NCO - Namibian Copper

[springhill]

NCO is currently working on the Ongombo Copper Project in central Namibia.
Historical drilling has produced Cu ranges from 1.3% to 3.9% with a 2.3%av. Project is situated approx 50km from a railway line that runs to port. Fellow miners in the area include Rio, Anglogold and Paladin.
On the negative side, delays were experienced last year due to the presence of trophy game hunters in the area. Good luck with that in the future!

SP - 14c
MC - $4m
Shares on Issue - 64m
12mth High/Low - 24/11c
Cash at Hand - $633k
Expenses this Q - $250k

Not enough cash and a risky area to work make this a no-go for me.

[springhill]

Backflip of the century award nomination time.
Have taken up a position in NCO upon further research.

Positive points i have taken out of this;
*Directors have extremely good pedigree, always an important point for me.
*Namibia not as risky as first thought, very open to foreign investment in their mining industry, which they support as it is one of only a few income earners.
*Political stability.
*Has coastline, no need to travel through other African countries.
*Copper at high prices, make exploration that bears fruit all the more better.

These are my reasons, and time will tell, for better or worse.

[springhill]

Recent concerns about the Namibian Govt nationalising certain 'strategic metals' including uranium and copper amongst others have been allayed by news reports that this only applies to future exploration and mining rights.

Good news for NCO.

Articles here.
http://www.metalbulletin.com/Article...lo-Mining.html

http://uraniuminvestingnews.com/7621...overnment.html

[springhill]

Recent concerns about the Namibian Govt nationalising certain 'strategic metals' including uranium and copper amongst others have been allayed by news reports that this only applies to future exploration and mining rights.

Good news for NCO.

Articles here.
http://www.metalbulletin.com/Article...lo-Mining.html

http://uraniuminvestingnews.com/7621...overnment.html

I have had written confirmation from the board that Ongombo is not affected by Namibian Govt's nationalisation plans.

Will not post publicly, but anyone watching this & interested can PM me.

[springhill]

NCO starting to look really strong now, glad i changed my mind on this one! Hard to keep an eye on things from OS, but was at 23c from my last check. Strong week or so for them.
Anyone else watching?

[springhill]

NCO entered a trading halt in regards to a project acquisition. Due to come out Wednesday.
http://www.asx.com.au/asxpdf/2011053...r4465z6kb7.pdf

[springhill]

NCO still in suspension since my last post on the trading halt.

I think these guys are sharp operators, they had a 1:1 Entitlement Issue of Options, with a conversion price of 20c on 30th June 2016, all set to go. Then on the 11th of May, with a closing SP of 14c, they mysteriously pull the Options Issue.

3 weeks later, with a closing SP of 22.5c, they go into a trading halt and then suspension pending an asset acquisition. At this point they could come out of suspension and issue a new entitlement at 30c+ depending on how good this acqusition is.
Presuming they keep the same conversion date for a new issue, this could potentially reap them an extra $7.3m+.

Speculation on my part, but seeing as we have been in suspension for 4 weeks now, they will hold this over until next financial year and dodge any end of financial year selling late this week.

Predicting within the first few days of July the announcement is made.

If they have made these moves deliberately, i think that is extremely clever directing.

Is anyone out there?

[springhill]

NCO has been in suspension for over 6 months now, but may be shaping to come out of it.
Recent announcement from Ongombo Project include a maiden JORC compliant inferred resource of 7.25Mt @1.7%Cu and 8g/tAg for 123,250t of Cu and over 1.8 million oz of silver.
http://www.asx.com.au/asxpdf/2012011...ys1b1nvwhb.pdf

I have also dug this up on a reason for continuing suspension.
http://www.marketwire.com/press-rele...gq-1607867.htm

"Namibian Copper NL of North Perth, Western Australia will acquire Sanu Resources, Inc. ("Sanu"), a wholly owned indirect subsidiary of NGEx. Sanu holds certain exploration licenses in Eritrea including the Hambok copper-zinc deposit."

Hambok is reported to contain an Ni-compliant resource of approximately 550 million pounds Cu, 1.18 billion pounds Zn, 170,000 ounces Au and 5.5 million ounces of Ag in Eritrea.

"Namibian Copper will acquire all of the issued and outstanding shares of Sanu for consideration of 50,000,000 ordinary shares of Namibian Copper"

Any thoughts?

[springhill]

NCO has come out of suspension with a rather disappointing SP slump, i may be right or wrong, but my opinion is the exiting of holders that have had their dollars trapped for over 7 months. Sell side looks to have dried up and buyers looking to soak up dwindling numbers of sellers.

