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GLENCAR MINING GEX

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Hi Walden

Sorry to interupt your excellent thread here, have you got any books or resources that you would recommend that gives details on how to analyse junior miners?

Being somewhat burnt lately with a couple of junior minors but also feel that they will have their time in the sun in due course, it would be nice to quantify some of the results that are posted. C

 

Charlie

The resources I use for research and analysis are all internet based -- many of the references I use have been from GEI, there is a host of info and pointers to other internet sources on this forum. Some very good advice on the Ten Secrets of Investing in Junior Miners thread on this board.

Wikipedia, Infomine.com, minesite.com and a whole host of other sites all have valuable info --- it's a matter of ploughing through the info and taking out what is useful to you.

 

Maybe if you ask for good mining books on the junior miners thread there will be a few references.

 

As for being burnt, you're not alone, it would be unusual not to have been burnt in this environment for juniors !!!

 

 

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Minesite article out today:--

 

October 23, 2008

Glencar Proves Up Well Over A Million Ounces Of Gold In Mali And Looks Set Fair To Increase Its Resource Still Further

By Alastair Ford

 

“It’s unfortunate to be reporting good news in such weak markets”, says Hugh McCullough. On the other hand, he adds, rather philosophically, “it’s better to be reporting good news than bad news”. Glencar has just delivered an updated resource estimate for its combined Komana East and Komana West project in Mali. The numbers, well worked over by SRK, come in at a healthy 1.25 million ounces grading 1.6 grammes per tonne. SRK also reports that selective mining could push the overall grade up to two grammes per tonne, so Hugh McCullough has plenty to feel good about, even if the share price bounce isn’t quite what he might have hoped for last year on delivering the same news.

Conceivably the company could switch off the exploration rigs now and move straight into feasibility on a projected 10 year mine life producing over 100,000 ounces per year. That’s not the plan, though, for a couple of reasons. The first is that in terms of rating, Hugh doesn’t reckon Glencar will get any more support from the market if serious feasibility work starts at Komana. “I don’t think we’ll be stopping now and going to feasibility”, he says. “We know what the potential of this is. The market probably does know too, but isn’t interested. Other companies out there are interested too”. Which brings us on to the second reason why Glencar isn’t pushing the button on a feasibility study just yet.

 

At 4p per share, Glencar boasts a market capitalisation of a mere £11 million. That’s a level that’s just about beyond the reach of Hugh, and any merry band of fellow travellers he may care to gather together, taking it private. On the other hand it’s plenty cheap for a larger cashed-up miner that’s all of a sudden feeling predatory. Glencar is vulnerable in two ways. First, larger gold miners have been coining it in with gold up at between US$800 and US$1,000 for most of the year, but they haven’t in any serious way replenished their reserves. Hugh estimates that in total the big boys are taking 80 million to 90 million ounces out of the ground every year, and there’s no way reserves are being replaced at that level. On the other side of the same coin, recent deals in Burkina Faso were done on the basis of an average gold in the ground valuation of around US$60 per ounce. But Glencar’s current market valuation gives its own ounces a valuation of just US$13 each. That’s cheap enough to attract some predatory interest, although obviously Glencar’s shareholders, who are generally supportive, would have something to say on the matter if any bid came in. Taking the Burkina Faso deals as a benchmark, then Glencar’s shares ought to be worth 18p each.

 

Perhaps more significantly, Komana is by no means drilled out, and Glencar is by no means running out of money. Taken together, those two factors mean that Hugh is going to keep punching holes into the ground until well into next year, with a view to pushing the resource base up to the two million ounce mark. He feels that the more ounces he can get under the company’s belt, the more value he will force out of anyone who comes at him with a bid. Whether that turns out to be the right decision, or whether a hell-for-leather dash for production might have been a better choice, only time will tell. But in any case the company won’t drill forever. At some stage next year it will need new funds, and the new money will, says Hugh, be deployed into a feasibility study. The world may be a very different place by then, but one way or another, gold will still probably be strong relative to most other metals. Whether that means it will be at US$1,000, or US$500 is another matter, but either way with any luck Glencar will be one step closer to building a mine.

