MEE - Metex Resources

[james99]

According to the West Australian this morning they ar looking at raising up to $20 million to fund a trial program.... Guess who gets the chance to snap up these shares? Not the grass roots people.... the @*%$ing Instos ( cos theyre not wealthy enough ) and the price i hear you ask? 20 @*%$ing cents!!! What a joke, i hope they are punished heavily when they resume trading.... :chainsaw:
Brett is angry today.....

Springhill: See my post of 5 May 2008 re dilution and .20 issue price. Of course, a discounted sp issue offer only to a cornerstone or sophisticated investor(s) does not mean the company is a dog. It is not, IMO, for reasons previously expressed.

PS: I am not sure whether you are aware, but various companies offer discounted issues to sophisticated investors and providing you meet the criteria you can express an interest directly or through the organising broker.

 

[springhill]

Springhill: See my post of 5 May 2008 re dilution and .20 issue price. Of course, a discounted sp issue offer only to a cornerstone or sophisticated investor(s) does not mean the company is a dog. It is not, IMO, for reasons previously expressed.

PS: I am not sure whether you are aware, but various companies offer discounted issues to sophisticated investors and providing you meet the criteria you can express an interest directly or through the organising broker.

That was not my intimation that the company is a dog james99, moreso that i would gleefully snapped up my quota of shares at 20 cents
I appreciate the information re sophisticated investors, but i drink beer out of a brown bottle and Wild Turkey.... maybe thats not sophisticated enough haha

 

[LittleMak]

So is this the funding coming from Incitec Pivot that was mentioned a couple of weeks ago? 11 million shares @ .20c.

I agree that it sucks for the people who recently got in @ .47c, but this will/should be short term. Once this pilot plant is near completion towards the end of the year, watch out baby.......sp - up,up and away. (hopefully?)

Does anyone know when they will be officially changing their name to Carbon Energy? and is it confirmed that they will be selling off their gold and uranium assests/projects to concentrate on UCG-GTL?

 

[james99]

Springhill: I agree; the company clearly thinks that having an important co. stakeholder and / or sophisticated investors best for the company and overall project and price development (arguably it is). Will be interesting to see the announcement.

Enjoy your beer. I too drink out of a bottle (but I'm from NZ so it is green with Steinlager on it).

 

[farout]

Another day of no trading - Voluntary suspension... We shall hear Monday.

This has been stated however;
"The deals with both Incitec Pivot and (Mitchell Drilling) will effectively take care of a large portion of the $20 million funding requirements for the Bloodwood Creek UCG trial," Metex managing director Ian Walker said.

 

[Stykes]

If, as I expect, this announcement leads to the completion of capital-raising for Bloodwood, it will be a highly-significant project milestone. The project's fundamentals continue to improve.

And given that 20c are the terms upon which Incitech and Mitchell became involved as key partners, most sophisticated investors courted at this offering would expect a similar discount.

We should not forget that it was only a few weeks ago that many new investors got in on Metex when it was sorely undervalued around 20c.

James99 is correct - luring the high-end investor now is better for company in the long-run.

If I brought similar financial clout to this project I too could be so lucky!

 

[Dink]

Your logic is spot on Stykes (IMO). The share price may drop initially as I am sure some investors will not be pleased and may not see the upside. But for the long term this, if it is in fact the case, could be a significant positive.

 

[unit]

Trading resumes this morning.

from this mornings announcement:

"Metex Resources Ltd (ASX Code: MEE) has received advice from Sydney-based stockbroking group, Southern Cross Equities, that they have received verbal acceptances for the placement of 55 million Metex shares to institutional clients, sophisticated and professional investors at a price of $0.40 per share to raise $22 million in gross funds. The placing was heavily over subscribed.
This fund raising results in a total of $36 million having been raised over the past 2 weeks inclusive of the $11 million placement to Incitec Pivot Ltd (IPL) and the $3 million commitment from Constellation Energy Pty Ltd (Mitchell Drilling) pursuant to the Company’s announcement of 5 May’08."

