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 mogi@cpsinternational.mn or +976-99996779.
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Close: Mongolia Related ASX Listed Companies, May 17, 2011 | ||||||||
Code | Last | $ +/- | Bid | Offer | Open | High | Low | Volume |
0.052 | 0.001 | 0.052 | 0.053 | 0.051 | 0.055 | 0.051 | 2,852,657 | |
1.395 | -0.080 | 1.380 | 1.395 | 1.475 | 1.475 | 1.370 | 702,448 | |
0.310 | -0.015 | 0.310 | 0.320 | 0.320 | 0.320 | 0.295 | 224,600 | |
0.690 | -0.030 | 0.685 | 0.690 | 0.720 | 0.725 | 0.670 | 2,371,088 | |
0.015 | -0.001 | 0.014 | 0.015 | 0.019 | 0.020 | 0.015 | 22,731,810 | |
0.007 | 0.000 | 0.006 | 0.007 | 0.000 | 0.000 | 0.000 | 0 | |
0.053 | -0.001 | 0.051 | 0.053 | 0.054 | 0.057 | 0.051 | 3,431,530 | |
0.175 | -0.005 | 0.175 | 0.180 | 0.180 | 0.185 | 0.170 | 171,211 | |
1.140 | 0.025 | 1.135 | 1.140 | 1.140 | 1.175 | 1.130 | 1,972,647 | |
0.255 | -0.010 | 0.245 | 0.260 | 0.260 | 0.260 | 0.255 | 90,040 | |
0.500 | 0.000 | 0.450 | 0.500 | 0.000 | 0.000 | 0.000 | 0 | |
0.470 | -0.040 | 0.470 | 0.480 | 0.500 | 0.500 | 0.470 | 137,931 | |
23.540 | -0.010 | 23.510 | 23.550 | 23.570 | 23.590 | 23.230 | 955,710 | |
80.250 | 1.190 | 80.220 | 80.340 | 80.000 | 80.440 | 79.520 | 2,578,991 | |
44.150 | 0.630 | 44.150 | 44.160 | 44.050 | 44.240 | 43.910 | 11,372,703 | |
Source: asx.com.au
CNNC International Sells Diecasting Business
May 17 (Capital Vue) – CNNC International (2302.HK) sold its metal casting business for 159 million HK dollars and shares trading resumed this afternoon, reports Reuters. The motivation to sell comes from a hike in raw material costs, labor supply shortages and higher wage costs.
Proceeds will be used in exploration of mines and trade in uranium resources.
The firm will negotiate with the government of Mongolia on rights of mining uranium and will start a related project next year. The project is expected to have capacity of 500 tons by 2015.
At present, uranium is worth 1.14 million HK dollars per ton.
Excerpt from CNNCI Announcement:
FOLLOWING COMPLETION OF THE DISPOSAL AND FUTURE BUSINESS PLAN
Following completion of the Disposal, the Group (other than the Disposal Target Group) will continue to engage in the exploration and trading of mineral properties. The segment assets of the exploration and trading of mineral properties amounted to approximately HK$964,307,000 at 31 December 2010. The two existing uranium projects, one in Mongolia and another one with 37.2% ownership in Niger, held by the Group are in their initial stages, through which the uranium segment is destined to endow shareholders with substantial returns upon maturity.
(i) Mongolia Project
In June 2009, the Group acquired 69.5% equity of Western Prospector Group Ltd. (‘‘Western Prospector’’) and in August 2009, the Group acquired the remaining 30.5% of Western Prospector. Western Prospector is principally engaged in the acquisition, exploration and development of mineral properties. Western Prospector’s mineral property interests, consisting of various uranium exploration licenses of uranium property projects located in Mongolia. All the exploration works have been completed in 2010.
The Group expects to finalize the negotiations with the Mongolian Government for the issuance of mining licenses of such uranium property in 2011. Construction work is expected to commence in 2012. Trial runs for production are expected to commence in 2014. Based on the Group’s experience, expertise and technology in the exploration and development of mineral properties and the current conditions of the said uranium mine, the Group expects that the most efficient and economical production for 2015, 2016 and 2017 may achieve approximately 300 tonnes, 500 tonnes and 700 tonnes respectively. The current market price for 1 tonne of uranium product is approximately HK$1,146,000.