____________________________

 

Worth a reminder there are 4 more license areas around Komana with great potential plus Ghana and Uganda projects, from the recent interims:-

 

"We are also delighted to have demonstrated the presence of a significant mineralized zone over strike lengths of up to 1,200 metres at each of three targets that we have drilled so far on the Solona Concession. Taken together with the very exciting recent results returned from Glencar’s adjoining Komana Concession, this area as a whole has emerged as a highly prospective one, which has delivered significant intersections wherever we have drilled. The Sankarani Project joint venture with a subsidiary of Gold Fields is also moving into an exciting phase. Gold Fields has already completed expenditures on this project which earns it a 51% interest in the project. "

 

GHANA

We are expecting to complete an agreement shortly on a farm-in arrangement on our Asheba Project in Ghana. Further details will be given when the agreement is signed.

 

UGANDA

We are expecting to complete an agreement with Grey Crown Resources shortly on a farm-in arrangement on our Makina Project in southeast Uganda. Further details will be given when the agreement is signed.

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From Gold fields Quarterly Report to Sept '08 out today:--

 

At the 51 per cent owned Sankarani joint venture with Glencar Mining plc

(AIM: “GEX”) in south-western Mali, preparations are underway to resume

field work as soon as the rains subside in October 2008. The programme will

advance six target areas (Bada, Fie, FR14, BM East, Sindo, Selen 1) from

target definition to the initial drilling and complete initial drilling on four

targets ( Bokoro Main West and East, Fingouana, Sanioumale West and East

and Kabaya. )

------------------------------------

 

Far more targets there than have been released before, probably as a result of the airborne survey.

Initial drilling on six target areas and completing initial drilling on Bokoro Main West and East, Fingouana,

Sanioumale West and East and Kabaya looks like a very agressive programme and should bring out far

more potential from the three Sankarani Joint Venture license areas.

 

Extract from Gold Field's previous quarterly report to June '08 on the Sankarani JV:--

 

A total of 18,486 metres of rotary air blast (RAB) drilling has been completed to date on five Priority 1 targets to test a cumulative prospective strike length of 55 kilometers. Assay results from drilling the Sindo target outlined gold-in-bedrock anomalism coinciding with a northeast-southwest shear-zone. Visible gold was reported in pan concentrates recovered from the Fingouana and Kabaya South RAB holes, with intercepts of up to 9 metres at 6.5 grams per ton Au.

 

The upcoming work programme will include trenching and 18,000 metres of RAB/RC and diamond drilling to further test the five priority targets. An additional 20,000 metres of RAB drilling is planned for target definition over the twelve other Priority 2 and 3 areas not yet tested. The above should be completed by the December quarter.

------------------------------------------

Completed by December quarter !!

 

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Major news today -- Extract from RNS:---

 

 

Glencar Mining plc

 

Glencar Secures up to US$40 million Funding in a Conditional Deal with Gold Fields

 

25 March 2009

 

Glencar Mining plc (“Glencar” or the “Company”) is pleased to announce that it has signed a Letter of Intent with a subsidiary of Gold Fields Limited (“Gold Fields”), conditional on certain matters detailed below, which involves inter alia the following:

 

A Joint Venture agreement in relation to Glencar’s Komana licence involving exploration/feasibility study expenditures of up to $32 million in return for an interest of up to 65% in the Komana licence

 

An equity investment in Glencar of US$3.2 million (Stg£2.2 million). Post investment, Gold Fields to hold 15% interest in Glencar

 

An annual exploration option fee of $1.25m payable to Glencar over four years, totalling US$5 million

 

The successful conclusion of this deal will represent a major advance for Glencar, securing as it will, substantial exploration investment for the Komana project, the possibility of securing all future funding for a mine development at Komana without need for further funding by Glencar, while also providing Glencar with sufficient finance to advance the exciting Solona project and other exploration interests in the region.

----------------------------------

 

A major advance for Glencar today and a well crafted deal to take GEX through to production with Solona also being funded for 4 years yet wholly retained by GEX plus cash in the bank from the placing also ! Cracking deal in the current environment. GEX will have four licenses in JV with Gold Fields in Mali with Komana being at the heart of the gold bearing Sankarani shear zone with 23kms of that shear zone running through it. The 5th license area, Solana, adjacent to Komana, retained by GEX

 

Well done to CEO, Hugh McCullough, for achieving such a deal, particularly in these difficult times for explorers.

