CTS - Contact Resources

[YOUNG_TRADER]

I have tried to call them repeatedly i the past and a few times more recently,

I always just get the receptionist/front desk

Everyone else is always "out of the office" or "in a meeting"

I don't know what to say other than the old adage its better to have great management over an average project than average management over a great project (CTS unfortunately being the latter)

Still the project is amazing and alot of U stocks are rebouding, just not CTS ....... yet

 

[bliimp]

Refer to the 9th May Placement and Appendix 3B

Contact Uranium Limited (“Contact” or “the company”) is pleased to announce a placement of 13,000,000 ordinary fully paid shares to raise $1,430,000 before placement costs to sophisticated and institutional investors. The placement shares will be completed under the company’s 15% capacity

A further placement of 13,000,000 ordinary fully paid shares to raise $1,430,000 before placement costs, to sophisticated and institutional investors will proceed subject to shareholder approval.

Just trying to get my head around this placement; and just “thinking aloud”, I just find it "bizarre", for the following reasons :-

1 . Discount

A placement at 11c per share equals a 42% discount to 9th May opening price of 18c … You don’t have to be too “sophisticated” to accept a deal like that!!!

2. Impeccable timing

OK … So Napier probably negotiated the price smack-bang in the middle of the Opes Prime debacle when a mere 5% of CTS got dumped by ANZ forcing the price down from the 20-25c to 13-15c range! … I mean what was he thinking? … You negotiate when you are in a position of strength!

3. Give Existing Shareholders a Fair Go

So the poor existing retail shareholders who have supported the company and seen the price plummet from above 50c are treated with utter contempt.

The measly $1.43m could have been raised from existing shareholders who are “not sophisticated” by allowing an allotment of up to $5000 in shares (the maximum amount allowed to the "non-sophisticated", without the time and cost of a prospectus)

And because, the 15% capacity of placements is reached within the one financial year, Napier has the gall to ask for shareholder approval to “give away” and further dilute existing shareholder equity with a further placement.

And if approved will again be at the bargain-basement price of 11c!

Give me a break!!! How CRUDE … and how RUDE!!!

4. Who are these Sophisticated Investors

I find it absolutely bizarre that current ASX rules do not make it mandatory for sophisticated investors to be named in any share placement.

And while there is no transparency, I can’t help but bring out the cynic in me.

Just who is benefiting from this placement?

5. Warwick Grigor’s Concerns

Refer to Warwick Grigor’s article dated 11 April 2007 on "The Gem from the Paydirt Uranium Conference" as highlighted earlier by Young Trader http://www.uraniumanalyst.com/images...ril07FINAL.pdf

In particular, I quote the following :-

Background
CTS is a company that has come from the group of accountants/promoters affectionately known as the “Balcatta Boys” due to the location of their offices in Balcatta, Perth. This group has been active and successful with many companies over the past 10-20 years.

Management is the Weakest Link
While we can get excited about the geological Potential (of CTS), it remains to be seen whether the current management has the experience to be able to fully realise the potential, to the benefit all shareholders equally. We see a lack of transparency with the management and corporate governance and are unsure of the intentions of some of the key shareholders groups. Great projects can make mediocre management look good, but poor management can also ruin a good project.

Let’s face it, within one month of Grigor raising his concerns about management, the then MD of CTS abruptly resigned “to pursue other business interests”, and be replaced by the preeminent PhD geologist Napier ... and 2 months later Grigor’s Far East Capital gets 1m shares at 50c each (with 1m free options).

Impeccable timing!

5. My assessment

I am beginning to get the feeling that Napier is just a “front man”, working on the operational side of CTS (albeit, not doing a good job in communicating the current Corachapi drilling) ... and it is probably the “key shareholder groups” or the “Balcatta Boys” that are really "pulling the strings".

There appears to be this incestuous relationship between companies such as Artemis (current owners of 5m shares in CTS) who are operating from the same building in WA.

It will be interesting when the next Top 20 Hit Parade is published (though it can be misleading as multi-entity ownership and “wife” ownership can easily hide a large holding).

Have the "Balcatta Boys" been recipients?

Has long-time fan Grigor been given a better deal than the last one, to at least average down his current 1m share holding at 50c per share?

