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Close: Mongolia Related ASX Listed Companies, August 22, 2011 | ||||||||
Code | Last | $ +/- | Bid | Offer | Open | High | Low | Volume |
0.080 | 0.005 | 0.079 | 0.080 | 0.079 | 0.083 | 0.079 | 38,429,530 | |
1.090 | 0.025 | 1.090 | 1.100 | 1.070 | 1.120 | 1.030 | 502,464 | |
0.200 | 0.000 | 0.185 | 0.200 | 0.000 | 0.000 | 0.000 | 0 | |
0.475 | 0.035 | 0.460 | 0.475 | 0.440 | 0.480 | 0.430 | 1,452,342 | |
0.010 | 0.000 | 0.010 | 0.011 | 0.010 | 0.011 | 0.010 | 1,684,058 | |
0.092 | -0.002 | 0.091 | 0.092 | 0.094 | 0.098 | 0.088 | 9,021,742 | |
0.135 | 0.020 | 0.135 | 0.145 | 0.125 | 0.135 | 0.125 | 129,100 | |
0.950 | 0.025 | 0.935 | 0.950 | 0.950 | 0.955 | 0.910 | 587,295 | |
0.300 | 0.000 | 0.280 | 0.290 | 0.000 | 0.000 | 0.000 | 0 | |
0.043 | -0.004 | 0.043 | 0.046 | 0.047 | 0.047 | 0.043 | 5,925,437 | |
0.380 | -0.015 | 0.380 | 0.395 | 0.395 | 0.395 | 0.365 | 237,429 | |
21.520 | 0.110 | 21.500 | 21.520 | 21.590 | 22.190 | 21.350 | 2,051,349 | |
68.580 | -0.840 | 68.580 | 68.660 | 69.310 | 70.580 | 68.430 | 4,466,173 | |
37.530 | 0.030 | 37.520 | 37.530 | 37.220 | 38.470 | 37.120 | 14,386,829 | |
Source: asx.com.au
WEG up 200% in early trading
Wedge Announces Reverse Takeover by UTMI
OTTAWA, ONTARIO--(Marketwire - Aug. 22, 2011) - Wedge Energy International Inc. (the "Company") (CNSX:WEG) announced that the Company has entered into an arrangement agreement with Undur Tolgoi Minerals Inc. ("UTMI"), providing for the acquisition by the Company of all of the issued and outstanding shares of UTMI. The agreement gives effect to the reverse takeover previously announced by the Company on June 20, 2011.
The acquisition will be effected by court-approved plan of arrangement under the Business Corporations Act (British Columbia) among UTMI, the Company and the Company shareholders.
Prior to completing the arrangement, the Company will submit to its shareholders for approval its continuance under the Business Corporations Act (British Columbia). The arrangement is conditional upon such continuance being approved and implemented.
In connection with the arrangement, the Company will, among other:
a. redeem all of its outstanding convertible notes issued in January 2010 and July 2010, as amended, at a redemption price equal to the principal amount owing pursuant to such notes plus all applicable and unpaid interest thereon up to but excluding the date of the arrangement;
b. cause for the surrender and cancellation of all of its outstanding warrants;
c. cause for the surrender and cancellation of all of its outstanding options to purchase shares granted under its stock option plan;
d. effect a share consolidation on a 20:1 basis;
e. issue new shares in exchange for all of the issued and outstanding shares of UTMI; and
f. amalgamate with UTMI (following the share exchange), with the resulting issuer adopting the name to "Undur Tolgoi Minerals Inc.".
The arrangement is subject to the completion by the Company of an equity financing of a minimum of $2,500,000 by means of private placement.
The arrangement was unanimously approved by the Company's board of directors (with Mr. James Passin abstaining, as he is an officer and manager of one of the shareholders of UTMI). In doing so, the board determined that the arrangement is fair to the shareholders of the Company other than the interested parties, is in the best interest of the Company, and it authorized the submission of the arrangement to the security holders for approval. The board also unanimously agreed (with Mr. James Passin abstaining) to recommend to the Company security holders that they vote in favour of the arrangement.
Full details of the arrangement and related transactions will be included in the Company's management information circular which is expected to be mailed to security holders in September 2011.
The Consolidation
As part of the arrangement, the Company will consolidate its outstanding common shares on the basis of 1 (new) for 20 (old) shares. The Company currently has 44,244,392 common shares outstanding. Post-consolidation (but prior to the completion of the arrangement and the private placement), the Company will have approximately 2,212,220 common shares issued and outstanding.
The Share Exchange
The Company will also acquire all of the issued and outstanding shares of UTMI in exchange for the equivalent number of shares in the Company, which will result in UTMI shareholders holding, as a group, approximately 90% of the post-consolidation (but pre-private placement) outstanding common shares of the Company.
Treatment of Other Securities
All of the Company's outstanding warrants and options to purchase common shares will be cancelled without consideration, and outstanding convertible notes will be redeemed at a redemption price equal to the principal amount owing pursuant to such notes plus all applicable and unpaid interest thereon up to but excluding the date of the arrangement.
The Amalgamation
Following the Company's acquisition of UTMI by means of the share exchange described above, UTMI will be a wholly-owned subsidiary of the Company. The Company and UTMI will then amalgamate, and the resulting issuer will adopt the name to "Undur Tolgoi Minerals Inc.". Existing Company shareholders will receive the equivalent number of shares in the amalgamated entity, taking into account the consolidation.
Upon completion of the arrangement (but prior to the completion of the private placement), and assuming no additional securities of either the Company or UTMI are issued prior to closing, it is anticipated that the resulting issuer will have approximately 22,187,867 common shares outstanding.