Russia to supply enough diesels this month
May 17 (business-mongolia.com) Working group lead by Deputy Minister for Mineral Resources and Energy B.Ariunsan paid official visit to Russia. They have met with officials and discussed about increasing export of diesel fuel from Russia.
Over 40 thousand tons of diesels will be exported to Mongolia in May and this will meet the normal monthly demand of 34,000 tons plus this month’s special needs for spring planting.
The Mineral Resources and Petroleum Authority does not anticipate any rise in retail prices. The higher price of USD1, 250 per ton that TNK LLC is charging will be offset by the Government’s decision to reduce the special import tax.
The Ministry of Minerals and Energy hopes things will be normal in June when Russia will have lifted restrictions on diesel export.
Having its own oil refinery is the only way Mongolia can break out of its dependence on Russia for its fuel needs. The Government wants a refinery to use the 120,000 tons of crude drilled in Tamsag and 300,000 tons in Zuunbayan.
The Chinese company PetroChina Daqing Tamsag LLC exports all the crude it produces in Tamsag and will be asked to send it to the Mongolian refinery instead, when it is built.
Mongolia Energy (00276) issues HK$2bn CNs to Chow Tai Fook
May 13 (ETNet) Mongolia Energy Corporation (00276) said it entered into a subscription agreement with subscriber Chow Tai Fook Nominee Limited yesterday after trading hours and Chow Tai Fook Nominee agreed to subscribe for 3% convertible notes due 2014 in the principal amount of HK$2 billion, which proceeds will be used by Mongolia Energy to redeem the 2008 note in full.
The initial conversion price is HK$2 apiece, representing a premium of about 18.34% to the closing price of HK$1.69.
Assuming the conversion rights to the notes are exercised in full, a total of 1 billion shares will be allotted and issued, representing about 13.15% of the enlarged issued share capital of Mongolia Energy.
No application will be made for listing of, or permission to deal in, the notes. (HL)
Blina Minerals acquires stake in Mongolian licence to explore for gold copper
May 17 (Proactive Investors) Blina Minerals (ASX: BDI) has signed a binding term sheet with Mongolian company BSI to explore a prospective gold copper property in Mongolia.
The company can acquire an interest in the licence area through a joint venture company which in turn would own the licence and the license area. Currently, BSI is the sole holder of the license.
The terms of the deal include Blina paying BSI US$270,000 upfront, which will give Blina access to the area to conduct a legal and technical due diligence.
Blina also has committed to spend US$0.5 million on exploration in 2011 while conducting the legal and technical due diligence.
On 23 December 2011, following the outcome of the legal and technical due diligence, Blina has the option to progress the arrangement by paying BSI US$400,000 to secure a 51% share in the license area.
BSI may elect up to half of this payment to be made by way of Blina shares at $0.35 per share (up to a maximum of about 5.7 million shares).
On acquiring the 51% interest, Blina has the right over the next three years, commencing on 24 December 2011, to spend a total of US$2.5 million to further explore the property.
This spend will allow Blina to increase its stake in the ownership of the licence area according to the following arrangement:
- Year 1 – Spend US$750,000 to own 61%;
- Year 2 – Spend US$750,000 to own 71%; and
- Year 3 – Spend US$1,000,000 to take the ownership stake in the licence area to 85%.
BSI will be free carried by Blina to the completion of expenditure and Pre-Feasibility Study.
As part of the deal a management committee will be established consisting of two representatives from Blina and one from BSI and will oversee the progress of the exploration project.
Once Blina has earned an interest of 85% in the license area, the parties will jointly fund a Bankable Feasibility Study or be diluted according to an agreed formula.
In all cases BSI will retain the right to a 2.25% Net Smelter Revenue (NSR) as defined by the AMPLA Model Framework Minerals Royalty Deed.
