Toro Energy: interest from Asian suitors

The Australian Financial Review had a nice write-up in yesterday's paper regarding Toro Energy (TOE).  The article discussed how there was many Asian companies interested in becoming joint venture partners for the Wiluna uranium project in Western Australia however Toro Energy was happy to progress with necessary approvals solo for now.

Also discussed was the fact that other companies from around the world were keen to sign offtake agreements.  Toro Energy is hoping to be in production come 2013 and it is handy that it's major shareholder OZ Minerals (OZL) is still sitting on a lot of cash itself.

TOE shares last traded at $0.099 after being on continuous slide in the last year but bouncing from $0.064 in June 2010.

CuDeco bounces

CuDeco Limited (CDU) has bounced and seems set to finish on it's high for the day.  At 3:30pm AEST the shares are up $0.545 (32%) to $2.25.  The company share price has been bruised and battered and fallen from over $5 in a bit over a week especially since announcing the Rocklands Resource update on 18/08/2010.  In what was a disorganised attempt at an announcement and to arrest the share price slide CuDeco made clarifications, further clarifications and a press release too.

Finally, poor shareholders that have lost a lot lately have had some losses erased with the rebound in shares today after a letter from Sinosteel (partners in the project) to CuDeco showing continual support for the project was released to the ASX.

Other updates: AVB, NTU

Northern Uranium (NTU) has bounced back after being hit from it's announcement to place shares with Jiangsu Eastern China Non-Ferrous Metals Investment Holding Co to raise over $15million for a 51% holding in NTU.  I'm surprised with such a strong rebound in the shares and especially the volume being traded.  From reading chat on internet stock forums it appears many retail shareholders are going to vote against this and possibly egg-on the FIRB to reject the investment leading to a Lynas Corporation-style combeback.  A 9 million crossing of shares at $0.12 has also set tongues wagging with interest as to who the identity of the buyer may be.  Whatever the reasons the interest in rare earths companies is definitely back (if only for now).

Avanco Resources (AVB) made a nice little announcement today advising the market that Vale (iron ore behemoth) has taken an option to acquire the Trindade North Property from Avanco.  This will enable the company to earn royalties on any "in-situ JORC compliant iron ore resources in the measured and indicated categories" whilst focussing on it's copper projects.

Change in power at India Equities Fund?

I've talked about India Equities Fund a couple of times already because I always have an interest in shell companies and what may eventuate.  Anyway, this one seems to be hotting up quicker than I anticipated.  I mentioned how GW Holdings Pty Ltd popped up on the register as substantial holder.  Only five days later and with it's powers as a substantial share holder the company has called for a general meeting to overthrow the existing directors and replace them with James Chirnside, Alexander Feher and Gabriel Radzyminski.  It clearly shows that GW Holdings Pty Ltd is not going to be a passive shareholder and has plans for the shell...

I've done a quick search on these persons and whilst it didnt prove too fruitful you could generally see that they are of an investment funds-style background.

After a quiet week of trading in INE shares it is also interesting to note the jump in volume today with the shares up $0.005 to $0.062.

BHP Billiton takeover of Potash Corp sparks interest in all things potash, phosphate and fertilisers

BHP Billiton (BHP) has dived over 3.5% today after it announced that it had made a $US130 per share bid for Canadian listed Potash Corp.  Media reports have already speculated that it is likely that BHP will increase it's bid for the company.

One thing is for sure and that is other smaller players in fertiliser and phosphate and potash (ingredients in fertilisers) sectors have awoken.  For those interested in these sectors some of the plays include Incitec Pivot (IPL), a fertiliser supplier, potash companies such as Orecobre (ORE), Reward Minerals (RWD), Elemental Minerals (ELM), South Boulder Mines (STB) and phosphate companies such as Minemakers (MAK), and Union Resources (UCL).

Finally, other companies like Rum Jungle (RUM) are taking the opportunity to spruik their company by announcing responses to the takeover of Potash Corp for PR purposes.

Avanco Resources announces review of Serra Verde Copper Project

Avanco Resources (AVB) is another company that I have been following the last couple of weeks.  I posted about the stock approximately two weeks ago when the share price was at $0.019 and it has sinced hit $0.024 before settling at $0.02.

Today the company announced that better sampling results for copper/gold have been returned from its Serra Verde Copper Project and that is was planning a drilling programme.  The share price closed up $0.002 to $0.021 on turnover of just above 9.5 million shares.

I would anticipate the share price to settle for the next week now however it is encouraging that also towards the end of the announcement that it stated "The Company has received significant interest from groups seeking to jointly explore its projects including the Trindade North Property which is prospective for high grade Carajas style iron ore. The options available to Avanco are now being shortlisted and adjudicated. Negotiations are at an advanced stage and strong news flow on these and further Carajas Transactions is expected soon."

Statements such as this are only made when directors of companies are pretty confident.  Expect a bit of a kick in the share price in the next month or so should the directors be able to extract some good value from their projects for shareholders.

New substantial holder in India Equities Fund

I recently created a post on India Equities Fund (INE) on 08/08/2010 regarding the fact that the company appears undervalued considering the cash it will be holding after a capital return to shareholders and the value of the listed ASX shell.

Only 5 days later a new substantial holder noticed was lodged on 13/08/2010 with GW Holdings Pty Ltd declaring an interest of 22,752,981 shares (18.8%) purchased on 10/08 and 11/08.  I am interested to see what the intentions are of this company.  Unfortunately google searches proved unsuccessful so I couldnt join any dots together and work out what kind of investments this company has undertaken in the past to gauge whether they have a track record of using shell companies to effectively 'vend in' or backdoor list other companies.  Watch this space.

For those with experience in company options it is interesting to note that the bid/ask spread on INE is 0.053/0.058 whilst on the options it is 0.05/0.064 so possibilities of arbitrage could occur (liquidity allowing).  The INEO options have an exercise price of zero (0) however expire at the end of August, in other words, don't forget to allow for postage time for your exercise form to get to the share registry.