Board of Directors and Management of the Resulting Issuer
Under the terms of the plan of arrangement and pursuant to the amalgamation, the board of directors of the resulting issuer will be comprised of 5 directors. A new management team will also be appointed. The following are the names and biographies of the proposed directors and officers:
Sabino Di Paola (Chief Financial Officer and Secretary). Mr. Sabino Di Paola is a Chartered Accountant in the Provinces of Quebec and Ontario and a member in good standing of The Quebec Order of Chartered Accountants as well as the Order of Chartered Accountants of Ontario. He has a wide variety of experience in computer systems and consulting, and has worked with international accounting firms performing engagements on both the public and private sector organizations. He is also a Chief Financial Officer with three other junior exploration companies.
Donald Padgett (Director, President and Chief Executive Officer). Mr. Padgett is an experienced senior management leader with a proven track record of developing and executing successful strategies for profitable international business ventures. He has served as Chairman, President and director of several public and private companies. Mr. Padgett has also enjoyed a successful investment banking career in senior management positions including: Managing Director of the investment banking group at Canaccord Financial Ltd.'s Western Canadian office and more than 10 years as a senior member of the Investment Banking Group at Burns Fry, now Nesbitt Burns. Mr. Padgett holds a law degree from Dalhousie University, an MBA from McMaster and a Bachelors of Science from University of Toronto.
James Passin (Director). Mr. James Passin is a Fund Manager at Firebird Management LLC. He joined the firm in 1999. Mr. Passin is the Co-Founder and Manager of Firebird Mongolia Fund, Firebird New Mongolia Fund, Firebird Global Fund, and Firebird Global Fund II and a Principal at FGS Advisors LLC and FG2 Advisors LLC. He is a director of a number of both public and private Mongolian and Canadian companies, including Sharyn Gol JSC, Baganuur JSC, and NIBank. Mr. Passin has served as Director of Wedge Energy International Inc. since January 28, 2010. Mr. Passin is a graduate of St. John's College, where he majored in Philosophy and Classical Literature. Mr. Passin has directed Firebird's portfolio and private equity investment activity in Mongolia since 2006.
Paul Rapello (Director). Mr. Paul S. Rapello is a Partner at Great Circle Capital. He also founded the firm and works at The Great Circle Fund, L.P. Mr. Rapello has served in senior executive positions for United States based enterprises engaged in finance, capital markets, and investments in international shipping and emerging capital markets for over 15 years. He has extensive experience investing in and providing finance to transportation sector. From March 1999 to December 2000, Mr. Rapello was a Managing Director at Stanton Capital Corp., where his responsibilities included the monitoring the firm's portfolio in emerging markets. From March 1997 through December 1998, he was a Vice President of the Leveraged Finance Group at Credit Suisse First Boston. From January 1993 to March 1997, Mr. Rapello was in the Investment Banking Department of Paine Webber with a focus on basic industries. He serves as a Director of Wedge Energy International Inc. since January 28, 2010; STS Logistics; Russian Logistic Service; and Balnak Logistics Group. Mr. Rapello was a Director of Caspian Services Inc. He received an M.B.A. from Columbia University Graduate School of Business and a B.A. from Georgetown University.
Orgilmaa Siikhuu (Director). Mrs. Orgilmaa Siikhuu is the Chief Legal Officer of the NIBank, in Ulaanbaatar, Mongolia. Mrs. Siikhuu served as secretary to the Bank's Board of Directors. Mrs. Silkhuu holds a law degree from the Law School of the State University of Mongolia and is a member of the Mongolian Advocates Association.
Larry Van Hatten (Director). Mr. Larry Van Hatten was a partner of Ernst & Young LLP, from May 2005 to June 2010, leading its Vancouver assurance practice until announcing his retirement in June 2010. Prior to May 2005, Mr. Van Hatten was the managing partner of Ellis Foster, Chartered Accountants, a Vancouver based firm that merged into Ernst & Young LLP in May 2005. From June 2002 to May 2006, Mr. Van Hatten was a director of Saxon Oil Company, an international oil and gas company engaged in the acquisition, development and production of oil and natural gas reserves. Mr. Van Hatten also served on the board of the BC Children's Hospital Foundation, which he chaired from 1996 to 1999. Mr. Van Hatten is currently a director of Kensington Court Ventures Inc., a capital pool company, and PNG Gold Corporation, a premier gold exploration and mine development company in Papua New Guinea. Mr. Van Hatten received his Chartered Accountant designation in 1975 and his Fellow Chartered Accountant designation in 2009. In 2010, he completed the academic requirements for the Directors Education Program.
Conditions of Closing
Completion of the transaction will be subject to certain conditions, including:
a. the Company obtaining approval of (i) at least two-thirds of the votes cast by the Company's shareholders, (ii) at least a simple majority of the votes cast by the Company's shareholders, excluding interested parties, (iii) at least a majority in number and three-fourths in value of the holders of the Company's notes, and (iv) at least two-thirds of the votes cast by the Company's security holders (voting together as a single class on the basis of one vote per share, one vote per option, one vote per warrant, and one vote for each share into which the notes are convertible);
b. the Company obtaining the approval of the OSC and the Minister of Finance (Ontario) for the continuance and effecting the continuance;
c. the Company obtaining the consent of CNSX and the approval of the court in connection with the arrangement;
d. the Company redeeming all of its outstanding Series A Preferred Shares in accordance with their terms;
e. the Company's shareholders shall not have exercised dissent rights in respect of the continuance or the plan of arrangement in excess of 5% of the Company's issued and outstanding common shares;
f. UTMI obtaining approval of its shareholders to the transaction;
g. the Company and UTMI obtaining approval from their respective boards of directors; and
h. neither the Company nor UTMI having suffered a material adverse effect.
