Otto Update.. ditto
Argentina – Santa Rosa Licence
Preparations continue at well site for the arrival of the drilling rig. The schedule
remains unchanged for the spudding of the first exploration well to occur in late
June 2009.
IAMGOLD!!!
TSX: IMG
NYSE: IAG
BOTSWANA: IAMGOLD
Jun 19, 2009 14:46 ETIAMGOLD Announces Equity Position in Oromin Explorations Ltd.
TORONTO, ONTARIO–(Marketwire – June 19, 2009) – IAMGOLD Corporation (“IAMGOLD” or “the Company”)(TSX:IMG)(NYSE:IAG)(BOTSWANA:IAMGOLD) today announced it has acquired 16,088,636 common shares at C$0.70 per share for a total investment of $11.26 million, or 17% of the now issued and outstanding common shares of Oromin Explorations Ltd. (“Oromin”) in partial subscription to a private placement. Oromin is a TSX listed company with its principal property being an interest in a joint venture covering a large landholding in Senegal in close proximity to the Sabodala mine.
The common shares of Oromin acquired by IAMGOLD were acquired for investment purposes. IAMGOLD does not have any present intention to acquire ownership of, or control over, additional securities of Oromin. It is the intention of IAMGOLD to evaluate its investment in Oromin on a continuing basis and such holdings may be increased or decreased in the future.
The Oromin investment is consistent with the Company’s exploration strategy in the region where we are looking to acquire interests in large prospective land packages.
Hi there,
I’m also a shareholder but only for a couple of months.
Do you have any idea why the stock went up by more than 11%?
I’ve been checking google and their website but nothing there.
regards
As we begin to digest the implications of having IAMGOLD as a shareholder, it is worthwhile considering this fact:
IMG is followed by 20 analysts. OLE is now on many radar screens that previously showed no signs of our existence. This is very good news.
Caliche, is this good? Could they try to take over the whole project for a fraction of it”s worth?
The announcement said it was for investment only, but unless there are 34% more shares willing to sell at an extremely low price, it isn’t likely. I know my measely .00002% isn’t available. Remember, just becasue Oromin’s marketcap is ~ $70 MM, it doesn’t mean the next group to offer $71MM can buy the company.
I don’t disagree with your statement but it still could happen.
Maybe the next placement will be for $.85 and Iamgold can pick up another 20%. Then if we’re real lucky the buyout will come at $1 and the longterm shareholders who were told it doesn’t matter what the share price is until the buy-out occurs can all retire on our yachts.
It’s obvious to me the real opportunity play is Iamgold. If Chet is willing to sell 15-20% of the company for what will ultimately be $10/ounce, I’m a big buyer of Iamgold. Love to buy undervalued assets unless the company such as Oromin is willing to give them away for peanuts.
Remember what Mr Scott says…..it doesn’t pay to promote. Iamgold is now extremely happy they don’t care to promote and will be begging them not to promote going forward so that they can steal another 20% of the company for nothing. Of course at the expense of the long time shareholders.
stateside
Stateside:
I agree that Oromin did absolutely nothing to promote there company and gold findings. Dave Scott is worthless, but probable got a bunch of free options for getting this financing lined up as Chet gives out options and warratns at will.
On the positive side of things, IAMGOLD is a multi-billion dollar company and althought $11 million is not a lot of money, it is reassuring that another large gold company who has an investment in Senegal decided to buy into Oromin with no warrants, discounts, etc. They could have picked up these shares on the open market, but they decided they wanted one big block. Now that IAMGOLD is on board, it will be a lot harder for Oromin to play there games of hiding material information from the public. IAMGOLD’s analysts will have to take a closer look at Oromin to see why they bought into Oromin and what Oromin is all about. If there were any other majors looking at Oromin, this will be a big wakeup call that IAMGOLD has taken there position and has the inside track on Oromin. I wish that Oromin never had to do the PP and we were bought a couple years ago, but it was going to get done and this is about as good as I could of expected, especially from Oromin, who always under achieves. In my opinion, Oromin will now be on a lot of people radar screens, volume will increase, IAMGOLD shareholders and analysts will be looking at us and we should see some more action…
Just my thoughts…
G1
Stateside,
Today Iamgold is trading at $10.8 CDN, OLE is .91 CDN.
Lets come back in one year (or so) and see which would have been a better investment.
With a bunch of luck both could be at $15?
good luck
Great News. Really Great ! Gotta hand it to Chet. Surely this didnt happen over night. Lots of maneuvering I’m sure. But, agree w/ Goldn 1…. the heavies are watching now. Iamgold is on the NYSE, worth 3.4 bil,,, and looks according to their Annual Report as an aggressive and ambitious company that wants to be a Big Boy Producer from a Mid Tier one. But Ole will have to be on alert. If this is positioning as the the BIG One ( b/o) then Ole will really ahve to be on their toes, and do everything right and ON TIME….. or if this was set up to get competitive Gold companies looking,,,, then they will have to get the act toghether even more.
Now lets just get the Big Hit at SR, and our 20 buck sp b/o from IMG,,,, and all go home.(sorry but Analysts and our own Ole report on SR say thats not probable) One analyst is calling it a Duster. So,,,, OK,,,,, i’ll take 5 bucks just the same. But would IMG pay 5 bucks, when they just pd 70 cents…. in a 2010 b/o ?
Do we have any smart readers here w/ financial or b/o Intell. ? I hear Lots of unemployed M & A guys on the street. Penny for your thoughts?
Anyone know when Oromin will announce the total results of the PP??? Yes I have read the announcement from IAMGOLD , but that wasn’t the only money raised , was it ? I thought the PP was to be completed by June 15 , but unless I missed it , there has been not one word from Ole mgmt ,in the form of a NR, as of June 20 regarding this matter…I thought Ole wanted to raise $20 million………Did they do so ?
Oromin Explorations closes $20-million financing
2009-06-19 14:52 ET – News Release
Mr. Chet Idziszek reports
OROMIN EXPLORATIONS LTD. ANNOUNCES CLOSING OF PRIVATE PLACEMENT OF COMMON SHARES FOR GROSS PROCEEDS OF C$20,000,000
Oromin Explorations Ltd. has completed its previously announced brokered private placement financing for gross proceeds of $20-million. The private placement consisted of the issuance of 28,571,429 common shares of the company at a price of 70 cents per share. The offering was completed by a selling group which was led by Toll Cross Securities Inc. and which included Arbuthnot Securities Limited, Dahlman Rose & Company LLC and Research Capital Corp. The agents received a cash commission of $1.26-million.
The shares issued pursuant to the private placement are subject to a four-month hold period that expires on Oct. 20, 2009.
The net proceeds will be used primarily for the company’s Sabodala gold project in Senegal as well as for general working capital and for its Santa Rosa Dome oil and gas project in Argentina.
Caliche, I am still wondering if IAMGOLD’s investment in OLE is good for the rest of us?
OOPS! Caliche, I just read your post from yesterday. Thanks for you thoughts!
Alex Parks is being replaced as CEO at Otto energy, effective July 1. On the eve of drilling Santa Rosa. No reason was given, just that the board “thanked him for his service.” Kinda makes ya wanna go “hmmmmmmmmmmmm…”
Did I miss the weekly update for wednesday 6/24/09 ??? If so would someone please post it,,,,,,Thx
Just came out…
It just came out a few minutes ago: We missed it by “that much” (“It”, of course, being drilling by June)
Argentina – Santa Rosa Licence
Preparations continue at the well site. The Operator, Oromin, advised that final steps are now underway so that rig mobilization can commence as soon as possible. Spudding of the first exploration well is expected to occur in July 2009.