One of the morning jobs (usually while sipping a decent coffee) is to check on the pre-open news releases as they come off the wires. Here are a few that caught this humble scribe's eye today:
Fronteer (FRG) (51% owner and operator) and AuEx Ventures (XAU.to) (49% owner) nail another great drill return from Long Canyon. The headline grabbing 16.4g/t gold over 21.2m is also on an outstep, making it even more sexy. Expect love for both stocks on this, esp XAU.to which has underperformed compared to FRG these last few days.
Sabina Gold & Silver (SBB.to)return more great numbers from its new Llama Lake property. A certain US resident bottom-feeding chartist I could mention isn't going to get his stink bid filled :-)
Hathor (HAT.v) came out with its NR after the bell yesterday and the stock was halted in the afternoon due to it. The headline number of 7.5m at 43.64% U308 is an infill, but hells bells it's still a mind-popping intersect. Do the math, folks. With U308 trading at U$40.75 per pound (and plenty higher on long term contracts, but we'll just run with the public number) every metric tonne of that intersect is worth U$39,205......like wowsers. It's the equivalent of 1kg/t gold intersects (using U$1,200/oz Au).
Question: When will US Gold (UXG) do the right thing and change its name to 'Mexico Silver'?
It's two weeks before PDAC and every junior miner out there seems to want to get some news on the table before the year's big conflab gets going. So far today and before the opening bell, your humble servant received 27 NRs from little pissant companies all going "ME! ME! LOOK AT ME!" in a multitude of ways. I expect the same amount before lunchtime.
And thus to celebrate this joyous e-mail experience, IKN offers a suggestion to ECU Silver (ECU.to) about its next possible news release to make sure these arch BS-pumpers aren't left behind in the rush:
TORONTO, ONTARIO--(Marketwire - Feb. 32, 2010) - ECU Silver Mining Inc. (TSX:ECU - News) is pleased to announce the procurement and delivery of high quality assets to its head office and office branches in Canada and Mexic0. The Company has taken delivery of 20,000 metal paperclips secured at a substantial discount to prevailing market prices. Mr. Michel Roy, Chairman and CEO of ECU Silver commented, "We are pleased to announce the news of our increase in paperclip inventory to our valued shareholders. Not only were the clips bought at a good price, but being of the metallic variety they are environmentally friendly. We expect these new supplies to benefit the Company as we move forward on our scams in Mexico".
In other news, the Company is issuing another ten million stock options to management and hangers-on over at GATA. But don't worry about it, suckaz. For further information regarding this news release, please mail our IR department who will promptly delete your message and never reply.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this Press Release because the people over at TSX aren't stupid.
Here we go with another in our occasional series of looking at the gobbledygook written by junior miners in their news releases and translating it into real English. Today's episode comes from Greystar Resources (GSL.to), the company that firstfooted the Santander Norte zone of Colombia and has made snail's pace development at its Angostura project (deep in the heart of a paramilico drug running zone...but don't let that bother you....cos it doesn't bother the BS pump analysts from the Canuck houses...so why should it bother you...right?). Anyway, I digress. Let's get on with the show.
This is what they wrote:
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 2, 2009) - Greystar Resources Ltd. (TSX:GSL - News; AIM:GSL) (the "Company") announced that the Company will initiate a program of metallurgical testing aimed at investigating the application of agitation leach and/or pre-oxidation as processing methods for intermediate sulphide ore at its 100% owned Angostura gold-silver deposit. Initial testing from both processing methods have shown promising results and further testing is warranted. In the Preliminary Feasibility Study published in May 2009, the intermediate sulphide ore (representing approximately 17% of the recovered gold in the mine plan) was designed to be heap leached which resulted in low recoveries of precious metals. Recent column testing using the intermediate sulphide ore to simulate heap leach conditions have returned recoveries that question the economic viability of only using heap leaching on this ore type. It is important to point out that column testing to simulate heap leach conditions on oxide and transitional ores continue to show very positive results. In addition, flotation testing for treatment of the higher grade sulphide ore to produce a gold bearing concentrate also continues to show excellent results. Given the improvement in the long term outlook for gold, the Company believes that the intermediate sulphide ore may be able to support a more robust processing method which may lead to higher economic returns for this ore type. The agitation leach and pre-oxidation testing programs will take approximately six months to complete, as such the Bankable Feasibility Study is now expected to be completed in the second half of 2010. The Company will continue with the design of the heap leach facilities for treating oxide and transitional ore as well as the grinding and flotation circuit for the higher grade sulphide ore.