I just get the idea that “something is brewing”!

Sure, CTS needs cash to keep operations moving along, but these “sophisticated types” would NOT throw away $1.43m in the first instance, and soon after, another $1.43m (on shareholder approval) … There is a "buck to be made" here, and I believe they are utilizing (and maybe creating) the current CTS share price predicament to substantially improve their foothold into CTS at the expense of the retail investor!

Lets face it, when there is director buying of any listed company, the share price usually moves up in anticipation of some positive announcement … Well, in CTS’s case, there are share placements to the tune of nearly 30% of the company’s current net worth! … to the “sophisticated types”, whose purchase you may argue, should have as much if not more significance!

And only last week there is the appointment of another director (another "Balcatta Boy" Accountant ?) … Why would this guy waste the time of day and impact his CV if CTS did not have a future?

In my opinion, GAME ON!!!

 

[YOUNG_TRADER]

Interesting theory bliimp and some very in-depth analysis there, made for a good read

I sorta see what your saying as lots of companies try and pull rabits out of the hat to get the otpions across the line, ie MDX- 800Mt Iron Ore target, MXR 3Bt Mag target, EMR new Oil projects etc etc, I'm sure there are more but these 3 companies released ramp style ann's recently to get thier SP above 20c and thus there options in the money

I wonder if CTS has a rabbit in its hat?

Cheers

 

[YOUNG_TRADER]

Hmmm just looked at the chart

What the? Volume spike and price rise,

Bliimp did you see this? Is this what caused your post? I didn't even realise, maybe something is up, bloody insiders, probably those "sophisticated investors"

Jman maybe we can call off the Lunch Mob? have em ready just in case :

 

[alankew]

Nearly commented on this earlier.Was picked up on HC,what was more interesting was the options.They have been driven down lately but have had some reasonable buys in the last day or so(not in your league though YT)Might not be dead and buried yet

 

[peteai]

Refer to the 9th May Placement and Appendix 3B

Contact Uranium Limited (“Contact” or “the company”) is pleased to announce a placement of 13,000,000 ordinary fully paid shares to raise $1,430,000 before placement costs to sophisticated and institutional investors. The placement shares will be completed under the company’s 15% capacity

A further placement of 13,000,000 ordinary fully paid shares to raise $1,430,000 before placement costs, to sophisticated and institutional investors will proceed subject to shareholder approval.

Just trying to get my head around this placement; and just “thinking aloud”, I just find it "bizarre", for the following reasons :-

1 . Discount

A placement at 11c per share equals a 42% discount to 9th May opening price of 18c … You don’t have to be too “sophisticated” to accept a deal like that!!!

2. Impeccable timing

OK … So Napier probably negotiated the price smack-bang in the middle of the Opes Prime debacle when a mere 5% of CTS got dumped by ANZ forcing the price down from the 20-25c to 13-15c range! … I mean what was he thinking? … You negotiate when you are in a position of strength!

3. Give Existing Shareholders a Fair Go

So the poor existing retail shareholders who have supported the company and seen the price plummet from above 50c are treated with utter contempt.

The measly $1.43m could have been raised from existing shareholders who are “not sophisticated” by allowing an allotment of up to $5000 in shares (the maximum amount allowed to the "non-sophisticated", without the time and cost of a prospectus)

And because, the 15% capacity of placements is reached within the one financial year, Napier has the gall to ask for shareholder approval to “give away” and further dilute existing shareholder equity with a further placement.

And if approved will again be at the bargain-basement price of 11c!

Give me a break!!! How CRUDE … and how RUDE!!!

4. Who are these Sophisticated Investors

I find it absolutely bizarre that current ASX rules do not make it mandatory for sophisticated investors to be named in any share placement.

And while there is no transparency, I can’t help but bring out the cynic in me.

Just who is benefiting from this placement?

5. Warwick Grigor’s Concerns

Refer to Warwick Grigor’s article dated 11 April 2007 on "The Gem from the Paydirt Uranium Conference" as highlighted earlier by Young Trader http://www.uraniumanalyst.com/images...ril07FINAL.pdf

In particular, I quote the following :-

Background
CTS is a company that has come from the group of accountants/promoters affectionately known as the “Balcatta Boys” due to the location of their offices in Balcatta, Perth. This group has been active and successful with many companies over the past 10-20 years.