BSI will receive US$150,000 per annum for three years for administrative and legal matters relating to the project.
The licence area covers 21,091 hectares and is located in the Bayankhongor region of Mongolia that is 500 kilometres southwest of Ulaanbaatar.
The property is prospective as the surface expression of the copper mineralised linear stock work veining may indicate the existence of a deeper porphyry system.
In 2008, BSI carried out detailed exploration at one of the property’s prospects covering 34 square kilometres using detailed geological mapping and prospecting, geophysical and geochemical survey, petrographic and mineralogical techniques.
Prospected by Russian geologists in the 1940s, the property contained old Chinese workings.
VOYAGER RESOURCES LIMITED – COMPLETION OF ENTITLEMENT OFFER
May 17, Voyager Resources Limited (ASX:VOR) --
Please be advised that Voyager Resources Limited (the Company) has received applications for 16,765,241 shares pursuant to the Entitlement Issue Prospectus dated 7 April 2011. The Company has notified the Underwriter to the offer the shortfall of 88,025,240 shares. The Company will now proceed with the allotment process and dispatch of holding statements.
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Mongolia Growth Group Ltd. Announces Hiring of New CFO
Thunder Bay, Ontario CANADA, May 16, 2011 /FSC/ - Mongolia Growth Group Ltd. (YAK - CNSX),is pleased to announce the hiring of Matthew Aiken, CA as MGG's new Chief Financial Officer. Mr. Aiken is replacing Jordan Calonego, the Company's COO, who served as interim CFO while MGG conducted a search for a permanent CFO. Mr. Aiken has extensive auditing, Canadian financial reporting, and IFRS accounting experience. He was most recently employed as a Manager with BDO Canada in its Auditing department in the Mississauga, Ontario office. Mr. Aiken served as the lead auditor for many clients in the insurance and property industries, areas in which MGG is developing operations.
"After an extensive executive search we are very pleased that a professional of Matthew's caliber has decided to join our company," said Jordan Calonego, COO of the Company. "He exhibits all of the qualities we admire: a keen intellect, unmatched integrity and a highly proficient work ethic."
"I'm excited about the opportunity to work for such an enterprising company. Mongolia has a very bright future and I'm excited to be part of it", said Mr. Aiken.
Khan Resources stranded in the bitter Mongolian cold
May 17 (The Globe and Mail) Underneath the endless brown steppe in the remote northeastern corner of Mongolia, known as Dornod, lies a vast store of uranium.
It’s a four-hour drive on a dirt track from Mongolia’s capital, Ulan Bator, to what is now just a collection of yurts. Six security guards, employees of Canadian junior miner Khan Resources Inc., (KRI-T)are stationed there.
“If you stand on the hill that’s right beside the deposit, you look one way, you can see China,” said Grant Edey, Khan’s chief executive officer. “You look the other way, you see Russia.”
That proximity to Russia has come to haunt Mr. Edey’s company. In 2009, Mongolia revoked Khan’s mining licences and announced a joint venture with Russian state-owned uranium miner Atomredmetzoloto JSC (ARMZ) to develop the Dornod site. Khan, which says it is has spent up to $40-million since 2005 on feasibility studies and exploration, was left out in the bitter Mongolian cold.
The dispute has sparked legal battles in Ontario and Mongolian courts, and is headed for international arbitration. Legal experts call it a cautionary tale for companies doing business in Mongolia or other developing countries, or with large state-owned enterprises.
Mongolia is a popular place with Canadian mining firms, with scores setting up shop there in recent years and Ivanhoe Mines involved in a massive copper-gold joint venture.
Last September, Khan launched a lawsuit in Ontario against ARMZ, one of the world’s largest uranium miners. In a statement of claim for $700-million in damages, Khan alleges that the Russian firm wrongly excluded the Canadian company from the Dornod project and waged a campaign to discredit it.
Earlier this year, Mr. Edey said, ARMZ, as an arm of the Russian government, refused to be served with the Ontario lawsuit, invoking the Hague Convention and calling it an issue of “national security,” raising questions about whether such entities can try to use sovereign immunity as a tactic to delay or avoid Canadian courts.
