CPSI NewsWire brings you market updates on Mongolia, compiled by CPS International, a Mongolian marketing arm of CPS Securities, a Perth, WA based stockbroking and corporate advisory firm, specialising in capital raising for mining and junior stocks. Follow CPSI NewsWire on Twitter, Facebook
BRD up as much as 60% to 0.8c after announcement. Currently trading at 0.7c at time of writing
Black Ridge Mining to launch itself into rare earths with interest in Mongolian project
March 2 (Proactive Investors Australia) Black Ridge Mining (ASX: BRD) has entered into an agreement to earn up to an 80% interest in a rare earths project in the Tuv Province, 80 kilometres east of Ulaanbaatar, the capital and largest city in Mongolia.
The company will now begin due diligence on the project and work to finalise a definitive agreement to jointly develop the project.
To earn its 80% interest, Black Ridge will be expected to spend around $5.5 million over the next three years and make a final payment of $750,000 to the vendors.
An introductory fee of 10 million Black Ridge shares will be issued. Black Ridge shares were last trading at around $0.005, valuing the share issue at around $50,000.
Samples assayed at the project in mid-2011 confirmed encouraging concentrations of lanthanum, scandium, yttrium, cerium and other elements.
Importantly, the project has also demonstrated potential for vanadium, tungsten, chrome and scandium, complementing Black Ridge's Unaly Hill vanadium project in Western Australia, where the company has a maiden Inferred Resource of 86 million tonnes at 0.42% vanadium.
The Mongolian rare earths project is strategically positioned near to integral transport infrastructure.
Ulaanbaatar is Mongolia's road and rail transportation hub. Mongolian rail is connected to the Trans-Siberian Railway in neighbouring Russia and the Chinese railway system.
Shipments by rail through Russia to the international port of Vladivostock would enable rare earth ore to be exported to numerous international markets.
Manufacturing demand for rare earths and critical materials has risen sharply in the last 20 years, and diminishing exports from China, the world's largest rare earth producer and supplier of more than 95% of the world's rare earth supplies, have led to rising prices and supply concerns.
Link to article
Link to BRD release
Voyager Resources added to ASX All Ordinaries Index from March 16 Market Close
March 2 (S&P) Voyager Resources Limited (ASX:VOR) --
Link to release
PCY closed +9.28% to 53c
Prophecy Coal announces $9 mln private placement financing (20m shares at 45c)
March 1 (Proactive Investors USA & Canada) Coal miner Prophecy Coal Corp. (TSE:PCY) reported Thursday it has arranged a non-brokered private placement financing worth $9 million as it seeks to advance development of its thermal coal plant project in Mongolia.
The company plans to sell 20 million shares for 45 cents each. Prophecy Coal said insiders and existing shareholders have subscribed for a majority of this offering.
Prophecy said finder's fees may be paid in connection with the financing in accordance with TSX Exchange policies. The offering is slated to close on March 7.
Prophecy said it will use funds for technical work to bring its Chandgana thermal coal power plant project, found in Mongolia, toward development. The proceeds will also be used for general working capital.
Additionally, the company also announced on Thursday that the credit facilities of $7 million announced on December 30, 2011 have been closed out. The $800,000 balance has been paid off and Prophecy remains debt free.
In November 2011, Prophecy Coal, a Vancouver-based company, received a license from the Mongolian government to build a 600 megawatt power plant at its Chandgana Tal thermal coal deposit.
The company has over 1.4 billion tonnes of near surface thermal coal resources on two coal properties in Mongolia. Prophecy Coal's Chandgana 600 MW mine mouth power plant has been permitted and its Ulaan Ovoo coal mine is now in production.
Link to article
Link to PCY release
DRAIG APPOINTS DRILL TEAM TO COMMENCE MID‐MARCH
March 2, Draig Resources Limited (ASX:DRG) --
Highlights
• Draig appoints Mongolian drill company Ellehcor LLC
• Draig engages two experienced coal geologists to lead exploration of Teeg and Nariin Teeg licences, Ovorhangay Province
• Drill program to commence mid‐March 2012
• Draig to drill over 2000m based on preliminary geological modelling from previous drilling and geophysical survey
• JORC compliant resource on track for completion Q2 2012
Draig Resources Limited (ASX: DRG) ("Draig", or the "Company") is pleased to announce that it has appointed drill contractor Ellehcor LLC ("Ellehcor") to undertake Phase 1 of the drilling exploration program on two of its Mongolian coal licences. Draig has also engaged two experienced coal geologists to assist with the drill campaign, due to commence mid‐March.
