CTS - Contact Resources

[grace]

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?

Isn't the resource upgrade due this qtr? It would be a priority to get that out in relation to the options about to expire.....one would think

 

[YOUNG_TRADER]

Re: AUSSIE IO OR AFRICAN/SOUTH AMERICAN U308?

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

Again TB, this ain't an IO play its a Uranium play, the deposit in Peru and Kyrgyzstan are Uranium not Iron ore

I personally don't like Aust when it comes to U, much prefer the rest of the world, too many Greenies and tree huggers here in Aust

p.s. Grace you'd think so but you never know

 

[tigerboi]

Re: AUSSIE IO OR AFRICAN/SOUTH AMERICAN U308?

Again TB, this ain't an IO play its a Uranium play, the deposit in Peru and Kyrgyzstan are Uranium not Iron ore

I personally don't like Aust when it comes to U, much prefer the rest of the world, too many Greenies and tree huggers here in Aust

p.s. Grace you'd think so but you never know

yeah i know what it is mate,im saying that as opposed to plays in your own backyard re:iron ore...the risk carried by these u308 off shore projects are way beyond the reward offered...they give a real good cover for shonkies to rob people blind,well aware of the u308 processes that get aussie companies seeing big $$$...re:lack of regulations,low wages= low start up costs...& thats the rub...no one knows what goes on...perfect scenario for the strattons & kebbles to lighten unsuspecting punters of their $$$...tb

 

[alankew]

Nice ann from these boys yesterday to clarify the recent free options ann.Oops when mentioned option holders what they actually meant is that you have to exercise your options in order to get the new free optionsHow simple is it to say what they actually mean rather than try and muddy the waters with the original ann.The rights issue is fully underwritten by the same company that they gave 50m shares to the other day-nice work if you can get it.Sorry here are the links
http://www.asx.com.au/asxpdf/20080605/pdf/319hkfh4zbdjry.pdf
http://www.asx.com.au/asxpdf/20080602/pdf/319f68ynl44x4f.pdf

 

[prawn_86]

Cant say i have ever followed these guys, but here is something of interest for those that do.

A bit more background on the underwriter:

Shemesian - under the alternate spelling "Michael Shamazian" - is a director of Mining and Petroleum Projects Limited, a company incorporated in the British Virgin Islands.

Mining Petroleum Projects has its head office in Ashgabad, Turkmenistan, and its website states that "Exchange Minerals Limited of Dubai" is an "associated unlisted company

Exchange Minerals Ltd of Dubai has just agreed to underwrite a rights issue of 53 million options to shareholders of Contact Uranium, for which it will receive a placement of 50 million options itself, subject to shareholder approval.

Options seem to be the preferred trading platform of Shemesian's company. One of Contact Uranium's major shareholders just happens to be Range Resources. Exchange Minerals is a major holder of Range Resources options too.

http://business.theage.com.au/gun-day-trader-picks-himself-up-postopes-20080605-2mcx.html?page=2

 

[peteai]

RE: The Placement at 11c to sophisticated investors

Does anyone know if that already occurred ?

Thx,
Peteai

 

[peteai]

Now the sp is below the placement price
Does anyone know why the recent drop has occured ?
Volumes are not huge but the sp is half the price of a few weeks ago ??

 

[ta2693]

look at the little cash they are on hand and the country where their projects located. and the market sensitivity now. I would not be so surprise at the falling in price.

 

[peteai]

look at the little cash they are on hand and the country where their projects located. and the market sensitivity now. I would not be so surprise at the falling in price.

Peru is where there main project is - & I thought that country was OKwith development and mining ?

I can understand market sensitivity , but they have 10 million pounds of JORC uranium - it has a market cap of $10 million -that works out to $1 per pound of uranium (if not less) I know it is a little high but the fact that it is near surface and their is good access should cancel out the height issue.

 

[alankew]

Bloody hell check out the grades on that http://imagesignal.comsec.com.au/asxdata/20080618/pdf/00851951.pdf and still near surface,is this a final push to try and get some action on some of the oppies.Ground round there must positively glow

 

[YOUNG_TRADER]

Yeah Alan was impressed with the Uranium hits, but look what the SP did

I'm guessing CTS will have to turn water to wine before their SP rises,

I wonder if Mega are still looking at them?

The low and falling U price isn't really doing them any favours either

 

[IOT]

how are people voting on the resolutions at the general meeting? I usually don't bother with these things..but in this case?!

 

[jman2007]

Yeah Alan was impressed with the Uranium hits, but look what the SP did

I'm guessing CTS will have to turn water to wine before their SP rises,

I wonder if Mega are still looking at them?

The low and falling U price isn't really doing them any favours either

YT,

Our esteemed leader "Dr" Richard Napier also happens to be the Managing Director of a London-based consulting company called gfms mining (richard.napier@gfmsmining.com). So basically we are paying this clown 350K per year for a part-time position, and one in which he undoubtedly spends a fair bit of his time in London.

This 50 million option issue to this Dubai-based consulting firm which can be exercised within two years at 15c is an absolute disgrace. Why the hell aren't CTS developing their own in-house expertise and skills instead of screwing everyone over with these bum deals and ludicrously expensive consultants fees? Or here's a novel thought...how about Napier actually gets his own a$$ over to Peru himself, and find out what a drilling rig looks like? . The meeting early next month should be an absolute bun fight, there are going to be some extremely irate shareholders turning up.

