SDV - SciDev Limited

[greggy]

RE: JRV & INL merger off

JRVs views on the INTEC (INL) process have been known since May 2006 at least.

Why force themselves on JRV? Pity people who bought JRV at 3c. They'll be happy the when the Chinese come over, grateful even.

http://www.jervoismining.com.au/uploaditems/reports/Dr Bryn Harris ALTA paper April 2006.pdf


Recently, Intec Limited described what also appears to be a somewhat complex new
chloride-based process wherein the limonite fraction of a laterite is leached by hydrochloric acid
in a solution of calcium and sodium chlorides [14]. The process can be operated in either one or
two stages, the first stage being at 100-110 °C and the second, or if it is just a single-stage
process, at 150-220 °C in an autoclave. In this process, both dissolved iron and magnesium are
precipitated via the use of lime, iron as hematite and magnesium as MgO. The process also
requires the substantial addition of sulphuric acid to regenerate the hydrochloric acid from the
resulting calcium chloride solution, with the sulphate balance being controlled by the further
addition of lime. The use of an autoclave and the large requirement for sulphuric acid seem to
mitigate against the use of this process, and unless a saleable form of calcium sulphate can be
produced [15,16,17], there will also be a considerable residue fall.

Hi Atomic5,

"Pity people who bought JRV at 3c" you say. When playing with specs you have got to be very careful and understand the risks involved. INL have made a pretty good profit out of the exercise and helped increase JRV's share price. I can only remember a couple of months back when it was around the 1c mark. I don't hold any INL or JRV shares.
DYOR

 

[juddy]

Change in INL shareholding in JRV

As noted in the attached Form 605 (Notice of Ceasing to be a Substantial Holder), Intec Ltd (ASX Code: INL) has sold a portion of its shareholding in Jervois Mining Limited (ASX Code: JRV) subsequent to the announcements by both companies on 22 March 2007 to the effect that the two merger proposals put by INL to the JRV Board had been ended.

As announced on 23 February 2007, INL originally purchased JRV shares on-market and then pursuant to JRV's recent two-for-five rights issue and the ensuing protracted rights issue shortfall placement (each right comprised a 1 cent JRV share together with a free attaching 1 cent JRV option) at an overall average price of 1.16 cents per JRV share (fully diluted and inclusive of the presumed future payment of the 1 cent exercise price for each of INL's JRV options).

INL has since sold on-market at an average price of 2.73 cents per JRV share and INL now retains 8.33% of JRV on a fully diluted basis at an entry cost of less than zero (even after taking into account the cost of the presumed future exercise by INL of 107.2 million 1 cent JRV options).

INL thus remains JRV's largest shareholder (and by far JRV's largest shareholder on a fully diluted basis), at no net cost to INL. Assuming the current JRV share price of 2.7 cents and 1,726,487,114 JRV shares on issue, JRV has a market capitalisation (inclusive of the 1.9 cents calculated weighted average value (using 100% volatility) of each its 365,313,742 unlisted options) of $53,275,799. INL's 3.89% JRV share interest (67,095,473 JRV shares) and 29.34% JRV options interest (107,200,000 JRV options) are worth $1,811,578 and $1,929,600 respectively: in aggregate $3,741,178.

INL is disappointed that the Board of JRV didn't share INL's vision of co-operation in relation to JRV's nickel laterite assets, which are large and well-situated, but complex and relatively low grade, thus requiring an as-yet-to-be-developed technology to support their commercial exploitation. The proposed technologies under development offer promise, but will require significant expenditure over a lengthy period, as well as skilled personnel and suitable local demonstration plant and testing facilities, to achieve commercial application. Intec's merger proposals offered all of these benefits at an implied projects valuation that recognised the very significant cost, time and technical challenges involved in commercial development of these difficult resources..


As JRV's largest shareholder, INL retains a keen interest in observing how successfully JRV advances its various projects, in the knowledge that Intec's shareholders can at no net cost to themselves share in any success JRV may have and/or in any further upside in the JRV share price.

Yours faithfully,
P Wood
Intec Ltd

Those years at Macquarie have served you well.

Did you say for free? At no net cost? Entry price of less than zero?

 

[imajica]

Companies Announcements Office 29 March 2007

Australian Stock Exchange

Increase in INL shareholding in BSM

As noted in the attached Form 604 (Notice of Change of Interests of Substantial Holder), Intec Ltd
(ASX Code: INL) exercised all of its 2,000,000 25 cents options in Bass Metals Limited (ASX
Code: BSM) early, in order to have taken its shareholding in BSM to approximately 22% on the 28
March 2007 Record Date for the early current BSM rights issue.

The increase of INL's relevant interest in BSM beyond 20% without launching a takeover bid was
authorised (pursuant to the exception contained in Section 611(7) of the Corporations Act) by
Resolution 2 of the General Meeting of BSM (formerly Resource Finance & Investments Limited)
of 21 March 2005.

