Oromin has new Partner!
hmm this just got interesting!!
Equity Position in Oromin Explorations Ltd.
MELBOURNE, AUSTRALIA, Aug 26, 2010 (MARKETWIRE via COMTEX) — Mineral Deposits Limited /quotes/comstock/11t!mdm (CA:MDM 0.85, -0.02, -2.30%) (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 /quotes/comstock/11t!ole (CA:OLE 1.05, +0.13, +14.13%) 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.
About MDL
Mineral Deposits Limited is an ASX and TSX listed mining company with a current focus in Senegal, West Africa through a producing gold mine, the Sabodala Gold Operation, and a to be developed mineral sands project, the Grande Cote Mineral Sands Project.
The Sabodala Gold Operation, which poured its first gold in March 2009, is located 650 kilometres east of the capital Dakar within the West African Birimian geological belt in Senegal, and about 90 kilometres from major gold mines and discoveries in Mali. The area has only recently been opened for mining and exploration and is emerging as a significant new gold camp, with more than 10M ounces of resources already discovered.
The Grande Cote Mineral Sands Project is located on the coast of Senegal starting approximately 50 kilometres north of Dakar and extending northwards for more than 100 kilometres. The large scale of the ore body and the high quality of the zircon provides the potential to establish an operation of international significance.
Senegal is one of Africa’s most successful democracies, having gained independence in 1960. It enjoys a stable and investor friendly political and social environment. The government of the Republic of Senegal is MDL’s valued partner and holds a 10% free carried interest in both projects, which will accrue dividends once MDL has recovered its capital invested.
Is it me or this a big deal? We now have MDL and IAG as major shareholders. Where the heck is everyone?
New Partner….
i’ve been ranting about the MDL/NewCo deal the last few days as something HUGE…. and it got no news at all. Now LOOK !….. some ques and observations:
**where did the 18.6 million shares come from? A rumor said that IAG traded there 15% for MDL shares ? Why would they do that ??
** then heard that MDL has been buying all along… yes at the 87 cents to the tune of 18.6 mil…. and we wondered who was selling into all our nice rally’s. Mr/ amd Mrs Anonymous selling all these years at 85 when the rally was at 90…. hmm hmm. Looks like its been our wonderful neighbor just helping out. I hear they are quite the Sneaks !!
** they have only disclosed b/c they have to by canadien law they own 15 %. not sure i’m rite abt that.
** all along they ( mdl) have acted as if Ole needs MDL b/c of the Plant. Well mdl has only 7 yr life span , and ole has 15 yrs. Tables now turned?
** I hear Rangold is now VERY interested b/c they have the Massawa Project w/o a Mine . Ole is rite in between Rangold and mdl.
** Lets see what the Price does now ? With out MDL driving the sp down to amass shares…..
** Heard that IF MDL gets Ole… the B/O will be paid in MDL/NEWCO shares. Which might become a Mid Tier Co shortly.
** I’d rather get Barrick or Rangold shares at $ 44 and $ 90-
Lots happened Lately: 1) $15 mil PP closed
2) MDL spins off and Forms NEWCO w/ big Time Barrick and Goldfields Execs
3) Ole does 8 mil stock options for Execs at .92
4) MDL announces 15 % ownerswhip in Ole
5) Update coming in a week to 3.7 mil oz.
Whats Next ?
So, basically now MDL owns 15% of OLE and OLE owns 4% of MDL. Will that be only in NewCo or do we get part of the Grand Cote project too?
Grandich Client Update – Oromin Explorations Share Purchase Can Only Be Bullish
The news today of a large percentage of shares being purchased from an undisclosed source (It’s my understanding/assumption these shares were not purchased from OLE or anyone directly part of the company), can only be viewed as bullish – but nothing in life is certain but death, taxes and the Canucks won’t win the Stanley Cup in my life time.
The stock has been in a long base-building phase. This news could be the tonic that allows it to break out of this base. A legitimate target would first be resistance in the $1.40 – $1.50 area and then the 200 -Day M.A. currently around $1.72
200 Day M.A. at $1.72???? Not sure what chart Grandich is looking at but the 200DMA is around $0.81.
The resistance level at $1.45ish is correct. That will be a tough one to break through.
does anyone have a way to confirm if BOTH iangold and MDL now own 15 % of OLE each. There was a rumor that mdl bought the shares directly from IAG in trade for MDL shares. Must be matter of record that some one could check. The rumor started by a Broker…. and that would be a big mistake to make. Hopefully for us…. BOTH iag and mdl will be in a Bidding war.
This is the biggest news hitting Ole, and we get no comments. Proof everyone bailed. Lets see if they buy back now.
Here’s a comment: I’m psyched!
Wow…..
Volume over 1.2 Million on the TSX
Over 400000 on OLEPF
Good Day!
Doublem2