Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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good news.
not bad considering "undervalued" offer at 38c per share.
23p current best buy
21p value
Jan 21 (Reuters) - Copper miner Sandfire Resources SFR.AX said on Monday it has approached explorer MOD Resources MOD.AX about a potential combination of the two companies, valuing MOD at about A$88 million ($63 million).
Sandfire released a statement following a media report on its interest in MOD, which is exploring for copper and gold in Botswana, but said its approach was preliminary and non-binding and there was no assurance a deal would proceed.
It said the approach was made on the basis of A$0.38 per MOD share, which would represent a 73 percent premium to MOD's last close of A$0.22.
Afternoon Guys,
I have refrained from posting until the details were made public. Avtek's post is accurate.
SFR's bid is highly opportunistic and destined to fail at the current offer price. This, in part is because key stakeholders, including management hold enough shares to block this low-ball bid from SFR.
It is interesting that SFR has also been rebuffed by another material holding of mine, ADT, in recent times via a placement also led by Ashanti. They seem very keen to access a new, high quality, development project to replace their current short LOM operation.
The CR was always coming, as we have discussed for sometime, and it will be good to get this out of the way and remove the overhang that was sitting there.
I am pleased that MOD have included a Rights Issue as I (and many others) agitated for and what is obviously in management's best interests as large shareholders in their own rights.
From JID on Hot copper??
Whilst the current SP is disappointing, at least existing shareholders can participate at 24c, a discount of 25% to the institutional offer which, from what I have been reliably informed is oversubscribed.
It also appears that a lot has been going on behind the scenes in terms of allowing third parties access to the MOD data room in an effort to secure a funding pathway for T3 / the Company.
Whilst SFR is the first to move and openly disclose this, I am confident that there are other mid-tier copper producers that are also very interested in MOD for both T3 and the belt scale exploration upside (Lundien and OZ Minerals come immediately to mind not to mention a number of Chinese entities).
IMO, over the course of the next few months, a number of interesting plays could emerge for MOD. The only downside is that MOD has come so far off the highs despite continuing to progress its potential.
I am surprised, however, that MOD did not delay this CR until after a positive DFS was released for T3 - which we know will be an order of magnitude better than the PFS for all the reasons we have previously discussed, or after a few more drill assays had been completed.
Not to worry - some of us had the opportunity to participate in the Institutional Placement and ALL of us will have the opportunity to participate in the Rights Issue ... you can't be fairer to existing shareholders than that when raising capital.
Cheers
John
.............https://t.co/XWMDac8qGj
.............https://t.co/utpCRGi2d8
.............https://t.co/Ji8PL2cQsG
https://www.asx.com.au/asxpdf/20190121/pdf/441zcgxhh6t5sv.pdfSandfire Resources NL (“Sandfire”) notes media reports overnight referring to an approach by Sandfire to MOD Resources Ltd (“MOD”) in connection with a potential takeover offer by Sandfire for MOD.Sandfire confirms that it has written to MOD to express its interest in exploring a potential combination of the two companies. Any such transaction would be conditional upon satisfactory completion of due diligence, the recommendation of the MOD board and execution of binding documentation, among other things.Given the preliminary, indicative and non-binding nature of the approach, there can be no assurance at this stage whether a transaction will eventuate.' a potential combination of the two companies ' That looks altogether a LOT more interesting than a low ball TO bid.
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Sandfire puts copper play MOD up in lights; MOD responds with raising
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Billion dollar copper producer Sandfire Resources is in a game of cat and mouse with ASX-listed copper hopeful, MOD Resources.
Street Talk can reveal Sandfire has quietly approached MOD's board with a takeover offer valuing the exploration junior well north of its $55 million market capitalisation.
MOD wants little to do with Sandfire or its non-binding and conditional bid at this stage. Investor sources said it thinks the offer undervalues the company, and it would have a much brighter future should it be able to develop its strategic Botswana prospects on its own.
Street Talk understands MOD is seeking to raise $15 million to restock its dwindling bank account and ensure it has the financial strength to stand on its own two feet should corporate interest heat up.