David Rovig, President & CEO commented, "Our Preliminary Feasibility Study was based upon $700 per ounce of gold during the first three years of operation and $650 per ounce of gold for the remaining twelve years. These gold prices limited our options for processing of the intermediate sulphide ore at Angostura which contains approximately 2 million ounces of gold. In the current gold environment, both agitated leach and pre - oxidation offer to increase recoveries and improve the economics of this ore type and the project as a whole. If either process is adopted, design modifications such as the inclusion of a tailings impoundment would need to be incorporated in the Bankable Feasibility Study. While this testing will delay the project, the Company will continue to move forward with all other aspects of the project including geotechnical evaluations, social and environmental studies, permitting, infrastructure construction and project finance."
And this is what it means:
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 2, 2009) - Greystar Resources Ltd. (TSX:GSL - News; AIM:GSL) (the "Company") announced that after all this time the Company still doesn't have a freaking clue about how it can get the gold out of this damn stupid sulphide rock, but now that gold is above $1,000/oz we have the chance to throw a couple of hundred extra dollars worth of reagents at the stuff and see if it works.
The project is now going to go through even more delays and the Company has spent the last year kicking ourselves that it didn't claim that valley just to the South of its big land package where Ventana Gold has been kicking serious ass. Mojitos served, the end.
Following on from the previous post (better read first), here's how we broke down the EC.v July 17th PR as a case study in The IKN Weekly, issue 12:
If you want to believe everything you read in junior miner press releases, be my guest, I’m not going to stop you.
The news release from Ecometals (EC.v) dated Friday 17th July is one that we’re going to take apart and examine carefully here today as an object lesson in the things written for the benefit of suckers. There are two parts to this story. The PR dated yesterday (10) was published to ‘clarify’ (their word, not mine) an earlier PR dated June 29th 2009 (11) that told the world about a successful shipment of manganese ore from its Brazilian operations and the rosy prospects the firm had for the future of its Brazil operations. I’ve been trying to think how to do the analysis of these two press releases in the most concise way possible, but really we need to go the long route, be a little tedious with word count and lay out the two PRs here to look at them in parallel. We’re taking up room this way but it’s the only real way of applying the scalpel correctly, at least as far a I can see. So here goes, and this is the paste of Ecometals’ first release, dated June 29th:
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TORONTO, ONTARIO--(Marketwire - June 29, 2009) - Ecometals Limited (TSX VENTURE: EC BERLIN: GDQ FRANKFURT:GDQ; the "Company") -
The Company wishes to announce that it has completed its first manganese ore shipment from Port Santana, BrazilThe Company believes this first shipment represents a major step forward for its business activities in the State of Amapa. With the completion of this shipment the Company will now apply for three new permits. The first application will be for the export of up to a further 300,000 tonnes of manganese ore direct from its manganese stockpiles at Serra do Navio which will significantly raise the Company's market profile as a creditable supplier of manganese ore in the world market ahead of long term sustainable sales out of Serra do Navio. This will also provide interim funding prior to the completion of the processing plant at Serra do Navio. The second and third licenses will be the simultaneous applications for the Preliminary and Installation Licenses which will enable the Company to commence the construction of a jigging process plant at the Serra do Navio mine in order to value add and sell the remaining 3.5m tonnes of stockpiled manganese ore.
The Serra do Navio Project design work is well advanced and the Company is in discussion with a development bank for funding. The Company will provide updated statements on the Project as and when information is finalised.
Chief Operating Officer Daniel Major said, "This first shipment is a major step forward for Ecometals as it represents the commencement of the Company's commercialisation of its projects in the State of Amapa. Subject to funding and permits, we intend to now actively progress our manganese capital project at Serra do Navio with resulting further manganese beneficiation and shipments from Brazil."
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All very positive, bright and warm future, for sure. That news came on the back of its June 26 announcement (12) about its plans to drill its Rio Zarza property in Ecuador, close to the now famous FDN discovery, that doubled the EC.v stock price on that same day. The news about the manganese shipment pushed EC.v stock back up 27.8% on June 30th on heavy comparative volume.
So now we have the second PR, dated Friday 17th July. Here goes, and this time I’ve added my notes between the lines in bold type to see what all the trouble is about.
As a result of a review by the British Columbia Securities Commission, Ecometals (the Company) is issuing the following news release to clarify its disclosure in a previous news release issued 29 June 2009 and in its Management Discussion & Analysis for the 9 month period ended December 31, 2008.