The Company will be calling a special meeting of its security holders to consider the continuance, the transaction and related matters.
Purpose and Business Reasons for the Transaction
Through its wholly owned subsidiaries, UTMI wholly owns an interest in an exploration license for a property situated approximately 100 kilometers from Ivanhoe Mines Ltd. "Oyu Tolgoi" copper and gold mine. The license covers approximately 9620 hectares of property and allows for the exploration of all minerals except uranium, petroleum, gas and water. Upon completion of the transaction, the resulting issuer will hold the rights to this license.
The Company and UTMI have agreed to use best efforts to complete the transaction on or before December 30, 2011. Each of the Company and UTMI has agreed that, until completion of the transaction or termination of the arrangement agreement, it will not solicit, initiate or encourage the sale of any of its securities to a third party.
Concurrent Private Placement
The Company plans to complete a concurrent, non-brokered private placement of up to $5,000,000 through the sale of up to 25,000,000 shares of the amalgamated entity at a price of $0.20 per share. The closing of the private placement will be conditional upon the closing of the transaction.
The intended proceeds of the private placement are for the funding of the redemption of the Company's outstanding convertible notes and Series A Preferred Shares, the further exploration of the area covered by the exploration license as well as for general corporate purposes. The shares to be issued pursuant to the private placement will be subject to statutory hold periods pursuant to applicable securities laws, expiring four months after the closing date.
The Company anticipates participation in the private placement by "related parties", including the existing UTMI shareholders, who have agreed to commit a minimum of $2.5 million, as well as management and it will therefore constitute a "related party transaction" under relevant securities legislation, requiring the Company, in the absence of exemptions, to rely on minority shareholder approval of the private placement.
IVN down 2.9% (US) in early trading
Gold and Silver to Generate up to 50% of Total Annual Revenues at Ivanhoe Mines' Oyu Tolgoi Project During Early Mining From Gold-Rich Open-Pit Mine Now Under Construction
Combined Asia-Pacific Mining Interests Rank Ivanhoe Among World's Largest Gold Companies
ULAANBAATAR, MONGOLIA--(Marketwire - Aug. 22, 2011) - Ivanhoe Mines' (TSX:IVN)(NYSE:IVN)(NASDAQ:IVN) Chief Executive Officer and founder Robert Friedland said today that the recent start of pre-stripping of the open-pit that will mine the gold-rich Southern Oyu and Central Oyu deposits serves to underscore the early gold production potential of the company's Oyu Tolgoi Project in southern Mongolia.
"The recent sharp increases in gold and silver prices have reinforced the importance of having a multi-commodity deposit such as Oyu Tolgoi," Mr. Friedland added.
"While copper is Oyu Tolgoi's most important metal over the longer term life of the mine, gold and silver are major contributors to the launch of value building during the project's initial years of mining. Revenues from gold and silver will have a significant positive effect on lowering the average cash cost to produce a pound of copper during the first five years of mining at Oyu Tolgoi."
Using current prices of approximately US$1,850/ounce for gold, US$42/ounce for silver and US$4.00/pound for copper, the estimated annual contribution of gold and silver to total revenue in the first five years of production from the open-pit mine at Oyu Tolgoi would average 44%, with a peak of 53%. The estimates are from the May 2010 Integrated Development Plan (IDP-10), an independent, NI 43-101 Technical Report.
Based on IDP-10's assumed long-term price of US$850/ounce for gold, US$13.50/ounce for silver and US$2.00/pound for copper, the estimated annual contribution of gold and silver would include peaks of 50% and average 35% of Oyu Tolgoi's total revenues during the first five years of mining.
Oyu Tolgoi's average annual metal output during the first 10 years of commercial production is expected to exceed 650,000 ounces of gold, three million ounces of silver and 1.2 billion pounds (544,000 tonnes) of copper. Peak annual gold production is expected to reach approximately 1.1 million ounces in year seven.
Mineralization in the Southwest Oyu open-pit deposit is characterized by high gold content, with gold-copper ratios (grams of gold per tonne to % copper) of about 1:1 in the main part of the deposit, rising to 3:1 in the core of the system and at depth. Development of the open pit will progressively encompass the Southwest and South Oyu deposits, known as Southern Oyu, and the adjacent Central Oyu Deposit.
Mr. Friedland said that the open-pit mine is the last major element of the first phase of the Oyu Tolgoi mining complex to begin development as work continues around the clock for the expected start of test production next year.
"Gold-rich ore from the open pit will be the primary feed to the processing plant during Oyu Tolgoi's first five years of production of gold, copper and silver. With overall mine construction quickly advancing toward 50% completion, Oyu Tolgoi's phase-one mine is on track to begin initial production from the open pit in late 2012 and to ramp up to commercial production in the first half of 2013."
At current metal prices, Oyu Tolgoi would have negative cash costs to produce copper
At current gold and silver prices, IDP-10 estimated that Oyu Tolgoi would have negative total cash costs of seven US cents per pound to produce a pound of payable copper in the first five years of production. Total cash costs include mine-site costs and all treatment, refining, transport and royalty costs arising from product sales.
Using the base-case scenario's long-term prices of US$2.00/pound for copper, US$850/ounce for gold and US$13.50/ounce for silver, IDP-10 estimated that Oyu Tolgoi's total cash costs in the first 10 years of production would be 45 cents (US) per pound of payable copper produced, after gold credits.
Initial ore production from the phase-two Hugo Dummett underground block-cave mine, being developed in conjunction with the phase-one open pit, is scheduled to be introduced to the concentrator in 2015 and to significantly boost overall copper, gold and silver production at Oyu Tolgoi. Based on resources identified to 2010, IDP-10 projected 59 years of production under the report's life-of-mine scenario. Ongoing exploration has reported additional discoveries that are continuing to expand the resources at Oyu Tolgoi.
