NEARLY-RETIRED MAN STRIKES GOLD…
Contributing Writer Mark B
Let’s talk briefly about Teuton, the stock I’ve been pitching since 2008.
What a ride it’s been…started buying at 60 cents; then came the crash and I kept buying all the way down to five cents CAD. The stock sits today at 40 cents and here’s the status, as I see it.
Before I go on, you can check out the interview with our “Great Leader,” Dino Cremonese, President of Teuton here
Why this stock will go up, in my opinion substantially:
300,000 acres in the “Golden Triangle” of BC which is sick-rich with precious minerals….
This summer over 100,000,000 dollars, 100 million is correct, of drill programs in this region. Last year it was much lower. Since Teuton has property near many of the major finds, it will benefit from those companies doing further drilling and increasing their resources, in Canada called, indicated, inferred and reserves.
Here’s the blueprint:
Treaty Creek: Next to Seabridge’s 30 million ounce (so far) property, it should do nicely, the only caveat is that it may not be drilled this summer if American Creek is short of cash. Here’s what they found last year: It’s safe; it’s simply a video they put on their Website last year.
http://www.americancreek.com/inmedia/TreatyCreek2010/player.html
Bonsai property: Tiny Copper Creek Ventures is spending 1.25 million drilling our property. They get half of it upon completion of their drill program as per contract. Our risk, practically zero… No cash outlay for Teuton; that’s the business plan in general, use other peoples’ money to drill. However, we may depart from that to a minor extent.
THE CLONE: No, it’s not a biological program; it’s the name of a property, and lots of gold was found there last year, but more holes need to be dug to see just how much there is. It’s basic math…. Gold per ton over how much area and depth times the tonnage…ounces per ton; not hard to calculate once you do your geological due diligence. Canasia is drilling there starting in days. Their stockholders are excited, but since they have over 100,000,000 shares, they make less on a hit than we do…there’s that math again.
FIJI, TENNYSON and HIGH PROPERTIES:
Oh boy, Teuton may drill these themselves; definitely Tennyson (announced.)
The Fiji property is exciting. Another junior explorer has found lots of gold (Bravo Ventures, if you must know) and we are right up their kabboose with our property; you can see them digging and read their name tags a few football fields away. BVG spent a fortune and raised another fortune to drill more and more and the news is only going to get better; we’re right there and we may drill this summer.
The High Property can be a “sleeping giant.” We are very very close to giant Silver Standard’s Brucejack property. Recently mobs of Silver Standard workers have been drilling feverishly RIGHT NEXT TO OUR PROPERTY….and they have already found what they term “bonanza grades” of gold and silver. They cannot announce it as indicated or inferred yet because they need a few more holes to come up with similar values. But this is a REAL probability and the geologic anomoly is running into our property, it is thought. Hence we probably will stick a drill in the ground there, but it’s a liklihood, not a definite, as I understand it. Dino discusses this in the video.
Tennyson is of interest to Dino, who has a geologic background. I know they found some gold there last year, but I know little about this one, other than Dino “likes it.”
We have properties optioned to Mountain Boy Minerals, Decade and American Creek.
I feel that stocks like ours will be in demand as a hedge against inflation and will get more play towards the end of the gold rush, which is when the speculative stocks have their years in the sun.
And wait….that’s not all!!! (sorry, couldn’t resist that) There’s more:
Red Cliff: We are the closest junior to Imperial Metals’ discovery hole at Red Chris. It’s just possible that we have something there. No hype. But THEY DO. They have a certified MONSTER and have SIX DRILLS spinning there this summer. Again, perhaps somebody will option this parcel, which is quite large.
So there you have it, boys and girls, and children of all ages. This is what’s going to put butter on my bread, lead in my pencil and gas in my tank…. whew!
Do your own due diligence. Don’t look for “earnings” as that is NOT the standard for junior exploration stocks selling for pennies. And if you don’t think this stock can go to the dollars, you don’t know what you’re talking about. It can. Decade went from 6 cents to 1.70, before falling back. There are many stocks that were a nickle and are now many dollars a share. I believe we can be one of them.
Substantial interest is coming into the stock. Macquarie, and Australian brokerage, has been buying…my last count was 1.3 million shares or so…not a lot in dollars but the buying is steady.
