DMM - DMC Mining

[Sean K]

I'm not sure how DMM is going to make it through the quarter unless they get a steel maker on board to chip in some cash for a share of the company.

They spent $1.4m last quarter and had $1m left in the bank. So, you'd have to assume they're trying to get some money out of a bank or need to go JV ish.

MC down to about $10m ish...

 

[Sean K]

AGM preentation out and they're still pretty bullish on going forward, even with the current events.

"Extremely confident in securing funding"

However as we know, they're just about tapped out.

Need some smart moves to save themselves from mothballs.

 

[Datsun Disguise]

AGM preentation out and they're still pretty bullish on going forward, even with the current events.

"Extremely confident in securing funding"

However as we know, they're just about tapped out.

Need some smart moves to save themselves from mothballs.

I reckon it's stories like this that have contributed to the abandoned BHP/RIO deal. There's going to be defined, maybe even partially developed assets coming on to the market for cheap. 40bn in transfered debt could buy a lot of quality dirt over the next couple of years....

What's DMM's cap now? $5-7m? Let's see how much I can find under the couch......

 

[Miner]

DMM is under trading halt announced after market closing and will remain until Thursday

Before closing DMM shot by about 14.9% with a very low volume trade however

Looks like some lady luck for the investors after long wait.

Hmm wait and see.

 

[Sean K]

DMM is under trading halt announced after market closing and will remain until Thursday

Before closing DMM shot by about 14.9% with a very low volume trade however

Looks like some lady luck for the investors after long wait.

Hmm wait and see.

Hmm, not sure if it's good news 'pending finalization of financing arrangement'. Could go the nother way 'we have no financing arrangements' eeeek. Finger crossed some steel mill is chipping in funds for offtake or something....

 

[JTLP]

Hmm, not sure if it's good news 'pending finalization of financing arrangement'. Could go the nother way 'we have no financing arrangements' eeeek. Finger crossed some steel mill is chipping in funds for offtake or something....

Kennas...the way I am reading this is a good thing.

Finalization of Financing agreement sounds like they just need to sign, seal and deliver something to the market. Maybe i'm getting my hopes up but to me it sounds the goods (unless its a cap raising to shareholders...which actually wouldn't be that bad as it would mean liquidity in the stock)

JTLP

 

[Sean K]

Kennas...the way I am reading this is a good thing.

Finalization of Financing agreement sounds like they just need to sign, seal and deliver something to the market. Maybe i'm getting my hopes up but to me it sounds the goods (unless its a cap raising to shareholders...which actually wouldn't be that bad as it would mean liquidity in the stock)

JTLP

Yes, sounds like they are getting some money, but under what arrangementents? Let's hope the market perception of whatever deal is positive for holders.

 

[Sean K]

Yes, sounds like they are getting some money, but under what arrangementents? Let's hope the market perception of whatever deal is positive for holders.

Well, they've got cash, but at what cost? Geeesh!!

Beggers can't be choosers I suppose.

At least they're digging holes!



10th December 2008
ASX/MEDIA ANNOUNCEMENT

DMC secures A$2 million funding facility

HIGHLIGHTS
• Secured Convertible Note Deed completed
• DMC fully funded for the completion of the 2009 drilling
programme at the Mayoko Iron Ore Project
• The 2009 drilling programme is part of the pre-feasibility study which has already commenced.

SUMMARY

DMC Mining Limited (“DMC”) is pleased to announced it has entered into a secured convertible note agreement with Dempsey Resources Pty Ltd (“Dempsey”) Under the terms of the agreement, Dempsey has the right before the repayment date of 10th December 2009 to convert the Note into ordinary shares in DMC, subject to the approval by DMC shareholders. The conversion price will be the lesser of $0.10 and, the volume weighted average closing price of the DMC’s Ordinary Shares as quoted on ASX over the last five (5) trading days immediately preceding the delivering of a Conversion Notice by Dempsey to DMC. DMC has agreed to pay interest at a rate of 12% pa on the convertible note. In addition, in consideration to Dempsey for subscribing for the Note, DMC has agreed to issue Dempsey 5,000,000 options which can be exercised at $0.15 on or before 30th June 2010.

 

[JTLP]

Beggars can't be choosers...you are right Kennas...but they can f*&kin aim higher then that.

10 cents? 5 mil options w/ exer at 15 cents? Interest on loan?

It's also only $2 mil worth...why didn't they go for something a bit more substantial?

Sigh at least they do have cash to get them through drilling...but it looks like this one won't be going anywhere for a while.

Does anybody know when the Pre-Feas will be completed?

Who's bottom drawer is getting mighty stuffy???

 

[Go Nuke]

LOL..Mine is JTLP.
Any short term holds I had became long term investments looooooong ago

Yeah 12% interest..ouch.

I wonder if YT is still holding a bunch of these??

