Tuesday, March 1, 2011

Metalline Mining (MMG) to change its name to Silver Bull Resources and totally tips its hand

So I'm looking round the market this morning and thinking "jeesh, where do I start with all this?", so to make it easy here we go with some information that was given out to subscribers on the evening of Sunday 27th February. It concerns Metalline Mining (MMG) (MMZ.to) and by way of full disclosure, this is a stock I own and it's one that we recommended as a buy in the Weekly in late January. Here's an  excerpted adaptation of the Flash update sent to subscribers to explain all:

The latest SEC filing from MMG dated Feb 25th announces the company annual meeting of shareholders for April 20th. Of the six items on the agenda, proposal two leaps out and grabs attention (we highlight in red to leave even less doubt):

Elect six directors to serve until the next annual meeting of shareholders and until their successors are elected and qualified.
Approve an amendment to our Articles of Incorporation to change the Company’s name to Silver Bull Resources, Inc.
Ratify and approve the appointment of Hein & Associates LLP as our independent registered public accounting firm.
Approve, by non-binding vote, the compensation of the Company’s executive officers.
Recommend, by non-binding vote, the frequency of executive compensation votes.
Transact such other business as may lawfully come before the Meeting or any  adjournment(s) thereof.

Later in the filing, we are given a little more detail about proposal two:
    Metalline Mining Company has been the Company’s legal name since June 1986.  On February 22, 2011 the Company’s Board of Directors adopted a resolution to amend the Company’s Articles of Incorporation to Silver Bull Resources, Inc.  The adoption of the resolution is subject to shareholder approval.  Further, if approved by the shareholders the Board retains discretion as to when and if the name change should ultimately be effected.
     The Company’s primary exploration project is its Sierra Mojada project in Mexico.   As the Company has continued to explore its concessions at Sierra Mojada with respect to silver-zinc mineralization much of the Company’s drilling program in both fiscal 2009 and 2010 was focused on further exploring and defining this potential resource.  The Company believes that going forward its exploration efforts at the Sierra Mojada project will largely focus on continuing to advance the exploration and potential development of the silver-zinc zone at the project.  Accordingly, the Board of Directors believes that the proposed name change is appropriate to better describe the Company’s focus and anticipated exploration activities.  Therefore, the Board of Directors deems it advisable and in the best interest of the Company that the shareholders approve the proposed amendment to the Company’s Articles of Incorporation to change the name of the Company to Silver Bull Resources, Inc.
    If the shareholders approve the proposed amendment, and when (and if) the Board elects to change the Company’s name, in addition to changing the Company’s legal name under Nevada law, the Company will notify the Financial Industry Regulatory Authority (“FINRA”) of the name change and work with FINRA to obtain a new trading symbol for its common stock.  However, the change of the Company’s name to Silver Bull Resources, Inc. may not be reflected in the general market until after it is effective under Nevada law, and the Company may not be assigned a new trading symbol for some time (if at all).
    The Board of Directors recommends that shareholders entitled to vote at the meeting vote "FOR" approval of the amendment.  Pursuant to Nevada law, approval of the proposed amendment to the Company's Articles of Incorporation to change the name of the Company requires approval by a majority of the shares outstanding and entitled to vote.

If there had been any doubt about the intended direction of MMG previously, that has now disappeared. This is a most interesting development and strongly indicates that the promotional aspect of MMG is about to get into gear, perhaps earlier than anticipated. I still firmly believe that the major catalyst will be the 2q11 43-101 compliant PEA, but by then the interest may have already been cranked up...along with the share price.

In other words, ladies and gentlemen readership of this humble corner of cyberspace, we have a company that owns a deposit in a safe Mexican jurisdiction that with at the very least 100 million ounces of contained silver and probably a lot more (my personal opinion is that it could reach 200m oz without breaking sweat) that is getting those ounces valued at around a buck each when the rest of the silver exploration juniors out there are getting $2 to $3 per ounce on their ounces. And this MMG deposit looks eminently economic to mine, as well. 

We've had this stock as a recommend since late January when it was trading at U$0.98 and with its nice looking move in the last couple of days. we're already 23.5% up on the reco. And for what it's worth, according to the in-depth fundies analysis report we put together at The IKN Weekly issue 89, there's a lot more to come from this stock price (and if you want to read that report, subscribe).

So, blog readers, you now have an idea of the more detailed info subscribers have had about MMG for about five weeks. You also know what they found out a couple of evenings ago. Disclosure: Long MMG.