Robert Frank, a Toronto lawyer with McLeod Dixon LLP acting for ARMZ, said he could not comment on the case.
A court date last month to hear the issue was postponed for settlement talks between the two sides in London, but no agreement was reached. Mr. Edey expects a judge to hear the issue some time in June.
Larry Herman, a former diplomat and a lawyer with Cassels Brock & Blackwell LLP who specializes in international arbitration, said the dispute shows how vulnerable Canadian investors are in countries without an investment-protection treaty with Canada.
Such treaties, similar to a provision in the North American free-trade agreement, allow disputes between investors and foreign countries to be referred to international arbitration directly, without first having to duke it out in the country’s local courts. (Canada and Mongolia have such a treaty in the works but it has not been finalized.) “When there is no bilateral investment-protection agreement, companies don’t get access to all of the safeguards,” said Mr. Herman, who is not involved in the case.
Andrew McDougall, a lawyer and veteran of international arbitration with Ottawa firm Perley-Robertson, Hill & McDougall LLP, said stories such as that of Khan Resources are a warning for Canadian companies operating in developing countries.
More companies need to plan strategically, he said, perhaps by setting up a company in a third country with a strong investment-protection treaty with the country where the investment is going.
“When you’re company that’s going to invest in these sorts of places in the world, you want to think in advance: How do we set this up to give us the maximum protection if something goes wrong?” said Mr. McDougall, who is not involved in the case.
Mongolia has a long history of Russian, and Chinese, domination. The Dornod project once belonged to Russia, in the 1990s. With uranium prices in the basement, the Russians abandoned it, Mr. Edey said. But they still retained a 21-per-cent interest in the dormant venture. Mongolia also maintained a 21-per-cent interest.
Uranium prices started to rise as the world began to look again to nuclear power as a cleaner energy source. In 2005, Khan – listed on the Toronto Stock Exchange and set up to develop the site – bought the remaining 58-per-cent stake, and also acquired the property next door.
As a result, Mr. Edey said, his company held about 70 per cent of the estimated uranium believed to be underground, with the total cache worth up to $2.5-billion (U.S.) at today’s prices.
The plan was to develop the site as a joint venture. Mr. Edey said the Russians showed little interest until early 2009, when President Dmitry Medvedev paid a visit to the remote site, along with Mongolia’s then-prime minister, Sanjaagiin Bayar.
Meanwhile, Mongolia was reconsidering the rules of the game. In 2009, it issued a new nuclear energy law that demanded an up-front, 51-per-cent government stake in most major uranium projects. It also suspended Khan’s mining licences and said the company had failed to submit its reserve estimates, which Khan denies. Russia and Mongolia then announced their joint venture to develop Dornod, leaving Khan out of the picture.
In late 2009, ARMZ launched a hostile takeover bid for Khan, whose share price had plummeted because of the uncertainty about the Mongolian project. Khan sought a white-knight investor in the form of CNNC Overseas Uranium Holding Ltd., a Chinese state-owned company, and ARMZ then withdrew its bid.
In its statement of claim, Khan accuses ARMZ of interfering with the Chinese bid and making “misstatements” about the company. The Chinese bid ultimately fell through when the Chinese government failed to approve it.
Mr. Edey said he doesn’t believe Khan can ever reclaim the Dornod mine, but he is trying to get some compensation for his shareholders, and has shifted his sights to a stake in a uranium venture in Peru.
He said Khan’s trials should be a warning to other Canadian firms and investors: “Political risk is real in a lot of countries. And it is alive and well in Mongolia.”
Mongolia resumes coal shipment to China
May 17 (Xinhua) Coal shipment from Tavan Tolgoi, a coal mine in southern Mongolia, to China resumed, local media reported Monday.
The Mongolian government suspended, on grounds of environmental damage, coal trucking operation of Mongolian Mining Corporation, a private company listed on Hong Kong Stock Exchange, on the road from the Tavan Tolgoi area, in South Gobi desert of Mongolia, on April 20 .