In other words, the regulators in Canada have, for once, been doing their job correctly. The BCSC has reviewed recent EC.v filings, called “bullshit” and told them to rectify or else.
Serra do Navio Mine Site
The Serra do Navio manganese mine was operated by Industria e Comercio de Minieros SA (ICOMI) from 1957 until closure in 1997, producing a reported 34Mt of commercialised products. Ecometals owns 66.67% and operates a joint venture company, which is the owner of the mineralised material, with ICOMI (now Alto Tocantins Mineracao Ltda).
On closure of the mine, Roberto Costa Engenharia Ltda completed a report which covers the geology, historical mining and processing methods, production, metallurgy, mineral economics, and an estimate of the remaining in situ mineralized material. Ing. Roberto Costa is a registered mining and metallurgical engineer in Brazil under CREA MG-4381.
As the Costa resource report was completed in 1997, the resource is "Historical" under NI43-101.
The above is preamble to make clear that the resource referred to by EC.v is not 43-101 compliant. This was not made clear by the company in its previous PR. The theme is revisited as this clarification PR continues.
Costa reports the remaining in situ (in ground) resources as 1.2Mt oxide @ 38.43% Mn and 4.4Mt carbonate type @ 30.61% Mn mineralised material. The historical mineral resource was not classified as measured, indicated or inferred, and the Company considers the mineralized material is comparable to a potential mineral deposit for which there has been insufficient exploration to delineate a mineral resource.
Stockpiled manganese mineralised material at Serra do Navio was surveyed by Topgeo Servicos Ltda as 1,615,759 cubic metres in 34 stockpiles. Using a density of 2.5t/m3 for floated mineralized material from the Costa report, this amounts to a total of approximately 4Mt of stockpiled manganese mineralized material. However, the stockpiles are comprised of material which has been processed to different sizes and grades, and contain both oxide and carbonate type mineralization. A more conservative density of 2.02t/m3 taken as the lowest density measured by SGS do Brazil Ltda on similar stockpiled material at Porto Santana is assumed by the Company. This results in an estimated 3.3Mt of stockpiled manganese mineralised material at Serra do Navio.
Small point: The ‘3.5Mt’ (million metric tonnes) mentioned in the original puff-piece PR is now 3.3Mt ....or perhaps 4Mt.
Grade ranges from grab samples taken from larger stockpiles range from 28.3% to 45.3% Mn, but there has been insufficient work to determine the inherent inhomogeneity of the material and the samples are not considered representative of the total volume of the stockpiles. The Company considers the stockpiles of 3.3 to 4Mt with potential grades in the range 28 to 45% Mn are comparable to potential mineral deposits for which there has been insufficient sampling and test work to determine the average grade or delineate a mineral resource.
Neither the in situ resource nor the stockpiled mineralized material at Serra do Navio are considered current Resources by the Company according to CIMM/JORC definitions.
Important point: What this means is that EC.v simply cannot go around telling people it “has” 3.3Mt or 3.5Mt or even 4Mt of stockpile to sell. This stuff is not CIMM 43-101 (or JORC, the Australian equivalent to the Canadian certification process and equally as trustworthy) compliant and EC.v needs to put it through the correct procedures to certify it. The 43-101 certification process came into being after the Bre-X scandal for this precise reason; it stops mining companies from being able to say “we have this, we have that” to a less knowledgeable audience (i.e. you and me) before the claim is proven by a reputable and qualified person. In its June 29 PR, EC.v was playing fast and loose with this fundamental point and was representing its stockpile of manganese mineral as something that it is not. There are two things to recognize here; firstly EC.v has to get a third party in before it can shoot its mouth off again like this, secondly that 3rd party will cost EC.v both time and money. One of the recurring themes in this clarification PR is the way it disassambles the whole impression EC.v was trying to give of “well, we just scoop it up, put it on a boat and collect the cash” and this is the first example of that.
Previous references to the term "ore" in Company disclosures referring to some of the above material were inappropriate because the Company does not have a current mineral resource, pre-feasibility or feasibility study to demonstrate economic viability.
Very important point: This part shows clearly that EC.v is either incompetent or dishonest. If you or I laypeople in the word of geological science, mix and mush the words “mineral”, “resource”, “ore” etc nobody worries too much about it. However in the world of geology and especially mining the word “ore” has a very specific meaning. Here’s a good definition as culled from my ‘Boys’ Own Guide to Mining, 1973’
“A mineral or an aggregate of minerals from which a valuable constituent, especially a metal, can be profitably mined or extracted.”