Do we really want some Dubai-based company entering in the backdoor and effectively controlling 27% of the company when/if those options are exercised?

On a somewhat less "cough" irate note.., some of the recent intersections looked very nice, which in a lot of ways is equally as galling when you look at the mess management have gotten us into..."sigh"

jman

 

[jman2007]

There was an interesting update on a new virgin discovery in "Corachapi East" in an area called Quebrada Coral. Some of the grades are actually quite impressive, with the best result from the 24-hole drill programme being 0.53m @ 1.19% eU3O8.

Just quite why it has taken CTS this long to follow up on the gamma anomaly which extends at least 1.5km in strike is beyond me. The presence of former government workings should have given at least some kind of impetus to a more regional exploration approach.

Heading into the Peru field season, hopefully we can look forward to a few more positive releases from CTS. That's one of the problem with CTS I find, the apparent inability at times, to keep the market clearly informed and interested. I always remember when I heard: "Good management can make a bad project look good, but bad management can ruin a good project".

I still maintain the Corachapi is a great project, whether CTS has the goods or not to drive this thing along is another matter unfortunately.

jman

 

[peteai]

There was an interesting update on a new virgin discovery in "Corachapi East" in an area called Quebrada Coral. Some of the grades are actually quite impressive, with the best result from the 24-hole drill programme being 0.53m @ 1.19% eU3O8.

Just quite why it has taken CTS this long to follow up on the gamma anomaly which extends at least 1.5km in strike is beyond me. The presence of former government workings should have given at least some kind of impetus to a more regional exploration approach.

Heading into the Peru field season, hopefully we can look forward to a few more positive releases from CTS. That's one of the problem with CTS I find, the apparent inability at times, to keep the market clearly informed and interested. I always remember when I heard: "Good management can make a bad project look good, but bad management can ruin a good project".

I still maintain the Corachapi is a great project, whether CTS has the goods or not to drive this thing along is another matter unfortunately.

jman

Yeh Jman,

It all looks good & but clearly sentiment for CTS is not good with the SP so low. However, Bad sentiment does not make the U3O8 disappear.
I would feel a lot better if there was some sort of plan and some sort of indicative information e.g An option would be to use an XX type mine like the've done in X (given the conditions it would cost roughly X to build and X per pound to extract.

Bannerman has had such guidance for a long while & CTS should do this to build up some confidence in the market.

Maybe I am naive ?? But the market has been left guessing for too long

Cheers,
Peter

 

[alankew]

Bloody hell its good news week at CTS,ann on JV on their Kyrgyzstan project and the real clincher,the good Doctor Richard Napier has resigned.Their is hope yet,pity the poor option holders as its come about a week too late

 

[jman2007]

Bloody hell its good news week at CTS,ann on JV on their Kyrgyzstan project and the real clincher,the good Doctor Richard Napier has resigned.Their is hope yet,pity the poor option holders as its come about a week too late

Bloody 'ell!

At last, some hope for us it seems. All I can say to Richard Napier is "don't let the door hit your a$$ on the way out". It was fairly obvious he wasn't nearly as committed to the company as he should have been, and that CTS was more of a side-line distraction for him.

The JV agreement is probably the first intelligent corporate decision they've made in a long time, at least this raises the possibility of providing more funding to advance exploration/development at Corachapi without the problem of massive dilution from further cap raisings, and the Kyrgyz projects get some life in them again.

Great news.

jman

 

[stock nub]

Anyone else think this may be in for a bounce finally??

Firstly New Executive Director: Mr Michael Drew

Secondly New Company Secretary: Ms Shannon Coates

Both these people look quality and that is what we need as this had been going downhill for a while now.

Thirdly they have JV'd out their Kyrgyzstan projects to Pangaea Energy who are going to fund $1.3 of exploration for a 37.5% part of the projects, which will allow Contatct to focus on the better peruvian projects. Now if Pangaea Energy decide to go to 80% they will have to pay $1.75m in cash to contact as well as another $.95m in exploration.

Finally the companies offices have moved to Level 1, 173 Mounts Bay Road
Perth WA 6000, away from any funny business going on at previous offices with links to so called "balacatta boys

 

[jman2007]

Anyone else think this may be in for a bounce finally??

Could be sn, could be....

However I wonder perhaps if mortal damage has not been done to CTS this year, the chart looks absolutely awful and until the new-look management can prove their worth, I believe we'll continue to see a cagey approach from the market. The way this gets hammered every time it approaches 12c is also concerning, there are a substansial number of investors sitting on large losses here, perhaps to try and establish some support at 14-15c could be an initial target.

A positive outcome of the engineering and scoping study may provide a positive sp trigger, but there are still enough logistical concerns re Corachapi and uncertainties in the short-term U price to probably keep investors in check for a while. The scoping study could alay some of those concerns however. Definitely moving in the right direction with the Kyrgyz jv and new management, but unfortunately I remain somewhat reserved in my short-term outlook .... for now .

jman

 

[Captain Haddock]

Hi all,
anyone got any thoughts on what has happened over August? Is CTS a dead duck or can they bounce back? What's going on with the rights issue?