irish CEO of one of Mongolia's largest banks. A veteran of developing markets in scores of countries, he says the only comparable growth potential he has seen has been in the Persian Gulf oil states.

Link to article



Mongolia top 2010 currency, then Australia

January 3 (Radio Australia) Emerging Asian stock markets have outperformed their western counterparts with this year's stellar performance going to the world's smallest stock exchange - that of Mongolia. The country also had this year's best performing currency, with the Australian dollar coming in second.

Presenter: Claudette Werden
Speakers: Craig James, economist, Commsec; Nick Saijrakh, Asia Pacific Securities, Mongolia; James Thier, Australian Ethical Investments

Link to article



FACTBOX-Key political risks to watch in Mongolia

BEIJING Jan 3 (Reuters) - Landlocked Mongolia sits on vast quantities of untapped mineral wealth and analysts say it could be one of the fastest growing economies of the next decade, as well as a key investment target for global mining giants.

The $6 billion Oyu Tolgoi project, jointly owned by Toronto-listed Ivanhoe Mines , global mining giant Rio Tinto and the Mongolian government, will be the world's biggest copper mine outside top producer Chile once full operation starts in 2013. Plans are also under way to develop the Tavan Tolgoi coking coal mine, the world's biggest untapped deposit of its kind.

To read a multimedia special report on the Oyu Tolgoi copper and gold deposit, click here:

Following is a summary of key Mongolia risks to watch:

Link to article



<Mogi & Friends Fund A/C>

2011 Kicks off with 123% from 108%

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.

Happy New Year!

2011 is starting off well for the Fund. 2 out 3 rose on the first trading day of 2011.




·         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



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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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