Ellehcor will drill coal‐bearing targets on the Teeg (13879x) and Nariin Teeg (13581X) licences, located in the Bayenteeg District, Ovorhangay Province.
Draig said the 2000m program will comprise numerous drill targets identified following completion of a geophysical survey in February 2012 which, in conjunction with the results of its 2011 due diligence drilling, provided an initial geological assessment of both licences.
The drill targets on both licences are relatively shallow and, at Teeg, could potentially include two laterally continuous synclinal features. Draig said it chose local Mongolian drill company Ellehcor due to its vast experience in the region and its ability to operate all year round, including through the extreme temperatures of the Mongolian winter. Draig added that Ellehcor's core recovery techniques are compatible with JORC Code standards, and it maintains environmentally conscious work practices.
Draig Managing Director Mark Earley said he expected the latest drill campaign to take approximately 5‐6 weeks, and would make the raw coal quality results available following the completion of the drilling.
"We still firmly expect to announce completion of a JORC‐compliant coal resource by the second quarter of this year.
"This drill campaign will give us a much better indication of the size and quality of the resource over these licences," Mr Earley said.
The Teeg and Nariin Teeg licences (shown below) are two of eight coal licences being developed by Draig, located within Ovorhangay and South Gobi Provinces.
Initial sample analysis at these licences indicated the potential for a high‐quality coal operation.
Link to release
Modun: TRADING HALT (pending fundraising initiative)
March 1, Modun Resources Limited (ASX:MOU) --
…
The Company hereby requests a halt in trading of its securities, effective immediately, pending an announcement regarding a fundraising initiative.
The Company requests that the trading halt commence prior to market open Thursday 1 March 2012 and remain in place until the commencement of trading on Monday 5 March 2012 or upon release of an Announcement regarding the fundraising, whichever is the earlier.
Link to release
GMM Managing Director Resignation
February 29, General Mining Corporation Limited (ASX:GMM) --
General Mining Corporation Limited advises that Dr Boris Matveev has tendered his resignation as Managing Director of the Company effective from today.
The Board wishes to express their thanks and appreciation to Dr Matveev for his efforts over the two years since the Company's listing on ASX and wish him every success in his future endeavours.
Link to release
Final Director's Interest Notice
UTM Announces Winter Work Program Progress Report
ULAANBAATAR, MONGOLIA--(Marketwire - Feb. 29, 2012) - Undur Tolgoi Minerals Inc. ("UTM" or the "Company") (CNSX:UTM) is pleased to announce that its previously outlined winter work program is now in full operation. The mobile camp is in place and operational with the sampling crews on-site. It is expected that 1,500+ soil samples will be collected and sent to an accredited laboratory in Ulaanbaatar, Mongolia, for further analysis in the next few weeks. UTM has selected both geophysics and other key service providers for the Company's exploration program now underway on the wholly owned 9,620 hectares Undur Tologi license.
UTM is a mineral exploration company entirely focused on Mongolia, owning, through its wholly owned subsidiaries, 100% of the "Undur Tolgoi" mineral exploration license. This license consists of 9,620 hectares of property situated 100 kilometers from the world-scale "Oyu Tolgoi" copper and gold mine. In addition, UTM's management is actively reviewing potential acquisitions and strategic industry alliances.
