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Gradecontroller – Thanks for the response on lead times. It is disappointing that the new BOD are not more forthcoming on updating the market but perhaps that is the nature of the MNG beast, after all hither to they have been a totally private organisation. However if they are taking a step into the Publicly Quoted Company arena then communication will be something they will have to address. If the lead time for reagent turns out to be 2 months then processing will hopefully start in Mid to late August. And with all that ore already stockpiled one can only get excited about the prospects for the last quarter of 2016 Gold production figures.

I only post this because the Resupply of Reagent is dragging on. Now I confess I have no practical experience what so ever when it comes to Mining, so what follows is just an idea that is up for discussion, criticism, amendment. At one time I worked for a Manufacturing Company that found itself in a similar financial position to DR’s AUE. Within its Industry the products produced by this Company were highly rated and they had had a decent Order book. However they were plagued by Late Payers/Nay Payers, so when the Bank account ran out and the what little cash flow they did have could no longer support normal Commercial operations they were forced to pay “Cash on the barrel head” for everything , even Loo Rolls – I s**t you not! Now I don’t know the lead time for producing the reagent but if it “special” in any way then it’s manufacture will probably have to be scheduled in with the other types of reagent being produced at the same plant. So if I assume that the Purchase Order was placed after First Tranche release (against the $30mill Promisary Note), then taken together with together with a scheduled manufacturing lead time of 4 weeks, transportation time from Plant to New Liberty of say 2 weeks (making allowance for the reported inclement weather over Liberia). Then Restart should be around August 2nd. Does anybody here have practical experience that could modify or dismiss the above??

Hmmmmm!! - Dumer & Dumber

My 92604 buy at 08:28 today ASLO came up as a sell on Hargreaves Lansdowne

My 92604 buy at 08:28 today came up as a sell!!!!

Friday was Canada Day. TSX closed all day. Last trade I found was on HL Fri 16:29 sell 62645 at 4.05

PS a quick back of a fag-packet calculation is that an offer in the mid-twenties would give the eventual owner (MNG) an average share purchase price in the mid-teens. Not to be sneezed at considering the Gold in the ground. Meanwhile if anybody can clarify the 10% and 30% take-over rules please post haste!

Noodles – The RNS of June 15th says both Tranches become active concurrently after TSX approval, just how long after I do not know. At that point MNG will have 55% and will have to make an offer under the 30% trigger. I agree we do need clarity but the UK TO Panel Guidelines say that at the 30% trigger the offer has to be the HIGHEST price PAID in the past 12 months. Whilst at the 10% trigger they say the offer has to be the HIGHEST price paid by the BIDDER in the last 12 months – a distinct difference I feel that make sense to me. But then they are only Guidelines and not the actual law. Rather like the Highway Code is a layman’s interpretation of the Road Traffic Act(s) If I am right about the above I still think the price has already been agreed by MNG and the Institutional Investors (who must have voted for the motion to sell involve MNG). And it is this price that will determine the timing of any Bid, that is to say how long after TSX approval the MNG Share Tranches becomes active. It is worth noting that a recent Stockwatch post details the MNG holding and those of all the other Institutional Investors at 76%. My hunch is that an agreement may have been reached for those parties to act in concert at an agreed share price that is acceptable to all of those parties. If they do act in concert (under a single legal equity) then they trigger the minimum “Squeeze Out” percentage of 75%. Squeeze Out is in effect a compulsory purchase order against the minority Shareholders. That would mean we would be forced to accept the same price accepted by the Institutional Investors whilst at the same time cut out any possibility of another party making a bid. My own personal belief is that the price offered will be in the high teens to high twenties. A large spread I know but I really have no idea of what price they might have agreed, if indeed they have agreed anything at all.

