Thursday, January 20, 2011

[cpsinewswire] [CPSI NewsWire, Wednesday, January 19, 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 19, 2010




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Metal-Tech warns of write-downs (on Erdenet JV)

Mogi: Previously reported development

LONDON (SHARECAST) - Tungsten and molybdenum recycler Metal-Tech says that it may have to make substantial write-downs if its partner in the Mongolian joint venture Shim-Technology goes ahead with its plan to initiate bankruptcy proceedings against the joint venture. 

Joint venture partner Erdenet Mining Company (EMC) notified the joint venture that, as it is in arrears on the repayment of bank debt of just over $7m, it wants to wind it up. The lender is demanding repayment from EMC, which is guarantor of the loan, on behalf of the joint venture. 

AIM-quoted Metal-Tech argues that EMC’s failure to supply raw materials to the joint venture meant that it could not restart production when metals prices recovered and thereby generate cash to make debt repayments. 

The joint venture has not operated for two years. Metal-Tech’s liability is limited to $500,000. 

Link to article



Xanadu Commences Scoping Study on Galshar Coal Project, Acquires 51% in Elgen-Zos Gold Project

Sydney, Jan 19, 2011 (ABN Newswire) - Xanadu Mines (ASX:XAM) has commenced a scoping study into the options and costs for moving the Galshar coal project forward into a mining operation. Galshar, located in Mongolia, has an exploration target in the range of 175mt to 225 mt of thermal coal. As part of the scoping study, drilling of the currently identified coal seams will also commence to further refine the geological model and define JORC mineral resources. It is expected that some 7500 metres of drilling will be required for this task and drilling is expected to commence in early February.

Link to article

Xanadu earns 51% equity in the highly prospective Elgen-Zos Project

January 19 (XAM release) Following the completion of a scout drilling program in late 2010, Xanadu has earned a 51% equity interest in Altan Xanadu LLC, owner of the highly prospective Elgen-Zos gold project, approximately 30 kms from the Chinese border.

The Joint Venture (JV) area was recently expanded with the acquisition of two new licences, bring the total area of exploration licenses held to 417sq kms. These two licences are contiguous with the previous ground package and help consolidate Xanadu’s land holding over the highly prospective Elgen-Zos area. Within the recently acquired licenses, earlier exploration focused on the Suug prospect, an area of altered sedimentary rocks with strongly anomalous gold, antimony and mercury rock samples.

Diamond drilling was undertaken late in the year to test targets generated from the available geology and CSAMT resistivity survey lines. One hole was drilled on a CSAMT target south west of the Suug prospect. The remaining drilling focused on the immediate Elgen area. Assay results are yet to be received.

Link to full press release




Jan. 18, 2011 ( -- Vancouver, B.C.: Meritus Minerals Ltd. (OOTC:MERMF) (TSXV:MER) (MML)(TSX-V - MER)("Meritus" or the "Company") is pleased to advise that the Geology and Mining Cadastre Division of the Mineral Resources Authority (MRA) of Mongolia has advised the Company in writing that the two Exploration Licences at Gutain Davaa have been extended for 12 months.

Exploration Licence 5575x which was due to expire on 1/4/2011 has now had its term extended until 1/4/2012.

Exploration Licence 6155x which was due to expire on 12/8/2011 has had its term extended until 12/8/2012.

Link to release



TSX Venture Accepts Meritus’ Acquisition of Troy Mongolia ALT Resources LLC

January 18 (TSX Venture Daily Bulletin) TSX Venture Exchange has accepted for filing documentation pertaining to a Sale Agreement between Meritus Minerals Ltd. (the "Company") and Troy Resources NL (TSX: TRY) (the "Vendor"), whereby the Company is acquiring the Vendor's 100% owned subsidiary, Troy Mongolia ALT Resources LLC ("Troy Mongolia"). Troy Mongolia's assets include an 80% shareholding in another Mongolian company Gutai Davaa LLC, various technical data, a data base on gold in Mongolia and the results of a study carried out by the Centre for Exploration Targeting of the University of Western Australia as well as exploration equipment.

In consideration, the Company will pay US$300,000, issue 7,000,000 shares over a 30 month period and issue 7,000,000 share purchase warrants entitling the Vendor to purchase one common share of the Company for a period of three years, at an exercise price of $0.25 if exercised during the first 12 months, $0.35 if exercised during the second 12 months and $0.50 if exercised during the last 12 months.

Link to Bulletin



Prophecy Spins Off Canadian Assets

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 18, 2011)Prophecy Resource Corp. ("Prophecy") (TSX VENTURE:PCY)(OTCQX:PRPCF)(FRANKFURT:1P2) and Pacific Coast Nickel Corp. ("PCNC") (TSX VENTURE:NKL) (the "Companies") are pleased to announce that they have entered into a binding letter of agreement dated January 17, 2011 (the "Agreement") whereby PCNC will acquire Prophecy's Nickel PGM projects by issuing common shares to Prophecy. (the "Transaction").

