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Massive Story imo / China buying gold miners

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April 10, 2008

 

Jinshan have a market cap of about $450 million. They've just began producing gold in China. China Gold, the largest Chinese gold producer - and state owned! - has just bought 42% of Jinshan.

 

Behind all this, I believe, is the same bank that facilitated the 10% purchase of Rio Tinto.

 

This is imo a very significant piece of news - not just for Jinshan, but for juniors and gold - I'm going to write about it in MW this week.

 

Why?

 

+ The Chinese have bought a stake in a gold producer. Why would they want gold?

+They have bought into a JUNIOR, albeit a large one. Will there be more to follow?

+ They were very impressed with Jinshan's mine and want, presumably, access to that expertise as well as the gold.

+ The will be using Jinshan as a conduit to make purchases of other miners overseas.

+ Jinshan's capacity for takeovers with cash, financed by Chinese, is enormous.

 

Please post any thoughts you may have on this:

 

Here's the news release.

 

 

China National Gold Corporation Purchases Cdn$218 Million of Jinshan Securities with a Mandate to Create a Leading Global Gold Producer

 

VANCOUVER, CANADA - Jinshan Gold Mines Inc. ("Jinshan") (TSX: JIN) is pleased to announce that China National Gold Group Corporation ("China Gold"), China's largest state-owned gold producing enterprise and its financial partners, have agreed to purchase the entire holding of Ivanhoe Mines Ltd ("Ivanhoe Mines") in Jinshan. The transaction, worth CDN$217.7 million, will see China Gold acquire Ivanhoe Mines':

 

* Ivanhoe's entire holding of 67,520,060 common shares of Jinshan Gold Mines, at a price of $3.1115 per share; and

 

* A Jinshan promissory note of $7.5 million issued to Ivanhoe Mines, due June 26, 2010, together with accrued interest at 12% from March 31, 2008.

 

Upon closing of the transaction, the purchaser will replace Ivanhoe Mines as Jinshan's largest shareholder with 42% of Jinshan's issued and outstanding common shares. Ivanhoe will retain warrants to purchase up to 1.5 million common shares of Jinshan, each exercisable to purchase one Jinshan common share at $2.50 at any time up to June 26, 2009.

 

To view the entire release, click on the attached file...

http://www.jinshanmines.com/i/pdf/2008-04-10_NR.pdf

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April 10, 2008

 

Jinshan have a market cap of about $450 million. They've just began producing gold in China. China Gold, the largest Chinese gold producer - and state owned! - has just bought 42% of Jinshan.

Please post any thoughts you may have on this:

 

Please post any thoughts you may have on this:

 

off the cuff - maybe the Chinese will be looking at other Chinese Gold stocks Such as Leyshon, although I think Jinshan were further down the production road?

 

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Chinese buying of resource companies is a big story that will get bigger IMHO

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Lets hope so - I've just jumped in! Were mentioned in Moneyweek as a buy below 25p - so have done so.

 

Jinshan will be producing upward of 200koz Au within a year or so. China Gold while the largest producer in China derives its' revenue from numerous mines, more than 30 I believe, that are all small inefficient and highish cost, further a number are alluvial in nature.

 

CG my guess is will be looking to JM for technical assistance on the exploration and development front.

 

Lots of chat on stockhouse.ca about a potential HK listing

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From Gold World:--

 

Sunday, April 20th, 2008

 

Dear Gold World Reader,

 

About a week ago, China's largest state-owned gold producing enterprise announced it was buying a 42% equity stake in a company Greg McCoach calls "the best junior gold producer in the world."

 

Greg first recommended this company in the summer of 2006. He was able to get his readers into it for under $1.25 a share. However, the Chinese government purchased their shares for more than double that price.

 

The Chinese bought its stake for $217 million. This is huge...and will propel this small gold producer among the elites in the precious metals market.

 

As an investor, you still have time to buy the company's stock while it's still under the radar. In fact, you can buy it for the tidy sum of just $2.80 a share. The report below from Greg explains how to do it.

 

Good Investing,

 

 

 

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Looking for a thread on LRL - Leyshon. Thought there was one here somewhere but couldnt find it.

 

Strike a comparison between Leyshon and what used to be Central China Goldfields

 

- both interviewed on Frisbys Bulls & Bears

- Both had gold projects in China which on the face of it looked very good

- both bought into by yours truly and proceeded to drift downwards

then

- both given their marching orders from China. Kinda. Their projects were brought out by Chinese organisations but both were compensated which gave a boost to the share prices. Around 2009

 

 

Note while Central China Goldfields (CGG then GGG) promptly went and bought into a sleeping Australian gold deposit (Bullabulling gold), LRL has been taking an age to do anything. GGG shares have been up and down the hill since - a lot of excitement along the way re size of find turned into dull progress.

 

However LRL have been drilling recently - "unconventional gas production on the Eastern Flank of the Ordos Basin in China." says their website. Last years drilling results were from memory not that well received by the market. What is interesting is that Paul Atherley recently spent £268k (ish) buying shares - thats a fair bit !!!

 

Will be interesting to see what happens next.

 

http://www.investega...2010710548937W/

Leyshon Resources Limited (AIM/ASX:LRL) announces that itreceived notification yesterday that Paul Atherley, a director of the Company, purchased 1,800,000 Ordinary Shares at 14.91 pence per share on 25 January 2013 in AIM on-market trading.

 

His resultant holding in Ordinary Shares in the Company is 31,330,000 ordinary shares representing approximately 12.56% of the total issued share capital of the Company.

 

Ps. Is not a recommendation. I aint a mining expert.

 

+ not necessarily expecting China to do a repeat buy out - gas is not a political metal (although fracking may be a political issue in due course). More interested in what the drilling results may be given Pauls buy.

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