There’s much more I could tell you about this stock but you should do your own due diligence. The best way is to call Gary Assaly at 800 879-2333. He’s the investor relations guy, a very level headed no-hype guy. I’ve annoyed him for years on the phone.
So you need to do your own due diligence. Full disclosure, I have a decent position. The symbol in the US is TEUTF
The price on Friday was 40 cents…. yes, CENTS. Geez, can you swing it? But wait, that’s not all! 40 cents Canadian…about 38 cents US. And, trust me, it will be the other way around; their currency IS SOUNDER. So I believe you can make money if it just STAYS EVEN.
When I bought a block at five cents, the US dollar was 20 percent stronger….so I paid $ .04 USD!
Now the diffential is about 3.5 percent….get the picture?
Suggestion: go to www.stockhouse.com and check the circle that says “bullboards.” Then type in : V.TUO …. TUO is the Canuck symbol. There you can read the brilliant posts of the inimicable ‘Redrum180.’ and others. You can find pro and con there. So have fun.
(The above rant is just that, a rant. Investment advice should come from your investment advisor…unfortunately, he’s gone broke and is no longer believable. In all seriousness, this stock is speculative. it can go down too, so don’t buy it with the money you were going to WASTE on food and clothing. But i would look into it.
Mark
Is this project one that someone will come in and buy or is it one that we have to try and sell when the price reaches a level that we are comfortable selling at?
there are so many properties that the price is going to start going up very soon. If there is a buyout it will be on one or more of the properties and the rest will be spun out into a new co. You can always sell when the price reaches one you are comfortable locking in gains. Buyouts are becoming more the norm but i dont count on them as an exit strategy anymore.
Dear Admin…
on Buy Outs…? whens Ole’s turn? would love to ehar what you think abt the FS and the current situation here ? We all want to just get your take here?… Will we ever get a sp spike? or just languish till the B/O ? How does a Co w/ 3 mil oz stay at 80 cents.. or just a factor of the PP at 80.? I say we get over 4 mil oz w/ the next 2 Updates… then we spike to 1.50 per Mackie Research price target by late december.
….But i guess the question is ” does Chet want to sell ? worry that he wants to see this thing out… and keep playing Mr Miner on other peoples money. I hope thats not the case b/c he hasnt done much good here except finding some gold. Bad job on marketing,,, bad job on running the company…. bad job on administration… he cant even keep to schedules. Spent a ton of dough on the Oil drilling and it was a Duster…Their PR sucks… So…. can you imagine if he was in charge of a complete Gold Mine. Would be an economic failure….. But he has found maybe 5 mil oz gold… and that is commendable. But, I hope someone has the intelligence to tell Chet to just sell and get out. I also wonder how many Investors they told dthat it would take 5 -7 years to get a b/o? I doubt many at all. Chet has played the investors here very well. He gets good marks for that too. If we all knew it would take this long… we’d be long gone. We were never told that . But I called a co exec… and he said they were very proud of the fact they got to the FS this quick in 5 yrs from the first drill ( approx). That ‘s proof they knew it all along… but never disclosed.
I saw a Bell Curve on JR’s . Showed the big price on all the Hype before any proof of gold. Then investors got frustrqted on the length of time it took… sp just kept dropping… then the Co never puts any info out… kept dropping more. Then finally a B/o , but the dillution kept the sp down. Does mention of the few minority Big Hits. Sound familiar.?
Gold Take Overs…. wish they would look at Ole… wonder if there’s a draw back to Ole? The FS is now good, and all the #’s are good. Maybe Chet wont go away… or he’s screwing it up somehow.
http://www.bloomberg.com/news/2010-08-03/gold-takeovers-reach-record-as-bullion-climbs-boosting-bmo-hsbc-merrill.html
GF:
Note that Kinross purchased Red Back for just shy of $400 per Total oz (measured/indicated & proven/probable)
h1
Hoosier, almost $400 per ounce sounds very high. I know there are several metrics that are used to value an ounce in the ground. What do you guys think would be a reasonble price for Oromin,s gold considering that gold stays lets say between $1100 to $1300? 43.5% of maybe 5 mil ounces in a year is about 2.2 mil ounces.