Terms of the Transaction

Pursuant to the Agreement, PCNC will acquire the Wellgreen PGM Ni-Cu and Lynn Lake nickel projects located in the Yukon Territory and Manitoba respectively (the "Properties") by issuing up to 550 million common shares of PCNC to Prophecy. PCNC currently has 55.7 million shares outstanding.

Following the Transaction,

·         Prophecy will own approximately 90% of PCNC.

·         PCNC will consolidate its share capital on a 10 old for 1 new basis.

·         Prophecy will change its name to "Prophecy Coal Corp." and PCNC will be renamed as "Prophecy Platinum Corp."

·         Prophecy intends to distribute half of its PCNC share to shareholders pro rata in accordance with their holdings (the "PCNC Distribution").

Based on the closing price of the common shares of PCNC on January 17, 2010, being $0.195 per share, the gross value of the Transaction is $107,250,000.

John Lee, the current Chairman of PCNC, is appointed Interim CEO of PCNC effective immediately. PCNC thanks Mr. James Walchuk, departing PCNC CEO for his invaluable experience and service to PCNC.

Highlights of the Transaction

·         Prophecy shareholders realize the value of Prophecy's Canadian projects through PCNC distribution.

·         PCNC becomes a mid-tier resource firm with substantial Nickel PGM assets, including Wellgreen (Yukon), Lynn Lake (Manitoba), and Las Aguilas (Argentina) projects.

·         Prophecy sets pure focus on its Mongolian coal operation, while holding equity positions in PCNC and Victory Nickel Inc.

·         PCNC will have Prophecy as a major shareholder, and leverage the marketing and technical expertise of Prophecy.

John Lee, Chairman and CEO of Prophecy states: "This transaction unlocks the intrinsic value of Prophecy's assets. Investors will have a choice to own Prophecy Coal for 1.4-billion-tonne coal exposure, or own Prophecy Platinum for unique and significant Nickel PGM exposure."

Link to release

Related article:

Prophecy Resources: Building Asia’s Next Energy Company Proactive Investors, January 17



Ivanhoe rights offering set to expire shortly

* Offering to result in the issue of about 85 mln shares

* Rights offering to potentially raise about $1.2 bln (All figures in U.S. dollars, unless noted)

Jan 18 (Reuters) - Ivanhoe Mines Ltd (IVN.TO) said on Tuesday its rights offering to fund the development of the first phase of its massive Oyu Tolgoi copper and gold project in southern Mongolia, is set to expire next week.

The offering, which is expected to raise roughly $1.2 billion, will result in the issue of about 85 million new common shares. This represents about 15 percent of the mining company's outstanding shares, as of Dec. 31.

The rights offering is structured so that 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 buy 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, the company said in a statement.

Link to article

Link to Ivanhoe press release




Bringing a Monastery Back to Life

January 19 (NYT) KARAKORUM, MONGOLIA — Erdene Zuu, Mongolia’s oldest surviving Buddhist monastery, is a sprawling, windswept complex nestled in the Orkhon Valley, the ancient cultural crossroads where Genghis Khan chose to locate the capital of his empire, Karakorum, back in 1220. The monastery — which dates to 1586 and was built with stones from the ruined capital — once had 60 temples and 1,000 monks who lived in hundreds of gers dotted throughout the swaying grass. Now it has just 54 monks, none of whom live on the site, and 13 temples, only one of which — the Lama Temple — can be used for worship.

Link to article



Montblanc Makes Its Mark in Mongolia

January 17 (WSJ) A surge in Asian sales was the story behind Compagnie Financiere Richemont’s 33 percent increase in third quarter sales.

Booming sales in China along with increased spending by Chinese tourists coming to Europe to buy luxury Cartier jewelry and high-end Roger Dubuis and Piaget watches, were responsible for much of the upswing.

Not really surprising, but what about some of the less obvious Asian markets—like Mongolia?

Wandering around the 21st Salon International de la Haute Horlogerie (SIHH), I bumped into the director of Ulaanbaatar’s only Montblanc boutique. Indeed the only Montblanc boutique in the entire country.

Amgalan Enkhbazar opened the store last year and since then business is doing well: “People in Mongolia used to worship mountains, so the name Montblanc—as the biggest mountain in Europe—has a particular appeal to them,” he said. “Customers also buy things to bring them luck and it is important to have luck in business and life.”

Link to article



<Mogi & Friends Fund A/C>


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

Fairly stable.




·         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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