Management is the Weakest Link
While we can get excited about the geological Potential (of CTS), it remains to be seen whether the current management has the experience to be able to fully realise the potential, to the benefit all shareholders equally. We see a lack of transparency with the management and corporate governance and are unsure of the intentions of some of the key shareholders groups. Great projects can make mediocre management look good, but poor management can also ruin a good project.

Let’s face it, within one month of Grigor raising his concerns about management, the then MD of CTS abruptly resigned “to pursue other business interests”, and be replaced by the preeminent PhD geologist Napier ... and 2 months later Grigor’s Far East Capital gets 1m shares at 50c each (with 1m free options).

Impeccable timing!

5. My assessment

I am beginning to get the feeling that Napier is just a “front man”, working on the operational side of CTS (albeit, not doing a good job in communicating the current Corachapi drilling) ... and it is probably the “key shareholder groups” or the “Balcatta Boys” that are really "pulling the strings".

There appears to be this incestuous relationship between companies such as Artemis (current owners of 5m shares in CTS) who are operating from the same building in WA.

It will be interesting when the next Top 20 Hit Parade is published (though it can be misleading as multi-entity ownership and “wife” ownership can easily hide a large holding).

Have the "Balcatta Boys" been recipients?

Has long-time fan Grigor been given a better deal than the last one, to at least average down his current 1m share holding at 50c per share?

I just get the idea that “something is brewing”!

Sure, CTS needs cash to keep operations moving along, but these “sophisticated types” would NOT throw away $1.43m in the first instance, and soon after, another $1.43m (on shareholder approval) … There is a "buck to be made" here, and I believe they are utilizing (and maybe creating) the current CTS share price predicament to substantially improve their foothold into CTS at the expense of the retail investor!

Lets face it, when there is director buying of any listed company, the share price usually moves up in anticipation of some positive announcement … Well, in CTS’s case, there are share placements to the tune of nearly 30% of the company’s current net worth! … to the “sophisticated types”, whose purchase you may argue, should have as much if not more significance!

And only last week there is the appointment of another director (another "Balcatta Boy" Accountant ?) … Why would this guy waste the time of day and impact his CV if CTS did not have a future?

In my opinion, GAME ON!!!

Very Interesting read bliimp!!

Is it possible that those in the know have intentionally pushed the price down - sold down in the last few months -knowing that they would get placements at cheap prices e.g 11c Didn't Artemis sell on the day of the placement - Maybe this is a strategy for insiders to build up the stakes before it gets expensive to buy in.

Maybe us "unsophisticates" should organise to stop shares being offered at 11c Is it likely we could stop the 11c and demand better ways to raise cash ?

Vary large volume today ? Was there any news to prompt this ?

 

[fgzq88]

Quarterly Activites Report said:
1. CORACHAPI
period of extremely adverse weather including snow and heavy rainfall in the region, the company was not able to expedite its chemical sampling and gamma probe programme for approximately nearly two months, though managing to continue its drilling activities. As a result the company had 61 holes awaiting results during the quarter, the balance of which had been reported previously.
Sampling has now recommenced and new results are expected shortly. The company expects to publish an updated resource during the coming quarter and commence an engineering scoping study.

this might be the reason

 

[bliimp]

I sorta see what your saying as lots of companies try and pull rabits out of the hat to get the otpions across the line, ie MDX- 800Mt Iron Ore target, MXR 3Bt Mag target, EMR new Oil projects etc etc, I'm sure there are more but these 3 companies released ramp style ann's recently to get thier SP above 20c and thus there options in the money

I wonder if CTS has a rabbit in its hat?

Cheers

YT

Interesting! ... about getting "their options in the money".

And CTS at this stage may not want the price to run too fast (as per today's trading) ... they are making their next placement at 11c per share again ... and I wonder when (or if) they get shareholder approval!

But then again it may be fait accompli ... based on how the major shareholders vote!