 

Davy's brokers upped their target from euro0.14c to 0.21c.

 

Look out for Glencar's licenses in Uganda and Ghana to be JV'd soon.

 

Full release:--

http://www.glencarmining.ie/press/2009/0903_1.html

 

 

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Minesite article out today:--

 

July 14, 2009

 

Glencar Dumps Goldfields And Its Money And Goes Looking For A Better Funding Deal For The Million Ounce Komana Deposit In Mali

 

By Alastair Ford

 

“There’s a whole lot been going on, alright”. So says Hugh McCullough after a bruising few months at the helm of Glencar, during which time the tenure of some of his fellow directors has been challenged by a major shareholder, and the terms of his US$40 million funding deal with Goldfields were increasingly brought into question, before the deal itself fell apart. That latter development is by far the most significant, though Hugh insists there’s little or no connection between the withdrawal of Goldfields’ offer to put the company’s million ounce Komana project well on the way to production, and the spate of shareholder agitation with which he’s had to deal recently.

 

Hugh still believes that what was on the table between Goldfields and Glencar was “a very attractive deal”. But one or two unforeseen sticking points arose. The issue of management control at Komana was never really settled, but what really stopped Glencar in its tracks was Goldfields unwillingness in the event of a development decision, to lend Glencar the money it would need to support its own equity position. This led to the possibility that Glencar might find itself diluted out of the project by a bigger spending partner, and Hugh reckoned shareholders wouldn’t have stomached that.

 

Some thought he’d been too generous to Goldfields in the first place, and given away too much of the upside at Komana. There certainly wasn’t much angst to be found around town when news got out that the deal had unraveled. But as Hugh says, when the deal was initially signed, in December, there wasn’t much money to be had from anyone, or on any terms. Certainly, Macquarie Bank was given the opportunity to participate in a funding at that time, and declined. In any case an equity raise could only have been achieved on such terms that the howls of rage about the discount and dilution that would have followed would have made the rumblings of discontent that followed the Goldfields deal look like a friendly chat over a cup of tea. After all, on the equity portion of the Goldfields deal, Goldfields were coming in at a 30 per cent premium. Still, perhaps he should have waited, perhaps done a friends and family raise to keep things ticking over. But that’s an academic argument now. Times are different, there’s money around, the Goldfields option is dead in the water, and Hugh’s once again looking for a funding deal to take Komana forwards.

 

How much he’ll look for this time round isn’t yet clear, but it’s likely to be somewhere in the region of US$20 million to US$40 million. And he’s fairly confident he’ll get it too. “I’ve no doubt we’ll come up with something as attractive or even more attractive for shareholders”, he says, and vague talk of “independent financing or possible mergers” has been tacked onto the end of the company’s latest press release, although quite when such developments might be announced isn’t clear. But, following on from the defeat of Macquarie’s attempt to unseat two members of the board, Hugh at least says that his major shareholders are supportive. One is of course Goldfields itself, which holds nine per cent. Macquarie for its part holds six per cent, and Hugh’s reasonably confident that that position will be maintained. Macquarie has always been supportive in the past, he says, and they’re entitled to their view. But now that the Goldfields funding is off the table, there ought to be less dissent in any case.

 

So did Hugh, in fact, cut a lucky break in that the deal broke down? In one sense he did. Times have changed. On Glencar’s Sankarani project, which operates under a successfully concluded and independent joint venture deal with Goldfields, the major has agreed to lend Glencar enough money to allow it to participate in equal measure through to the production stage. Under such deals, debts like that are usually paid off by the allocation of all early cash flow to the debtor. But in the post credit crunch world it seems that Goldfields isn’t willing to make such sizeable capital commitments. That left too much uncertainty on the Glencar side, especially as the question of operational control was never settled. If ever Hugh was looking for a reason to pull the plug on the Goldfields deal, this was it. A counter argument might run that Glencar could have just taken the risk on being able to fund its own percentage of Komana and carried on. But however sensible, this deal was never popular, and there won’t be many in the pubs and bars of Dublin or St James’s putting that side of the argument. The world’s moved on, and so now has Glencar.