Because EC.v has not certified its stockpile of manganese mineral as a resource (or a reserve), it cannot possibly state that the mineral in question is profitable. No way. Therefore it simply cannot call it an “ore”. This is so basic it hurts and so that’s why I say they’re either incompetent (i.e. called it an ore without realizing the mistake...and what kind of mining company doesn’t know the difference?) or dishonest (they knew it wasn’t an ore by any definition but went ahead and called it so to fool the suckers who were about to read their PR). Yes, what they have is a stockpile of mineral. No, what they do not have is ore. So why say so?
On 29 June 2009, the Company disclosed "...project design work is well advanced", and referred to discussions with a development bank for project funding. Metallurgical recovery tests on beneficiation of the manganese stockpiles at Serra do Navio are being conducted by Bateman Engineering NV and in-house conceptual process design is ongoing, to enable a management decision to be made on advancing the project to commercial production. Preliminary discussions with Banco Amazonia SA in Brazil have taken place, with the objective of financing up to US$10M for the capital and development costs for construction of a beneficiation plant to process the stockpiles at Serra do Navio.
So much for that “scoop it up, put it on a boat and collect the cash”, eh? So apparently the stockpile at the mine will need to be put through a machine that will cost U$10m to build before it gets shipped and sold. Also, not a stone’s worth of foundation has been laid yet. Also, they don’t have the money to build it and have had “preliminary discussions” with a bank about going (further) into debt in order to raise the cash. Despite all that EC.v sees fit to tell its audience that things are ‘well advanced’. The background whiff of PT Barnum and his phrases about how suckers are born every minute has now turned into a stench.
But wait! There’s more! Read the next bit about the Porto Santana stockpiles and we’ll put it into context in the next comment section:
Porto Santana Stockpiles
Stockpiled manganese mineralized material at Porto Santana was mined from Serra do Navio but was not shipped previously by ICOMI due to prevailing economic conditions. SGS do Brazil Ltda surveyed the volume and density of nine stockpiles at the Anglo Ferrous Brazil (AFB) port resulting in a total of 57,935.4t. Grade estimates by SGS ranged from 29.46 to 48.05% Mn.
The stockpiled mineralised material was transhipped by road from the AFB port to the public port operated by Compania Docas do Santana (CDSA). Material from the nine stockpiles was blended into two stockpiles of high and low grade. Topgeo Servicos Ltda re-surveyed the two blended stockpiles and concluded 13,079.78m3 for stockpile A (low grade) and 6,031.79m3 for stockpile B (high grade), with 2,715.31m3 remaining at the AFB port. Not all the material was shipped to the CDSA port as the maximum size vessel limited by the depth of the Amazon River delta is 45,000t.
Using the density measurements estimated by SGS, the total material at the CDSA port was 42,394t with 6,023t remaining at the AFB port. A discrepancy of 6.5% between the original stockpile survey at the AFB port and the survey after transhipment is attributed to loss of material on the laydown area and error inherent in the volumetric surveys.
A sales contract with an undisclosed buyer was made for 35,532t of mineralized material from the stockpiles at CDSA. The sales contract required a minimum of 43% Mn of high grade material (all of stockpile B) and the remainder of minimum 35% Mn from stockpile A (low grade material) to fill the hold of the ship.
Continuous sampling according to ISO Standard 4296/1:1984 during ship loading was conducted by Inspectorate do Brasil Inspecoes Ltda. Results of draft loading and analysis measured 12,088t of 41.62% Mn (high grade material) and 23,444t of 35.96% Mn (low grade material) loaded on cargo ship MV West Lake.
There remains an estimated 12,885t (6023t at AFB port and 6,862t at CDSA port) of low grade stockpiled manganese mineralized material available at Porto Santana. This material is potentially saleable, and the Company is actively pursuing buyers. This remainder will be supplemented by additional material from Serra do Navio stockpiles to fulfil the 65,000t purchased by Ecometals separately from the JV agreement with Alto Tocantins.