 

[peteai]

Quarterly Activites Report said:
1. CORACHAPI
period of extremely adverse weather including snow and heavy rainfall in the region, the company was not able to expedite its chemical sampling and gamma probe programme for approximately nearly two months, though managing to continue its drilling activities. As a result the company had 61 holes awaiting results during the quarter, the balance of which had been reported previously.
Sampling has now recommenced and new results are expected shortly. The company expects to publish an updated resource during the coming quarter and commence an engineering scoping study.

this might be the reason

Hi fgzq88,

This is quite old news, this would not explain the sudden jump in volume and price yesterday You wouldn't be one of the “Balcatta Boys” would you Throwing in a red herring to hide what's really going on ?

Cheers,
Peteai

 

[YOUNG_TRADER]

You wouldn't be one of the “Balcatta Boys” would you Throwing in a red herring to hide what's really going on ?

Cheers,
Peteai

lol, hmmm I'm suss of all you fella's

As I said earlier though, it wouldn't surpise me if CTS pull a ramp out of their hat ala MXR/MDX/EMR to get their options over the line,

Just how big the resource upgrade would have to be to create a serious run well I'm thinking a boubling which is a very hard target to meet, but then again you never know

 

[YOUNG_TRADER]

hmmm not sure what to make of todays ann

given the plight of current shareholders, we're getting a 1:2 15c 2010 option for 0.005 which seems good as they should list at a nice premium say 5c = 10 bagger on them at the subscription price,

Not to happy with some consulting firm being given 50m options as part of a "PLACEMENT" maybe this is the Balcatta back doof that others were discussing?

 

[bliimp]

hmmm not sure what to make of todays ann

given the plight of current shareholders, we're getting a 1:2 15c 2010 option for 0.005 which seems good as they should list at a nice premium say 5c = 10 bagger on them at the subscription price,

Not to happy with some consulting firm being given 50m options as part of a "PLACEMENT" maybe this is the Balcatta back doof that others were discussing?

YT

I know what you mean!

In fact, the "consulting firm", Exchange Minerals Limited (EML) had me intrigued mid last year, at the same time as the placement of shares to Far East Capital.

1. Refer to the 23 July 2007 ASX announcement “Notice of Meeting”.

In particular refer to Resolution 4 pertaining to EML

On 14 June 2007, the Company entered into a consultancy agreement with Exchange Minerals Limited (EML) pursuant to which the Company agreed to engage EML as a consultant to provide specialist agency services with particular focus on the identification and facilitation of potential Company acquisitions.

That, for the purposes of ASX Listing Rule 7.1 and for all other purposes, approval is given for the Company to allot and issue to Exchange Minerals Limited …1,883,658 Shares together with one (1) free attaching EML Option for each Shar eissued


2. Do an ASIC company search for Exchange Minerals Limited
http://www.search.asic.gov.au/cgi-bin/gns030c?acn=126_696_713&juris=9&hdtext=ACN&srchsrc=1

And you find they are registered just 1 day after the ASX announcement ie 24/7/2007


Oh well ... specialist services must come at a specialist price!!!

 

[YOUNG_TRADER]

Well at least we get some free, well almost free options ( half a cent ain't much to pay) and given the long expiry 2010 and the 15c exercise if the company gets its act together we could really make a motza on these

I expect the sp will start to get bought up once people realise how much these are worth

 

[tigerboi]

Re:contact,artemis,range...look dodgy

Here is a story on the goings on over in perth with these miners getting all greedy,hard to follow all the dealings but last nights 4 corners on jci shed some light on the shonky business going on..tb