The government asked the company to build "paved road" from the mine to border and improve safety and environmental standards as the company had hauled the coal to the border on 1,000-meter-wide dirt roads.
On Saturday, the government lifted the ban on coal delivery after the company made some improvement of the dirt roads, according to local reports.
Khaltmaa Battulga, minister of road, transportation and construction and urban planning, said earlier that no coal will be delivered from the mine until the company builds "paved road."
However, Battulga's remarks were criticized by some cabinet ministers as coal tax provides a big chunk of the government revenue.
Frontier Securities To Hold "Mongolia: Capital Raising And Investment" Conference On June 6-10 In Ulaanbaatar
Ulaanbaatar, May 17, 2011 (ABN Newswire) - Frontier Securities is cordially inviting you to join its annual conference "Mongolia: Capital Raising and Investment", on June 6th-10th, 2011 in Ulaanbaatar, Mongolia.
The conference provides a perfect opportunity for those who are interested in exploring the latest developments in Mongolia's business environment from key direct sources. Investors will be able to discover lucrative investment opportunities and Mongolian companies will benefit, learning various methods of raising capital from abroad.
At this year's conference senior managers from Korea Stock Exchange, Hong Kong Stock Exchange, Australian Securities Exchange, Deutsche Börse AG and Tokyo AIM will share their knowledge and insights regarding capital raising with the audience.
The event's other main discussion theme will gravitate around investment opportunities in Mongolian Mining, Real Estate and other booming industries. Confirmed participants of the conference so far include investment banks and investors such as BOCI, CICC, Citigroup, J.P. Morgan, Quam Asset Management Fund, as well as professional entities such as Hogan Lowells, American Appraisal, Moody's Investors Service and CRU International.
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Mongolia: Mitsubishi Fuso enters Mongolia
May 17 (AutomotiveWorld.com) Mitsubishi Fuso Truck and Bus Corporation (MFTBC) has announced its entry into the Mongolian market with the launch of its FE Canter light-duty trucks (GVW 4.7-7.2 tons) and FK Fighter medium-duty trucks (GVW 11.0 tons). The trucks will imported from Japan and sold through the dealer network of Mongolian Star Melchers (MSM), based in Ulaanbaatar, Mongolia.
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Mongolia reports another outbreak of PRRS
May 17 (vetsweb.com) Mongolia has reported another outbreak of Porcine Reproductive and Respiratory Syndrome (PRRS).
The outbreak was first notified on May 9, in Tseel district in the province of Govi Altai, in the country’s South West. The province in the south borders to China.
PRRS was found in a herd of 39 swine, of which 20 had caught the disease and died.
The Ministry of Food, Agriculture and Light Industry in Ulanbaataar communicated the reoccurrence of the disease to the Organization for Animal Health (OIE) on May 16, 2011.
Control measures applied included quarantine, screening, dipping. Vaccination or treatment will not be applied – stamping out will.
<Mogi & Friends Fund A/C>
Historic +25.5%, Qtd -28.6%
Mogi & Friends Fund is a tiny fund of A$23K I created in late September with a few friends to put my own (and a few friends’) money where my mouth (just mine) is.
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Mogi
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"Mogi" Munkhdul Badral
Executive Director
CPS International LLC
Telephone/Fax: +976-11-321326
Mobile: +976-99996779
Email: mogi@cpsinternational.mn
P Please consider the environment before printing a copy of this email.
Central Tower · 12th Floor · Left Wing · 2 Sukhbaatar Square
Sukhbaatar District 8 · Ulaanbaatar 14200 · Mongolia
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 mogi@cpsinternational.mn or +976-99996779.
Disclosure/Disclaimer
CPS Securities, its directors and employees advise that they may hold securities, may have an interest in and/or earn brokerage and other benefits or advantages, either directly or indirectly from client transactions mentioned in correspondence from CPS International.
CPS International advise this email contains general information only and does not include advice. In preparing this communication, CPS International did not take into account the investment objectives, financial situation and particular needs of any person. As with any speculative mining company there are significant risks.
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