-------------------------

 

Would like to see Glencar raise cash to drill Komana and probably Solona for another drill season and develop on the JORCs there to put them in a stronger position and capitalise on any future Gold price increase. They should have $2 million or so at present so no rush to do any deals.

 

Strikes me there is much more to come from Komana with many known orebodies undeveloped and the JORC areas of Komana East and West open along strike and at depth. The current 1.25m oz JORC has a way to go here.

 

 

 

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Wow up 94% today.

 

I can't find any reason on the web site for the move.

 

Does anyone have any idea?

 

 

Derisory bid from Gold Fields at 9p.

 

--- Recommended by the board yet the offer is derisory in comparison to the assets of Glencar --

 

Many shareholders not happy --- myself included

 

http://www.glencarmining.ie/downloads/Rule25Glencar.pdf

 

Have emailed CEO and already have a response but do reckon that Gold Fields really put one over on Glencar by stringing Glencar along with a Letter of Intent for a JV deal then baulking at the deal at the last minute and walking away ---- now a derisory bid comes in.

 

 

Email to and from CEO Hugh McCullough this afternoon:--

 

 

 

"Dear Walden

 

Thank you for your email.

 

I am sorry you feel the way you do about this bid. I am constrained by Takeover Code Rules in what I can say to anyone at the present, shareholders included. However, I hope that I will get the opportunity to discuss this with you at some stage in the future.

 

With regards

 

Hugh

 

 

 

From: Walden

Sent: 24 July 2009 15:41

To: Hugh McCullough

Subject: Gold Fields Bid -- Shareholder rip off.

 

 

 

Dear Hugh,

 

I am saddened and distressed that after the board giving an impression of looking to deliver shareholder value that they can condone this derisory bid from Gold Fields.

 

Not only that, but the board unanimously recommends this offer by Gold Fields and gives irrevocable commitments for their own shares and options. I note that recently a substantial amount of options have been awarded at Euro 0.045 cents to the board. The board may benefit dramatically but shareholder value has been totally ignored.

 

This offer severely undervalues Glencar's assets and I ask the board to reconsider their recommendation immediately and seek to actively achieve shareholder value either from Gold Fields or another bidder or realise a deal that at least comes close to representing value for shareholders.

 

This current offer by Gold Fields is derisory.

 

Yours in total disgust,

 

Walden

Shareholder"

 

-------------------------------------

 

Severely annoyed at this.

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Dear Walden,

 

I can't see why you would call a price of 2x the prevailing as derisory. If you go through the circular you will note that the Goldfields due diligence highlighted a smearing issue in the RC drilling. This is a rookie mistake - RC drilling beneath the water table. Our Hughie boy might not have his +1Moz - and - this could be very smart for shareholders. I am a very happy shareholder and will sell immediately in case this offer doesn't stay around.

 

My advice to yoiu dear sir - is to do the same.

 

Gold Discoverer

 

Derisory bid from Gold Fields at 9p.

 

--- Recommended by the board yet the offer is derisory in comparison to the assets of Glencar --

 

Many shareholders not happy --- myself included

 

http://www.glencarmining.ie/downloads/Rule25Glencar.pdf

 

Have emailed CEO and already have a response but do reckon that Gold Fields really put one over on Glencar by stringing Glencar along with a Letter of Intent for a JV deal then baulking at the deal at the last minute and walking away ---- now a derisory bid comes in.

 

 

Email to and from CEO Hugh McCullough this afternoon:--

 

 

 

"Dear Walden

 

Thank you for your email.

 

I am sorry you feel the way you do about this bid. I am constrained by Takeover Code Rules in what I can say to anyone at the present, shareholders included. However, I hope that I will get the opportunity to discuss this with you at some stage in the future.

 

With regards

 

Hugh

 

 

 

From: Walden

Sent: 24 July 2009 15:41

To: Hugh McCullough

Subject: Gold Fields Bid -- Shareholder rip off.

 

 

 

Dear Hugh,

 

I am saddened and distressed that after the board giving an impression of looking to deliver shareholder value that they can condone this derisory bid from Gold Fields.

