FXR - Fox Resources

[rhombus]

she's moving today alright.

JINCHUAN SECURES EQUITY STAKE IN FOX RESOURCES
Pilbara nickel explorer and producer, Fox Resources Limited (Fox) (ASX: FXR) is pleased to
announce that China’s largest nickel producer, Jinchuan Group Limited (Jinchuan), has today secured
plans to subscribe for 18,800,000 fully paid ordinary shares in Fox at a premium issue price of A$0.95,
for an equity stake in the Company of 11%.
Jinchuan has received statutory approvals from the Provincial Government of Gansu Province and the
Central Government of the People’s Republic of China to enter into a strategic agreement to take the
equity stake in Fox.
It is expected that the share issue and funds transfer will be completed within the next two weeks.
Jinchuan will be issued a further 8,000,000 attaching options exercisable at A$1.20 expiring
12 months after the issue of the 18,800,000 fully paid ordinary shares.
The funds raised from the issue will be applied to development of the Company’s nickel projects,
process improvements to the Radio Hill mill and the acceleration of nickel exploration on the 3,000km²
of tenements accessible to Fox.
On finalisation of the initial share issue, a Jinchuan representative will be invited to join Fox’s Board.

 

[stumo]

stupid question time... why is it @ $.95 issue price?

 

[doogie_goes_off]

Because someone finally realised the potential of FXR and now they have capital watch out Mr Market, Fox is on the run again.

 

[Jigalong]

What a classic. Everybody thought they had just placed a big parcel of shares, but it was only a confirmation that the previous placement they announced, had got the OK from the Chinese Govt.

I have never seen such a stupid run up in a share before, and I should have sold what I bought at .585. But as usual, I sat on my hands and now they are back to around what I bought them for.

I guess it was good publicity for FXR though, so not a complete waste of time.

Jigalong.

 

[doogie_goes_off]

Cash is in the bank and now they have new areas to develop - Bertram looks like the real deal (the new Radio Hill??)

 

[mexican]

A bit of interest in Fox in the last couple of days.
MMM....I wonder if the drillers have been talking at the local water hole about results from Mt.Oscar.
Results should be coming in soon! Look forward to it.

 

[56gsa]

A bit of interest in Fox in the last couple of days.
MMM....I wonder if the drillers have been talking at the local water hole about results from Mt.Oscar.
Results should be coming in soon! Look forward to it.

The magnetite seems to be very high content of silicon - i thought ideally this should be under 5% - but that may be after processing?

Nickel is still the potential earner in short-term...

FXR certainly seems to be exhibiting potential breakout - increasing volume and closed above downward trendline.

 

[doogie_goes_off]

Good volume and another rise today, expecting some indication of what's happening at Bertram, F-Zone and Mt Oscar later. Looking forward to a little end of month report on production maybe, just needs a trigger to break out.

 

[Jigalong]

Mr Off ,
How about today - closed 1.105 and a high of 1.13 . Over 2.5m went through . I reckon they will get a speeding ticket soon .
Cheers ,
Jigalong

 

[doogie_goes_off]

Mt Oscar drilling: ~50.4m @ 60% black beds with ~65% Fe content looks like 50m @ 36-40% Iron to me, OK but not too impressive. Not DSO anyway. Probably a little dissapointing and share price has slipped.

 

[tnargak]

i agree Jigalong, it's gotta happen very soon!
certainly been some great interest in this stock of the last few days!

 

[doogie_goes_off]

Expecting to see resistance at around 0.68 without any new positive news. Could trend up if base metals rally or Fe grades better than predicted from Mt Oscar.

 

[alfaracing]

i don't believe Fox knows what's it's mining. They seem to be all over the place with their explorations. I'm not saying i know everything there is to know about the company and their decisions. I suppose their sp reflex the ASX. anyway i guess i'll hang on for a bit yet.

PS in the red big time with this one.

 

[Trader Paul]

Hi folks,

FXR ... has several significant and positive time cycles, due to come
into play soon, so we are expecting some very significant news/moves,
over the next couple of weeks .....

16-17022009 ..... 4 x positive time cycles expected here

23022009 ..... a positive cycle to bring more good news

..... more later.

have a great day

paul



=====

 

[Trader Paul]

Hi folks,

FXR ... will be looking for 3 positive cycles to come into
play, in October 20009 ...