Not a whole lot to add to previous posts except that the 50m shares issued to NGEx are escrowed for 12 months and the US $7.5m is payable upon first commercial production, subject shareholder approval.

For those interested shareholder presentation is here.
http://www.asx.com.au/asxpdf/2012012...9lcp4hf8jb.pdf

Agreement with NGEx here.
http://www.asx.com.au/asxpdf/2012012...r1bm77y9z9.pdf

[springhill]

Been a while since i have updated NCO, that's because it has been in suspension again! According to direct correspondance from Bob Timmins, the Eritrean Government wishes to participate in the Hambok project. Colin Ikin is currently in negotiation with the Government. The terms of the negotiation will define the course of the next capital raising.
Things with Hambok are at a stand still until terms of agreement are defined.

With respect to Namibian project, NCO are currently re-sampling some historical core as the original assays have gone missing from the Ministry of Mines and Energy. NCO hope this will significantly upgrade the JORC category of the resource.

This is still one of my favourites, love the tight structure and the management seem to be able to negotiate favourable terms for NCO.

[burglar]

...

This is still one of my favourites, love the tight structure and the management seem to be able to negotiate favourable terms for NCO.

At a glance:

[springhill]

At a glance:

Not the most exciting chart in the world is it? With only 78m shares on issue ATM and the 3 directors holding 21m of those, NCO can be fairly illiquid.
I am having trouble finding the top 20 shareholders, will write to NCO and report back any information replied.

[burglar]

Not the most exciting chart in the world is it? With only 78m shares on issue ATM and the 3 directors holding 21m of those, NCO can be fairly illiquid.
I am having trouble finding the top 20 shareholders, will write to NCO and report back any information replied.

The chart shows they are capable of rising 50% in one month, what is unexciting about that!!

[springhill]

The chart shows they are capable of rising 50% in one month, what is unexciting about that!!

They are also capable of going into suspension for months at a time....

[springhill]

Not the most exciting chart in the world is it? With only 78m shares on issue ATM and the 3 directors holding 21m of those, NCO can be fairly illiquid.
I am having trouble finding the top 20 shareholders, will write to NCO and report back any information replied.

Top 20 shareholders holding 71% of all shares on issue.
Correction, 73.8m shares on issue, not 78m.

[springhill]

NGEx and NCO have agreed to terminate their agreement for the Eritrean base metal project.
http://world.einnews.com/pr_news/103...trean-projects

Nothing released to market yet.

[springhill]

NGEx and NCO have agreed to terminate their agreement for the Eritrean base metal project.
http://world.einnews.com/pr_news/103...trean-projects

Nothing released to market yet.

I just spotted this in another companies announcement, i wonder if it has anything to do with the cancellation of agreement?

'There has been a considerable delay in getting a rig to site as it was expected that the programme would
have commenced in May. The delay was largely due to the Eritrean authorities changing the visa
requirements for foreign drillers and technical workers entering the country.'

[springhill]

Have corresponded with Bob via email. NCO due to come out of suspension shortly

[springhill]

An announcement by NCO will be released monday regarding both Namibia and Eritrea

[springhill]

COMPANY UPDATE

 Mineral resources at Ongombo in Namibia have been reclassified following a surface survey of the borehole collars.

 The January 2012 Maiden JORC compliant “Inferred” resource of 7.25 million tonnes (Mt) at 1.7%Cu and 8g/t Ag for 123,250t copper (270 million lbs) and over 1.8 million ozs silver, based on a cut-off grade of 1%Cu has been upgraded to “Indicated”.

 Based on a 1%Cu cut-off the reclassified JORC compliant resource now includes an inferred resource of 2.53 million tonnes (Mt) at 1.76%Cu and 8g/t Ag and an indicated resource of 4.72 million tonnes (Mt) at 1.60%Cu and 8g/t Ag.

 Namibian Copper NL (“NCO” or “the Company”) announces that it and NGEx Resources Inc (“NGEx”) have signed a Termination and Mutual Release Agreement. This mutually terminates the share purchase agreement signed 17 January 2012 (the "Agreement”) with respect to NCO’s acquisition of NGEx's base metal projects in Eritrea and to mutually release each other from any and all claims regarding the Agreement.

Having completed substantial due diligence on the Eritean projects the Board concluded that continuation
with the acquisition entailed unacceptable risk for the company and therefore the decision was taken not
to proceed and to negotiate a termination.