MDL Pours First Gold
ASX/TSX RELEASE – 19 MARCH 2009
ASX CODE: MDL
TSX CODE: MDM
MINERAL DEPOSITS BECOMES A GOLD PRODUCER
MDL is pleased to announce that during the week gold production commenced at the Sabodala plant
with the pouring of the first gold dore bars.
The Sabodala plant has commissioned smoothly with no significant issues and is already operating above
nameplate capacity. To date, lower grade material has been used during the commissioning phase but,
with the satisfactory completion of commissioning now imminent, the plant will begin operating on the
normal “run of mine ore” that is currently stockpiled on the ROM pad adjacent to the crusher.
Approximately one million tonnes of ore is stockpiled on the ROM pad and in excess of 80,000 ounces is
contained in this material, including some of quite high grade. This ore is currently passing through the
plant at rates in excess of the design capacity of two million tonnes per annum and plant performance is
very pleasing. Mining of the ore body continues apace and in a routine manner. MDL continues to note
significant tonnages of softer oxide ore being mined over and above expectations.
The company expects to produce approximately 160,000 ounces of gold to 31 December 2009.
MDL has, in a little under four years, moved from the initial drill hole at Sabodala to production of the first
gold at a major new production facility, an achievement of which it is very proud.
The board of MDL would like to take this opportunity to thank its dedicated employees who have worked
tirelessly, often in very trying circumstances, these past four years to achieve this outstanding result.
It wishes also to extend its appreciation to the Government of Senegal which has worked closely with the
company and its local personnel to ensure that this, the first new substantial mining operation in the
country for many years, has been realised in a manner of which all Senegalese can be proud.
The company would also like to thank MDL’s shareholders who have supported it by virtue of their
patience and financial support over the term as it looks forward to a period of strong growth and
financial performance to justify their faith in the management of MDL to bring the Sabodala project to
fruition.
UPDATE 1-Mineral Deposits to raise C$33.1 mln
Fri Mar 20, 2009 8:15am EDT Email | Print | Share| Reprints | Single Page[-] Text [+]
Market News
Stock investors banking on toxic-asset plan
Dollar caps worst week in 24 years
Oil slips as economy, equities weigh | Video
More Business & Investing News… March 20 (Reuters) – Australia’s Mineral Deposits Ltd (MDM.TO) (MDL.AX) said it would raise up to C$33.1 million through a private placement of its shares to repay debt.
The company, which is developing the 3.5 million-ounce Sabodala Gold Project in Senegal, said it would issue 63.6 million ordinary shares at 52 Canadian cents each.
The proceeds, along with available credit lines, will be used to repay a $35 million working capital facility provided by RMB Australia Holdings Ltd and Macquarie Bank Ltd (MQG.AX), Mineral Deposits said.
Toll Cross Securities Inc and Cormark Securities Inc will act as co-lead agents to complete the private placement, the company said.
In September, Canadian gold miner Red Back Mining Inc (RBI.TO) said it had made a $27.5 million investment in Mineral Deposits and owned about 62 million shares, representing a 13 percent stake in the company.
Shares of Mineral Deposits closed at 75 Canadian cents Thursday on the Toronto Stock Exchange. ($1=1.233 Canadian Dollar) (Reporting by Krishna Chaithanya in Bangalore; Editing by Anne Pallivathuckal)
G1
MDL Valuation:
With this new financing in place MDL with have approximately 500 million shares. With the stock closing at .75 on the TSX today that gives them a market cap of $375 million, with a property having about 3.5 million proven ounces.
Oromin have 2.3 million and counting and should have 7-10 million ounces minimum yet are market cap is approximately $47 million. Plus there is the chance of hitting oil.
Can anyone makes sense of these valuations?
G1
Just to be clear….
Oromin only own just over 40%, MDL own 90%
MDL have a $250M plant built and paid for, Oromin have an exploration camp
I forgot, MDL also have 1.3 billion ton mineral sands project with an approved mining license…….
Just looked at the SP. ! What an outrage…. they discover another 860,000 oz of new Gold…. and the GD sp drops to 59 cents US ! Amazing. And never anything to the share holders on whats going on at all!!! Hop can any of us have any confidence in this Company? I’m out of here as soon as I can get my money back. As long as it’s been,,,, and never a thing from the Mgmt…..
Even waiting for 7 yrs since they got the SR permit…. and nothing. Typical small company ,,,, they think they’re doing the share holders a favor by letting us buy shares. See Ya.
Muttley:
I understand your argument. I don’t believe the MDL plant was $250 million, but it
really doesn’t matter as in my opinion, whoever buys Oromin will by MDL as well
to utilize the plant. Therefore the plant should be looked at as an asset to Oromin…
G1
the other thing is that oromin has no debt..im not sure but didnt mdl borrow part or all of the funds for development?
It looks to me like MDL are getting the monkey off their back and paying out the debt with a raising. Given the love we all have for Bankers and the mess they have got the world into, maybe this is a good thing. I am looking forward to seeing theor first real production figures, that might give an indication of their mine life and how it would fit in with oromin and provide the joint value we all see long term.
The next results we have out on Kerekunda etc will be very telling, especially the technical side of the ore….will it need CIL or will it be ok with gravity or a gekko style plant. This is what we need to know to understand future capital cost vs resource…..
Anyone else getting frustrated with the lack of news, volume, declining stock price?
Goldn1———Perhaps the question could be better phrased ” Is anyone NOT getting frustrated with etc,etc,etc (esentially nothing)
I certainly hope that whoever attends the AGM this ?July? will strongly express our collective dissapointment/dissatifaction in the manner marketing/IR has been mishandled. The current share price is a joke when compared to either the fair value of known assets or even our company “peers” market valuation……let alone the potential assets most of us believe Ole will ultimately prove up….Yes , I am in this for the long haul , but some of us don’t have an infinite supply of ready cash and may just need to sell a few of our shares to meet financial obligations while we wait for the BO…Everything Ole does seems to take an extended period of time and the payoff is taking longer than some of us anticipated……and we get little to no progress updates which make financial planning more difficult….I am beginning to believe that I put too much faith in the Ole mgmt team and just may have over extended myself with misplaced exhilaration…..Time will tell.
If we are all frustrated by the lack of direction and infomation IR and Chet is putting out there, we should all plan to attend the AGM this summer. They put out a State of the Business at that time, but Chet should put out a few more Sate of the Business letters to help investors get the head around Oromin’s challenges. Frustration with this company seems to be the norm. This company always seems to drag the carrot in front of our face and when we are almost ready to give up they throw us a bone to get us excited again. Then……We Wait and Wait and Wait, with no news or update. Yes Goldn1, it is getting quite frustrating.
Doublem2
Caliche:
did you say adiditional Kerekounda results would be out by now?
G1
G1……Probably be out Friday , after market closes.
Arlene:
I wouldn’t expect anything else… Take care,
G1