Current independent estimates of Oyu Tolgoi's resources put the Measured and Indicated gold resources at almost 21 million ounces, plus an additional 25.4 million ounces in Inferred resources, based on a 0.60% copper equivalent (CuEq) cut-off.
Gold resources expanding at Ivanhoe's Kazakh and Australian subsidiaries
Mr. Friedland said other projects in Ivanhoe Mines' portfolio of investments also have significant gold resources that are being prepared for production. Combined gold ounces at Oyu Tolgoi and at Ivanhoe's principal interests — Altynalmas Gold and Ivanhoe Australia — total more than 30 million ounces in Measured and Indicated resources and an additional 31 million ounces in Inferred resources. These combined resources rank Ivanhoe Mines among the world's largest gold companies.
Altynalmas Gold, which is 50%-owned by Ivanhoe Mines, recently reported an updated mineral resource consisting of 6.2 million ounces of gold in Indicated resources, plus an additional 3.6 million ounces in Inferred resources (based on a cut-off grade of 3.0 grams per tonne gold), at its Kyzyl Gold Project in northeastern Kazakhstan. Details of Altynalmas Gold's Mineral Resources are contained in Ivanhoe Mines' news release dated August 3, 2011.
Ivanhoe Australia, which is 62%-owned by Ivanhoe Mines, has assembled a significant package of copper and gold projects in the highly mineralized Cloncurry district, near Mount Isa, in northwestern Queensland. Exploration successes so far have established a portfolio of gold, copper, molybdenum and rhenium mineral resources that the company plans to process at the Osborne concentrator, which is part of the mining complex acquired from Barrick Australia in 2010. Ivanhoe Australia's combined NI 43-101-compliant gold resources total 2.9 million ounces in Indicated resources, plus an additional 2.8 million ounces in Inferred resources, based on a 0.30% copper equivalent (CuEq) cut-off.
MMC down 1.2% to HK$8.09
[I-bank focus] Goldman rates Mongol Mining "buy" & HK$11.9
August 22 (ETNet) Goldman Sachs initiated coverage of Mongolian Mining Corp (MMC)(00975) with a "buy" rating and target price of HK$11.9.
The house sees MMC as the largest beneficiary of China's rising coking coal import, given its position as a pure premium coking coal producer in closest proximity to the Chinese border Goldman expects an FY11-13 EPS CAGR of 79%, highest in regional peers.
The house expects significant margin expansion in FY11 as MMC started selling clean coal in 2H. In addition, its ongoing construction of washing plants and paved road to help sustain its above-sector margins in FY12E/13. (KL)
Winsway: INTERIM RESULTS ANNOUNCEMENT FOR THE SIx MONTHS ENDED 30 JUNE 201
August 22, Winsway Coking Coal Holdings Limited (HK:1733) --
FINANCIAL HIGHLIGHTS
• Turnover of the Group in the first half of 2011 was HK$6,705 million, representing an increase of HK$1,811 million or 37.00% over the same period in 2010.
• Profit for the six months ended 30 June 2011 was HK$811 million, representing an increase of HK$209 million or 34.72% over the same period in 2010.
• Diluted earnings per share were HK$0.212.
• An interim dividend of HK$0.053 per share for the six months ended 30 June 2011.
…
MATD closed up 2.5% to 82p
Petro Matad reports latest well success in Mongolia
August 22 (Proactive Investors UK) Mongolian oil explorer Petro Matad (LON:MATD) today unveiled results from another successful well in Block XX.
The Davsan Tolgoi-9 well (DT-9) targeted the Shoroo prospect and it was drilled to a total depth of 1,766 metres. The well penetrated the top of the Lower Tsagaantsav formation at 1,596 metres and it encountered sandstone with live oil shows.
These oil shows were preceded by elevated gas in the overlying Lower Zuunbayan seal, the company said.
In total DT-9 struck 132 metres gross thickness of Lower Tsagaantsav reservoir, with 8 metres of net pay, with an average porosity of 23 per cent within one single principal zone between 1,639 and 1,651 metres.
Chief executive Doug McGay said: "DT-9 is the latest successful well in the Davsan Tolgoi exploration programme and we are pleased to note such a good, solid interval of hydrocarbons.
“The Davsan Tolgoi Shoroo Prospect is now starting to develop very satisfactorily, considering the success of DT-9 and the previously drilled DT-4, together with the recently completed re-mapping of the reprocessed 3D seismic data in this area.”
Petro Matad plans to explore the Shoroo prospect further. DT-10, the next well in the programme, has now been spudded. It will target also targeted a Lower Tsagaantsav objective but within a separate structural closure. The well will be drilled 4.3 kilometres south of DT-9.
The structure targeted by DT-10 lies between the Shoroo and Gal prospects in an area that was enhanced by recent reprocessing of the Davsan Tolgoi 3D seismic survey.
Meanwhile as drilling continues Petro Matad is also reworking its data for block XX. "The company is now building an appreciable database of new and reprocessed data on Davsan Tolgoi and nearby environs,” McGay added.
“The mapping and integration of the merged seismic data (reprocessed 3D and 2D, and the 2011 2D) will be combined with this year's drilling and testing results and add knowledge and confidence to the company's understanding of its assets."
GMM closed up 17.4% to 13.5c
General Mining Corporation kicks off drilling targeting potash in Mongolia
August 22 (Proactive Investors Australia) General Mining Corporation (ASX: GMM) has commenced deep potash exploratory drilling at the Uvs Basin Project in Mongolia, with the program expected to take about 4 months.
