CQT: Conquest Mining preparing for merger?

[elZorro]

Conquest Mining first listed in 1987, has progressed to be a junior gold producer, hoping to achieve 70,000 oz in FY2012. I'm interested because Jake Klein (and Jim Askew), of recent OGC fame, has gained control of this company in early 2010. They have some good grades from exploration, see the first quarter report. (http://conquestmining.com.au/images/conquest---ohcheepeem.pdf) The SP has doubled and then stabilised with lower volume, and with an MCAP of A$323 mill, looks expensive compared to OGC. But Jake and Jim have quite cheap options to buy plenty of CQT. There was massive trading volume when the change of leadership occurred, at a low start price.

Would this company be a suitable merger candidate for OGC? See the thread for OGC on the NZX side. For those set up already with cheaper CQT shares, it could be a no-brainer. If some more good news came out between now and June 2011, the timing for merger announcements might be in the second half of 2011.

Monto (MOO) shareholders were to approve or disapprove this side-deal (http://www.finnewsnetwork.com.au/archives/finance_news_network16934.html)on 28 April.

Here's a very in-depth report on CQT by Evans and Partners (http://conquestmining.com.au/images/conquest-85--voonoupeif.pdf). Baker Steel and Gold Fields are reasonably big investors..
The summary implies that it's fairly fully priced at this stage, not a roaring bargain. Jake Klein in particular has lots of cheap share options ready if he wants them (27million at an average of 30c, available for 5-6 years, right now that's 7-8% of the company shares).

Mt Carlton would be (for at least 2 years) a very low cost producer, as it has a pocket of high-grade silver, along with good grade copper and gold.

[Vtrader]

Z,
You keep up the FA work
http://i949.photobucket.com/albums/ad333/VtraderNZ/CQT_2May.jpg

What happened 4 FEB 2010?
V.

[elZorro]

Feb 4th was roughly when there was a management swapout of three directors, the Climax team. This is now an investment vehicle looking for 500,000oz production total, so an Mcap of 2 billion, ready for a buyout by El Dorado or someone like that. This is my theory..and guess what? CQT + OGC would have 500koz easily by 2013.

Vtrader or TA converts: tell me how to make a dollar out of this, if it happens..but I suspect that the main money has already been made, by getting in early. We just needed to be insiders, is that the story?



Takeover by stealth (The Australian, WSJ, March 10 2010)

A COUPLE of weeks ago, Conquest Mining told shareholders it had two pressing issues: a strategic review of its key Silver Hill gold, silver and copper project in central Queensland after a somewhat disappointing feasibility study; and it was looking for a new CEO. How serendipitous that the mob called in to conduct the review -- Jake Klein's DAK Corporation -- has come up with a solution to both issues. Conquest yesterday announced a boardroom shake-out that looks an awful lot like a takeover by Klein and old friends from his days at Sino Gold Mining.
Klein, the former Sino chief, obviously liked what he saw. He'll become the new executive chairman of Conquest, earning $400,000 a year and with enough options to take up to 7 per cent of the company. Sino founder and former chairman Nick Curtis and his successor as chairman, Jim Askew, will become non-executive directors of Conquest. Both also get a swag of options.
Leaving the board will be long-serving CEO John Terpu, who'd already signalled plans to move on, Bruno Firriolo and Joe Radici. Chairman Rich Krasnoff will stay on as a non-executive.
The changes are subject to shareholder approval. South Africa's Gold Fields holds 19.9 per cent of Conquest. But since Gold Fields did quite well when Sino was bought by Canada's Eldorado Gold last year, we doubt they'll raise too much of a stink.


Try tracking down DAK Corporation - no website, address or web presence.

[Vtrader]

Vtrader or TA converts: tell me how to make a dollar out of this, if it happens..but I suspect that the main money has already been made, by getting in early. We just needed to be insiders, is that the story?

http://i949.photobucket.com/albums/ad333/VtraderNZ/CQT_5May.jpg
Chart looks like a 'flat' correction, with a hammer candlestick finish.


EZ,
good FA work here, could be turn day today, or maybe a series of turn candles before a firm direction...
to make a profit get out your tools, support and resistance, trendlines, candlestick patterns, etc. (ahem! or count to 5 with ABC's) and be prepared to watch and wait then act when you are hopeful but still a little bit scared.
Shall we wager a little CQT paper trade. Suggest a target bid at limit 52cps, 10,000 shares to start.
V.

edit
just noticed I have achieved 100 posts.
Squiggly lines and candlesticks do not make for great literature.

[Vtrader]

EZ,
No objection to a paper trade easily achieved Friday at 49.5cps?
Thursday hammer candle 1.8M traded
Friday inverted hammer candle 2.2M traded.
Volume has been rising for 10 days now as price falls.
Long term support at 48cps.
Rising trendline support 45cps
Few more days like this and I will place a real wager on.
V.

[elZorro]

Hello there Vtrader, sorry I missed the first post. I have already purchased some CQT, ready to average down.. My only problem is that I'd expect the EV of CQT not to be so high, in view of the losses they have made so far. This share is high on sentiment, while OGC's is low on shorting.

[elZorro]

Here are some details on the CQT timeline: Jake Klein was granted options at a low time for the share. OGC is now trading at the same value as when that occurred, dollar wise, although more shares have been issued. In September through to December 2010 the shares had opposite trends: lots of good news for CQT, but OGC announced Didipio was to be restarted. Share dilution for OGC started, as funding for their mine came from shareholders. In contrast, just recently CQT announced a bank consortium would supply a loan for Mt Carlton.

[elZorro]

Well, a merger has been announced (http://www.asx.com.au/asxpdf/20110615/pdf/41z75ckxylgzvs.pdf)on the same afternoon Jake Klein was an invited lunch speaker (http://www.brisbaneminingclub.com.au/newsletters/53_NewsletterJake%20Klein.pdf), not with OGC though. Catalpa. Its MCAP is going to be a bit bigger than OGC's, 1.1bill. Guess who's at the top? JK. Lots to read, the market seems favourable so far, could go higher and that would be good, as I'm holding some.

Newcrest is also a 38%-33% shareholder, they have put two of their smaller mines into the pot.

CAH shares dipped on the news, think shareholders were keener on another deal that was on the go.

[elZorro]

Today CQT also dropped, Mr Market not happy maybe. I hope he warms up to the idea.

More details on the setup: (http://www.perthnow.com.au/business/wa-company-news/catalpa-resources-and-conquest-mining-announce-in-12b-merger-deal/story-e6frg2s3-1226075709856)

Great timing here, as on the day before the luncheon, CAH and CQT magically attained identical Mcap figures including the options on issue, so that they could merge as equals. This is the closeoff date for the merger proposal, and all of it was announced while JK was at the luncheon giving a prearranged talk. Magical.

Link to an earlier video - newsdesk presentation (http://www.evansandpartners.com.au/videoupdates/viewstory/Episode+197+-+Cathy+Moises+%26+Jake+Klein)- at the end Jake Klein confirms they are looking for acquisitions.