 

Not only that, but the board unanimously recommends this offer by Gold Fields and gives irrevocable commitments for their own shares and options. I note that recently a substantial amount of options have been awarded at Euro 0.045 cents to the board. The board may benefit dramatically but shareholder value has been totally ignored.

 

This offer severely undervalues Glencar's assets and I ask the board to reconsider their recommendation immediately and seek to actively achieve shareholder value either from Gold Fields or another bidder or realise a deal that at least comes close to representing value for shareholders.

 

This current offer by Gold Fields is derisory.

 

Yours in total disgust,

 

Walden

Shareholder"

 

-------------------------------------

 

Severely annoyed at this.

 

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Hello Gold Discoverer, and welcome with your first post on GEI and on this thread on the day following the offer for Glencar.

What a coincidence.

 

 

As far as value is concerned I am looking at the value of the underlying assets and not basing it on a depressed SP.

Am also not forgetting there are 5 Mali licenses, 3 of which are already in a very good JV agreement with Gold Fields, and 1 in each of Ghana and Uganda, when I look at value.

 

 

Take it the section below was the one you are referring to.

 

"5. Exploration Update on the Komana Project.

In preparation for the previously proposed Komana Joint Venture with Glencar, Gold Fields has recently undertaken its own technical due diligence at Komana. A total of seven diamond drill holes were completed at Komana to confirm the drill results achieved by Glencar and to test for mineralization at depth.

 

Three confirmatory diamond drill holes were completed next to three existing reverse circulation drill holes used to delineate the Komana resource. Two of these confirmatory drill holes revealed a possible sample contamination issue in the existing Glencar data which could be significant.

 

Three of the holes drilled to test mineralization at depth intersected zones indicative of mineralization. No wide ore grade mineralised zones were intersected. The best grade intersected was 1 metre at 10.7g/t at a depth of 256-257 metres downhole. Other intersections included 3 metres at 1.6g/t and 1 metre at 1.9g/t.

 

Gold Fields acknowledges that further work will need to be conducted at Komana in order to ascertain whether the issues described above have any impact on Glencar's publically announced mineral resource estimate. Gold Fields continues to believe in the regional prospectivity and Gold Fields wishes to continue to explore there.

 

Gold Fields has informed Glencar of the results of its findings and believes that in order to ensure that all shareholders in Glencar have equal access to the same information on Glencar it is necessary to disclose this information to the market at the same time as the announcement of the Offer.

 

The Board of Glencar, based on preliminary investigations carried out, does not believe that the findings described above will have a material impact on the resource estimate previously announced by Glencar.

----------------------------------

 

Gold Fields seem to have missed --- how unfortunate and remiss of them ----- AND ------- after drilling a whole 7 holes in a very tiny section of one license area out of 5 licenses.

 

 

Maybe it does imply that there is absolutely nothing of interest for Gold Fields in the 5 Mali license areas but they are continuing with the bid as a favour to Glencar shareholders, what wonderful philanthropists ---

 

OR

 

That the board of Glencar who have previously discovered two major West African deposits and have drilled tens of thousands of metres on the Mali licenses with independent assays being done and is all discredited with a " rookie mistake " by Glencar following a bit of a bashing from Gold Fields based on their extensive 7 hole drill programme.

 

How charitable Gold Fields are being to Glencar shareholders --- maybe they should win an award for services to humanity !!

 

 

Anyway, Gold Fields have put a bid in and have a head start over any other potential bidder but there looks to be a chance of other bidders with this statement from section 3. Background to and Reasons for Recommending the Offer, of the RNS / offer document:--

 

"that since the termination of discussions on the Komana Joint Venture, announced on 7 July 2009, Glencar has had discussions with several third parties who have expressed an interest in Glencar and/or its assets. Discussions with one of these parties led to an approach which has not led to an indicative offer."

 

With Macquarie as a major shareholder they may also encourage and stir up further competition. They were dead set against the Komana JV with Gold Fields

 

 

Glencar will be taken out, either by Gold Fields at 9p or another party at a higher price so selling is the option open, but certainly no rush as Gold Fields will not be walking away from such value and particularly the license at the heart of the 5 Mali licenses, the lynch pin license area of Komana with 23Km of strike in the main hosted Sankarani shear zone that connects the licenses !!!!!!

