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News out.
TORONTO, CANADA, Aug 30, 2010 (MARKETWIRE via COMTEX) -- As reported in its Press Release of July 26, 2010, MagIndustries Corp. ("MagIndustries" or the "Company") /quotes/comstock/11t!maa (CA:MAA 0.40, +0.01, +1.27%) (the "Company") and COMPLANT had agreed on material commercial terms under which COMPLANT would acquire a controlling interest in the Company's Mengo Potash Project in the Republic of Congo. The parties have proceeded with the drafting of a Project Development Agreement ("PDA") reflecting these terms. The PDA was scheduled to be signed by both parties in Toronto by the end of August 2010, subject to the completion and results of final due diligence and technical evaluation by COMPLANT and receipt of authorizations by the boards of directors of each party. Meetings took place between senior managers of the two companies in Toronto but the expected approval from COMPLANT's controlling shareholder, State Development and Investment Commission ("SDIC") (a Chinese State Owned Enterprise) to sign the PDA is still pending.
MagIndustries understands that COMPLANT has forwarded technical and financial feasibility studies to SDIC recommending the transaction, subject to the completion and results of final due diligence and technical evaluation. The SDIC review of this recommendation is ongoing.
Pending the results of SDIC and other Chinese governmental approval processes MagIndustries continues in active dialogue with COMPLANT, however on a non-exclusive basis and is re-assessing other options in light of the dramatic changes occurring in the industry.
Overall the Potash supply industry is facing a fundamental re-shaping with BHP Billiton PLC's $38.6-billion (U.S.) takeover offer for Potash Corp. of Saskatchewan Inc (a valuation which requires higher potash prices in the future to provide a satisfactory financial return) and aggressive efforts underway to consolidate the Russian and Former Soviet Union producers. The implications of these pending changes are potentially negative for potash importing nations such as China, given the prospects of higher future potash prices and greater concentration of producers. These developments, in the Company's view, highlight the expected advantages of its Mengo Potash Project of relatively low capital cost per tonne of production, low production costs and scalability based on abundant reserves.
i am looking forward to reading the 43101, although i must admit i miss a lot of the geological analysis. I took a gander at the last 43101 from june 11 09, available at sedar. This gives another whole leg to MAA, and i for one have not understood that the discussions with Complant have included these wider reserves, i understood them to be Mengo specific.
I posted this article over at SH, but it didnt generate anything. Many of us have noted the complant spike in sp, including the halt mid-week. We all took it to be about MAA, but is it possible it wasn't? Is this why complant spiked? I don't know.
China Africa Development Fund has agreed to buy the additional shares and convertible bonds to be issued by HongKong-listed Hua Lien International (Holding) Co. Ltd at an aggregate HK$390 million.
The two parties has signed a memorandum of understanding (MOU) onJanuary 31, 2010. Under the MOU, the firm will sell 90 million additional shares at HK
.6 apiece, representing HK$54 million in total consideration. It will also sell to the fund 5-year convertible notesfor approximately HK$336 million.
The additional shares would represent 7.21% of the existing issuedshare capital and approximately 6.72% of the entire enlarged issuedshared capital. If all the convertible bonds are exercised, ChinaAfrica Development Fund will have a 34.23% stake in Hua Lien.
The proceeds will be used entirely to launch a joint venture in theRepublic of Benin, a country in West Africa, in partnershipwith China Africa Development Fund and COMPLANT InternationalSugar Industry Co. Ltd, which holds a 24.03% stake in Hua Lien. Hua Lien will take a 65% stake in the joint venture, whileChina Africa Development Fund will hold a 25%, and COMPLANT will take 10%.
The Benin joint venture will then be used as a vehicle to establisha Benin PC for engaging in Ethanol Biofuel business, targeting EuropeanUnion and Africa as its major markets.
COMPLANT is a subsidiary of the China National Complete PlantImport & Export Corporation (Group) , a wholly-ownedsubsidiary of the State Development & Investment Corp . COMPLANT is principally engaged in sugar cane planting and production of sugar products and ethanol in Africa.
Currently, Hua Lien International (Holding) Co. Ltd is an investmentholding company principally engaged in the manufacture and sale ofleather.
What China Africa Development Fund Has Done Founded in 2007, ChinaAfrica Development Fund is wholly owned by the China Development BankCorporation , focusing its investments in Africa. WithUS$1 billion in initial capital, the fund has deployed US$540 millionfor 27 projects, including agricultural projects in Ethiopia, Malawiand Mozambique; industrial zones in Egypt, Nigeria and Mauritius; and ashare of a power station in Ghana. The fund has also invested inZimbabwe. In a recent announcement, the Ministry of Commerce said thefund’s size has increased to US$3 billion, and targets at US$5 billion.
Gnorth, i hear you brother. I also have to cut my position, too much time is passing without a return, and however much i am taken with MAA's potential, there are other pretty ladies to dance with. However, i will keep a pretty big chunk, i just shouldnt be so overweight (so to speak!)
i think that a lot of us would be happy if they simply communicated more. When i invested in this--mostly about a year ago--i did so because i felt that i knew this stock better than most other ones that i was considering. Initially, that paid off handsomely. But slowly, the story began to change and i didnt feel that we were really being let in on it. By this past autumn, i felt uncomfortable in the fact that i no longer felt that i really knew what was going on, ie what i was invested in. Of course, the wildcards were the management, the context, the potential partners, not to mention the size of the project (especially in relation to mngmt experience)...that is quite a list, which grew over time. i prefer to see that list shrink, not grow. I began to feel uncomfortable about some events--the resignation of Jeff Swinoga as CFO and insider selling (supposedly a tax issue).
I am crossing my fingers that we have a new day, even if the market isn't going for it quite yet.
gnorth, i have never paid much heed to the magnesium aspect of MAA, so how significant is the fact that "Magnesium chloride (from the processing plant) remains the property of magmetals"?