Stockbroker Ashanti Capital was approaching fund managers over the weekend, sources said, seeking to stitch up the equity deal. The raising is expected to be done via a placement and rights issue and – if nothing else – ensure MOD has funds to defend itself. [Interestingly, it is the same broker that raised for Adriatic Metals when Sandfire came knocking in a big way late last year.]
It is understood MOD's raising makes mention of the Sandfire offer – which is a handy carrot for MOD as it tries to lure in new and existing investors. And the raising is at 30¢ a share, which is less than the 37¢ a share put forward by Sandfire and its boss, Karl Simich.
The question is whether Sandfire returns – or can even get its hands on stock as part of the equity raising. Sources said MOD was willing to engage with Sandfire if the predator was willing to sit down and try and land on an agreed price. But it didn't like the look of 37¢.
What both parties would be able to agree on is that MOD is sitting on a strategic asset. It is exploring on the last copper belt in Botswana – seen as a relatively safe jurisdiction – that is not owned by one of the majors.
The deal would be expected to be accretive for Sandfire and comes as the miner searches for ways to extend its mine life, which currently only has about three years to run.
https://t.co/TRU5XypgKy
@Share_Talk
We will update over this weekend #Manchester @Share_Talk Investor Show
23 Feb
We can confirm @ModResources will be coming from #Botswana to present #MOD
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BREAKING: China has offered to go on a six-year buying spree
...........https://t.co/dLH8hqEOGU
Copper Rises as U.S. Considers Cutting China Tariffs
...........https://t.co/edDwbt2eHu
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Jan 16
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At some moment #Copper will go Really good listen for weekend Its an exciting time , Its The hockey stick 3.32 All time highs through this next cycle 6.20 the longer the wait the bigger the move
not if when again, it keeps getting said
https://m.youtube.com/watch?v=5fomvifNUQo …
#MOD #MTR #Botswana
MOD Resources: target price of 52p, implied return of 259%.
https://t.co/CRUlU3lY4Q
17 January 2019
Arden Partners: Copper Outlook - MOD TOP PICK
15 January 2019
Sprott: Best Leverage to sed. copper exploration globally
https://www.modresources.com.au/
no trades since 3 Jan ?
MOD resources Copper explorer in 2019
The emerging Kalahari Copper District
...................https://t.co/ZjnahBeeSH
...................https://t.co/X6Ll8isTC7
Posted by courtesy of Rhys T on Hot Copper
Thought these two links could go here.
Rick Rule dropping some hints about when and where his capital is going in 2019.
The main point to take I think is him mentioning mid January in both videos as a point in time he plans to deploy funds into his favourite stocks, and I would suggest those will be the ones he's determined most likely for M&A activity in 2019.
So in our case, obviously if Sprott start taking up a position here it is a massive vote of confidence. And it will be highly amusing if MOD announce some fund raising mid January to coincide with Rick's timeline.
..........https://t.co/iAxGEcgO6F
..........https://t.co/HdvD6lvmRa
Well worth a listen
The BoD sound very confident to me.
The listing prospectus says "including the potential of competing financing offers."
"...confidence in the Company’s ability to be able to secure the debt funds required for development of the T3 Project targeted by the end of Q3 2019"
...........All copper belt JV licence extensions and transfers granted
...........https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=02060027 …
Evening :)
From HC: "We then continue to await news on T1 and T3 underground - where according to the quarterly we should have a JORC resource some time this month."
I musta missed that.
Re an II buying in for a convenient 30% of the T3 production capex ($64m) - I agree - don't assume it's an II ...
https://www.miningreview.com/mod-resources-copper-rich-domes/
The assumption that it will be an II will provide the US$64m may not come to pass. We know there have been numerous site visits by various parties, may well see one of the potential suitors take a stake??
Can I just repeat: “WAIT UNTIL SPRING BANDINI”, one more time. People getting sucked into to the swamp of technical details often forget to look at the big picture. Careful not to be lured in by the technical drama, or getting lured in by the price of copper etc, only useful once MOD starts making proper money. For wait and see for me until said time and then I will have to make a call between MOD and MTR. Jury is also still out on that one. Btw, I wonder how many here have just done this move in the last couple of weeks. Also dangerous given placing that will happen there
My buy just ticked up the bid
Fingers crossed this is the start of a healthy rise
Lennie