Perth office link to the tale of gold and guns

Date: June 03 2008

Mark Hawthorne


"LOCATION, location, location," is the mantra of property investors around the world. For West Australian mining hopefuls, you don't get a better real estate location than 34 Parliament Place, West Perth.
The building, once owned by the WA Government, is a stone's throw from Parliament House. It's a cosy and tangled little group that does business behind the high security walls at the property.
One company based there is Range Resources, the
small-cap oil and mineral explorer that is drilling for oil in Puntland, Somalia.
Range Resources has come across Full Disclosure's radar before, in the aftermath of the collapse of Opes Prime.
Melbourne day trader and GT Falcon collector Leo Khouri, who lost tens of millions of dollars worth of shares in the collapse of Opes Prime, is a shareholder and consultant to the company.
Range Resources' executive director is Peter Landau, formerly of Melbourne. Landau's private company, Lacka Consulting, has its offices at 34 Parliament Place.
A lot of hiring must be done around the water cooler, because Lacka has a good track record of its staff becoming the company secretaries of other listed companies that work out of the building.
Former Range Resources company secretary Joanna Kiernan worked for Lacka before she departed the country. Lacka employee Jane Flegg is the joint company secretary of another listed mining explorer based at 34 Parliament Place - Contact Uranium.
It's interesting to note that Flegg is part-owner of a private company called Thirteen Eleven Pty Ltd, which is registered to 34 Parliament Place. Before she left Range Resources, Kiernan was also a part-owner of Thirteen Eleven. In December, Thirteen Eleven was one of the top 20 shareholders of another listed company called Continental Capital, with 1.975 million shares, or 1.24%, of the stock on issue.
Sure enough, Continental Capital operates out of 34 Parliament Place, and Peter Landau is the executive chairman.
Khouri's private super fund, Bejjal Super, was listed as owning 6.2 million Continental Capital shares in December.
Listed mineral explorer Artemis Resources is another company operating out of
34 Parliament Place.
Back on March 31, Continental Capital announced that Contract Uranium became a substantial shareholder in Artemis - you'll find the signatures of Flegg and Artemis director Barry Woodhouse on the documents filed with the ASX.
All three companies operate out of 34 Parliament Place.
But, even with all that intermingled mess, the chatter around 34 Parliament Place this morning will focus on another who works from the building - British mining millionaire John Stratton, who was the subject of last night's episode of Four Corners on the ABC.
Four Corners reported that Stratton has been named a
co-conspirator in the murder of former Randgold & Exploration chief executive Brett Kebble in Johannesburg in 2005. Shortly before his death, it emerged Kebble was part of a plot to strip three companies - Randgold, Western Areas and JCI - of shares and that an estimated $400 million had been plundered.
Stratton was a director of R&E and JCI, and has since been named in a $US1 billion lawsuit against PricewaterhouseCoopers by the new directors of R&E.
R&E alleges that PwC was negligent in its auditing of the company's books from 2000 until 2003. PwC plans to fight the claim.
Also named in that affidavit is one Hendrik Buitendag, the former financial controller of R&E, who also resides in Perth. The affidavit alleges the directors of JCI, including Kebble, Stratton and Buitendag, "acting in their capacities as directors of JCI and in their personal capacities, devised a scheme, which scheme was intended to wrongfully through theft, deprive Randgold" of 2 million Roodepoort Deep Ltd shares.
Stratton has denied the allegations in South Africa, and would not comment when contacted by Full Disclosure.
Of course, lots of companies can share premises and never do business - but that rarely seems to be the case at
34 Parliament Place. Back in 2004, before they found their new offices, the three directors of listed Continental Goldfields were John Stratton, Peter Landau and Hendrik Buitendag.
In the light of the Four Corners program, and claims of the raiding of South African stock, Continental Goldfields had an interesting range of investments.
According to an ASX announcement signed off by Landau back in January 2005, Continental Goldfields held 60 million shares in JCI, which was 2% of the issued capital. Continental Goldfields also owned substantial shareholdings in Western Areas Ltd and R&E.
Stratton and Buitendag were directors of South African companies that Continental Goldfields held shares in, and companies that had shares go missing. In his letter to the ASX, Landau described the holding in JCI as a "strategic acquisition". By the middle of 2005, allegations that shares of Western Areas, JCI and R&E had been stolen started to emerge in South Africa.
In August 2005, Kebble was deposed as a director of the companies. In September, he was killed, shot seven times from close range.
Stratton and Buitendag departed as directors of Continental Goldfields in 2005, and the company's name changed to Continental Capital. Landau remains executive chairman. And it's address? 34 Parliament Place, of course.
Landau did not return calls from Full Disclosure

 

[YOUNG_TRADER]

Ahhhh negative publicity,

So thats why CTS was getting sold off today,

I found it strange given the bonus options which should add 2c-3c value if they list at 5c/6c

Well call me crazy but I'm actually thinking of buying more for those bonus options

 

[tigerboi]