 

 

 

 

 

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Hi Walden

Keep up the good fight, :)

 

Thank you for posting makes for an interesting read, in your opinion and/or experience how quickly do these things tend to play out 2-3 months or more.

 

Kept my holding in these, which were always a bit of a punt brought at around a year ago before the massive decline in juniors, but happy to see them now getting their chance to shine.

 

 

 

c

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Hi Walden

Keep up the good fight, :)

 

Thank you for posting makes for an interesting read, in your opinion and/or experience how quickly do these things tend to play out 2-3 months or more.

 

Kept my holding in these, which were always a bit of a punt brought at around a year ago before the massive decline in juniors, but happy to see them now getting their chance to shine.

 

c

 

 

Charlie -- Think your time frame is not too far off, possibly a little shorter, but if another bidder comes in it could be longer. The longer it goes, the more chance of a gold price move --- Gold Fields are predicting much higher prices and have put this bid in quickly in that belief.

 

From the offer RNS Gold Fields are looking for acceptances of 80% but at their discretion may move that but to no lower than a percentage which is more than 50%.

 

The media are being used by Gold Fields and are putting about that two holes they drilled for testing purposes at Komana 'may be contaminated' -- The Glencar board have stated in the offer RNS that this should have no material impact anyway. My own observations follow.

 

The Gold Fields drilling is deliberate disinformation put quite simply.

 

The intent is to deliberately deceive GEX shareholders and possibly put off any counter-bidder.

 

The few drill holes done by Gold Fields in a miniscule area are a total red herring put there to distract from the many gold discoveries on the 5 Mali Licenses.

 

There are gold strikes at Bokoro/Fie, Fingouana, Sanioumale East, Sanioumale West, Sindo, Komana East, Komana West, Gonka, Soloba, Soloba West, Kama, Kabaya South, Niechilela, Faliko, Badogo Malikili, and many more targets to be drilled such as the Bada extension on which exploration has already started. This list is not exhaustive.

 

Gold Fields are not releasing full information, particularly over the 3 licenses in the existing joint venture agreement.

 

Gold Fields deliberately baulked at what was in the Letter of Intent for the intended Komana JV at a late stage as part of their strategy to put Glencar in a poor position in order to line them up for a derisory bid.

 

How many millions of ounces of gold on the 5 Mali licenses to come from all the strikes. Gold Fields certainly do not want to give their estimates away, or give information away that would indicate how badly they want those license areas.

 

How much are Gold Fields hiding ??

 

Gold Fields want those 5 licenses in Mali but do not want any counter-bids --- and will do what it takes -- any story of them walking away because of their spin on the results of two holes is the media being used --- They will not walk away from Glencar as this bid is a strategic move for Gold Fields.

 

 

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Dear Walden,

 

You are somewhat confused. Gold is not found uniformly across tenements held by exploration companies - wish it was! The Gold Fields holes were drilled in the middle of where GEX identified gold and have a defined reource. This has taken GEX quite a long time and a lot of cash to find - so thinking that it could be all over the five tenements is an eroneous assumption ("The few drill holes done by Gold Fields in a miniscule area are a total red herring put there to distract from the many gold discoveries on the 5 Mali Licenses). Bottomline - the random tests done by Gold Fields has uncovered a potential flaw in the operating procedure of the GEX crew. You need to think of this statistically - they have drilled three twin holes (duplicate holes next to old GEX holes) - two demonstrated a problem. If you extrapolate that 66% fail rate across the GEX drilling - it leaves cause for concern.

 

I sold my GEX shares for 8.8 pence - made a profit - I don't want t

o be stuck with these shares if Gold Fields changes its mind or doesn't make its minimum acceptances.

 

I hope that I have somewhat educated you!

 

Best wishes

 

Gold Discoverer (and profit taker)

 

Charlie -- Think your time frame is not too far off, possibly a little shorter, but if another bidder comes in it could be longer. The longer it goes, the more chance of a gold price move --- Gold Fields are predicting much higher prices and have put this bid in quickly in that belief.