 

[tigerboi]

Notwithstanding the tight money markets atm, due to the railway i always thought these guys were a bunch of dreamers(see the dmm thread at asf).

bringing in grd minproc(mine engineers not railway builders)instead of downer edi to assess the railway was suss to me.

you need to read the railway report closely(from asf)

The rail system is well suited for the exploration and construction phases of the project. It can be used
“as is” with no modifications for these stages of the project. The CFCO can supply transportation
services for the mobilisation of exploration equipment and supplies to site, using their existing diesel
locomotives and freight wagons. During construction the CFCO can facilitate the transportation of
break-bulk and containerised equipment, fabricated structure sections and consumables.

 

[tigerboi]

Notwithstanding the tight money markets atm, due to the railway i always thought these guys were a bunch of dreamers(see the dmm thread at t$).

bringing in grd minproc(mine engineers not railway builders)instead of downer edi to assess the railway was suss to me.

you need to read the railway report closely(from t$)

The rail system is well suited for the exploration and construction phases of the project.

it can be used “as is” with no modifications for these stages of the project.

The CFCO can supply transportation
services for the mobilisation of exploration equipment and supplies to site, using their existing diesel
locomotives and freight wagons. During construction the CFCO can facilitate the transportation of
break-bulk and containerised equipment, fabricated structure sections and consumables.

Whats the thoughts of these guys?not much cash for the project as the $2m wont last long only 80% owned,the railway was always going to be their achilles' heel...after seeing the state of the railway line i never believed they could even haul 3mt on that line in fact i called them a bunch of dreamers.

They need to get the resource upgraded to attract money to redo the railway but anyone stumping up the cash will want control of the remaining 80%... i reckon they will sell the whole 80%...tb

 

[d_crome]

Tiger - mate this is all about timing at this point in time.

DMM currently has a defined JORC resource however I believe that their current drilling program to increase this resource is in the works - hence this 2 mil is pretty much the life line they need to get to completion.

I'm estimating in approximately 3 to 6 months you're going to see a more resurgent China and India - this will be the key for the resource stocks - and with that demand for construction resources will increase.

Hopefully DMM can time their public release of the JORC and the potential market recovery.

Again - I hold and wait - as they say, it's only a loss when you sell!

 

[Go Nuke]

So what are peoples thoughts on the M.D of Cape Lambert joining the board of directors?

Just another job?
CFE is certainly looking in that region for cheap IO hopefuls.

 

[Justthinkin]

Nuke, my guess it's a good thing but I would compare it more with a transitionary step... for love or money I cannot see DMM being in a position to repay the $2.0M next Dec without some extraordinary good luck or extremely dilutionary capital raising...

Good luck today... skinny market and no news

 

[tigerboi]

Tiger - mate this is all about timing at this point in time.

DMM currently has a defined JORC resource however I believe that their current drilling program to increase this resource is in the works - hence this 2 mil is pretty much the life line they need to get to completion.

I'm estimating in approximately 3 to 6 months you're going to see a more resurgent China and India - this will be the key for the resource stocks - and with that demand for construction resources will increase.

Hopefully DMM can time their public release of the JORC and the potential market recovery.

Again - I hold and wait - as they say, it's only a loss when you sell!

i understand your optimism you gotta hang on but from the time i saw the state of the railway i knew they where a bunch of dreamers...

they need a much bigger resource to secure much more funding for the railway & they only own 80% of the project...i still cant see them firstly getting an upgraded resource & therefore the funding...

hope you do well...tb

 

[Sean K]

i still cant see them firstly getting an upgraded resource & therefore the funding.

No resource upgrade potential tb?

By the companies guestimate, they have some figures higher than the present I recall.

If there is a case for a resource upgrade, then your point regarding funding does not follow.

 

[tigerboi]

thats right kennas i dont believe they will get enough of an upgrade to get an investor to stump up the cash...

thats my point they need a bigger resource to attract funding for the whole project re:

big enough upgrade

attract investors

upgrade 1960's railway to 2010 standards

i dont think they will get the cash...

 

[Sean K]

Yeah, I agree they will need a huge upgrade, or perceived potential upgrade to create a mine.

I don't know enough about the rail line and have just read the DMM anns regarding it.

Seems it will need to be upgraded, but at what cost?

Perhaps by the time they are moving into production world economics may have spun?

Bit of a wait now.....

 

[tigerboi]

Re: DMM=a bunch of dreamers

kennas mate i work in the transport industry my family has been in the game for over 107 years,this is my area of expertise...my cousin is a train driver for pac nat...i sent him the pics of the line dmm want everyone to believe they will cart 3mtpa on...

i said cuz what about this mob...he laughed his head off...
the clincher for me was bringing in grd minproc(mine engineers) instead of downer edi(train/track builders)to assess the track...also they did not inspect the entire length,they use 2 types of grade 46 & 50kg,the gauge is small = small wagons,less weight...

kennas cop a fair dinkum tip...1.the entire railway must be upgraded,2.they are a bunch of dreamers.

remember this from the scoping study which no one else took the time to carefully study...The rail system is well suited for the exploration and construction phases of the project.

go check out the pics of the railway & tell me they will get 3mtpa(150+ trips)on it...

imo $1.00+ was a good opportunity to get out in front...tb