In the first PR we were told that 35,532 tonnes of manganese ore was shipped from from Port Santana and had a gross value of C$1.1m. This is apparently true. However we knew nothing about the “high grade” and “low grade” stockpiles. We didn’t know that the high grade stuff is now all sold and there’s only 12,885t of low grading mineral left (not the 15,000t it mentioned in the first PR). And we certainly didn’t know there may be a contractual dispute about the shipment, as the buyer specified a grade of manganese mineral (43% for the high grade) that EC.v has apparently not been able to supply. Whether this point is resolved quickly or becomes a payment-delaying dispute is not mentioned. Next, in the original PR the sale of the remaining mineral “is planned shortly, as soon as shipping can be arranged” while in the clarification PR we’re told that EC.v is “actively pursuing buyers” (i.e. can’t sell the mineral) and isn’t just trying to find a ship to load and float to a happy customer. And then finally, we’re told that EC.v has another 21,000Mt or so to come that it purchased from the JV, but it isn’t specified when that ore will ever arrive portside; from the looks of things it will have to build that U$10m sorting device first so don’t hold your breath.
Manganese is not traded on international commodity markets, and prices are based on negotiation of individual contracts. For this shipment, the total gross revenue to the Company based on a negotiated price was C$1.1M.
A little math breakdown: according to my calculator there were a touch under 29 million Lbs of contained manganese in the shipment that left port (35,532Mt x 37% avg grade Mn x 2204.62), which means it was sold at about 3.8 Canadian cents per Lb of pure manganese. A theoretical of course, as it has to be processed, there will be wastage etc, but infomine today has manganese selling at a little over U$1/lb, down from around U$1.80/lb this time last year. I can’t help thinking that in the rush for a little cash flow EC.v is leaving plenty of cash on the table....
Today's Ottotrans concerns our old favourite Petaquilla Minerals (PTQ.to), a company that beats out hundreds of strong competitors for the coveted title of "worst mining company in Latin America."
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Mar 27, 2009 -- Petaquilla Minerals Ltd. (the "Company") is pleased to announce that it has negotiated a private placement of Convertible Senior Secured Notes of up to US$40,000,000. Each Note in the principal amount of US$1,000 is convertible into common shares at CAD$2.25 per share. The Notes will bear interest at an annual rate of fifteen percent (15%), of which the first 12 months' interest shall be prepaid in full at the time of issuance of the Note. All interest payments will be grossed up for Canadian withholding tax, if any.
The Notes will mature two years from date of issuance at 110% of the principal amount of such Notes; provided however that in the event of a change of control of the Company, the Notes shall be immediately due and payable. The Company shall have the right to prepay the Notes at any time for an amount equal to 110% of the principal amount of such Notes and accrued and unpaid interest on the principal amount of the Notes (it being understood that any and all prepaid interest shall be forfeited as a penalty).
The indebtedness represented by the Notes will be senior to all other indebtedness of the Company and will rank pari passu with the previously issued senior secured notes.
In connection with this offering, subject to regulatory approval, the Company has agreed to reduce the exercise price of 23,836,800 warrants from CAD$2.30 per share to CAD$0.65 per share provided that under the revised terms, if the common shares of the Company trade at a weighted average trading price of CAD$1.00 or more per share for 30 consecutive trading days, the holders of the warrants must exercise the warrants within 30 days.
The Offering is conditional upon, among other things, the Company obtaining all necessary regulatory and TSX approvals.
The Company will pay the placement agent upon closing of the financing, a 5% cash commission on the gross proceeds raised by the agent on the offering.
Holders of the previously issued Series 1, Series B and Series C notes are being offered the opportunity to exchange amounts due upon maturity of their existing notes and participate pro rata in the Convertible Senior Secured Notes offering up to a maximum of US$24,187,083. The remaining proceeds of the private placement will be used for the continued commissioning of the Molejon Gold Project located in Panama and for working capital.
The offered securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or applicable state securities laws, and may not be offered or sold within the United States, absent registration thereunder or in transactions exempt from such registration requirements.
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Mar 27, 2009 -- Petaquilla Minerals Ltd. (the "Company") is pleased to announce that Richard Fifer has just loaned his own company $40m at 15% per annum interest with a whole bunch of shares as the kicker, thus screwing the few shareholders that the company has left even further. Fifer has loaned his own company "working capital" because nobody in their right mind would touch the thing with sixpence, let alone a seven figure sum.
The Ottotrans™ is back for another episode, as once again we try to make sense of those weird and wonderful mining company press releases. Today's example is the PR emitted by Great Washbasin Gold (GBG) just a few minutes ago.