Link to release
MEC: GRANT OF SHARE OPTIONS
February 29, Mongolia Energy Corporation Limited (HK:276) --
This announcement is made pursuant to Rule 17.06A of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
The board of directors (the "Board") of Mongolia Energy Corporation Limited (the "Company") announces that after trading hours on 29 February 2012, the Company offered to grant share options to certain directors and employees of the Company (subject to their respective acceptance) to subscribe for a total of 50,500,000 ordinary shares of HK$0.02 each in the capital of the Company, under the share option scheme of the Company adopted by the Company on 28 August 2002, the details of which are set out below:-
Date of grant : 29 February 2012
Exercise price of share options : HK$0.81
Number of share options granted : 50,500,000
Closing price of the shares of
the Company on the date of grant : HK$0.81
Exercise period : Five years commencing from 29 February 2012 to 28 February 2017
The number of share options granted to directors and employees of the Company are as follows:-
Name of Grantees | Number of Share Options Granted |
Executive Directors Mr. LO Lin Shing, Simon (Chairman) Non-executive Director Mr. TO Hin Tsun, Gerald Independent Non-executive Directors Mr. Peter PUN OBE, JP Mr. TSUI Hing Chuen, William JP Mr. LAU Wai Piu Employees TOTAL : | 6,000,000 500,000 500,000 500,000 500,000 42,500,000 _________ 50,500,000 |
Link to release
ETG closed +6.2% to
Entree Gold Intersects 759 Metres of 0.45% Cu at Ann Mason; Preliminary Metallurgy Indicates Excellent Copper Recoveries
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 1, 2012) - Entrée Gold Inc. (TSX:ETG)(NYSE Amex:EGI
)(FRANKFURT:EKA) ("Entrée" or the "Company") has received complete assay results from four additional diamond drill holes on its 100% owned Ann Mason copper-molybdenum porphyry deposit in the Yerington district of Nevada. Hole EG-AM-11-020 intersected 759 metres of 0.45% Cu (0.49% CuEq), which is well above the average grade of the deposit. Holes EG-AM-11-019, 020 and 021 are located in the western portion of the deposit and have expanded the boundary of potentially economic mineralization. Hole EG-AM-11-022 is an infill hole located on the eastern side of the deposit. Summary information is provided in Table 1 below. Hole locations and cross sections can be viewed at www.entreegold.com.
Encouraging results have also been received for preliminary flotation studies on drill core composite material conducted by METCON Research in Tucson, Arizona. The results yielded exceptional copper recoveries of over 93%, well above the results of historical test work carried out by Anaconda in the 1970s.
Entrée's President & CEO, Greg Crowe, commented, "Mineralization at Ann Mason has been extended to depths beyond 1,000 metres and the known limits of the deposit continue to be pushed out to the west and to the north. Drilling has regularly intersected long intervals of strong mineralization, including the excellent results returned from EG-AM-11-020. In addition, the encouraging metallurgical results will feed into our recently commissioned Preliminary Economic Assessment for Ann Mason and Blue Hill."
…
Link to release
Foster announces major export deal for CEM systems in Mongolia (for OT)
March 1 (InsideIreland.ie) Minister for Enterprise Arlene Foster has announced export business to Mongolia for Belfast-based CEM Systems worth £500,000.
Part of Tyco Security Products, the company is to supply its market leading access control system to secure the Oyu Tolgoi Copper and Gold mine in Mongolia's remote South Gobi region.
Minister Foster said: "This must surely be the most remote market in which one of our companies is now doing business. We really shouldn't be surprised to find CEM securing a contract in Mongolia because this excellent company has a longstanding and successful track record in terms of the innovation of its products and its commitment to travel the world in search of business.
"These and other impressive features of the business attracted Tyco International to acquire the company and to invest substantially in new product development for global markets. As a result of this strategic focus on growth through export-focused innovation, CEM equipment is used in virtually every continent to ensure the highest level of building security, including in many of the world's busiest airports. Virtually every airport in the UK, for instance, has installed sophisticated CEM systems."
The business has experienced annual growth in excess of 20% over the past three years in international markets and is now among the world's top five leaders in building security systems.
Andrew Fulton, CEM's Senior Director of Global Sales, said: "The new business in Mongolia was certainly among the most challenging that we've secured in recent years. It has joined a list of 40 markets in which our systems are operational. Other recent business was secured in Dubai, Nigeria, Poland and Hungary.
"Underpinning our business strategy is a dedication to go wherever and whenever we can to sell our technology. From the earliest days of the business, we recognised that the growth we sought to ensure success and provide good quality employment in Belfast required a strong commitment to sales outside Northern Ireland. Invest NI has been immensely supportive of successive business plans in terms of support for employment, R&D and marketing assistance for our participation in trade missions.
