Tuesday, October 21, 2014

Blina Minerals (BDI) – worthy of a punt?

One stock that has come up on the radar the last few days is this little gold and diamond tiddler, Blina Minerals (BDI).

With the stock not trading at $0.002 for over a month and a couple of buyers coming up on open yesterday morning and this morning paying the same price it hasn’t been hard to identify that there was something going on in the background.  This was confirmed today with a solid 29 million units changing hands with basically all the stock trading at $0.002 except for a small quantity on close.  The stock closed at $0.001 however this can more or less be ignored as these units sold into the close appear to be sold by a Chi X bot that bought during the day and has a mandate that it cannot hold overnight.

Anyway, now that the trading aspect has been covered let’s take a look at the story which starts with another company, Orbis Gold Limited (OBS).

Orbis Gold recently announced an updated scoping study showing very solid numbers on their Natougou gold project in Burkino Faso.  At the same time, the company also announced that they had received an unsolicited and indicative takeover proposal by Semafo Inc. for $0.62-$0.65 per share.  Interestingly, Semafo Inc. did not have a condition to complete due diligence on the OBS takeover.  In other words they are very confident that the company is undervalued and they are wishing to move quickly.  So much so, a few days later they announced the takeover for $0.65 per share.  Trading in OBS shares has resulted the price creeping up to $0.70 today.  This suggests that the market believes another bidder may appear or that the stock has been re-rated as a result of the scoping study.  At the start of trading today the market capitalisation on OBS is approximately $167 million.  They’ve also hired an adviser for their defence indicating that there’s going to be more to the story.

BDI tenements lie adjacent to OBS’ making it a nearology play.  BDI’s tenements appear to be on the same fault line.  BDI has a miniscule market capitalisation of approximately $1.5 million. As at June 2014 their cash balance was $1.4 million.

BDI have made the following comments on the project “The soil sampling showed high gold values in excess of 50ppb but Blina was unable to access the original analytical reports and has therefore adopted a cautious approach to the results. However, the regional setting of the Exploration Licence just 15km from the Natougou gold deposit on an interpreted north-northwest trending structure and along trend from the regional soil geochemistry anomaly of Orbis Gold makes the tenement an attractive exploration prospect.”

News flow on Blina Minerals is imminent with the July quarterly activities Report stating the following:

“A soil sampling programme has commenced and results will become available in the September quarter.”

These sampling results are now overdue.

Back in town

It's been a long time...

We quite often start things and we either lose interest, get too busy or it all becomes too hard.

I really enjoyed posting about the stocks that caught my attention and hopefully assisting others in identifying opportunities.  It's been over a year and a half since my last posting to this blog but I'm hoping to change this and start posting semi-regularly when I can.

I've sort of made a start with sending out some tweets to my followers recently.  For the times that I can't post in detail to my blog or it's a time sensitive piece of information I'll send out a tweet.  I highly recommend that you click on the "follow me on twitter" banner!

For those that have followed me on Twitter recently may have come across a couple of gems!  These have included alerts to watch:
  • Toro Energy (TOE) - Identified that the MD of TOE was in India with Prime Minister to sign uranium deal ($0.08 -> high $0.13) and;
  • Capital Mining (CMY) - Alerted to the acquisition of Chinese Cloud Computing company ($0.005 -> high $0.013)
Today and yesterday I also alerted followers to OGI Group (OGI).  I sent out a high priority tweet yesterday afternoon at $0.007 after the company announced that they were acquiring graphite licences adjacent to Triton Minerals (TON).  It took some time for the market to digest the news before the stock closed at $0.01.  Today the company went on to open at $0.014 and trade right up to $0.03 before settling down to $0.024 on close.

TON today announced it's Nicanda Hill Maiden JORC Resource.  Trading was very erratic.  In true TON style the stock opened up high before getting sold off to close up $0.09 at $0.405.

For a piece of nostalgia on TON and it's initial moves, I dug up a previous post here:

How far they have come in two years!
Happy trading.