VANCOUVER, March 13 /PRNewswire-FirstCall/ - Great Basin Gold Ltd. (the "Company") (TSX: GBG; NYSE Alternext: GBG; JSE: GBG) announces that it has completed its previously announced public offering of 100,000,000 units at a price of C$1.30 per unit resulting in gross proceeds of C$130,000,000. Each unit is comprised of one common share and one-half of one common share purchase warrant. Each full warrant will entitle the holder to purchase a common share of the Company at a price of C$1.60 at any time before 5:00 p.m. (Vancouver time) on October 15, 2010. The Company has granted to the underwriters an over-allotment option, exercisable for a period of 30 days following closing of the offering, to purchase up to an additional 15,000,000 common shares and/or 7,500,000 warrants to cover over-allotments and for market stabilization purposes, which if exercised would result in additional gross proceeds of C$19,500,000. A syndicate led by BMO Capital Markets and RBC Capital Markets acted as underwriters in connection with the offering.
The net proceeds from this offering will be used by the Company to fund the development of the Company's Burnstone project in South Africa and for general corporate purposes.
Ferdi Dippenaar, President and CEO, commented: "The support received for this financing shows that the market, like the management of Great Basin Gold, believes that there is significant value in our Burnstone gold project. With initial commercial production at Burnstone targeted for July 2010 and our Hollister Project in trial mining phase, the Company is emerging as a significant gold producer."
VANCOUVER, March 13 /PRNewswire-FirstCall/ - Great Washbasin Gold Ltd. (the Company) announces that it has completed its previously announced public reaming of 100,000,000 units at a giveaway price of C$1.30 per unit resulting in gross proceeds of C$130,000,000. Each unit is comprised of one common share and one-half of one common share purchase warrant. Each full warrant will entitle the holder to purchase a common share of the Company at a price of C$1.60 at any time before 5:00 p.m. (Vancouver time) on October 15, 2010, which is bound to happen so this one really counts as a boyz-special giveaway. To rub it in and add insult to injury, the Company has granted to its new, special best friends an over-allotment option, exercisable for a period of 30 days following closing of the offering, to purchase up to an additional 15,000,000 common shares and/or 7,500,000 warrants to cover over-allotments and for market stabilization purposes, which when exercised (because this one is bound to fill at these knockdown prices) would result in additional gross proceeds of C$19,500,000. A syndicate led by BMO Capital Markets and RBC Capital Markets acted as pimps in connection with the offering.
The net proceeds from this offering will be used by the Company to fund the development of the Company's Burnstone project in South Africa and for general corporate purposes. We're not telling you if we will need to dilute further in the future so you keep guessing on that one, suckers.
Ferdi Dippenaar, President and CEO, commented: "The banks screwed us over and in the end couldn't lend us the moolah, so really we had no choice but to ream our longstanding shareholders via the Canadian criminals in suits. The amount of large players that queued up for this extremely dilutive financing shows that the the Canadian boyz club is alive and well and, like the management of Great Basin Gold, knew they'd be mad to ignore the stupid price we set because of the significant value in our Burnstone gold project. Initial commercial production at Burnstone was originally targeted for 2009 but we're going to miss that deadline by a country mile, so let's hope we can get a couple of ounces poured in July 2010. Our Hollister Project is also way behind schedule and still in trial mining phase and the Company is emerging as a significant retail goldmine shareholder's pain in the ass. But hey...retail, y'know? If they can't take a joke, **** 'em."
I've had mails about part one and part two of this series and even people saying "oh do it more often", so as you're all suckers for punishment here goes. Today's mining PR is a longer one than before and comes from Minera Andes (MAI.to). But don't worry, I'll keep the Ottotrans™ version concise.
SPOKANE, WA, Feb. 23 - Minera Andes Inc. (the "Corporation" or "Minera Andes") is pleased to announce that Robert R. McEwen has been appointed as Executive Chairman of Minera Andes. Minera Andes has also appointed two new directors, Messrs. Richard Brissenden and Michael Stein. Minera Andes also announced that Dr. Arthur D. (Darryl) Drummond has retired as a director of the Corporation after almost 13 years of service.
Mr. McEwen is the Chairman and CEO of U.S. Gold. He is a recipient of the Order of Canada, Canada's highest civilian honor. A leading Canadian mining industry entrepreneur, with active exploration underway in Nevada and Mexico, Mr. McEwen was the founder, former chairman and CEO of Goldcorp Inc., which he built from an investment company with a $50 million market capitalization to one of the largest gold-mining companies in the world with an $8 billion market capitalization by the time he retired from the company. His achievements in natural resources have been recognized with such honors as The Northern Miner's Man of the Year Award; Ernst & Young's Ontario Entrepreneur of the Year in the Energy Category; and the Developer of the Year Award from the Prospectors and Developers Association of Canada.