"The business won at the Oyu Tolgoi Copper and Gold mine is a good example of how our market leading software, together with CEM hardware can meet and exceed the access control needs of even the most complex site.
"The mine operators required a system which would be expandable and flexible enough to use on a site where requirements can vary greatly. Our advanced technology system represented the high level of flexibility specified by the client. The CEM system provides unparalleled convenience and flexibility."
Link to article
2.5M unsold (out of 3M) ₮10K Just Agro Meat Bonds removed from MSE registry
February 29 (MSE) --
Link to article
MSE Board Resolution, 17 February 2012
February 29 (summary from MSE) –
- Golomt Securities LLC (Golomt Bank) and Sikap LLC are approved for MSE membership.
- One time listing fee is set at 0.1% of market cap and capped at ₮12M-240M.
- Annual fees set at 0.005% of market cap and capped at ₮1.2M-24M
- Fees are payable by Q1
- Changes to membership fees made in accordance with new membership rules.
Link to release
HK's Winsway says $1 bln Grand Cache deal completed
HONG KONG, March 2 (Reuters) - Hong Kong-listed Winsway Coking Coal Holdings Ltd (HK:1733) said it has completed the purchase of Canadian coal miner Grand Cache Coal Corp in a deal worth nearly $1 billion.
In a filing to the Hong Kong bourse on Friday, Winsway said completion of the deal took place on March 1, as all the conditions precedent to the completion of the deal had been satisfied, and it had obtaied approval from shareholders in a shareholder meeting on Feb. 28.
Winsway had said in February that it received regulatory approval to seek a shareholders' meeting on a proposed purchase of Grand Cache Coal Corp, moving closer to the nearly $1 billion takeover.
Winsway, an importer and distributor of coking coal from Mongolia into China, made the bid of about C$984.7 million ($991 million) for Grand Cache in October with Japanese trading house Marubeni Corp, with two-thirds in cash and one-third from bank loans.
Winsway and Marubeni secured up to $400 million in loans to fund the purchase.
Shares of Winsway were down 6.1 percent so far this year, compared with a 16 percent gain in the Hang Seng Index.
Link to article
Link to 1733 release, March 2
Government announces low percent of apartment loan
March 1 (news.mn) Before the Lunar New Year, which Mongolians celebrated February 22-24, Government announced it's decision to reduce apartment loan to 0.6 percent per year. Commercial bank's issuing apartment loan with 1.0-1.2 percent a month.
Citizens welcomed government's decision but same time worrying apartment price may increase. Ts.Dashdorj, Minister of Transport and City planning said yesterday, February 29, 2012 government will do best apartment price not going up. "Government planning to built apartment in certain place which can sold by low percent of loan. Some places have to release from land owners, discussion under way. Also government going to sign agreement with construction companies. Those efforts can keep apartment price in suitable" said Ts.Dashdorj.
By the rule people who has medium and low income can apply for 0.6 percent apartment loan. One important point is people who never get apartment have to apply to this loan. Government officials calculated and family who has average Tg800.000 ($550-570) income can receive the loan.
Link to article
By end of June the new "Smart ID" will be distributed
March 1 (news.mn) First portion of new smart ID will be ready for April said yesterday, February, 2012 officials.
According to L.Amarsanaa, acting Head of the State General Registration Office (SGRO) the new cards, which can store data and personal information, will improve registration services in all sectors.
Officials say the new ID cards actually have more privacy protection than the current ID card. The new cards will contain information about migration, voting, military service, and tax payments.
The new ID cards can also be used for state services such as social welfare, health and other insurances, and education.
Last portion of new ID will printed out by June 11, just before the parliamentary election which scheduled end of June.
The new ID is printing in Finland.
Link to article
FACTBOX-Key political risks to watch in Mongolia
ULAN BATOR, March 1 (Reuters) - Mongolia sits on vast quantities of untapped mineral wealth, the exploitation of which is likely to turn it into one of the world's fastest growing economies over the next decade.
But political uncertainty ahead of parliamentary elections in June worries investors. One of the parties in Mongolia's shaky coalition government said it would pull out before the vote, and politicians are under constant pressure to be seen to getting a good deal for the country from resources investors.