The strong support by the Board and Management of INL for their BSM counterparts is reflected in
both the above-mentioned exercise of options, INL's intended full take-up of its rights under BSM's
current rights issue and INL's A$1.5 million sub-underwriting of that rights issue.

At the operational level, processing through the Intec Hellyer Mill of 2,000 tonnes of high zinc
grade ore from BSM's trial mining at Que River commenced yesterday. Following the expected
success of this trial, it is anticipated that the Letter of Intent between BSM and the Hellyer Zinc
Concentrate Project (HZCP) Joint Venture parties will quickly proceed to formal agreement for the
treatment of approximately 100,000tpa of zinc ore grading 8 -15% zinc (plus substantial lead and
silver credits) from BSM's Que River Mine.

Production by the HZCP at the Intec Hellyer Mill of bulk zinc concentrate from the Hellyer tailings
is proceeding well. The tailings grade being fed to the Mill is now regularly 2.8%, with dredging
rates last week exceeding target levels. Mill recoveries have fluctuated above and below target
throughout the last month, but the overall ramp-up in concentrate production has been encouraging,
with operating costs consistently below target levels.
ABN 25 001 150 849 The HZCP loaded its second ~5,000 tonnes shipment of bulk zinc concentrate at the Port of Burnie
on 27 March 2007, leaving ~3,000 tonnes at port awaiting the next scheduled shipment in mid-
April. Thus the HZCP production is approaching the point of regular monthly shipments.

The incorporation of high-grade zinc-bearing ore from BSM's Que River Mine offers the potential
to increase the overall quantity and quality of zinc bulk concentrate production by the HZCP and
thus to further enhance the HZCP's economics, whilst providing BSM with excellent near-term
cashflow at minimal up-front capital cost.
Each of INL and BSM bring specific strengths to their collaboration: BSM does so in geology,
exploration and (in joint venture with Mancala Pty Ltd) mine development, and as holders of by far
the largest and most prospective area of exploration tenements in northwestern Tasmania; and INL
does so in cashflow positive concentrate production (in joint venture with Polymetals) as owner of
the Intec Hellyer Mill and Hellyer tailings resource.

Additionally, INL will shortly be announcing its innovative process flowsheet and project plans to
unlock significant future value at Hellyer by production of additional saleable zinc units from its
own EAF dust stockpile and Zeehan Residues resources.


Yours faithfully,
Intec Ltd Philip R Wood
Managing Director & Chief Executive Officer

this is very encouraging news (which should have been price sensitive) - why hasn't the market reacted - I know the market can be irrational sometimes but I must say its getting ridiculous!

 

[Col Lector]

More good news! Agree, though maybe not price-sensitive in that most of it has been flagged previously - except move to 22% of BSM.
However, I think the market impact of the ann has been muffled by inclusion of this positive detail under a substantial shareholder notice heading. Many market watchers do not even open such notices.
I have been surprised that INL has not jumped higher in the last couple of days given the JRV bargain-buy notice, this good progress report, and firming zinc market........
Could be a good time to stock up....

 

[mango65]

I am an INL shareholder and have been for over 3 years so I am therefore very biased. Remember that!
Despite what JRV shareholders say INL's in and out play was brilliant. 8% of JRV at less than zero cost. INL has its own Ni process and was looking for a deposit to treat. JRV did not want to go that way. INL therefore sold much of its holding but has stayed with JRV as the major shareholder for free. INL may yet get to treat JRV ore if the Chinese don't come on board. INL can't lose. INL has already covered all its costs.
INL's holding in Bass Metals is also brilliant as it is picking up shares at well less than present market value. INL will also more than likely treat BSM ore and, beside getting revenue from that source, will improve its Zn/Pb concentrate going to China. A higher percentage concentrate means a lower cost of transport per tonne.
I agree that yesterday's announcement should have stirred the market but didn't. I think the stir will come with the release of the BFS which was due "before the end of the current quarter". In other words today! As usual with INL the announcement is late. It appears as though Worley Parsons has not yet finished the BFS.
Intec may be based at Sydney Uni but its personnel are not uni staff. Having met all directors and research staff I can say that all are truly professional and dedicated to furthering the Company.

 

[Col Lector]

Biased?? I call that very intelligent & insightful reasoning. Would appreciate it if you also snapped up a couple of million shares this afternoon to show just how strongly you feel.....

 

[Col Lector]

Hey Mango, INL obviously being depressed by uncertainty towards Zinc price in medium term due to potential supply response. What do you see as a reasonable SP if Zn remains between 3K and 3.5K USD, and production targets are met??ie, a ballpark price for INL?

 

[mango65]

Hi Col Lector.
I would love to be able to buy more INL but my finances don't allow it. Not even $500 worth which is the minimum through CommSec.