 

From the offer RNS Gold Fields are looking for acceptances of 80% but at their discretion may move that but to no lower than a percentage which is more than 50%.

 

The media are being used by Gold Fields and are putting about that two holes they drilled for testing purposes at Komana 'may be contaminated' -- The Glencar board have stated in the offer RNS that this should have no material impact anyway. My own observations follow.

 

The Gold Fields drilling is deliberate disinformation put quite simply.

 

The intent is to deliberately deceive GEX shareholders and possibly put off any counter-bidder.

 

The few drill holes done by Gold Fields in a miniscule area are a total red herring put there to distract from the many gold discoveries on the 5 Mali Licenses.

 

There are gold strikes at Bokoro/Fie, Fingouana, Sanioumale East, Sanioumale West, Sindo, Komana East, Komana West, Gonka, Soloba, Soloba West, Kama, Kabaya South, Niechilela, Faliko, Badogo Malikili, and many more targets to be drilled such as the Bada extension on which exploration has already started. This list is not exhaustive.

 

Gold Fields are not releasing full information, particularly over the 3 licenses in the existing joint venture agreement.

 

Gold Fields deliberately baulked at what was in the Letter of Intent for the intended Komana JV at a late stage as part of their strategy to put Glencar in a poor position in order to line them up for a derisory bid.

 

How many millions of ounces of gold on the 5 Mali licenses to come from all the strikes. Gold Fields certainly do not want to give their estimates away, or give information away that would indicate how badly they want those license areas.

 

How much are Gold Fields hiding ??

 

Gold Fields want those 5 licenses in Mali but do not want any counter-bids --- and will do what it takes -- any story of them walking away because of their spin on the results of two holes is the media being used --- They will not walk away from Glencar as this bid is a strategic move for Gold Fields.

 

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Gold Discoverer -- am not concerned by the 6 holes drilled by Gold Fields to test a small part of Komana. The GEX position is that the Glencar board have stated in the offer RNS that this should have no material impact anyway. Glad you've done well but am looking for a better offer price as I believe the current 9p is derisory, as do many shareholders.

 

There are gold strikes at Bokoro/Fie, Fingouana, Sanioumale East, Sanioumale West, Sindo, Komana East, Komana West, Gonka, Soloba, Soloba West, Kama, Kabaya South, Niechilela, Faliko, Badogo Malikili, and many more targets to be drilled such as the Bada extension on which exploration has already started. This list is not exhaustive.

 

There are many strikes that Gold Fields have drilled themselves on the 3 licenses in the Sankarani JV as listed previously. The Bokoro/Fie strike and the Sanioumale East and West strikes which are looking very substantial are due for resource definition in the coming season with Fingouana possibly to join that duo and looking to have great potential.

 

Those 5 licenses really do have 5 million ounces plus written all over them ( with 1.25m JORC already )

 

 

We now have a hedge fund joining as shareholders, Loeb Arbitrage Management, buying into Glencar:----

 

Date of disclosure......August 7, 2009

 

 

DISCLOSURE UNDER RULE 8.1(a), 8.1 b(i) and 8.3 OF THE IRISH TAKEOVER PANEL ACT, 1997, TAKEOVER RULES, 2007

 

Date of Dealing August

6th 2009

Dealing in (name of company)

Glencar Mining Plc

(1) Class of (e.g. ordinary shares) Ordinary shares

securities

(2) Amount bought 1,055,000

Amount sold -

Price per unit 8.8 GBp

(3) Resultant total ofthe same class owned

or controlled (and percentage of class)

3,250,000......................................................1.08%

(%)

(4) Party making disclosure Loeb

Arbitrage Management, LLC

 

---------------------------

 

Loeb Arbitrage

http://www.fatpitch.biz/cgi-bin/f.cgi/psp/...056569.861.html

 

 

With very low volume in the past week of just over 2% it looks like Loeb picked up about half of that. GF have not really got anywhere this week which is not surprising.

 

The offer from GF is derisory and many shareholders are looking for a much better deal from GF ---- or elsewhere.

 

Loeb Arbitrage Manangement also seem to think there is more to come.

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