The priority for Mongolia is the development of its tiny economy, and foreign investors want to know if the government can create a stable legal environment while handling the pressures exerted by impatient citizens as well as its two giant neighbours, Russia and China.
Following is a summary of key political risks to watch:
INVESTMENT POLITICS
The government has now formally given up on its idea of renegotiating the contract for the Oyu Tolgoi copper-gold mine, after earlier saying it wanted to look again at a 2009 deal with Ivanhoe Mines. The project will be taken over by Rio Tinto , which already owns 49 percent of Ivanhoe and, as of mid-January, was cleared to buy more.
Foreign investors were worried that renegotiating a deal two years after it was first signed would undermine confidence, but Mongolia is under pressure to boost revenues and meet ambitious social pledges made at the last elections in 2008. Some politicians have called for the prime minister to resign over his handling of the Oyu Tolgoi contract.
The controversy over Oyu Tolgoi's ownership has spilled over into another giant mine, the Tavan Tolgoi or "Five Hills" coal deposit.
Mongolia wants to launch a much-anticipated $3 billion initial public offering.
Sources said in January it would be dual listing in Ulan Bator and London and would likely take place in May, but later media reports suggested it could be delayed to October in order to win approval for a Hong Kong listing.
An initial proposal to hand development rights in the project to China's Shenhua, Peabody of the United States and a Russian-Mongolian consortium was rejected, and the government is trying to devise another deal that will include Japanese and South Korean partners.
The government is under pressure to pass several new laws, including the budget, an election law, judicial reforms, and the investment agreement for Tavan Tolgoi.
What to watch:
-- Progress of new laws through parliament.
-- Whether the government can produce an investment agreement for Tavan Tolgoi that will satisfy foreign partners and keep the public happy, and whether it can do it in time.
-- More inward investment. In November, commodities trader Trafigura and private equity investor Origo Partners Plc , formed a joint venture to develop Mongolian coal and iron ore deposits for export, and in February Goldman Sachs bought a 4.8 percent stake in a Mongolian bank.
-- Whether foreign investors will be deterred by Mongolia's less than transparent approval procedures.
THE RESOURCE "CURSE"
Mongolia's dependence on mining has alarmed environmentalists and opposition politicians, and the country is already showing classic symptoms of "Dutch disease", including soaring inflation and high interest rates.
The government is trying to put in place structures that will protect it against fluctuating commodity prices, and is keen to use the proceeds from mining to pay for infrastructure, health and education programmes and develop other sectors.
It is under pressure to spread the wealth, and has already extracted "pre-payments" from foreign firms involved in both the Tavan Tolgoi and Oyu Tolgoi projects in order to give money to the public.
What to watch:
-- How Mongolia uses the proceeds from its mining projects. It has set up education and fiscal stabilisation funds, but it has also promised direct dividends for Mongolian citizens.
-- How it deals with rapid economic change as well as inflation as foreign investment transforms the country's mainly rural economy. The International Monetary Fund warned in November that Mongolia's economic policies are creating inflationary pressures.
GETTING ON WITH THE NEIGHBOURS
Many of Mongolia's 2.7 million citizens are concerned about growing Chinese and Russian influence, and their fears were not allayed by the plan to hand the majority of Tavan Tolgoi's western block to Chinese and Russian interests.
China already dominates Mongolia's economy, buying 90 percent of the country's exports in the first half of 2011.
Mongolia's growing dependence on Russia and China for fuel, power and transportation also poses a major risk to its mining sector. Russia has been known to turn off supply taps, and China is not averse to closing crucial railway links.
Mongolia also depends on Russia's railway network to fulfil plans to deliver coal to Japan and South Korea. Mongolia's plans to build itself a railway network capable of transporting coal to foreign markets is likely to be delayed, officials said in February.
What to watch:
-- Will efforts to ease dependence on China merely increase Russia's hold, and vice versa? Is the Chinese market for coal and other minerals its only option in the short term?
-- How will the government handle growing nationalist sentiment, and fears about the role of foreign firms and workers.
Link to article
---
"Mogi" Munkhdul Badral
Senior Client Manager / 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.
Suite 1213 · Level 12 · 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 AFSLicense 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.
No comments:
Post a Comment