Phoenix Gold - PXG

[JBmurc]

Yeah who's know maybe the next few anns will give as a clue to why JP left in such a hurry ...maybe a real breakdown with other mgmt ..a push from EVN or NGF ?? Kintore performance ......I also will miss his style of dealing with S/Hs very frank honest approach

[JBmurc]

ZIJIN ANNOUNCES ITS INTENTION TO MAKE AN ALL CASH TAKEOVER BID FOR PHOENIX GOLD CONDITIONAL UPON THE EVOLUTION TRANCHE 2 PLACEMENT NOT PROCEEDING
 Zijin intends to make an off-market takeover offer for $0.10 per Phoenix share valuing Phoenix at $47.0 million
 Zijin has executed a pre-bid agreement with Phoenix’s largest non-interested shareholder1 Geologic Resource Partners LLC and now holds a 17.9% relevant interest in Phoenix (details of the relevant interest set out below)
 The Zijin Offer is considered clearly superior to the proposed Evolution Tranche 2 Placement but will only be presented to Phoenix shareholders upon the proposed Evolution Tranche 2 Placement not proceeding
 Phoenix’s four largest non-interested1 shareholders have already indicated their intention to vote against the proposed Evolution Tranche 2 Placement. As such, Resolution 2 is highly unlikely to proceed
 Phoenix shareholders are urged to vote down the proposed Evolution Tranche 2 Placement at the General Meeting scheduled for Tuesday, 23 June 2015

[Daytr]

Yep agree JB, far too cheap & I would say it will be rejected.
If the board are doing the right thing by shareholders they will reject it smartly as well.

[JBmurc]

China moves to Stage 2 of its great gold grab
Posted on June 23, 2015 by Robin Bromby
China has a two-stage gold domination plan. Stage 1 is well advanced with the domestic accumulation of gold rising rapidly, both through importing the metal and banning the export of gold mined within China. Stage 2 is to buy as many gold deposits abroad, and this week we saw another move in this direction.

First, where is Stage 1 up to? Does China’s central bank really have gold reserves of between 25,000 and 30,000 tonnes of gold – which, even at the lower figure, would have given Beijing reserves greater than the other seventeen largest reserves holders put together, including the U.S., the IMF, the European Central Bank, France, Italy and Germany? That’s the view of Alasdair Macleod, a member of the London Stock Exchange since 1974 and who is now a frequent writer on the subject of sound money.

Just last month the Russian newspaper Pravda quoted “unconfirmed reports” that China had 30,000 tonnes of gold and added: “If this is true, it means that China will be capable of bringing down the U.S. dollar in an instant”, referring to the oft suggested idea that Beijing is aiming to have the yuan as the world’s prime reserve currency.

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That China is buying and hoarding gold seems beyond doubt. Even the Bloomberg news service recently assumed the Chinese central bank has 3,150 tonnes. That’s roughly triple what Beijing admits to: it has never updated its 2009 announcement that it had 1,054 tonnes.

But there is another strand to this story: China not only wants to acquire the largest gold reserve in the world, it also seeks to control the mines that produce the metal, so ensuring future supply. Just as Beijing has maintained dominance in rare earths, antimony, tungsten, molybdenum and other key metals, so it wants to dominate gold. But there is a difference: with all those other metals, China has substantial resources within its borders, but that is not the case with gold. So it has to achieve dominance by acquiring mines overseas.

According to the U.S. Geological Survey, China mines 15% of annual gold output but has only 4% of the world’s known gold still in the ground. Estimates vary as how long it will take, but within the next decade Chinese production is going to plummet.

This explains why Zijin Mining, China’s largest gold producer, has been so acquisitive. The company this week unleashed a takeover bid for Australia’s Phoenix Gold (ASX:PXG). This company has a reserve of about 1 million ounces; more importantly, that gold lies near the Paddington, Western Australian gold plant owned by Norton Gold Fields (ASX:NGF) which is 90% controlled by Zijin (and the other 10 per cent of shareholders are now in the process of being bought out). Last month Zijin bought (from Barrick Gold) a half share in Porgera gold mine in Papua New Guinea.

According to The Wall Street Journal, Zijin owns 49.5% of a gold operation in Democratic Republic of Congo, 21.3% of Canada’s Pinnacle Mines (and 9.% of Ivanhoe Mines and Pretium Resources, the latter operating in British Columbia), and controls mines in Kyrgyzstan and Tajikistan. (That’s in addition to the more than 82 tonnes of gold the company mines in China each year.)