02-05102009 ..... positive spotlight on FXR

16102009 ..... positive news expected here

22102009 ..... positive move ... finance-related ... ???

have a great weekend

paul



=====

 

[springhill]

FXR seem to have pulled one right out of their cake-hole today, announcing a potential JV with Breeton Pty Ltd for the Mt Oscar IO Project.
Breeton can earn a direct 60% interest with a $3m upfront payment and $20m more in staged payments.
Breeton have also subscribed for the shortfall in last quarters cap raising, totaling $5m @ 15cps. Quite incredible when Fox has been trading between 9-11c for weeks now. Also attached is a 30c option exercisable on or before 31 March 2011.
They must have supreme confidence in this! Astounding!

http://www.asx.com.au/asxpdf/20100825/pdf/31s2rzdn69t0zx.pdf

 

[barney]

FXR seem to have pulled one right out of their cake-hole today, announcing a potential JV with Breeton Pty Ltd for the Mt Oscar IO Project.
Breeton can earn a direct 60% interest with a $3m upfront payment and $20m more in staged payments.
Breeton have also subscribed for the shortfall in last quarters cap raising, totaling $5m @ 15cps. Quite incredible when Fox has been trading between 9-11c for weeks now. Also attached is a 30c option exercisable on or before 31 March 2011.
They must have supreme confidence in this! Astounding!

http://www.asx.com.au/asxpdf/20100825/pdf/31s2rzdn69t0zx.pdf

Long time between drinks for "Fox", but they finalised the deal today.

Effectively Breeton gain 60% of the Mt Oscar project for $3 million in cash + $5 million for share takeup at 15 cents + $20 million of exploration over the next 5 years.

Fox now have some additional capital to work with ..... considering their market cap is only about $35 million, and they still have some very interesting tenements, they look a low risk investment at these levels.

I dipped the toe in again today based on the above ..... happy to hold for a while based on the low risk fundamentals, and the long period of consolidation around the 10 cent price area ..... Lets see what the market thinks about it all.

 

[doogie_goes_off]

Barney, this is a good result to have someone else sole fund, particularly as the test Iron concentrate produced still has relatively high silica (>10%) and would attract penalties with most buyers. The rest of their tenements are prospective for base metal sulphides and gold, so hopefully there will be some news there later. Could be one for the back pocket again, but still sitting on the fence.

 

[barney]

hopefully there will be some news there later. Could be one for the back pocket again, but still sitting on the fence.

A bit more positive news with Fox today with their leaching process looking to generate some handy cash numbers. The market is not jumping for joy immediately, but after such a long time in the wilderness, Fox management need to re-establish their market credibility.

Still a bit of work to do re the financing etc, but the outlook is certainly more positive heading into this year. Looks fairly low risk at these SP levels .... probably just a bit of patience required now.

 

[springhill]

What a God-awful run FXR has had over the last 7 years. I remember this one back in the $1+ days, since then absolutely nothing has amounted from it.
Has some smart (formerly smart?) money in it, with Terry Streeter being majority holder (if memory serves me correctly).
Nickel hopes have been shut down, IO projects are crap and I always thought their gold projects were sub standard.
Where to now for FXR?
The all too trodden path of starting from scratch with too many shares and not enough money.
Sad, sad, sad.

MOU with Jiangxi Jiangli Suspended
Fox announced that the non-binding Memorandum of Understanding (MOU) executed in November 2011 with Jiangxi Jiangli Sci- Tech Co., Ltd (Jiangli) has been suspended due to current and continued low commodity prices for nickel and copper.

Under the proposed agreement contemplated by the MOU, Jiangli, a Chinese cooperative, was to provide Fox A$30 million to fund the initial phase of the Radio Hill and Sholl Nickel/Copper Bacterial Heap Leaching Project (the Project) in the Pilbara region of Western Australia.

Interim Chief Executive Officer, Mr Laurie Chew, said, “Despite the protracted but encouraging negotiations, the decision to suspend the MOU is a mutual one. Unfortunately, it is a result of external forces which remain beyond our control, although both parties have agreed to revisit the MOU when commodity prices improve.”

Fox continues to keep discussions open with other potential off-take partners and overseas financiers to fund the project. Further updates will be provided as significant developments occur.