Comments always welcome,
Thanks,
Tony
Tony:
Red Back reports that their corporate resources are 10.5M oz measured & indicated and 8.1M oz proven & probable.. I am not including any inferred (which is only another 2M)
Kinross paid $7.1B for the 18M oz… it jives out to a $382 per oz… give or take.
I have held all along that OJVG Sabadala Property holds significant strategic value along with its gold resources. I cannot imagine why they would sell at the $100 to $150 range when in the long run they would make more money taking into operations.
Chet sold Arequipa for $1.1B to Barrick back in 1995?? when the full price of gold was around $350/oz They had 3.1M oz indicated…thats it… Barrick paid FULL price for the resources. Obviously they were counting on the property having alot more…turned out they were correct…ended up in the 8-10M oz range.
I know the markets only value the stock in the $100/oz range (give or take) but I can find many buyouts much much higher (& some lower). Barrick purchased the remaining portion of their Nevada mine from ??? for $1000/oz… go figure.
I hold that this property is worth more than $1.5B…if they get to 5M oz that would only be $300 per
But who knows?????
h1
h1—You have been consistent with your $1.5 + billion……I have been consistent with 5+ million ounces……Hope we are both proven to be conservative by year end !!!
Thanks Hoosier for your commets. Andy and company, do you have any estimates as far as ounces, time horizon, buyout, etc…..?
Thanks
Tony
PP closes aug 19th. then we’ll have real close to 125 mil shares out. Look for the first Update late Aug. Hoping the High Grade Updates are 500 thou each, Indicated. ….With some money in his pocket… hope Chet starts looking for a B/O NOW. If not there’ll have to be another PP in the spring…. dont understand why PG is silent.? must be by chet’s design. When the Promo ( starts) and goes into a Consistent hi gear…. look for the B/O. Not until. I dont know why some major hasnt tried a hostile takeover at 83 cents . Chet must have the ability to fight it.
….Heres an artille on B/O’s. Why cant this be Ole? !!
http://www.reuters.com/article/idUSTRE6782VG20100809
Tony,
I think by this time next year you will be done with the Oromin part of your life. I dumped quite a bit of stock around $1.00 and will purchase again if we get to .75 or below. Based on the communication that MDL has made in/about the area it seems that getting this property into the hands of a MAJOR will be tricky. Chet isnt going to leave easy.
Andy, can you elaborate a little on your sources? Thanks in advance.
By elaborate, I mean more information what you’ve been hearing. Thanks.
I don’t see how Chet will stop before he reaches 10M ounces, or whatever that pre-determined number is in his head. He’s shown us time is not a factor.
Ole PR machine ??
Metals & Mining Analysts’ Ratings & Estimates – Juniors –
Attached is the best PR we get these days. This guy posts esvery week JR gold info. not much, but at least Ole gets listed. Its on Kitco’s news, and been doing for a while i guess. Anyone know wtf PG was hired for? To me… hes the worst. I em’d him and asked what he does for Ole ( sh hldrs)?? he asked that I not em him again. This entire company is a case study of HOW NOT to Market a Company. I swear they have an objective to put out as little as possible. After the upcoming Updates… they’ll have over 4 mil oz of Gold. Thats substantial…. i hope they tell somebody.
BTW… has anybody seen Ole on any JR Fund Lists. There’s a few just put together recently. But I dont see ole on any.
Metals & Mining Analysts’ Ratings & Estimates – Juniors – by Bill Matlack , Aug 10 2010
try this
Thanks Goldfather. Nice to see us listed somewhere with some credibility.
Todays Grandich Comment obout Ole…
in the qustions section on his NL….
take a look. He certainly gives good stock management advise…. but completely avoids the Ole question. !
i’m getting the feeling that hes afraid to say anything about Ole. Well at least he has kept them as a customer.
my response
Peter.
Im not blaming anyone but myself with my investment in this stock. I am in this stock for the long haul and hope to do well in the end. My question to you was, before you start judging me and chastising my trading skills of this stock, my original question was, “What is your sentiment about Oromin?” all you needed to say is Oromin is my client and I don’t want to comment. You should be ashamed of yourself about your sermon after that, maybe practice what you preach.