The company identified drill hole locations and drilling parameters in consultation with German firm ERCOSPLAN and has commissioned 3,000 to 5,000 line metres of drilling to an average depth of 1,000 metres per hole.
The Uvs project comprises five granted exploration licences covering more than 2,000 square kilometres within the Uvs Nuur Basin in the north-west Mongolia that is considered prospective for bedded and domal (salt diapir) potash deposits as well as for lithium and potassium brines.
Some rock salt, soda ash & gypsum deposits and base metal occurrences have been discovered within the Uvs Basin, and limited drilling at the northern periphery of the basin in the 1950-60s intersected shallow potash mineralisation in up to 600 metres thick Devonian evaporites.
These drilling results from the Russian part of the Uvs Nuur Basin confirm the prospectivity for solid potash and/or potassium brine deposits on the company’s licences.
The project is located near the Russian border in northwest Mongolia and is near a planned railway to be completed by 2015.
Potash is an essential commodity for agriculture and China is a major importer.
AKM up 7.95% to 47.5c
ASPIRE’S OVOOT COKING COAL HIGHLY ATTRACTIVE TO GLOBAL MARKETS: WOOD MACKENZIE
August 22, Aspire Mining Limited (ASX:AKM) --
Highlights
• Wood Mackenzie report confirms Ovoot coking coal has high value properties.
• Hard coking coal deemed appropriate price benchmark.
• Can be blended with cheaper inert coals due to very high vitrinite content, good fluidity.
• Described as ‘a strongly caking, hard coking coal with superior blend carrying capacity’.
• Aspire to push forward with pre-feasibility study.
Mongolian focused Aspire Mining Limited (ASX: AKM, “Aspire”) is pleased to advise that leading coal market consultants Wood Mackenzie, confirmed coking coal from Aspire’s Ovoot Project had highly attractive properties and would easily meet the global seaborne market requirements.
In a marketing report prepared by Wood Mackenzie, the international consultancy said Ovoot coal could be described as ‘A strongly caking, hard coking coal with superior blend carrying capacity,’ and that hard coking coal would be an appropriate price benchmark.
Aspire wholly-owns the Ovoot Coking Coal Project, located in northern Mongolia. Ovoot has a 330.7 million tonne JORC Compliant Resource with high washing yields of 80% and an 8% ash content, based on recent wash analysis.
The Wood Mackenzie report stated that, based on available quality data, Ovoot coking coal was in an ideal range for mid volatile hard coking coal and fat coal classifications.
The consultancy also confirmed that the Ovoot coking coal presented as a value add blend coal – able to be blended with cheaper inert coals due its very high vitrinite content and good fluidity.
Aspire Managing Director David Paull said: “The Wood Mackenzie Report confirms our view that Ovoot is a quality coking coal by any measure. Confirmation that hard coking coal prices are an appropriate benchmark for Ovoot coking coal provides us with confidence to progress a prefeasibility study into the larger scale development of the Project.”
“Potential markets for our coal include all of the large high growth markets of China, India and Brazil as well as the established markets of Japan, South Korea, Taiwan, Russia and Europe,” Mr Paull said.
Ovoot Development Plans
Aspire commissioned Wood Mackenzie to prepare a marketing strategy for the Ovoot Coking Coal Project covering both the direct ship raw ore (10% ash) and the washed coal (8% ash).
Wood Mackenzie has significant experience in assessing and positioning new coking coal supply sources. Its marketing strategy reviewed supply and demand fundamentals of the seaborne coking coal market as well as markets in China. Rail capacities in Mongolia and China were considered as were rail and port capacities through Russia.
Aspire is considering development of the Ovoot project in two stages. The first (Stage 1) is a small scale development based on a 0.5 to 1 million tonne per annum starter open pit, providing direct ship ore which will be trucked 550 kilometres to the nearest rail siding at Erdenet, while work continues on developing a rail connection from the Mine to Erdenet.
Given high yields of 80% and a 15 million tonne per annum indicative open pit run of mine (ROM), Stage 2 production of as much as 12 million tonnes per annum of coking coal is possible with a rail connection to Erdenet and the Trans Mongolian Railway.
Wood Mackenzie Global Coal Outlook
Wood Mackenzie forecasts a strong market for good quality coking coals over the medium to long term driven by large demand increases from rapidly expanding markets such as India and Brazil.
It says coking coal prices have rallied beyond historic levels and high premiums above thermal coal are forecast to continue.
Wood Mackenzie believes that Chinese coking coal imports will grow as their reserves deplete and costs of domestic supply increase, and that growth in the use of PCI coals puts added emphasis on coke and coking coal quality.
It adds that China’s steel industry – by far the biggest global coking coal consumer - is shifting towards larger, more efficient blast furnaces that require higher quality coking coals.
Lucky Strike Strengthens Technical and Management Team
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 22, 2011) - Lucky Strike Resources Ltd. ("Lucky Strike" or the "Company") (TSX VENTURE:LKY) is pleased to announce the strengthening of its technical and management team to form a well-rounded group of professionals as part of the solid foundation to capitalize on current and future mining project opportunities.