As for a predicted share price only a fool tries to put a value on a share. I have been in the stock market for well over 10 years and I have seen share prices go down when reports are good and share prices go up when reports are bad. Such is the fickelness of the market.

INL has put out its own predictions on revenue and return from the JV with PMS and the figures stack up.

It is the BFS that I am really interested in.

 

[Col Lector]

Fair enough Mango. I also see as a buy at these levels.... in fact in the queue at present at .175 to build on present holding.
When BFS does come out.... some in market may be scared by the potential capital costs?? Or maybe/hopefully will see INL's scope & opportunity to diversify from current Zinc conc focus.

 

[mango65]

The capital cost of the new polymetallic plant was expected to be about $US 135 million. That was before the demand for labour and materials increased. However with a known ore deposit with a life of 22 years, ability to process EAF dust which is obtained for free (and even a cash credit), the ownership of the Zeehan slag heap, agreements with Ford Motor Co for scrap, the new mill will have a life well past 22 years. Therefore the annual depreciation etc is not much in the way of things.
Add to the above the tailings from BSM, if INL and BSM agree to INL treating BSM ore.

 

[juiceman]

More good news! Agree, though maybe not price-sensitive in that most of it has been flagged previously - except move to 22% of BSM.
However, I think the market impact of the ann has been muffled by inclusion of this positive detail under a substantial shareholder notice heading. Many market watchers do not even open such notices.
I have been surprised that INL has not jumped higher in the last couple of days given the JRV bargain-buy notice, this good progress report, and firming zinc market........
Could be a good time to stock up....

I agree with your comments.
INL's sp has been locked in a down trend for a couple of months Re 27 day ma etc.
INL has a real chance of breaking out of that trend this week.
MACD has finnally turned up from a deep low, and it would only take a close a couple cents higher to change tech perspective on this company.Given the company Directors quiet understated comments of late, the next few week's could be interesting.
IMO worth a look.
holding inl longer term

 

[Sean K]

I agree with your comments.
INL's sp has been locked in a down trend for a couple of months Re 27 day ma etc.
INL has a real chance of breaking out of that trend this week.
MACD has finnally turned up from a deep low, and it would only take a close a couple cents higher to change tech perspective on this company.Given the company Directors quiet understated comments of late, the next few week's could be interesting.
IMO worth a look.
holding inl longer term

Surely will find support around this level. Almost back to where I first bought it on breakout from the long term sideways move.

(not holding)

(bought on false break, and sold on failure)

 

[juiceman]

Surely will find support around this level. Almost back to where I first bought it on breakout from the long term sideways move.

(not holding)

(bought on false break, and sold on failure)

Nice to see you picked up my post, Funny but it was one of your comments to Gundini [just buy INL!] back in Nov-Dec, that created my initial interest in the stock.
Currently a couple cents out of the money, but happy to be holding.
Thanks

 

[Moneybags]

Ann out by JRV regarding INL merger proposals..........seems as though some ill feeling between the 2 co's and some rather big claims from Purcell regarding INL's ability to extract precious metals.

MB

 

[DonTryThis@Home]

Rather incorrect claims would be more to the point. Only 1500 tons per year through Hellyer? Don't know how that's possible when they are shipping 5000 tons of concentrate out of the plant A MONTH! Someone at JRV made a boo-boo, and I think they are going to pay dearly for it....
INL's smugness, before and after the deal, has JRV management fuming, by the sounds of this. INL may as well just dump the JRV shares at market and buy back their own...

 

[chops_a_must]

Rather incorrect claims would be more to the point. Only 1500 tons per year through Hellyer? Don't know how that's possible when they are shipping 5000 tons of concentrate out of the plant A MONTH! Someone at JRV made a boo-boo, and I think they are going to pay dearly for it....

I think that's zinc, not nickel.

From a neutral perspective, I can't see anything wrong with the announcement.

 

[Moneybags]

Rather incorrect claims would be more to the point.

Exactly.........will be interesting to see how INL will counter. A huge dump of JRV shares should do the trick.

MB

 

[DonTryThis@Home]

Actually, I re-read the ann. and it does say Burnie could only do 1500 tons per year, not Hellyer. Not sure about the truth in that statement, either though....
Hopefully we will see some sort of rebuttal from INL this afternoon, anyhow, whether it be an ann. or a major JRV sellout. Nothing like a little corporate drama on a Monday afternoon...

 

[imajica]

actually the building of the new plant can be as big as required - it has been stated that if demand was high - a 40ktpa plant could be built - are u blind Chops? JRV are pathetic amateurs with no hope of mining their deposit!!!!!!

 

[chops_a_must]

actually the building of the new plant can be as big as required - it has been stated that if demand was high - a 40ktpa plant could be built - are u blind Chops? JRV are pathetic amateurs with no hope of mining their deposit!!!!!!

Could be but isn't. I don't particularly care, I don't hold either stock, I was just commenting on the statement. Didn't really appear to be anything shocking or massively out of line with what has been proven.