Regards,
Cliff English
Grandich responds
ANY DOUBT I WAS WRONG IS GONE AFTER THIS EMAIL OF YOURS
PLEASE DON’T EMAIL ME ANYMORE AS I WON’T RESPOND
p.s. Numerous readers wrote specifically to say thank you for my response to you.
My advice is get a bigger mirror
Yesterday from Sedar the final short form prospectus:
The interest of OJVG in the OJVG Project will be transferred to an operating company owned by OJVG as to 90% and by the Government of Sénégal as to a 10% carried interest. Under the terms of the Mining Convention (as defined herein), OJVG is obliged to offer to the Government of Sénégal or to Sénégalese nationals the right to purchase 25% of such operating company at a price determined by an independent valuator. In the event of such sale of a 25% interest, the Company’s indirect interest in the OJVG Project would be diluted to approximately 28.28% from its current position of 39.15% (currently being 90% of 43.5% after taking into consideration the
acquisition of a 10% interest by the Government of Sénégal).
Hope I’m wrong, but this looks bad.
I can’t find the Sedar report you quoted. Where did you find it and it’s looks like this is a Friday the 13th with this development. Crap!
Regarding the Sedar Filing that Socal Posted about. Can anyone here please comment or clear this up ? I cant imagine they can just wipe out a portion of the OJVG. This is very unclear.
Thanks
Go to Sedar.com then go to new filings. All this was calculated and known before the ofering and they still got $.80. There is a lot of info in the prospectus. If the maximum dilution occurs with a 25% sale to senegal the price will be determined by a 3rd party and by that time, if it gets to that we should be much higher.
Hope this helps. Tony
After reading the latest prospectus, does anyone have any comments? Arlene, Andy, Goldfather ,Maya, etc….
Tony
I believe that if this is part of the terms of the Mining Convention it will take the constuction of a mine for this to occur. I guess that Senegal would want the right to own 25% of Oromin’s portion of the mine. This is confusing. Any comments as always are welcome.
Thanks
Tony
I can’t find anywhere the “Mining Convention” to read its provisions.
But according to OLE’s last two Financial Statements…
On Jan 26, 2010, the Govt of Senegal grante OJVG the mining license. The license is for a 15 year term BUT must be held by a Senegalese Registered Company. OJVG is in the process of establishing this said Company. Upon the establishment of the new Company, OJVG will own 90% and the Senegal Govt will own 10%
Thus, Ole, Bendon, & Badr ownerships are all reduced by 10%… to 39.15%; 39.15%; 11.7% respectively with the final 10% Senegal Govt.
The 25% OJVG must offer to Senegal is determined by the Mining Convention????
I would agree with Tony in that I would expect this to only be viable under the fruition of an operating mine…
None the less, once the new Senegal Registered company is established, we are diluted by 10%…
h1
SP up to 91…. and good volume at 144. Anything going on ??
the other Blog mentioned that IAG may be buying alot of the PP shares. And word may have gotten out…. or maybe the Update info got out. IAG is to name new CEO very soon. Maybe they had to wait till he’s on board to Buy Ole for $ 5.
any info out there ?
Goldfather—There are probably a number of reasons why sp is going up–not the least of which is that Ole is still severely undervalued—–but there are other current reasons which include 1) Resource Update likely to be released next week and should be around 4 million ounces measured/indicated… 2) Ole sp typically goes up after a new PP completed… 3) Spot price of gold due to break out and could hit $3000 within 4-5 weeks…
Volume today and yesterday……. over 200 thou today and 150 Thou yesterday. Is this part of the PP…. or is this just on the Open market. As stated, the PP is probably all Private volume. So this looks like a lot. Hope something is brewing, and maybe the Update word got out and it’s really terriffic. If we can egt over $ 1 soon, and if PG would get off his ass and start Promoting the Stock…. we can get some momentum…..Wonder if the Rumor is correct about IAG buying much of the PP. New CEO to be named soon there. Hopefully they will make a good B/O offer to Chet. As i heard… they verbally offered $2,,,, and many others would Pay $ 1.50 in a heart beat. Chet wouldnt even listen. But I bet he could get IAG to pay $4 . With the Dilution, and the OJVG lowered equity position at near 40%… they still have to get a big number $$$ , to net $4 ps.