Ed Ullmer, M.Sc., P.Geo
Senior Geologist, Project Geology Overseer
Mr. Ullmer brings over 40 years of US and international geological exploration and development experience, including numerous field exploration seasons in Mongolia. He graduated with a M.S. in geology and a M.Ed. from the University of Arizona. In addition to working on mining projects, Mr. Ullmer has ten years of experience as an environmental geologist-hydrologist and a number of years as a photogeologist engaged in producing geology maps world-wide for mineral and oil exploration programs. He has accumulated extensive experience having been an employee for numerous mining companies including Hudson Bay Mining and Smelting, Union Pacific Railroad, Cerro de Pasco, Rocky Mountain Energy and DeBeers as well as a mining consultant for 15 years. Mr. Ullmer's field experience encompasses numerous precious, base metals and energy commodities, including copper-lead-zinc-silver-molybdenum, uranium, vanadium, diamonds, gold, and coal at project and senior geologist and lead-geologist levels. His broad field expertise includes accomplished work in Canada, US, Zambia, Ireland, Peru, China, and Mongolia. Mr. Ullmer is a Qualified Person as defined by NI 43-101 and has professional geologist certifications with the American Institute of Professional Geologists (AIPG) and in the States of Wyoming and Nebraska.
Mr. Ullmer will be responsible for overseeing the general progress of Lucky Strike's exploration programs in Mongolia.
Andrew Frazier, P.Geo.
Geologist, Mongolia Project Supervisor
Mr. Frazier has over a decade of progressive, professional geological experience in mining, engineering, and environmental practices in all stages of mining, exploration, mine development and operations, as well as international mine development experience in Mongolia, Nicaragua and Australia. He was the lead geologist for Green Diamond Resource Co. for five years. Concurrent with the fieldwork in Mongolia, Mr. Frazier is completing his thesis on mineral transportation study for revenue potential of mineral resources in Mongolia to achieve a M.Sc. degree with the Michigan Technological University. Mr. Frazier is a Qualified Person as defined by National Instrument 43-101.
Mr. Frazier will be responsible for the on-going day-to-day exploration programs at the project site in Mongolia.
Don Arsenault, P.Eng., MBA
Senior Mining Engineer, Mongolia Mining Advisor
Mr. Arsenault is a senior mining engineer with over 35 years of experience in operations management, design, planning and project management of mining projects in Canada and internationally, including 7 years in Mongolia. Mr. Arsenault has practical experience in large operations related to uranium and base metals. In addition, he has held project management responsibilities on a wide variety of mining engineering projects including due diligence, financial evaluation, pre-feasibility and feasibility studies. He possesses strong analytical and communication skills, complemented by the hands-on experience necessary to manage projects in developing mining markets such as China and Mongolia.
Mr. Arsenault will be advising Lucky Strike on developing mining projects in Mongolia.
John Wong, P.Eng.
Senior Mechanical Engineer, Power Engineering Specialist
Mr. Wong is a power plant specialist, has over 34 years of engineering and project management experience related to steam, power process, and industrial power generation. Mr. Wong was responsible for the development, engineering, design, construction supervision, commissioning and start-up of numerous power generation projects in Canada and China. He developed a multiphase power plant of 120 MW in the first phase and 390 MW in the expansion in Yongxing County, Hunan province, China. The plant is environmental friendly in desulfurization. As a mechanical engineer, Mr. Wong has extensive industrial experience including performing energy audits, steam and power balances, power plant major equipment sizing and selection, boiler modifications, pressure vessel design and power piping systems in the industrial, petrochemical and electric power facilities.
Mr. Wong will be advising Lucky Strike on the feasibility of power plant development.
Xin Ping Qin, Mining Engineer
Senior Coal Mining Specialist
Mr. Qin, with more than 20 years of underground coal mining engineering, was the president of the Guangxi Industrial Design Institute. He is a leader in technical skills, mine planning and project management, has overseen more than 200 mining professionals. Mr. Qin is a graduate of the Jiaozuo Mining Institute in underground coal mining engineering in 1982. Mr. Qin is an expert in troubleshooting mining problems and the design of coal mines. His project development skills along with his excellent interpersonal skills and great understanding of the Asian culture will assist the Company in playing a significant role in the growth of coal production in Mongolia and China.
Mr. Xin will be advising Lucky Strike on coal project feasibility study.
Xu Hao, B.Sc., MBA
Senior Process Engineer, Project Management Advisor
Mr. Xu Hao has more than 25 years of Mining and Mineral Processing project management experience including consulting in Mongolia. Recently, he has been providing professional services to Central China Goldfield, Silver Dragon and Chifeng Yinfeng Mine. As the China Area Manager for Ausenco Ltd., Mr. Xu worked on numerous projects including gold study for Black Dragon, silver study for Silver Dragon Erbahuo, gold project coordination for Mundoro Maoling, Ying due diligence for Silvercorp, copper due diligence for Qulong and Jiama, evaluation for Zibo Rare Earth Metallurgical Plant and management for Jinfeng Gold project. In addition, he has provided Project Management Consultant services for PNG Chromate and Cayman Alumina Refinery Projects. Well versed in English, Mr. Xu Hao has carried out consulting services to international and Chinese companies including Beijing Zhuangding Technology Ltd, Wogen of UK, Outokumpu AG of Sweden, Seimens AG of Germany, Beijing General Iron and Steel Research Institute.
Mr. Xu Hao will be reviewing the constructability and development of mining exploration projects.
Jasman Yee, P.Eng.
Senior Mineral Processing Engineer, Technical Advisor
Mr. Yee is a mineral processing engineer with over 35 years of operational, managerial, engineering and consulting experience in the processing of precious and complex base metal ores within North America and abroad. He is currently the director of Avino Silver and Gold Mines Ltd and has held senior positions with H A. Simons, Bateman Engineering and Bacon Donaldson & Associates. He has commissioned and started up mines for Falconbridge Copper in Ontario, Canada Wide in Gays River, Nova Scotia, Erickson Gold Mines in Cassiar, BC and the autoclave restart for the Con Mine in Yellowknife, NWT. In addition, he has provided operational assistance and guidance at the Campbell Mine in Red Lake, Ontario during their switchover from roasting to autoclaving for their gold flotation concentrates. Mr. Yee is presently providing technical assistance to several mining operations in Canada and Mexico.