The trend has been there for anyone looking. For example, in the period of a month in 2013 the following developments were reported:

One: Japanese newspapers were reporting that China’s yuan was increasingly being used for trade settlements — in the first half of 2013, China settled 2.05 trillion yuan ($334.8 billion) of its trade transactions in its own currency. That’s a 16.1% slice of all trade by China. To by-pass the U.S. dollar, China had been concluding currency swap contracts with other countries, including Australia, Brazil, Russia, Iran and Britain (the Bank of England being the first top central bank to allow currency swaps with the yuan). Beijing also created a new oil wholesaling structure that would bypass the petrodollar. As one commentator remarked, this was the first time in 40 years there had been a challenge to the dollar’s hegemony.

Two: A South African business newspaper reputed for its coverage of the mining industry said Chinese companies were on a buying spree for gold projects.

Three: In June 2013, 106.4 tonnes of gold was imported by China through Hong Kong. So, in month, China imported more gold than Canadian mines produced in a year. In the first six months of that year, Chinese imports totalled 706 tonnes: that was the annual combined production from the No. 2 through No. 4 gold producing countries in the world — that’s equivalent to a whole year’s mining in Australia, the U.S. and Russia. And on top of China’s own production, the largest in the world.

Four: The Bangkok daily The Nation concluded: “China is apparently preparing to adopt a pending gold standard”. It also reported that “speculation is widespread that it could be holding between 7,000 and 10,000 tonnes, surpassing the U.S. (official reserves of) 8,113 tonnes.

All you had to do was join the dots.

- See more at: http://investorintel.com/technology-....7oIPDrFN.dpuf

[JBmurc]

Phoenix Gold, which has rebuffed Zijin’s bid, says it favours Evolution Source: News Corp Australia
Takeover target Phoenix Gold has talked up its relationship with potential suitor Evolution Mining, noting that Evolution represents a better fit for Phoenix’s assets than rival bidder Zijin Mining.
Phoenix yesterday decided to cancel a proposed share placement to Evolution hours before its shareholders were due to vote on the alliance and share issue, clearing the way for an effective auction of the gold explorer.
China’s Zijin on Monday formally lodged an unsolicited 10c per share offer for Phoenix, valuing the target at $47 million. The offer was conditional on the Evolution placement not being approved at yesterday’s meeting.
Phoenix executive chairman Dale Rogers told The Australian the company had decided to cancel the proposed Evolution placement rather than defer the vote after discussing the options with Evolution.
“Realistically, simply deferring it would have introduced a level of doubt and perhaps uncertainty that we didn’t see any point of having,” Mr Rogers said.
“We would rather it be simple and clean so people know what’s going on.”
Proxy votes released after the meeting showed that the Evolution placement would have been narrowly approved, although the numbers did not include a substantial package of shares that Zijin could have potentially voted against the deal.
The move to scrap the placement clears the way for a potential auction of the company, with Phoenix having already dismissed Zijin’s offer as too low.
Zijin is aiming to process gold from Phoenix’s ground through its nearby Paddington mill.
Evolution is the obvious counterbidder, given it already holds just over 9 per cent of Phoenix and recently bought the Frog’s Leg goldmine and processing plant next to Phoenix’s ground.
Speaking at yesterday’s shareholders’ meeting, which saw advisers to Zijin and Evolution outnumber actual Phoenix investors, Mr Rogers said the Phoenix board had viewed Evolution’ alliance proposal “very favourably” and had “a great deal of respect” for Evolution and its board.
Mr Rogers said Phoenix’s relationship with Evolution remained “very strong” and Frog’s Leg represented the natural destination for ore from Phoenix’s deposits.
“The tenements fit together hand in glove, they literally wrap around each other, they are the closest milling solution to our reserves and resources, they’re half the distance that the Paddington mill is, and (Frog’s Leg) is also the newest mill in the region,” Mr Rogers said.
He said Phoenix had already had other parties approach it in the wake of Zijin’s 10c bid on Monday. “It is evident the bid was on the low side and people have taken that view,” he said. “We haven’t had to work the phones, they’ve been calling us.”
Shares in Phoenix fell 0.8c to 10.2c yesterday.

[JBmurc]

http://www.phoenixgold.com.au/assets...20Jul%2015.pdf

It is difficult to conclude that PXG
is anything but a takeover target.
Proposed bid at A$0.10/share by
Zijin
On market purchase of 10% at
A$0.12/share by EVN
 Valuation A$0.31/share
 Corporate upside to
A$0.43/share
A counter proposal from EVN
seems likely

Great Report that backs up my reason for holding a ton of PXG shares ...and not taking Zijin joke offer

Quite clearly you can see the stacking on the offers aka Zijin will be involved here hoping to get there BS 10c offer through....

150817115627.png

[JBmurc]

Recent REDLEAF valuation A$0.30/share for local mill owners NGF EVN ..... current SP -12c personal can see high teens will see total control of PXG but as the Gold price is on the move maybe R.L 30c will be correct for S/H that hold till the end