Arlene, $3000 per ounce for gold in 4-5 weeks? If a nuke goes off or Obama gets killed ( do not want him dead nor do I have much of an interest in politics) you might see $1500. How can you see gold almost triple in a month or so? Would obviously want it to happen since I have a position in Oromin but it aint gonna happen.
Comments:
Thanks, Tony
Arlene is known for some outrageous statements. Don’t let her throw you.
AB
tony–ab……Yes I do make some outrageous statements and I do make mistakes……This one was a mistake….I think spot gold will hit $1300 per ounce in 4-5 weeks ( NOT $3000) and most likely $1400 by year end……I apologize for my error….must have been drunk !!!
To the extent that this proposal will make it easier for a major to develop a regional play at Sabodala, it is good news.
Mineral Deposits Limited: De-Merger Proposal
MELBOURNE, AUSTRALIA–(Marketwire – Aug. 23, 2010) – Mineral Deposits Limited (TSX:MDM)(ASX:MDL) is pleased to provide an update in relation to the separation of its two core assets, the Sabodala gold operation (“Sabodala”) and the Grande Côte Mineral Sands Project (“Grande Côte”), both located in Senegal, West Africa, into two separate, publicly traded entities.
After consideration of a number of factors, it is now currently proposed to de-merge Sabodala rather than Grande Côte, from MDL.
It is proposed that the de-merger of Sabodala is expected (subject to any necessary regulatory or third party approvals or requirements) to include the following:
* MDL will incorporate a new Canadian-based company (“NewCo”) and transfer the Sabodala holding companies into this new company;
* MDL will, subject to the approval of its shareholders, distribute 80% of the NewCo shares it owns to MDL shareholders with the intention of obtaining de-merger tax relief for Australian domiciled shareholders;
* NewCo will conduct an Initial Public Offering (“IPO”) involving the issue of new shares in NewCo and apply to list on a major North American stock exchange, with potentially a secondary listing on the Australian Securities Exchange (“ASX”). It is not intended that the IPO will be offered in Australia;
* Some of the funds raised through the IPO will be distributed to MDL; and
* MDL will own approximately 15% of NewCo post the IPO.
Maya….. good find. I didnt see this on MDL…. obviously could have huge positiev implications for us and Ole. The timing is very suspect w/ all the Take Overs we’ve been reading about. The NewCo would also have curious Canadien Ownership. I just find this all too coincidental. Why is it going to eb canadien… why not US, or euro or S Aafrican??? Barrick, Raangold, IAG have ties. But only IAG is canadien. Does MDL have canadien ties. I know theyre Aus based…. but maybe have more CA ties than we know. I think this is just setting up a Merger w/ Ole. But dont know who’s buying who? Very Interesting. Didnt say anything about the Timing and dates. Hope soon.
Watch If our volume goes up…..
MDL and NEWCO…. just read the NR. It gives November as timing for the IPO… and the new CEO and CFO are from Barrick…. which is Canadien. They look to be Hi powered guys w/ big time Barrick background. Caliche keeps saying here that Chet has done a lot of deals w/ Barrick…. this is very interesting. Especially since MDL has just/ or have plans to add-on to their existing mine/plant…. Will be very interesting to see what the IPO sp of NewCo is going to be. MDL CEO Limb comments on growth thru stratedic acquisitions to become a Mid-Tierr Producer. Mid Tier … thats a HUGE move from where little MDL is right now. In 09 they ( i think) they produced 165,000 gold oz. Ole projects 196,000 gold oz when their mine is Complete.
i would think Ole is their first Purchase.
Lets hear from some of the other analytical types here ? Hoosier/ Caliche ?… Arline… others
Not the greatest news we could have received…
Oromin grants options to buy 7.6 million shares
Ticker Symbol: C:OLE
Oromin grants options to buy 7.6 million shares
Oromin Explorations Ltd (2) (C:OLE)
Shares Issued 124,511,385
Last Close 8/23/2010 $0.94
Tuesday August 24 2010 – Options Proposed
Mr. Chet Idziszek reports
Oromin Explorations Ltd. has granted stock options to employees, consultants, management, directors and officers, entitling the purchase of up to 7.6 million shares of Oromin under its stock option plan. The options are exercisable at a price of 92 cents per share until Aug. 24, 2015.
� 2010 Canjex Publishing Ltd.