Mr. Yee will be advising Lucky Strike on technical issues in Mongolia.
Baatarjav Bat-Amgalan, Senior Counsel
Mongolia Advisor
Mr. Bat-Amgalan is a proficient senior counsel of business development in Mongolia where he has been awarded the Order of the Polar Star by the President of Mongolia in 2010, for his contribution to the development of history and cultural heritage of the nation. With more than 15 years of experience in natural resource development, Mr. Bat-Amgalan has contributed significantly to the development of the Erel Gold Mining Group and to the establishment of strong Canada-Mongolia relationships for Ivanhoe Mines. Mr. Bat-Amgalan's regional network and understanding of the Mongolian culture is a key factor in Lucky Strike's capacity to develop its assets and unlock their full value.
Mr. Bat-Amgalan will assist Lucky Strike in its on-going progress of developing projects in Mongolia.
Patricia Wilson, Director & Senior Company Executive
Chief Financial Officer
Ms Wilson has in-depth experience in operating a public company, having served Lucky Strike in various progressive positions as Chief Financial Officer, Corporate Secretary, Treasurer, and Director of Lucky Strike over the course of the past 20 years. Ms Wilson was the CEO of Lucky Strike between 2002 and 2010. She has a proven track record of delivery and a strong sense of obligations and duties. Her solidness in her dedication towards the building of Lucky Strike over a prolonged period of time has demonstrated commitment as the Company charters ahead in its critical stage of expansion with the assembly of project assets and people. Lucky Strike needs an assurance of delivery through confirmed sustainability. Ms Wilson replaces Mr. Danny Hon whom the Company thanks for his contribution and wishes to success in continuing his endeavours.
Ms Wilson will oversee financial and corporate compliance of the Company to meet regulatory requirements.
Jennifer Singh, Project Construction Management
VP Corporate Communications
Ms Singh has over 15 years of extensive industry experience in the fields of construction, civil/structural engineering, public relations, marketing and promotions. Projects include upgrading fuel systems across Canada for TELUS Communications, building student housing for Macquarie University in Australia, scheduling/estimating major projects for BC Hydro - Transmission Engineering, and facilitating community events and corporate fundraisers. Her experience and qualifications in safety were crucial for developing and implementing safety procedures for major construction companies in Vancouver, Canada, and Sydney, Australia. Working in diverse industries ranging from construction to community services, she has developed skills in business development, strategic planning, networking and assisting in corporate compliance. Ms Singh is a Technologist in Civil/Structural Engineering and she is currently completing her degree in Construction Management.
Ms Singh will communicate with the shareholders of Lucky Strike and to bring market awareness of the Company's development to the financial community.
Summary
The Company also announces that, subject to regulatory approval, it has granted to the employees, consultants, officer and director 480,000 stock options exercisable at $0.80 per share for a period of five (5) years, subject to a vesting period of 36 months.
2011 is the significant foundation-building year for Lucky Strike as the Company is assembling project assets and people, and developing market awareness. Lucky Strike is a fundamentally strong, grounded group of professionals dedicated to the growth of the Company through sheer hard work in the development of solid assets.
S. Korea, Mongolia agree to significantly boost resources, energy cooperation
ULAN BATOR, Aug. 22 (Yonhap) -- Leaders of South Korea and Mongolia agreed Monday to significantly boost resources and energy cooperation and elevate their relations to a "comprehensive partnership" in a symbolic commitment to bolster ties in all areas, officials said.
South Korean President Lee Myung-bak and Mongolian President Tsakhia Elbegdorj reached the agreement during summit talks in Ulan Bator. After the summit, the two leaders issued a joint statement and adopted a mid-term action plan providing guidelines for bilateral cooperation.
"Endowed with the world's 10th largest reserves of resources, Mongolia is considered a country of limitless potential," Lee said during a joint press conference after the summit, praising the country's democratization and rapid economic growth.
"In today's summit, President Elbegdorj and I agreed to elevate the relations between the two countries to a comprehensive partnership and strengthen high-level cooperation between the two countries, including summit talks," he said.
The resources ministers of South Korea and Mongolia signed a memorandum of understanding (MOU) calling for greater cooperation in natural resource development, electricity, renewable energy and other areas.
The ministers also signed another MOU pledging to work together closely to jointly explore and develop uranium ore and earth materials. Mongolia is believed to have the world's 14th largest deposits of uranium.
They also agreed to set up a joint commission to discuss resources and energy cooperation.
The countries' health ministers also signed an MOU on cooperation in the medical sector.
Other economic agreements included expanding South Korea's investment in Mongolia's infrastructure and construction sectors, including a project to build 100,000 apartment units in Mongolia, and expanding air routes and simplifying the visa process between the two countries.
The Mongolian president expressed gratitude for South Korea's support for his nation's efforts to strengthen democracy and national development, and Lee agreed to continue to help Mongolia bolster democracy and develop a market economy, the statement said.
The joint statement called for the two countries to hold summit and other high-level talks more often and have their foreign ministers meet every year to discuss bilateral relations and other issues of mutual interest in regional cooperation.
It also said that the two countries agreed to expand defense cooperation.
On security issues, Mongolia welcomed last month's talks between the chief nuclear envoys of South and North Korea and expressed support for Seoul's efforts to resolve the nuclear standoff and resume inter-Korean dialogue, the statement said.
The two sides also expressed concern over Pyongyang's uranium enrichment program and agreed that a complete, verifiable and irreversible denuclearization of North Korea is significant for peace and stability in the region and the international nonproliferation regime, the statement said.