Mr. Richard Brissenden is a chartered accountant with more than 25 years experience in the mining and exploration sector. He serves as a director on several mining companies, including Canuc Resources Corporation, Excellon Resources Inc., Corona Gold Corporation, Lexam Explorations and Valdez Gold. He has previously served as a director of, amongst others, Metco Resources., which was purchased by Breakwater Resources Ltd. in 2008 and Hudbay Minerals Inc. from June 2003 to 2006.
Mr. Stein has been Chairman and Chief Executive Officer of MPI Group Inc., a company engaged in real estate investment and development, since 1994. Mr. Stein has also held the position of Chairman and Chief Executive Officer of MICC Properties Inc., a company engaged in real estate investment and development, since 1987. Mr. Stein is also currently the Chairman of Canadian Apartment Properties Real Estate Investment Trust (CAP REIT). Between 1978 and 1987, Mr. Stein held progressively senior positions, ultimately holding the position of Executive Vice President responsible for operations, with The Mortgage Insurance Co. of Canada. Mr. Stein was a director of Moneysworth & Best Shoe Care Inc. between 1997 and 2000. Mr. Stein was also a member of the Board of Directors of Goldcorp Inc., a public natural resource company the shares of which are listed on the TSX and New York Stock Exchange, between 2000 and 2006. Mr. Stein is a graduate engineer and holds a Master of Business Administration in Finance and International Business from Columbia University in New York.
Messrs. Brissenden and Stein were nominated for appointment by Mr. McEwen, pursuant to the rights he has in connection with the private placement he recently completed with Minera Andes.
Mr. Ambrose, President and Chief Executive Officer of Minera Andes said "I look forward to the contributions of these new, highly experienced board members as Minera Andes continues to grow and uses its ongoing income to create new asset value and market awareness. We are also very pleased that Rob McEwen has agreed to take on a more active executive role with the Corporation."
Dr. Drummond is a self-employed consulting geological engineer who lives in Vancouver, British Columbia. On behalf of the Corporation, Mr. Ambrose thanked Dr. Drummond for his many years of service to the Corporation. Mr. Ambrose said "I am very grateful to Darryl for his long-time service on the Board and his guidance, as Minera Andes has grown from an early-stage exploration company to an emerging gold/silver production company with excellent prospects for growth."
The Board of Directors of the Corporation now consists of Robert R. McEwen, Executive Chairman, Allen V. Ambrose, President and Chief Executive Officer, Richard W. Brissenden, Victor Lazarovici, Allan J. Marter, Dr. Donald Quick and Michael L. Stein.
SPOKANE, WA, Feb. 23 - Minera Andes Inc. (the "Corporation" or "Minera Andes") is pleased to announce that Robert R. McEwen is now da man. Minera Andes has also appointed two new directors, Messrs. Richard Brissenden and Michael Stein. Minera Andes also announced that Dr. Arthur D. (Darryl) Drummond is toast.
Mr. McEwen is the Chairman and CEO of U.S. Gold which should really be named Mexico Silver because the only thing they've found worth talking about is a lump of Ag at its Gallo project in the land of large sombreros. Mr McEwen is really, really very special indeed and lots of people have told him that already. You'll note he was at the head of Goldcorp when it had a market cap of much less than Minera Andes, so imagine what he can do for you here. His achievements in natural resources have been recognized by everyone because he is really, really very special indeed.
Mr. Richard Brissenden is a chartered accountant who has been twiddling his thumbs since Metco got bought out by Breakwater. He's filled in a few months by sitting on the boards of other pennycrappers but got a call from his old buddy McEwen last week and is now a director here.
Messrs. Brissenden and Stein will do exactly as McEwen tells them to do. Mr. McEwen was given the chance to put his own flunkeys on the BoD thanks to his recent company-saving financing and is wasting no time.
Mr. Ambrose, President and Chief Executive Officer of Minera Andes said "I look forward to being bossed around by two people who have no idea what MAI.to has been through in the last 15 years. We're also relieved that McEwen is finally taking over and can show us how to market the company because we've been crap at that so far."
Dr. Drummond is a self-employed consulting geological engineer who lives in Vancouver, British Columbia. On behalf of the Corporation, Mr. Ambrose thanked Dr. Drummond for his many years of service to the Corporation. Mr. Ambrose said "You're gone, sucker."
The Board of Directors of the Corporation now consists of Robert R. McEwen, Executive Chairman, Robert R. McEwen, Robert R. McEwen, Robert R. McEwen, Robert R. McEwen and a few other people.