Again…… am amazed that this new MDL-NewCO deal isnt getting any attention. For Ole …. this is HUGE. Either no one really cares abt Ole anymore… and have been run off… or its just August and folks ahve more important things to do than watch Ole and MDL. But the Ceo and CFo to run NEWCo have big time Gold back grounds… and on the GoldFields Board for Gods sake !… either Chet is all over this and in discussions w/ his Barrick ( friends) doing this Deal…. and have Partnership plans all set up…. OR…… hes saying ” if they can do it, so can we” . If the IPO sp is high, and a success, hell have the Saudis pay for the Mine, and in 2 yrs he’ll be a Producer w/ 6 mil oz to work with. BUT…. the share count will be HUGE too. Like 200 mil by then w/ all the PP’s in 48 months.We NOW have 132 mil fully diluted !!……… i dont think Chet wants to go anywhere. He likes being Mr Mining Man on the big expense account flying all over the World…. pitching his baby Project. He gets paid a ton, the Saudis get paid,,,, but the Retail Investor is diluted big time and dont forget the GD 40% ! Thats what’s killing this deal for us.
Unless Chet wants to Merge w/ NewCo now, use their Mine… and still have some fun and make money. i vote for this option.
Any guesstimates on date of late August release of resources and amount of additional ounces?
All comments welcome.
Thanks, Tony
This Friday 😉
My contacts say that we will hear nothing until the week after Labour Day. Management wouldn’t want to meet two deadlines in a row. People would begin expecting things of them. But wait, they just granted themselves another 8 million options, so they must think they deserve a bonus. Not performance options, mind you, just market-price options. No confidence here. And no competence either.
Maya…. not surprised at all. about first wk in Sept. Probably doesnt mater much…. but they never follow thru on any thing.I did hear that Chet has been on vacation all summer. Heard the fnext update was going to be 3.6 mil total gold. Up from the 3.28 #. . Then the dec Update will be over 4 mil. ! Thats a lot of Gold.
…. 4 mil. Wish they would tell someone . If PG is reading, hes the worst publicist I have ever been involved with. They hired him in April. I’ve tried to contact him…. very un professional, and he could care less about his readers. Ole should do the share holders a favour… find someone else that could POrofessionally Promote this Gold Company. He is the worst ! If they promoted it w/ 4 mil oz and all the other prospects they have…. we’d be at 2 in quick time.
Tony—-FWIW , my” outrageous” guesstimations are Monday , Aug 30 and approximately four million ounces….
Looks like MDL is buying in…
Aug 26, 2010 14:11 ETEquity Position in Oromin Explorations Ltd.
MELBOURNE, AUSTRALIA–(Marketwire – Aug. 26, 2010) – Mineral Deposits Limited (TSX:MDM)(ASX:MDL) today announced it has agreed to acquire 18,699,500 common shares (the “Oromin Shares”) in Oromin Explorations Ltd. (“Oromin), representing approximately 15.01% of the issued and outstanding common shares of Oromin. MDL will issue 24,870,335 ordinary shares as consideration for the Oromin Shares acquired upon settlement, as well as an additional 994,813 ordinary shares to GMP Securities Europe LLP as financial adviser to the share purchase, all at an issue price of AUD$0.93 per share (equivalent to approximately Cdn$0.87 per share). The Oromin Shares were acquired pursuant to the terms of certain Share Sale Agreements containing customary representations, warranties, covenants and other terms and conditions.
Oromin is a TSX listed company (TSX:OLE) with its principal property being an interest in a joint venture covering a landholding in Senegal, West Africa which is contiguous with MDL’s Sabodala Mining Concession (containing the Sabodala mine and processing plant), and regional exploration tenements.
The Oromin Shares have been acquired by MDL for investment purposes. It is the intention of MDL to evaluate its investment in Oromin on a continuing basis and may, from time to time, increase or decrease its holding of Oromin securities, depending on market conditions and other relevant factors.
Where might this take us?
to an MDL buyout or a major buying everthing when chet decides. Interesting how he just gave away 7 million options to himself…
MDL buyinto Ole….
WoW ! thats Big news for Ole. Now they have Iamgold AND MDL as 15 % owners. A bidding war is the best thing we could ask for.. But as they say…. only thing better than a Twosome….. is a Threesome !