Later in the day, Lee was to meet with Prime Minister Sukhbaatar Batbold and Parliamentary Speaker Damdin Demberel. Also scheduled are meetings with younger generations of Mongolia and South Korean residents living here.
South Korea and Mongolia established relations in 1990. Now, South Korea is Mongolia's fourth-largest trading partner, with bilateral trade volume amounting to US$230 million last year, a 85-fold increase from $2.71 million in 1990.
Lee arrived in the Mongolian capital on Sunday for a three-day state visit as part of a three-nation tour of Central Asia, a region that is rich in resources and business opportunities and carries strategic significance as a bridge between Asia and Europe.
Lee is scheduled to visit Uzbekistan and Kazakhstan later this week.
Biden Names Mongolia Horse, Cheers Democracy on Way to Tokyo
August 22 (Bloomberg) Vice President Joe Biden took a detour through Mongolia today en route from China to Japan to show support for the country’s nascent democracy and thank the government for sending troops to Afghanistan and Iraq.
“In the last 20 years, Mongolia has captured the imagination of the world by its remarkable transition to democracy,” Biden said after meeting Prime Minister Sukhbaatar Batbold in Ulan Bator. Mongolia is “an emerging leader in a worldwide democratic movement.”
While the Alaska-sized nation with fewer than 3 million people has an economy smaller than Apple Inc. (AAPL)’s annual sales of iPod music players, its location between Russia and China, untapped mineral wealth and ties to North Korea give it added importance. Biden said the U.S. was “very proud to be considered a third neighbor” for the landlocked country.
The trip is “part of a broader policy in Central Asia to try and show that the U.S. has a presence there, that it’s not merely a Russian or Chinese backyard,” said Jeff Bader, who was senior director for Asia affairs at the National Security Council until April and is now a visiting scholar with the John L. Thornton China Center at the Brookings Institution.
After his remarks, Biden went into a ceremonial ger, commonly referred to as a yurt, with President Tsakhia Elbegdorj. He later attended a demonstration of traditional Mongolian sports including wrestling, trying his hand at archery and naming a horse chosen in his honor “Celtic.”
Diversifying Trade
Mongolia’s transition to democracy took place in 1990 after seven decades as a Soviet satellite. The collapse of the Soviet Union left the country increasingly dependent on China.
Batbold today said he wants to increase trade with the U.S. and attract more investments from the country to Mongolia.
U.S. exports to Mongolia were $164.7 million in the six months to June, according to the U.S. Census Bureau, led by mining and related equipment and vehicles. Imports were $9.1 million. More than 90 percent of Mongolia’s exports go to Northeast Asia, according to data compiled by Bloomberg.
Mongolia is trying to seek a “balance of interests” in its relations with neighbors like Russia and China and Western countries, Batbold said in a June 17 interview.
Mongolia’s economy grew 28 percent last year to $6.8 billion in current prices, driven by surging investment in mining projects to tap demand from China and resource-poor Asian countries such as Japan and South Korea. Cupertino, California- based Apple’s sales of iPods were $8.3 billion.
Coal Output
Coal production in Mongolia doubled last year to become the nation’s top export earner. St. Louis-based Peabody Energy Corp. (BTU) was among bidders picked to develop Mongolia’s Tavan Tolgoi deposit, potentially the world’s largest untapped reserve of coal used to make steel. The country also has substantial deposits of other resources, including copper, gold and uranium, according to the U.S. Geological Survey.
South Korean President Lee Myung Bak, who was also in Ulan Bator today, signed an initial agreement with Mongolia to expand cooperation on developing energy resources, the Korean Ministry of Knowledge Economy said in an e-mailed statement.
Mongolia was among the first countries to send troops to the Iraq war and its troops have been deployed in Afghanistan since 2003. Still, the government also maintains ties with North Korea, which Batbold said offers a possible export route to the Pacific Ocean for the country’s mineral wealth.
North Korea’s Intentions
One possible purpose of the vice president’s trip is to glean information on North Korea’s intentions, said Elizabeth Economy, director of Asia studies at the Council on Foreign Relations in New York.
The U.S. maintains sanctions on North Korea in addition to United Nations trade restrictions imposed to force the regime of Kim Jong Il to return to talks over its nuclear weapons programs. Kim will meet this week with Russian President Dmitry Medvedev in the Siberian city of Ulan-Ude, about 420 kilometers (260 miles) from Ulan Bator.
Biden left China this morning and will later head for Japan as the final leg of his three-nation tour of Asia. The vice president has been repeating a message of reassurance to the Chinese that their investment in U.S. Treasuries is safe.
Related:
UPDATE 1-Biden offers U.S. support for democratic Mongolia – Reuters, August 22
In Mongolia, Biden tries archery, names a horse and praises Mongolia’s democratic development – AP, August 22
Searching for the spirit of Genghis Khan
Watch Stan Grant's reports from Mongolia on CNN TV all next week
Ulaanbaatar, Mongolia (CNN) -- In the vast open steppe outside Mongolia's capital Ulaanbaatar, the great emperor Genghis Khan is very much alive.
His giant statue hovers for as far as the eye can see. But this is more than a monument: This is the very embodiment of the spirit of a man whose life and legacy are both a link to a glorious past and an inspiration for the spiritual and economic renewal of this country.
People flock here in their thousands each day to feel the emperor's presence and revere his memory.
"I come here every few months to pay respect to our great emperor," one man told me. "He conquered the world. I don't say my son should grow up to be as powerful as Genghis Khan but he must have his spirit as a descendant of Genghis."
…
Country profile: Mongolia – CNN, August 22
Wrestling, archery and horse-racing: Mongolia's 'three manly games' – CNN, August 22
<Mogi & Friends Fund A/C>
+5.3%
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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