By popular demand(this note last week made a few people laugh and say 'do it again Otto'), we apply the Ottotrans™ to another mining company press release and convert BizEnglish into RealEnglish. Today's example is the PR sent out by Frontera Copper (FCC.to) yesterday. This it what it says....
TORONTO and PHOENIX, AZ--(MARKET WIRE)--Feb 15, 2009 -- Frontera Copper Corporation ("Frontera" or the "Company") today announced that its Board of Directors has unanimously recommended that shareholders tender their shares to the offer made by Invecture Group, S.A. de C.V. ("Invecture") to purchase all of the outstanding common shares of Frontera at a cash price of Cdn$0.75 per share ("Invecture Offer").
The Board determined that the Invecture Offer is superior to the Cdn$0.65 per share offer previously received from Southern Copper Corporation ("SCC"). Under the terms of the support agreement executed between SCC and Frontera, SCC had the right to match a superior offer, but did not exercise its right within the stipulated five calendar-day period. The Company's financial advisor, RBC Capital Markets, has provided an opinion that the consideration offered pursuant to the Invecture Offer is fair, from a financial point of view, to Frontera shareholders.
The enhanced offer from Invecture represents a 15% increase from the offer received from SCC and a 27% improvement in price compared to the original offer received from Invecture in early December. Completion of the process of identifying and engaging other potential acquirers has resulted in the unanimous determination by the Board that under present economic conditions, acceptance of the Invecture Offer is in the best interests of all shareholders of the Company.
Under the terms of the Invecture Offer, Frontera shareholders may tender to the Invecture Offer up to 4:30 PM Pacific time on Tuesday, February 17. Shareholders are encouraged to review the document titled "NOTICE OF VARIATION AND EXTENSION" filed by Invecture on February 6 and posted on SEDAR for more information.
TORONTO and PHOENIX, AZ--(MARKET WIRE)--Feb 15, 2009 -- Frontera Copper Corporation ("Frontera" or the "Company") today announced that its Board of Directors has no choice but to recommended that shareholders tender their shares to the offer made by the opportunistic bastards at Invecture Group, S.A. de C.V. ("Invecture") to purchase all of the outstanding common shares of Frontera at a cash price of Cdn$0.75 per share ("Invecture Offer").
The Board worked out all by itself that Cdn$0.75 is more than the Cdn$0.65 per share offer previously received from Southern Copper Corporation ("SCC"). Under the terms of the support agreement executed between SCC and Frontera, SCC had the right to match a superior offer, but left us hanging. When the Company's financial advisor, RBC Capital Markets, had stopped laughing at us it provided an opinion that the consideration offered pursuant to the Invecture Offer is a total crock but it's all Frontera is going to get.
The miserly but slightly better offer from Invecture represents an 85% drop from the $5 prices of this time last year and a 62.5% drop from the share prices of September 2008. At least PCU got them up 27% from the first offer and saves our face a bit. Completion of the process of identifying and engaging other potential acquirers has resulted in the unanimous determination by the Board that under present economic conditions, those Invecture swines have got us by the short and curlies. For one thing, the Board holds less than 1.5% of stock and can't protect itself.
Under the terms of the Invecture Ripoff, Frontera shareholders may tender to the Invecture Offer up to 4:30 PM Pacific time on Tuesday, February 17. We know that they won't, but shareholders are encouraged to review the document titled "NOTICE OF VARIATION AND EXTENSION" filed by Invecture on February 6 and posted on SEDAR for more information.
FCX: Good press releases, seriously bad company logos
This link to the FCX press release this morning is pretty much required reading for anyone concerned with mining. There are far too many points to list here, so just go read it yourself if you haven't already. Basically it says "we're cutting back".
Re: the FCX LatAm operations, the biggest chunk of news is the (not very unexpected) decision to defer the El Abra sulphide copper project and save on the capex. Also notable was a little line about the producing mines down here (Cerro Verde, Candelaria, Ojos del Salado, el Abra et al) that says the company will prove up more reserves than it mines. Overall copper production will be 1.4MMT in South American operations compared to 1.5MMT in 2008.
Final thought: This is a good PR. I've made mention of a couple of things to look for when reading bad PRS recently, but when this kind of information dispersal is done right they're very useful things. This PR is one of the good ones. Mining IR depts please take note; this is the kind of disclosure that analysts appreciate and want to see all the time. It scores you great bonus points with the parasite community that we are.