40cents is a nice surprise, thought it might have been as low as 20cents.

 

[farout]

Yeah, I couldn't see how they would go down to as low as 20c, 35c maybe, but 40 is a smart move. Nice work directors, you did good.

 

[farout]

No more funding to be sought in the short term, no more Opes Prime, Linc Energy adding final instrumentation to their demo plant, Carbon Energy name change pending. Interesting times ahead for MEE.

 

[Dink]

Stykes was spot on. Significant milestone reached and this capital raising puts Metex in a very good position. Securing "all funding required to complete a $20M commercial scale oxygen-injected UCG trial" is a big milestone. "Heavily oversubscribed" at 40c is very encouraging. Is anyone complaining?

 

[Djayness]

To be honest, Trading halts give me the heebie jeebies.

Good to know it was all positive news, I wonder what will happen after the trials though?

CXY is doing around about the same thing but they havent really moved at all today. If only the market would act rationally :

 

[farout]

Metex is holding quite strong at 51c. Interesting to see that SXP is also sitting on 51c. Previously I had thought that MEE would catch SXP and then overtake it quite easily, but SXP's less diluted tightly held share offering means the price moves much more erratically. I hold both

 

[Jimminy]

Metex is holding quite strong at 51c. Interesting to see that SXP is also sitting on 51c. Previously I had thought that MEE would catch SXP and then overtake it quite easily, but SXP's less diluted tightly held share offering means the price moves much more erratically. I hold both

why do you believe that the market cap of Metex should increase significantly more on a percentage basis than Sapex?

 

[farout]

Well for starters, I believe Sapex is 18-24 months from producing anything. Massive gigantic resource yes, but no energy for yonks. It will continue to get pulled along for now and that is why I have invested in it.

Metex increasing more %'age wise than Sapex, previously I thought yes, but now I'm not so sure. I think both will do rather well in the short term.

 

[Stykes]

Saw an interesting question from another MEE holder on another forum... given hightened interest in UGC of late, one could be forgiven for forgetting about the gold and uranium business... can anyone shed some light?

"I am a holder of Mee and have been watching it for 12 months before buying in recently.. I have done very well but in my research into this company I note they are also into Uranium and Gold yet I see nothing on this site of late on this...isnt this a very significant value add to this company??? Isnt this even yet another reason to buy??In worst case could they not sell off these assetts to finance further development of core business.?? Can someone tell me where I may be wrong??
Don"

 

[farout]

Yes Stykes, they plan a slow and steady sell-off of their other assets to focus on the UCG .

 

[james99]

In short Sykes:
1. over 16 uranium licences, with some promising roll front topography;
2. 850,000 ounce gold resources;
3. intending to split those from UCG at some stage;
4. they played a significant role in the company moving from 25 - 60 mil cap, and UCG then took over;
5. but likely sale price could be signficantly less, or split could be to separately listed co.
6. there are lower cap cos with substantially greater gold resources and in or near production; and uranium co's that are closer to production than Mee (subject to political and policy licence issues). Uranium was a market driven decision rather than long term interest.
7 so, IMO, they add some value but perhaps not as much (without further exploration) as first appears.
8. more detailed posts earlier in 2007.
Regards.

 

[LittleMak]

I'm just hoping with this funding that MEE are able to indicate/find a larger coal resource than 100 million tonnes already inferred (estimated).

The most valuable assests these companies could have is actual indicated coal resources, technology and company expertise, which across all 3 they have. Imagine they all merged? What a company

 

[unit]

LittleMak, the inferred resources doesn't cover all the prospect in Bloodwood Creek site, so there is a really good chance of finding more, a lot more.
this presentation shows the site they will be using for the pilot plant and where they hope to expand to. http://carbonenergy.com.au/cecd/player.html

It would be nice to see a candle above 50cents today, opened at 51cents.
so far so good