Noodles – The RNS of June 15th says both Tranches become active concurrently after TSX approval, just how long after I do not know. At that point MNG will have 55% and will have to make an offer under the 30% trigger. I agree we do need clarity but the UK TO Panel Guidelines say that at the 30% trigger the offer has to be the HIGHEST price PAID in the past 12 months. Whilst at the 10% trigger they say the offer has to be the HIGHEST price paid by the BIDDER in the last 12 months – a distinct difference I feel that make sense to me. But then they are only Guidelines and not the actual law. Rather like the Highway Code is a layman’s interpretation of the Road Traffic Act(s). If I am right about the above I still think the price has already been agreed by MNG and the Institutional Investors (who must have voted for the motion to sell involve MNG). And it is this price that will determine the timing of any Bid, that is to say how long after TSX approval the MNG Share Tranches becomes active. Twelve months ago the SP was at a high of circa 28p - this is dropping with each day that passes. It is worth noting that a recent Stockwatch post details the MNG holding and those of all the other Institutional Investors at 76%. My hunch is that an agreement may have been reached for those parties to act in concert at an agreed SP that is acceptable to all of those parties. If they do act in concert (under a single legal equity) then they trigger the minimum “Squeeze Out” percentage of 75%. Squeeze Out is in effect a compulsory purchase order against the minority Shareholders. That would mean we would be forced to accept the same price accepted by the Institutional Investors whilst at the same time cut out any possibility of another party making a bid. My own personal belief is that the price offered will be in the high teens to high twenties. A large spread I know but I really have no idea of what price they might have agreed, if indeed they have agreed anything at all.

Noodles - THEY was my interpretation of the TO PANELS guidelines, Further detailed reading today leads me believe you are certainly correct. I also read on Stockwatch todsy that MNG now have 9.9 percent which means they have been buying at 4 to 4.5. So the worst case scenario is possible but I still think the institutional investors will want more for, which would hopefully be at least 6 or even low 20s as per my previous post.

Geckoman – I SHOULD HAVE PROOF READ MY LAST POST BEFORE UPLOADING. It would have been clearer had the last sentence of paragraph one read "If MNG take possession of all 55% in one go they exceed the 30% take over trigger, which means they must make a minimum offer at the highest price the STOCK achieved in the preceding 12 months (all sales) i.e. in the mid to low 20s.

Geckoman – My understanding of the London Stock Exchange (Take Over- Panel) rules are that MNG must make a bid once they have 10% of the voting stock and that the minimum offer must be at HIGHEST price THEY have paid for the stock in the preceding 12 months. However once they have 30% of the voting stock they must make a minimum offer at the highest price the STOCK achieved in the preceding 12 months (all sales). Please note that the first Tranche represents approx. 6.8% and they do not actually take ownership of these shares until completion of the deal (sometime in July according to the RNS of 21st June). To get the 10% prior to Tranche 2 they would need to own or buy 33,700,000 more shares. The WORST case is the 10% Scenario but they must buy, or have bought approximately 33 Million additional shares in order to reach a 10% holding. Assuming they bought additional shares within the last three months month to achieve the 10% holding upon completion of Tranche 1 the offer price has to be between 4 to 5p minimum. HOWEVER there is a chance that the bid price could be higher. I have’nt found any evidence of Directors Sales or Institutional Sales over the past 6 months. And since the motion to issue the additional shares would have required those two groups to vote in favour of the motion they may well have struck a deal with MNG regarding the bid price. IMV this could be 6p or quite possibly as high 16p (please note BLACKROCK paid circa 6p in late December for their 29 million shares - and no doubt would wish to make a profit on them).

Geckoman your assumption is almost certainly correct, such poor planning (I was going to say incompetence - there I said it) has DR writ all over it.

My guess is not placing a Purchase Order for the Reagents was probably due to DR not wanting, or not being able, to place any financial commitments upon AEU until the MNG deal was finalized, it may have even been at MNGs insistence - either way we may be moving onto sunlight uplands in the next 3 months. Being a relative novice at share dealing what I need to understand are the Company Takeover Rules in respect of MNGs soon to be 55% holding. Any input would be appreciated