Re:CONTACT,ARTEMIS,RANGE,PETER LANDAU.SMELLS

Ahhhh negative publicity,

So thats why CTS was getting sold off today,

I found it strange given the bonus options which should add 2c-3c value if they list at 5c/6c

Well call me crazy but I'm actually thinking of buying more for those bonus options

Dont do it YT,this mob gotta bad smell coming from them..go look up the management of peter landau...view res,cnf,neo,kkt,blz,rrs,artemis

cnf got 60m JCI shares the company on 4 corners last night & tonight at 11.30,re:john stratton fighting extradition to south africa.for murder,stripping companies,robbing shareholders blind...

rob a bank get 20 years,strip $400m from a company...cool go back to your seaside mansion.GOT TO THE NAUGHTY STEP!

the rort of overseas gold & uranium mines is about to come unstuck as punters are just getting sucked in,ive said it heaps...overseas is over the seas & too big a risk..

artemis,range,contact,continental goldfields & peter landau be wary of these companies...all got overseas projects...

 

[bliimp]

Re: CONTACT,ARTEMIS,RANGE,PETER LANDAU.SMELLS

Dont do it YT,this mob gotta bad smell coming from them..go look up the management of peter landau...view res,cnf,neo,kkt,blz,rrs,artemis

cnf got 60m JCI shares the company on 4 corners last night & tonight at 11.30,re:john stratton fighting extradition to south africa.for murder,stripping companies,robbing shareholders blind...

rob a bank get 20 years,strip $400m from a company...cool go back to your seaside mansion.GOT TO THE NAUGHTY STEP!

the rort of overseas gold & uranium mines is about to come unstuck as punters are just getting sucked in,ive said it heaps...overseas is over the seas & too big a risk..

artemis,range,contact,continental goldfields & peter landau be wary of these companies...all got overseas projects...

Tigerboi

I hear what you say, and you can love them or you can loathe them, but CTS has managed to get hold of some pretty good turf out there in Peru!

And Peru appears to be getting its act together, as per the following APEC agreement

http://www.theaustralian.news.com.au/story/0,25197,22403926-21703,00.html

Interesting times ahead!

I still believe that there is a "buck" to be made with this CTS ... and I suppose the question is "who will make the buck?" ... hopefully, there will be enough for the good (us) ... the bad ... and the ugly!

 

[tigerboi]

Re:OVERSEAS IS OVER THE SEAS.NO CONTROL FOR YOU

Go for your life but what does the average punter know about the landaus & strattons of the world?if you watched 4 corners last night you would never ever invest in a company with overseas projects again...way too big a risk...

peru of all places my god sounds like a money pit for the directors,me i stick to our own aussie based miners,at least i can jump in the truck,car or plane & go see for myself...but you dont know crap about this peru operation other than what the directors tell you....1 big rort to lighten the dopey punters who think of yeah peru u308,indonesian gold(have a look at arx..).

best to stick with our own in our backyard...tb

 

[YOUNG_TRADER]

Yeah, I hear what your saying TB but unfortuantely when it comes to Uranium Australia ain't the best place to be other parts of the world are,

In any event those bonus options should add some life to the share price, I reckon they'll list around 5c = 2.5c value less 0.5c cost = 2c value to shares at current levels

Also I find it very interesting that with such a short time to go ie 20 days or something the CTSO's are being bought up so heavily, maybe someone knows something we don't?

 

[tigerboi]

Re:AUSSIE IO OR AFRICAN/SOUTH AMERICAN U308?

Yeah, I hear what your saying TB but unfortuantely when it comes to Uranium Australia ain't the best place to be other parts of the world are,

In any event those bonus options should add some life to the share price, I reckon they'll list around 5c = 2.5c value less 0.5c cost = 2c value to shares at current levels

Also I find it very interesting that with such a short time to go ie 20 days or something the CTSO's are being bought up so heavily, maybe someone knows something we don't?

Crazy people going anywhere near these shonky outfits,why go very risky on a peru project when you can get plenty of aussie io firms with much better credentials.?? its a dumb play imo...i wouldnt go near these with someone elses money...YT mate the risk v reward on these projects are way too much,but good luck to others who are prepared to have a go,odds are around the same as the pokies i reckon...tb